bangladesh investment hand book 2007

Board of Investment

Bangladesh Investment

HANDBOOK

II

Bangladesh Investment Handbook3rd Edition, May 2007© Board of Investment, Bangladesh

Printing & Design in Dhaka, Bangladesh by Dot Net Limited www.dotnet-bd.comPhotography by Ron/Ikon Photo, Rafique/Prism, Hafizur Rahman/Dot Net Ltd.

Citations from and references to this Handbook is permissible, but must be properly acknowledged.

ISBN 984-32-3656-4

For detailed and further information:

Board of Investment Chief Adviser’s Office, Government of the People’s Republic of BangladeshJiban Bima Tower (19th Floor), 10 Dilkusha C/A, Dhaka 1000, Bangladesh.Phone: (880-2) 955 9378, 956 1430-1, 956 1433 Fax: (880-2) 956 2312Email: [email protected], [email protected] Web: www.boi.gov.bd

Online version of this Handbook is available at www.boi.gov.bd/publications.htm

DisclaimerThis Handbook provides a roadmap and necessary information guidance to the intending private investorsin Bangladesh. However, prior to taking any investment decision, investors are encouraged to makefurther independent check from BOI and other relevant authorities to be sure of the up-to-date informationand legislation. BOI does not accept any liability in relation to the contents of this Handbook.

III

Executive Chairman’s MessageBangladesh has been experiencing a transitory stage from an agrarian economiccomposition towards an industrial economic structure. Industry has gradually been takingup the major share of the national income. In the last two and half decades, contributionof industry in the GDP nearly doubled to 29.01% while agricultural contribution declinedby one-third to 21.77% during the same period. Private sector investment rose significantlyto 18.7% of GDP. FDI has got the momentum and experienced the highest inflow of US$845 million in 2005.

Recognizing the rising role of private sector as a key actor in the economy, Bangladesh iskeen to ensure a sustained conducive business climate. Implementation of private sectorled growth strategies, undertaking pragmatic reforms and enhancing the facilitative role ofthe regulatory agencies and institutions are the prime agenda of government. We envisionraising private investment to 25% of GDP, driving industry's contribution to 40% of GDP,quadrupling FDI inflows, increasing GDP growth to 10% attaining 100% literacy rate andreducing the percentage of population below the poverty line to 20% by 2015.

Bangladesh offers a competitive location for doing business in terms of costs, inputs,human resources, market access, facilitation etc. Investing in the appropriate sector inBangladesh would yield higher returns than many other competing locations with lesserrisks.

Finally, I am indeed delighted to reiterate that BOI as institution has now transformed to atrue facilitator of private investment. I would like to invite you to invest in Bangladesh andparticipate in our united efforts to build a prosperous economy for the future generation.

Md. Nazrul Islam, ndcExecutive Chairman

BOARD OF INVESTMENT

Chief Adviser’s Office

IV

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Board o f Inves tment 2 0 0 7V

The Third Edition of Bangladesh Investment Handbook presents most updated

information and data relating to investment. New inclusions in this edition are

permission process of Branch/Liaision/Representative Offices, procedure of listing

Private Sector Infrastructure projects at PICOM, New Industrial Policy of 2005,

Revised Visa Policy etc.

Investment promotion and facilitation are, among others, the two key functions of

Board of Investment (BOI). As the apex national Investment Promotion Agency (IPA),

BOI has been offering comprehensive services to the investors starting from initial

counseling even to product marketing advices. Publication of handbooks, newsletters,

statistical results and sectoral briefs is an effective tool for disseminating necessary

information on such services. “Bangladesh Investment Handbook” is an all-

inclusive information kit and first-hand guide for the investors.

This Handbook contains eight chapters. Chapter 1 and 2 present basic country facts,

investment scenario and detail information on investment climate and incentives. BOI

functions and services are detailed in Chapter 3, while Chapter 4 describes

step-by-step procedures for setting up businesses in Bangladesh. Cost of doing

business and brief profiles of the competitive sectors are illustrated in Chapter 5 and

6 respectively. Chapter 7 exhibits information regarding settling industries in

Bangladesh. Important contacts and relevant information sources are listed in Chapter

8. At the end, relevant forms, regulations and policies annexed as Appendices for

ready references.

BOI welcomes constructive comments and suggestions from the readers, specially

investors, for improvement of this Handbook.

PrefacePreface

VI


Board o f Inves tment 2 0 0 7VII

ADB : Asian Development BankADP : Annual Development ProgramAOA : Article of AssociationASEAN : Association of South

East Asian NationsBAS : Bangladesh Accounting

StandardsBBS : Bangladesh Bureau of

StatisticsBCIC : Bangladesh Chemical

Industries CorporationBEPZA : Bangladesh Export

Processing Zones AuthorityBGFCL : Bangladesh Gas Fields

Company LimitedBGSL : Bakhrabad Gas System Ltd.BIDS : Bangladesh Institute of

Development StudiesBIMSTEC : Bangladesh, India,

Myanmar, Sri Lanka and Thailand Economic Co-Operation

BIN : Business Identification NumberBITs : Bilateral Investment Treaties BMPP : Barge Mounted Power PlantBOI : Board of InvestmentBOT : Build Operate TransferBPDB : Bangladesh Power

Development Board BR : Bangladesh RailwayBSCIC : Bangladesh Small and

Cottage Industries Corporation

BTRC : Bangladesh Telecom Regulatory Commission

BTTB : Bangladesh Telegraph and Telephone Board

BTV : Bangladesh TelevisionC&F : Cost and FreightCBI : Confederation of British

IndustryCDC : Commonwealth

Development Corporation

CDS : Central Depository SystemCEPZ : Chittagong Export

Processing ZoneCIF : Cost-Insurance-FreightCIFE : Chief Inspector of Factories

and EstablishmentsCP : Clearance PermitCPA : Chittagong Port AuthorityCRF : Clean Report of FindingsCSDC : Chittagong Skill

Development CentreCSE : Chittagong Stock Exchange DA : Documentary

AcceptanceDEG : Deutsche Investitions und

Entwicklungsgesllschaft Gmbh (German Investment Bank)

DEPZ : Dhaka Export Processing ZoneDESA : Dhaka Electricity Supply

AuthorityDFID : UK Department For

International DevelopmentDSE : Dhaka Stock ExchangeDTA : Domestic Tariff AreaDTTs : Avoidance of Double

Taxation TreatiesDOE : Department of EnvironmentECA(s) : Export Credit Agency(ies)EIU : Economist Intelligence UnitEPB : Export Promotion BureauEPZ(s) : Export Processing Zone(s)EXIP(s) : Export Insurance Policy(ies)FDI : Foreign Direct InvestmentFMO : Nederlandse Financierings-

Maatschappij voor Ontwikkelingslanden

GDP : Gross Domestic ProductGIS : Geographical Information

SystemGNP : Gross National ProductGOB : Government of BangladeshGSM : Global System for Mobile

AcronymsAcronyms

Board o f Inves tment 2 0 0 7VIII

GSP : Generalised System of Preferences

GTZ : GmbH Deutche Gesellschaft fuer technische Zusammenarbeit

ICAB : Institute of Chartered Accountants of Bangladesh

ICC : International Chamber of Commerce

ICSID : International Center for Settlement of Investment Disputes

IDA : International Development Agency

IDCOL : Infrastructure Development Company Limited

IFC : International Finance Corporation

IIFC : Infrastructure Investment Facilitation Center

ILO : International Labor Organization

IMF : International Monetary FundIPA : Investment Promotion AgencyIP : Import PermitIPDC : Industrial Promotion and

Development Company of Bangladesh Ltd.

IPO(s) : Initial Public Offering(s) IPP(s) : Independent Power Producer(s)IPR : Intellectual Property RightsIRC : Import Registration CertificateISO : International Organization for

StandardizationIT : Information TechnologyJBC : Jiban Bima CorporationJGTDSL : Jalalabad Gas Transmission

and Distribution System Ltd.JICA : Japanese International

Cooperation AgencyJV : Joint Venturekm : KilometerL/C : Letter of CreditLCAF : Letter of Credit Authorization

FormLIBOR : London Interbank Offered RateMFA : Multi-Fibre AgreementMIGA : Multilateral Investment

Guarantee AgencyMNC(s) : Multinational Corporation(s)MOA : Memorandum of AssociationMOU : Memorandum of Understanding

MOPT : Ministry of Post and Telecommunication

NBR : National Board of RevenueNCB(s) : Nationalized Commercial

Bank(s)NCID : National Council for Industrial

DevelopmentNEMAP : National Environment

Management Action PlanNIE : Newly Industrialized

EconomiesNRB : Non-Resident BangladeshiOECF : Overseas Economic

Cooperation FundOPIC : Overseas Private Investment

CorporationPCs : Personal ComputersPICOM : Private Infrastructure CommitteePSIG : Private Sector Infrastructure

GuidelinesPSCs : Production Sharing ContractsPSI : Pre-Shipment InspectionREB : Rural Electrification BoardRGSC&F : Registrar of Joint Stock

Companies & FirmsRMG : Ready Made GarmentsROI : Return on InvestmentROO : Rules of OriginSAARC : South Asian Association for

Regional CooperationSAPTA : South Asian Preferential

Trading ArrangementSAFTA : South Asian Free Trade AreaSEC : Securities and Exchange

CommissionSOE(s) : State-Owned Enterprise(s)SRO : Statutory Regulatory OrderTIN : Tax Identification NumberTGTDCL : Titas Gas Transmission and

Distribution Company Ltd.Tk. : TakaTNC(s) : Transnational Corporation(s)TRIPs : Trade Related Aspects of

Intellectual Property RightsUNCTAD : United Nations Conference on

Trade and DevelopmentVAT : Value Added TaxVSAT : Very Small Aperture TerminalsWIPO : World Intellectual Property

OrganizationWTO : World Trade Organization

Board o f Inves tment 2 0 0 7IX

1. Bangladesh: Country Information 1-311.1 Country Overview 31.2 People and Society 8

a. Population and Demographicsb. Health and Educationc. Governance and Policies d. Social Development Indicators

1.3 Economy and Business 12a. Economic Performance b. Trade and Investment

1.4 Major Sectors of the Economy 14a. Agricultureb. Industryc. Power and Energyd. Banking and Financee. Transport and Communication

1.5 Private Sector Investment Scenario 20

2. Investment Climate and Incentives 32-532.1 Investment Climate 35

a. General Featuresb. Legal Framework for Foreign Investmentc. Bilateral Investment Agreementsd. Credit Rating and Country Risks

2.2 Infrastructure Readiness 38a. Utilitiesb. Transportationc. Communication

2.3 Facilitation and Promotion 41a. BSCICb. BEPZAc. Privatization Commissiond. Board of Investment

2.4 National Taskforce for Investment Facilitation 442.5 Investment Incentives 452.6 CIP Policy 52

3. Board of Investment : Profile & Procedures 54-613.1 Structure and Objectives 57

a. Formation of BOIb. Objectives of BOI

3.2 Functions and Facilities 58a. Functions of BOIb. Services Available from BOI

ContentsContents

Board o f Inves tment 2 0 0 7X

3.3 Procedural Mapping : First Contacts 603.4 BOI Partnerships with Private Sector 61

a. Advocacy for Private Sector Developmentb. Institutional Partnership Initiative: CSDC

4. Business Setup Roadmap 62-864.1 Business Set up at a Glance 654.2 Info Searching 654.3 Physical Verification 68

a. Immigration Procedures b. BOI Counseling

4.4 Getting Structured 69a. Selecting a Business structureb. Incorporating a Companyc. Opening Branch/Liaison/Representative Officesd. Securing Trade License

4.5 Operational Set up for Industries 72a. Registering with BOIb. Obtaining Industrial Plotc. Registration/Approval for Foreign Loan,

Suppliers' Credit, PAYE Scheme etc.d. Obtaining Utility Connectionse. Import of Machinery & Raw Materialsf. Obtaining Work Permit g. Registering with Factories Acth. Registering with Environmental Legislationi. Remittance of Royalty, Technical Know-How

and Technical Assistance Fees4.6 Commercial Operation 794.7 Human Resources and Employment 794.8 Listing Private Infrastructure Project 804.9 Exchange Control 83

5. Costs of Doing Business 88-105 5.1 Typical Costs of Doing Business in Bangladesh 915.2 Taxation in Bangladesh 1025.3 Customs Tarrif 1045.4 Comparative Costs in competing locations 104

6. Competitive Sectors for Investment 106-1356.1 Textiles 1096.2 Spinning 1116.3 Frozen Foods 1176.4 Leather 1186.5 Electronics 1206.6 Agro-based Industry 122

Board o f Inves tment 2 0 0 7XI

6.7 Information Technology 1236.8 Ceramics 1256.9 Light Engineering 1276.10 Natural Gas-based Industries 1286.11 Steel 1316.12 Pharmaceuticals 134

7. Settling in Bangladesh 136-1457.1 Harmonious Living 1397.2 Cultural Shock 1397.3 Adapting to Life 1407.4 Affordable Living Costs 1417.5 Schooling & Healthcare 1427.6 Entertainment and Recreations 1427.7 Tours and Travels 1437.8 Workdays and Business Hours 1447.9 Flight Schedules 1447.10 Useful Bangla Words 144

8. Important Contacts and Information Sources 146-1768.1 Government Bodies 1498.2 Trade and Chamber Bodies 1538.3 Specialized Associations 1568.4 Foreign Missions in Bangladesh 1628.5 International Organizations 1688.6 Bangladesh Missions Abroad 1718.7 Board of Investment 177

Appendices 180-219I. Application Forms for BOI Services

a. Application for Registration of Foreign/Joint Venture Investment 183b. Application for Employment of Foreign Nationals in the Industries 185c. Application for Registration of Foreign/Joint Venture Commercial Offices 189d. Application for Employment of Foreign National in Commercial Offices. 191e. Visa Application 193f. Application for Approval of Foreign Borrowing Agreement 195

II. Relevant Legislation & Highlights/Policiesa. Foreign Private Investment 198

(Promotion and Protection) Act 1980b. Investment Board Act 1989 201c. Baggage Rules 2000 209d. Application for Visa Policy 214

III. Bangladesh Industrial Policy 2005 219

Board o f Inves tment 2 0 0 7XII

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Map No. 4170 Rev. 4 UNITED NATIONSJanuary 2004

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Board o f Inves tment 2 0 0 7XIII

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The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

The boundaries of the nuclear-weapon-free areas on this mapare solely indicative.

*Dotted line represents approximately the Line of Controlin Jammu and Kashmir agreed upon by India and Pakistan.The final status of Jammu and Kashmir has not yet beenagreed upon by the parties.

**Appears without prejudice to the question of sovereignty.

Department of Peacekeeping OperationsCartographic Section

30 60 90 120 150 180

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Board o f Inves tment 2 0 0 7XIV

Jodhpur

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Jabalpur

Nagpur Raipur

Jamshedpur

RaurkelaKharagpur

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Rawalpindi

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Pondicherry

Trivandrum

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Kozhikode(Calicut)

Mangalore Vellore

Bellary

Kalyan

Belgaum

Tuticorin

Matara

Kandy

Negombo

Jaffna

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Trincomalee

Port Blair

Jaipur

KakinadaVijayawada

Guntur Machilipatnam

Vishakhapatnam

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Bhubaneswar

Khulna

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Hyderabad

Turbad

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Kolhapur

Mysore

Salem

Dadu

Larkana

Bahawalpur

Gilgit

Kashi

Hotan

Peshawar

Gandhinagar

Shillong

XigazÍLhasa

Dibrugarh

Itanagar

Mandalay

Sittwe

Imphal

Aizawl

ChandigarhSimla

Gorakhpur

Kavaratti

Patna

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(Banaras)

Varanasi

Herat-

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BhopalIndore

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AhmadabadVadodara

Mumbai(Bombay)

Chennai(Madras)

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The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

Dotted line represents approximately the Line of Controlin Jammu and Kashmir agreed upon by India and Pakistan.The final status of Jammu and Kashmir has not yet beenagreed upon by the parties.

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Board o f Inves tment 2 0 0 7XV

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LEGENDInternational BoundaryDivision BoundaryDistrict BoundaryCapitalDivisional HeadquartersDistrict HeadquartersRivers

BangladeshBangladesh


The first and foremost question arises before initiating foreign investment decision process is the country information. This chapter would answer some very relevant queries on Bangladesh like:� demographic and social developments � general economic conditions� infrastructural and environmental aspects � reform agenda and government commitment� present investment scenario

Jatiya Sangshad Bhaban (National Assembly Building), DhakaNational Assembly Building is one of the majestic public buildings. The Sangsad Bhavan complex is located at Sher-e-Bangla Nagar of Dhaka city. National Assembly Building is an architectural masterpiece for which the nation is proud of. Starting from the beginning of architectural history, say from the time of the Pyramids till modern times, if a list of most significant buildings of the world is made, the National Assembly building complex will feature very prominently among the top few in that list. It can be said to be the culmination of the modern period of architecture and the beginning of that of the post-modern era. This magnificent building stands as a silent evidence of the creative devotion and poetic vision of its American architect, Luis Khan.

1

1.1 Country Overview1.2 People and Society

a. Population and Demographicsb. Health and Educationc. Governance and Policies d. Social Development Indicators

1.3 Economy and Businessa. Economic Performance b. Trade and Investment

1.4 Major Sectors of the Economya. Agricultureb. Industryc. Power and Energyd. Banking and Financee. Transport and Communication

1.5 Private Sector Investment Scenario

1Bangladesh:

Country Information

THIS CHAPTER INCLUDES

2


Board o f Inves tment 2 0 0 73

Official Name : The People's Republic of Bangladesh

In Short: Bangladesh

Acronym: BD or BGD

Internet Domain : .bd

Geographical Location : North-Eastern part of South Asia Coordinates

Between 20034' and 26

038' North latitude and

between 88001' and 92

041' East longitude

International Boundaries : North - India (West Bengal & Meghalaya)

West - India (West Bengal)

East - India (Tripura & Assam) and Myanmar

South -The Bay of Bengal

Area : 147,570 square km.

(Territorial water - 12 nautical miles)

(Exclusive Economic Zone - 200 nautical miles)

Land Type : Mainly consists of flat fertile alluvial land.

Capital City : Dhaka (Metropolitan Area 522 sq km.)

Standard Time : GMT + 6 hours

Climate : Sub-tropical monsoon

Climate Variations : Winter : November - February

Temperature : Average maximum 290C

Average minimum 110C

Summer : March - June

Temperature : Average maximum 320C

Average minimum 210C

Monsoon : July - October

80% of rainfall occurs during monsoon

Rainfall : 1,194 mm to 3,454 mm

Humidity : Highest : 99 percent (July)

Lowest : 36 percent (December & January)

Vegetation : Grassland, mixed evergreen and evergreen.

a. Geography & Climate

Country . . .1.1 Country Overview


Population : 138.8 million (Protected)Male-Female Ratio : 105.4Population Growth Rate : 1.43%Population Density : 941/km2

Adult Literacy Rate : 65%(15 years +)Ethnic Groups : Predominantly mixed group of Proto

Austroloids / Drvidians, Mongoloids and Aryans.Language : Bangla : 95%

Dialects : 5%English : Widely spoken in all parts of Bangladesh

Religion : Muslim : 88.3%Hindu : 10.5%Buddhist : 0.6%Christian: 0.3%Animists and believers in tribal faiths : 0.3%

Human Resources : - A substantial trained and skilled human resourcewith a lot of potentials.

- Professionals include engineers, technicians, physicians, economists, accountants, administrative and managerial personnel

- Low-cost, easily trainable and adaptable, hard working, intelligent and youthful labor force.

Educational : Public Universities : 22Institutions Private Universities : 54

Colleges : 1302Polytechnic Institutes : 117Medical Colleges : 40Dental Colleges : 10Secondary Schools : 19,766Primary Schools : 82,864

Labor Force : Total Labor Force (million) : 44.30 million(Labor Force Survey Male : 34.50 million2002-2003) Female : 9.80 million

Sectoral Distribution of Labor Force: Agriculture : 51.69%Industry : 13.56%Others : 34.75%

b. Demographics (FY 2006)


The First Bangladeshi Nobel Laureate Professor Muhammad Yunus is a great pridefor Bangladesh.

… poverty in the world is an artificial creation. .…“The one message that we aretrying to promote all the time,that poverty in the world is anartificial creation. It doesn'tbelong to human civilization,and we can change that, we canmake people come out ofpoverty and have the real stateof affairs. So the only thing wehave to do is to redesign ourinstitutions and policies, andthere will be no people who willbe suffering from poverty. So Iwould hope that this award willmake this message heard manytimes, and in a kind of forcefulway, so that people startbelieving that we can create apoverty-free world. That's what Iwould like to do.”

Telephone interview with ProfessorMuhammad Yunus immediately following

the announcement of the 2006 Nobel PeacePrize, October 13, 2006. By Adam Smith,

Editor-in-Chief, Nobelprize.org. Born on 28 June 1940, Professor Muhammad Yunusis a Bangladeshi banker and economist. He is thedeveloper and founder of the concept of microcredit, theextension of small loans to entrepreneurs too poor toqualify for traditional bank loans. He is also the founderof Grameen Bank. In 2006, Yunus and the bank werejointly awarded the Nobel Peace Prize, for their efforts tocreate economic and social development from below.

Source:http://nobelprize.org/nobelprizes/peace/laureates/2006/yunus-telephone.html

Source: http://www.sfgate.com/cgi-bin/object/article?f=/c/a/2003/06/07/BU55687.DTL&o=1


c. Resources

d. History & Government

Food : Rice, vegetables, pulses, fish and meat.

Principal Crops : Rice, wheat, jute, tea, tobacco and sugarcane.

Principal Rivers : Padma, Brahmaputra, Jamuna, Meghna, Karnaphuli,

Teesta, etc. Total 230 rivers including tributaries.

Mineral Resources : Natural gas, limestone, hard rock, coal, lignite, silica,

sand, white clay, radio-active sand, etc.

History : Recorded history traceable to the 4th century B.C. with clear evidence of flourishing civilization consisting of cities, palaces, temples, forts, seats of learning and monasteries.1200 : Advent of Islam, enjoying periods of

prosperity under Muslim rule till 1757; 1757 : Beginning of British colonial rule; 1947 : End of British colonial rule;

Present Bangladesh territory (East Bengal) became East Pakistan as part of Pakistan;

1971 : Emergence of the sovereign state of Bangladesh through a 9-month long war of liberation.

Government : Parliamentary form of Government headed by the Prime Minister.The President is the constitutional head of the state.

continued ...


Currency : Taka. In short : Tk.GDP at Current Price : Tk. 4,161.55 billion

US$ 63.054 billionPer Capita GNI : US$ 482GDP Growth(at Constant Price) : 6.71%Industrial Growth (at Constant Price) : 9.56%Inflation Rate : 6.17%Investment Rate : 24.97% of GDPNational Savings Rate : 26.61% of GDPExports (US$) : US$ 10,526.16 millionImports (US$) : US$ 13,949.79 million

Exchange Rate (Average) : US Dollar = Tk. 66.68with selected International Euro = Tk. 83.32Currencies (2006) British Pound = Tk. 124.86

Australian Dollar = Tk. 48.74Japanese - Yen = Tk. 0.56Swiss Frank = Tk. 52.79Hong Kong Dollar = Tk. 8.54Saudi Riyal - SAR = Tk. 17.64

Foreign Exchange Reserve : US$ 3,877.0 million on (31-12-2006)Bank Rate : 5.00% Major Industries : Textiles, Garments, Basic Chemical, Paper,

Newsprint, Fertilizer, Leather and Leather Goods, Sugar, Cement, Fish Processing, Pharmaceuticals, Jute, Tea, etc.

Traditional Export Items : Raw jute, jute manufactures (hessian, sacking, carpet backing, carpets), jute products, tea, leather, leather products etc.

Non-traditional Export Items : Garments, frozen shrimps, other fish products, newsprint, paper, naphtha, furnace oil, urea, ceramic products etc.

Major Imports : Wheat, oil, seeds, crude petroleum, rawcotton, edible oil, petroleum products, fertilizer, staple fibers, yarn, iron & steel, capital goods, etc.

Major Trading Partners : USA, EU Countries, India, China, Japan, South Korea, Australia, Malaysia, Hong Kong, Taiwan, Indonesia, Pakistan, Thailand, Kuwait, Saudi Arabia, UAE.

e. The Economy (FY 2006)


a. Population and Demographics

Bangladesh is the ninth most densely populated country having a very young populationover 70% of the total population. About 77% of population live in rural areas. Thesignificant point is, growth in the urban population (by birth and migration) significantlyincreased by 38% over last decade (1991-2001).

f. Air, Sea and River Ports

Table 1.1

International Airports : Zia International Airport, Dhaka,Shah Amanat International Airport, Chittagong Osmani International Airport, Sylhet.

Domestic Airports : Dhaka, Chittagong, Sylhet, Syedpur,Cox’s Bazar, Rajshahi, Jessore and Barisal.

Sea Ports : Chittagong and Mongla.Inland River Ports : Dhaka, Chandpur, Barisal, Khulna,

Narayanganj, Sirajganj etc.

Source: Bangladesh Economic Survey 2006, Ministry of Finance, GOB

Demographic Indicators FiguresPopulation 138.8 millionPopulation Growth Rate 1.43%Population Density 941 per km2

Crude Brith Rate (per 1,000 population) 20.09 personsCrude Death Rate (per 1,000 population) 5.1 personsSex Ratio (Male : Female) 105.8Life Expectancy at Birth 64.9 yearsMale 64.5 yearsFemale 65.4 yearsAdult Literacy Rate 65%

Demographic Indicators of Bangladesh in 2005-06

People &. . .1.2 People & Society


b. Education and Health

Five years of primary education is compulsory for all since 1993. As a result,enrollment rate has risen to above 95%. Besides, present government encouragesfemale education offering free education upto Higher Secondary level, scholarshipsfor female students, establishment of female universities etc. As half of ourpopulation is female, their participation would substantially influence women’scontribution in economy and ensure gender equity.

Government adopted a long termstrategic plan with assistance ofWorld Bank named “HigherEducation Strategic Planning 2005-2006’’ for ensuring higher education.Also Government has continuedSector Wide Approach (SWAP) ofHealth, Nutrition and PopulationSector Program (HNPSP). Inachieving Millenium DevelopmentGoal (MDG) of universal primaryeducation by 2015, Government hasgiven Priority in education by givinghighest allocation from budget. Over80% of the country’s children are immunized against six killer diseases polio,diphtheria, whooping cough, tetanus, tuberculosis and measles. Use of contraceptiveshas increased from about 20% in early 80s to about 60%.

A growing interest of private sector has been experienced in this sector since early2002. Apart from Bangladeshi investors, USA, Thailand, Singapore and India haveshown keen interest to invest in health services delivery.

Sector Expenditure Detail (Taka in Crore ) 1998-99 2002-03 2004-05

Health, Population & Family Welfare 1,020.87 1,149.01 1,389.38Social Welfare, Youth & Women Affairs 165.83 195.54 160.21Education & Religion 1,693.47 2,373.97 1,975.59

Expenditure from ADP in Health & Education related Sectors

Source: IMED, Ministry of Planning

Table 1.2


c. Governance and Policies Bangladesh is a democratic country where people live from different religions andfaiths in harmony. It is a constitutional republic with a multi-party parliamentarydemocracy. Regular free and fair parliamentary election is held under a neutral andnon-partisan caretaker government system. The President is the head of the stateelected by the members of the parliament for a five year term while executive poweris exercised by the cabinet headed by the Prime Minister. The President appoints thePrime Minister, and on the recommendation of the Prime Minister, other Ministers.

Bangladesh has a four tier local government system. Following table presentsadministrative units at different levels.

Ensuring good governance and promoting socio-economic development areimportant areas of concern and the government has initiated various supportivepolicy reforms to achieve these objectives. These include:

● Poverty Reduction Strategy (PRS)● Market-driven fiscal reforms● Liberal monetary policy● Total literacy movement● Comprehensive health services● Friendly foreign policy● Export diversification● Rapid privatization of SOEs● Increased private sector participation● Conducive investment regime

Table 1.3

Source : Bangladesh Bureau of Statistics

Administrative Units NumberDivision 6District 64Sub-district (Upazila) 482Union (Rural) 4500City Corporation 6Municipaliti 309

Administrative Units of Bangladesh


d. Social Development Indicators

Bangladesh has made subs-tantial progress in the socialdevelopment. The Government,undertook ambitious scheme toimprove general literacy ingeneral and female literacy inparticular, started creatingconducive environment forinvestment and above allestablished rule of law in thecountry. Improvement in varioussocial development indicatorsduring the last decade is thetestimony of all these efforts.

At all levels, women’s awarness of different issues and their participation in povertyalleviation program as well as other programs has increased. Legislation againstdowry, discrimination and other violation against women has been put in place, andstrictly implemented.

Nobel laureate Amartya Sen lauded the success ofBangladesh

Bangladesh’s achievements in these sectors (ruraldevelopment, education and health) are veryremarkable. “We have many things to learn fromBangladesh. Bangladesh has made much progress inliteracy campaign. Womenfolk have advanced much inBangladesh. Bangladesh has also made remarkableprogress in population control. In a family, once sixchildren uses to born, now it has come down to three.He said and called upon the Indian government tofollow the Bangladesh path of population control.

Sources: Bangladesh Economic Review 2006, Ministry of Finance, GOB & BBS., (-) Data not available

Indicator Unit 1991 2003 20061. Annual GDP Growth % 3.38 5.3 6.712. Per Capita GDP US$ 277 389 4563. Total Export million US$ 1,718 6,548 84834. Population Growth % 2.17 1.42 1.425. Adult Literacy Rate (15 years & above) % 35.32 65.00 65.006. Infant Mortality at Birth Per 1,000 live births 92 51 517. Life Expectancy at Birth Year 56.10 68.2 -8. Access to Safe Water % - 97.9 -9. Enrolment Rate % - 95 -

Social Development Indicators of Bangladesh during 1991 to 2006

Table 1.4


a. Economic Performance Bangladesh is in the process oftransition from a predominantlyagrarian economy to an industrialand service economy and hereprivate sector is playing anincreasingly active role in theeconomic life of the country, whilethe public sector concentrates moreon the physical and socialinfrastructure. Notably, state-ownedenterprises have been undergoingto rapid privatization.

In line with the development priorities, the Government has been providing necessary incentives and assistant to selected sectors of the economy.

Macro Economic Highlights

Table 1.5

Citigroup on Bangladesh and its EconomyFor a country that had once been referred to as amember of the “Fourth World” the poorest of thepoor, Bangladesh’s record of development makes aremarkable story of admirable accomplishments.Despite gigantic natural and economic disasters,chronic poverty and a rapidly increasing population,Bangladesh has shown a striking ability to surviveand make progress. Its per capita income rose fromUS$298 in FY94 to US$421 currently while its socialindicators have improved across the board.”Source: Economic and Market Analysis: Asia Pacific- Bangladesh byGlobal Markets Inc, January 2005.

● A steady average annual GDP growth of 5% over the last decade.● Inflation has been kept in low single-digit. ● Exports have been gradually shifted from traditional goods to more profitable items.● Emphasis has been put on manufacturing sector.

Sources: Bangladesh Economic Review 2006, Ministry of Finance, GOB & BBS.

Economic Indicators 2005-06(p)1. National Accounts

a. GDP (million US$) 63,054b. GDP Growth (%) 6.71

2. GDP Break up (as % of Total GDP)a. Agriculture, Forestry & Fisheries 21.77b. Industry (Manufacturing, Mining, Construction & Utilities) 29.01c. Services 49.22

3. Savings & Investment (as % of GDP)a. National Savings 26.61b. Total Investment 24.97c. Public Investment 6.30d. Private Investment 18.67

Overview of Economic Indicators 2005-06

Economy &. . .1.3 Economy & Business


b. Trade and Investment

The volume of international trade surpassed US$ 20 billion in FY 2004-05.Government has been pursuing an export led economic development strategy tostimulate export earnings.Promotional campaign andindustry assistance arebeing given under ExportDiversification Program.Three more EPZs havealso been established inDhaka, Comilla andChittagong.

In South Asia, Bangladesh offers the most liberal FDI regime with no prior approvalrequirements or limits on equity participation and repatriation of profits and income.Please see section 1.5 (Page 20-30) for statistics on FDI in Bangladesh.

Trend in the Export Earnings of Bangladesh Since 1981-82

1981-82

1991-92

1995-96

1997-98

1999-2000

2000-01

2002-03

2003-04

2004-05

2005-06

627

1993

3884

In Milion US$

5172

5752 64676548

7603 10566

8655

Sources: Bangladesh Economic Review 2006, Ministry of Finance, GOB & BBS.

Indian Business Tycoon Mr. Ratan N Tata onInvestment Climate of Bangladesh

“……. When you go there you realize that their industrialpolicy is more open than India’s . They do not have a historyof going back on commitments. There are some placeswhere pricing commitments have actually hurt theBangladesh government. But they haven’t changed the law;they have honored those commitments... ... ..”Source: Businessworld, 24 January 2005.

Exhibit 1.1


a. Agriculture

The Government continues to support the agricultural sector through a number ofpolicy interventions, with the ultimate view to achieving food self-sufficiency asenvisaged in the Fifth “Five Year Plan” (1997-2002). Fishery and livestock/poultrysectors have grown rapidly during 1990s.

Sector highlights

Table 1.6

“Industrial production maintained its robust performance, primarily due to a steadygrowth in export-oriented manufacturing supported by strong growth in theconstruction and utilities sub-sectors. . . .In addition, the supportive macroeconomic environment, marked by a surge incredit, particularly to industry and agriculture sectors, and an increase in ForeignDirect Investment (FDI) inflows, aided the economic recovery following the seriousflooding....”

Sources: ADB Quarterly Economic Update Bangladesh : June 2005…

● Agriculture contributes 21.77% of GDP and 51.69% of work force are engaged in this sector.

● Government is keen to implement National Agricultural Policy.● Given the sector’s importance, agricultural goods contribute

second highest export earning.● In 2005-2006, agriculture experienced a growth of 4.67%.

Source: Bangladesh Economic Review 2006, MOF and BBS, GOB.

Sector/Subsector 1991-92 1995-96 2001-02 2005-06 (P)GDP Growth 5.04 4.62 4.42 6.711. Agriculture 1.4 2.0 -0.62 4.67a. Crop 1.1 1.7 -2.39 4.21b. Livestock 2.3 2.5 4.70 6.31c. Forestry 2.3 3.5 4.91 5.182.Fisheries 8.2 7.4 2.22 3.89

Growth in the Agricultural Sub sectors of Bangladesh

Major Sector . . .1.4 Major Sectors of The Economy


b. Industry

Since 1991, Government has been pursuing a market-oriented industrial strategy. In2005, a new Industrial Policy was undertaken emphasizing following categories ofindustries:

● Export oriented;● Set up export processing zones for local and foreign investors;● Incentives and different facilities for export oriented products;● Industries based on indigenous resources or raw material;● Quality enhancement, marketing and capacity building of existing industries; and● Labor intensive, technology-oriented capital-intensive industries.

Emphasizing accelerated industrial growth and greater share of industry in GDP, thenew Industrial Policy 2005 has been adopted.

● Government is keen to expand industrial base of the economy and encourage both domestic and foreign investment.

● In 2005-06, GDP growth in industrial sector is about 10.45%.● The Quantum Index of Production in medium and large

industries stood at 321.07 in 2005-06 (July-January) from 195.9 in 1997-98.

Sector highlights

Table 1.7

Source: Bangladesh Economic Review 2006, MOF and BBS, GOB.

Sector/Subsector 2001-02 2005-06 (P)GDP Growth 4.42 6.71Industrial Growth 6.53 9.56Sub Sectors

a. Mining & Quarrying 4.53 8.73b. Manufacturing 5.48 10.45c. Construction 8.61 8.37d. Power, Gas & Water 7.63 7.72

Industry Share to GDP 26.75 29.01Sub Sectors

a. Mining & Quarrying 1.07 1.16b. Manufacturing 15.76 17.05c. Construction 8.41 9.15d. Power, Gas & Water 1.51 1.65

Growth of Industry Sector and Share to GDP (Base: 1995-96)


Objectives of Industrial Policy 2005

● One of the foremost objectives of the Industrial Policy 2005 is to set up planned industriesconsidering the real domestic demand, prospect of exporting goods abroad, anddiscouraging unplanned industries in the light of past experience.

● Accept private initiatives is the main driving force of economic development and uphold thegovernment's facilitating role in creating a favorable atmosphere in order to augmentprivate investments in the country's industrialization, given the background of a freemarket economy and globalization.

● Arrange for state-owned industrial enterprises to be sold/transferred/leased oradministered in any other way by the Privatization Commission or concerned ministries inorder to accelerate the privatization process.

● Take necessary initiatives to set up industries with private entrepreneurships, and wherethat is feasible, establish industries on state initiative in those sectors that are consideredvery important and essential because of national interest, where private entrepreneurs arenot forthcoming.

● Catering the needs for local and foreign market and also for consumer satisfaction of thelocal products; measures to be undertaken (a) produce world class quality products, (b)diversification of goods, (c) introduce cost-effective management in the production system,(d) more value addition in the industrial sector, and (e) provide support for enhancingproductivity by using continuous, appropriate and advanced technology.

● Provide assistance to augment the industrial sector's contributions to the GDP of thenational economy, meet the general demands of local consumers and earn more foreignexchange so that local industrial entrepreneurs can attain further capacity to establishindustries and industrial goods can have access to the overseas market on a competitive basis.

● Provide inspiration for the speedy expansion of cottage industries and SMEs and for furtherinvestment in these sectors so that new employment opportunities are generated,unemployment reduce and poverty alleviation program made in the country.

● Prioritize the expansion and development of agro-based and agricultural processingindustries, and assist in the expansion of poultry, dairy and goat-sheep industry asagricultural industries.

● Provide women entrepreneurs with all necessary assistance in establishing industries invarious sectors.

● Increase productivity at enterprise level; produce high-value added products step by stepthrough development and application of appropriate technology and increase of exportthrough export diversification.

● Provide all necessary assistance for producing environment-friendly product with theobjective for creating a pollution-free environment in the industrial sector.

● Expand the local market and establish more backward linkage industries in order toaccelerate the export of high value-added garments produced in the export-orientedgarment industries and other relevant industrial sub-sector.

● Further enrich the industrial sector with the proper utilization of the country's variousnatural and mineral resources.

Source: Industrial Policy 2005, Ministry of Industries, GOB


c. Power and Energy

Demand for power in Bangladesh is enormous and increasing day by day. There issubstantial gap between supply and demand. So, Government is concerned toensure better performance of this sector by increasing public sector investment,attract multilateral investment on a sustainable basis, rationalize tariff rates andimprove tariff collection performance. Private sector power generation policy hasbeen brought into operation.

Gas is the main energy resource in Bangladesh fulfilling about 70% of commercialenergy demand. Total number of explored gas fields in the country are 23 andestimated gas reserve is 28.4 TCF of which estimated recoverable reserve is 20.51TCF. Substantial amount of coal reserve is also discovered in northern area, which isan altranative source of energy.

Per capita electricity production is increased to 160 kilowatt-hour in 2004-2005 from154 KWH in 2003-04. The national energy policy aims to increase the availbility ofsustainable sources of commercial energy.

The Energy Regulatory Commission Act (20-years) has been enacted in order toaccelerate long-term development in energy and gas sector in a competitiveenvironment, encourage private sector investment, protect consumer interest andcurb abuse of monopoly and ensure environmental protection.

● Energy and Power play a key role in achieving competitivenes of the industry.● Energy sector is one the largest recipient of foreign direct investment in Bangladesh.● The combined share of gas and power sectors in total FDI was about 60% during the

period 1994/95 through 1998/99.● Identification and utilization of alternative indigenous sources of energy are crucial to

achieving energy requirements of the country.

Sector Highlights

Table 1.8

Source: Bangladesh Economic Review 2006. Ministry of Finance.

Sector/Subsector 1991-92 1995-96 2001-02 2004-05Installed Production Capacity 2,398 2,908 4,230 5,025 MWDependable Production Capacity 1,724 2,105 3,300 3,900 MWMaximum Production 1,671 2,087 3,218 3,751 MW

Production Capacity and Production of Electricity


d. Banking & Finance

Banking and financial sector in Bangladesh is under intensive monitoring of thegovernment to improve performance and efficiency. The Bangladesh Bank hasbeen given reasonable functional autonomy to bring dynamism in this sector. TheBank Companies Act 1991, the Financial Act 1993, the Negotiable Instruments Act1881, the Public Demands Recovery Act 1913 and the Securities and Exchange

Commission Act 1993 have been amended. To provide more securities to thedepositor, Bank Deposit Insurance Act has been enacted.

The share of banking and financial sector in GDP is only 1.70% constituting ofbanking 1.27%, insurance 0.36% and other financials services 0.07%. However, thesector experienced an overall growth of 7.12% in 2005-06 (P) with the highestgrowth in other financial services, that is (10.64%).

e. Transport & Communication

Both public and private sector efforts are present to enhance the performance of thesector substantially. Recent adoption of Private Sector Infrastructure Guideline(PSIG) and establishment of Private Infrastructure Committee (PICOM) have broughta new momentum in this sector (also see section 4.8 in Chapter 4, Pages 80-82).

● The banking system dominates the financial sector accounting for about 97% of the market in terms of assets.

● Government has undertaken major reform initiatives to improve the regulatory and legal environments for banks.

● Several specialist development financial institutions have been providing long-term debt, equity financing and leasing.

Sector Highlight

Table 1.9

Bank Type No. of No. of Shared SharedBank Branches Percentage of Percentage of

Total Resource Total DepositGovernment 4 3,386 38.97 38.79Specialized 5 1,342 6.80 5.69Private 30 1,643 44.31 48.06Foreign 9 41 9.92 7.46Total 48 6,412 100 100

Infrastructaral management of Banks in Bangladesh till March 2006

Source: Bangladesh Bank


Transport and Communication is a precondition of development. Realizing this fact,Government is inviting private sector’s participation in this sector.

Sector Highlights

Table 1.10

● Almost all parts of Bangladesh, even the remote areas are today connected by road network.

● Bangladesh has the best water transport system in the region, which accounts to two-thirds of cargo transport within the country.

● Bangladesh Telecom Regulatory Commission (BTRC) has been formed to enhance the services.

● Government has opened up the telecommunication to private sector participation.

● Private Sector Infrastructure Guideline brought new momentum in transport and communication sector.

Description IndicatorRailways 2,854.96 km

Broad Gauge 660.22 kmMeter Gauge 1,829.74 kmDual Gauge 365 km

Road Network 247,323 kmNational Highway 3,570 kmRegional Highway 4,323 kmFeeder Road 35,454 kmRoads under FFWP 25,000 km

Telephone by BTTB 10,00,483 Cellular Mobile Phone 11,600,000International Airports 3Domestic Airports 5Radio Broadcast Station AM – 12

FM – 12Short-wave – 2

Television Broadcast Station 15Private Satellite Television Channel 7

Transport and Communication Readiness of Bangladesh



The largest road bridge of the country and 12th largest road bridge in the world isJamuna Multipurpose Bridge, which has connected the west and east of the countrycreating lots of economic opportunities.

Private sector in Bangladesh has been playing a significant role in the economicdevelopment of the country. Specifically, in the recent years, private sector activitieshave expanded enormously in diversified economic fields. Country’s Industrial growthreached all time high nearly touching double digit (9.56%) while manufacturingexperienced a spectacular double digit (10.45%) growth. UNCTAD’s LDC Report2006 found that the overall pattern of change for the LDCs as a group is stronglyinfluenced by what is happening in Bangladesh. The report states,

“Between 1990–1993 and 2000–2003, half of the total increase in manufacturingvalue-added in the LDC group as a whole was attributable to the growth ofmanufacturing in Bangladesh.”

The LDC Report also identified that, “Of the 40 LDCs for which data are available,only 7 have experienced steadily sustained growth – Bangladesh, Bhutan, BurkinaFaso, Cape Verde, the Lao People’s Democratic Republic, Lesotho and Nepal”.Recognizing Bangladesh as one of the most rapidly growing economy in the recenttimes, World Bank commented that,

“Bangladesh is the 10th most rapidly growing economy among 31 large developingcountries with population above 20 million with GDP averaging 5% since 1990”.

(Source: Bangladesh Country Factsheet by the World Bank)


Subsector 1995-96 2001-02 2005-06 (P)Land Transport 6.44 6.86 6.69Water Transport 1.43 1.08 0.89Air Transport 0.16 0.14 0.11Associated Services 0.37 0.37 0.30Post & Telecommunication 0.68 1.16 2.11Total 9.08 9.61 10.10

Share of Transport and Communication Sector in GDP

Table 1.11

Private Sector . . .1.5 Private Sector Investment Scenario


Based on this promising growth performance and potential, the New York basedglobal investment banking, securities and investment management firm GoldmanSachs considered Bangladesh as one of the Next-11 emerging economies afterBRIC (Brazil, Russia, India & China). Recently, in its China ASEAN Business Report,the Mizuho Corporate Bank of Japan has also identified Bangladesh as South Asia’sNext Rising Star for Foreign Investments.

The robust economic growth achieved in Bangladesh has resulted from investment-friendly policy and improved investment climate. Moreover, Bangladesh hasgradually been transforming to an attractive, competitive and profitable destinationfor foreign direct investment (FDI). In 2005, the growth in FDI increased by 84% toUS$ 845 million. Besides, substantial growths in investment registration, import ofcapital machinery and industrial raw materials and export have been achieved.

Bangladesh’s success in attracting private investment and achieving remarkableindustrial growth has been presented in the following eight sections:

a. Conducive Investment Climateb. Investment Statisticsc. Private Investment Registrationd. Import of Capital Machinerye. Growth in Manufacturing GDPf. Private Investment as Percentage of GDPg. Employment Opportunities and Potentialh. Continued Interests of Foreign Investors

a. Conducive Investment Climate

Doing Business in Bangladesh today is easier than many developing economies. Areport entitled “Doing Business in 2006: Creating Jobs” published jointly by theWorld Bank and IFC ranked Bangladesh in the 65th position in terms of Ease ofDoing Business among 155 economies (Table 1.12).

Rank Country Rank Country

1 New Zealand

20 Thailand

31 Maldives

55 Nepal

60 Pakistan

65 Bangladesh

75 SriLanka

91 China

99 Vietnam

104 Bhutan

116 India

122 Afghanistan

Source: Doing Business in 2006: Creating Jobs, World Bank, 2006

Table 1.12Ease of Doing Business Ranking (Selected)


Based on 39 indicators grouped into 10 categories, the above ranking recognizesBangladesh as one of the easiest location for doing business in South Asia, betterthan Sri Lanka and India. Besides, persistent growth in businesses is the besttestimony of a conducive business climate prevailing in Bangladesh.

b. Investment Statistics

Actual Foreign Direct Investment

In 2005, total FDI inflow in Bangladesh was increased by 84% amounting US$ 845million –highest ever in any year since her independence. The growth is secondhighest in entire South Asia. According to World Investment Report 2006,Bangladesh now ahead of India in terms of FDI Performance Index being ranked116th among 200 economies while India is ranked 119th. Given the present trend,the strategic target for 2006 to attract FDI worth US$ 1.0 billion is likely to beachieved. Following Exhibit 1.2 presents a summary of FDI inflow data since 2001.

A component-wise analysis of FDI inflow in 2005 shows that about 50% of FDI cameas equity, 29% as reinvestment, and the rest as intra-company borrowing (Table1.13). The higherreinvestment rate indicatesunwavering confidence offoreign investors on overallinvestment climate of thecountry and, simultaneously,competitiveness of relatedbusiness sectors. Most of the FDI (87%) havebeen brought by companiesthe balance (13%) have

354328

350

660

845

1,000

2001 2002 2003 2004 2005 2006*

US$ Mill

Source: World Investment Report 2005, BOI and Bangladesh Bank. * Target

2005FDI Components

Jan-Jun Jul-Dec Tota l

Share

%

a. Equity Capital 252.4 173. 2 425. 6 50.35%

b. Reinvested Earnings 144.1 103. 4 247. 5 29.28%

c. Intra-Company Loans 85.3 86.9 172.2 20.37%

Total 481.8 363.5 845.3 100%

Source: Bangladesh Bank Enterprise Survey, 2006

Table 1.13FDI Inflow in Bangladesh during 2005-Summary by FDIComponent (in million US$)

Trend in FDI in Bangladesh since 2001

Exhibit 1.2


been invested in companies registered with Bangladesh Export Processing ZonesAuthority (BEPZA) (Exhibit 1.3).

Table 1.13 presents a component-wise analysis of FDI inflow in 2005 according toits affiliation with the regulatory authorities i.e. BEPZA and BOI.

A sector-wise analysis of FDI inflow in 2005 demonstrates that FDI in Bangladeshhave been widely spread among the key business sectors concentrating ontelecommunication (33%), manufacturing (26%), energy and power (25%) and tradeand commerce (15%). Table 1.14 presents a sectoral analysis of FDI inflow in 2005.

BOI-Registered BEPZA-Registered

87%

13%

BOI-Registered Entities - 2005 BEPZA-Registered Entities - 2005 Total FDI Components

Jan-Jun Jul-Dec BOITotal

Jan-Jun Jul-Dec BEPZA Total

FDI-2005

a. Equity Capital 410.8 9.6 5.2 14.8 425.6

b. Reinvested Earnings 124.7 89.1 213.8 19.4 14.3 33.7 247.5

c. Intra-Company Loans 51.4 58.5 109.9 33.9 28.4 62.3 172.2

Total 418.8 315.7 734.5 63.0 47.8 110.8 845.3


242.7 168.1

Table 1.14FDI Inflow in Bangladesh during 2005-Distribution by Regulatory Agencies (in million US$)

FDI Distribution by Regulating Authorities

Exhibit 1.3


In 2005, FDI has been originated from 30 different sources dominated by thedeveloped economies (51.45%). Interestingly, a significant share of FDI also camefrom developing economies (43.23%). The top-5 FDI sources are UK (18.08%), USA(16.78%), South Korea (11.53%), UAE (6.55%) and Norway (6.33%). Table 1.15presents a source-wise analysis of FDI inflow in 2005.

2005 2005 Jan-Jun Jul-Dec FDI-2005 Share (%)

a. Agriculture & Fishing. 1.6 0.7 2.3 0.3%

b. Power, Gas & Petroleum 113.1 95.2 208.3 24.6%

b.1. Power 12.7 14.5 27.2 3.2%

b.2. Gas & Petroleum 100.4 80.7 181.1 21.4%

c. Manufacturing 137.9 81.5 219.4 26.0%

c.1. Textile & Wearing 52.0 44.5 96.5 11.4%

c.2. Chemicals & Pharma 2.8 1.1 3.9 0.5%

c.3. Metal & Machinery Prods. - 0.1 0.1 0.0%

c.4. Vehicle & Transport Eqp. 0.7 0.9 1.6 0.2%

c.5. Fertilizer 46.7 14.5 61.2 7.2%

c.6. Cement 29.6 15.7 45.3 5.4%

c.7. Leather & Leather Prods. 0.7 - 0.7 0.1%

c.8. Other Manufacturing 5.4 4.7 10.1 1.2%

d. Trade & Commerce 59.9 70.6 130.5 15.4%

e. Transport, Storage & Comm. 167.4 114.5 281.9 33.3%

e.1. Telecommunication 165.3 113.5 278.8 33.0%

e.2. Others (TSC) 2.1 1.0 3.1 0.4%

f. Services 2.0 1.0 3.0 0.4%

g. Others - - - 0.0%

Total 481.9 363.5 845.4 100%


FDI Sectors

Table 1.15FDI Inflow in Bangladesh during 2005-Distribution by Sectors (in million US$)


FDI Inflow Country Country

Sources / Regions Jan-Jun'05 Jul-Dec'05 Total-2005 Share Rank

in million US$ in million US$ in million US$ %

Developed Economies 226.30 208.60 434.90 51.45% -

Western Europe 134.40 111.50 245.90 29.09% -

European Union 132.80 110.80 243.60 28.82% -Denmark 6.40 11.80 18.20 2.15% 13 France 0.90 0.80 1.70 0.20% 20 Germany 0.10 1.50 1.60 0.19% 21 Luxembourg - 0.40 0.40 0.05% 27

Netherlands 8.40 7.00 15.40 1.82% 14 Norway 24.60 28.90 53.50 6.33% 5

United Kingdom 92.40 60.40 152.80 18.08% 1

Other Western Europe 1.60 0.70 2.30 0.27% -

Switzerland 1.60 0.70 2.30 0.27% 19

North America 58.10 84.40 142.50 16.86% -

Canada - 0.70 0.70 0.08% 25

USA 58.10 83.70 141.80 16.78% 2

Other Developed Economies 33.80 12.70 46.50 5.50% -

Japan 33.80 12.70 46.50 5.50% 8

Developing Economies 225.60 139.80 365.40 43.23% -

Africa 22.20 26.20 48.40 5.73% -

Egypt 22.20 26.20 48.40 5.73% 7

Latin America & the Caribbean - - - - -

Asia & the Pacific 203.40 113.60 317.00 37.50% -

Asia 203.40 113.60 317.00 37.50% -

West Asia 2.70 53.60 56.30 6.66% -

Saudi Arabia 0.50 0.40 0.90 0.11% 24 United Arab Emirates 2.20 53.20 55.40 6.55% 4

South, East and South-East Asia 200.70 60.00 260.70 30.84% -

China 1.40 0.20 1.60 0.19% 22 Hong Kong 27.20 25.90 53.10 6.28% 6

India 0.80 1.90 2.70 0.32% 18

Indonesia - 1.30 1.30 0.15% 23Malaysia 24.90 8.20 33.10 3.92% 9

Nepal 0.10 - 0.10 0.01% 30

Pakistan 18.00 7.50 25.50 3.02% 12 Singapore 97.40 0.10 97.50 11.53% 3

South Korea 18.10 11.70 29.80 3.53% 11

Sri Lanka 2.10 2.00 4.10 0.49% 17 Taiwan 10.50 0.90 11.40 1.35% 16

Thailand 0.10 0.10 0.20 0.02% 29

Vanuatu 0.10 0.20 0.30 0.04% 28

Others 29.90 15.10 45.00 5.32% -

ADB 6.10 6.60 12.70 1.50% 15 IFC 23.50 8.20 31.70 3.75% 10

Others 0.30 0.30 0.60 0.07% 26

Total 481.80 363.50 845.30 100.00% -


Table 1.16FDI Inflow in Bangladesh during 2005-Distribution by Regions (in million US$)


c. Private Investment Registration

Generally, private investment project proposals are submitted to BOI after legalformation of the company. Registration is the first formal commitment for aninvestment project based on primary project feasibility study. Following Table 1.17presents year-wise data since FY 1991-92 on the projects registered with BOI. InFY1991-92, about 258 private investment projects with proposed investment of Tk.660 crores were registered with BOI that reached to 1,889 Projects in FY2005-06with proposed investment of Tk. 43,356 crores. Growth of registration for the justconcluded year of 2005-06 was 125% which is very encouraging. Table 1.17 belowpresents detail of projects registered with BOI since FY 1991-92

* 1 Crore = 10 Million. Source: IIMC, BOI

YearLocal Investment Foreign/ JV Total

Projects Crore* Taka

1991-92 233 365 25 294 258 660 -

1992-93 353 360 28 211 381 571 -13.4%

1993-94 846 1,827 100 3,217 946 5,043 782.9%

1994-95 1,113 3,383 145 2,920 1,258 6,303 25.0%

1995-96 1,211 4,836 127 6,261 1,338 11,097 76.1%

1996-97 1,247 4,746 138 4,515 1,385 9,261 -16.5%

1997-98 1,448 5,061 140 15,308 1,588 20,368 119.9%

1998-99 1,535 5,677 161 9,243 1,696 14,920 -26.8%

1999-2000 1,428 6,621 135 10,594 1,563 17,215 15.4%

2000-01 1,788 7,809 80 6,993 1,868 14,802 -14.0%

2001-02 2,875 8,806 89 1,734 2,964 10,540 -28.8%

2002-03 2,101 11,653 104 2,067 2,205 13,720 30.2%

2003-04 1,624 13,546 130 2,644 1,754 16,190 18.0%

2004-05 1,469 14,005 120 5,298 1,589 19,302 19.2%

2005-06* 1,754 18,370 135 24,986 1,889 43,356 125%

Total 21,025 1,07,062 1,657 96,283 22,682 2,03,345 -

Projects Crore* Taka Projects Crore* Taka

Growth%

Table 1.17Yearwise details of the Private Investment Projects registered with BOI from FY1991-92 to FY2005-06


Registration Statistics of Local Investment Projects:

During the last 5 years from FY2001-02 to FY2005-06, total 9,823 local investmentprojects worth Tk. 66,379 crores were registered at BOI which is 122% higher thanprevious five years (Exhibit 1.4). About 80% of those local investment projects haveeither been implemented or at various stages of implementation.

49% of the local investment proposals are textile projects. The other major sectorsare chemical (20%), engineering (12%), services (10%), agrobased (5%) etc. Exhibit1.5 illustrates the sectoral break-up of local investment proposals registered with BOI.

365 3601,827

3,3834,836 4,746 5,061 5,677 6,621

7,8098,806

11,65313,546 14,005

18,370

1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06*

Crore Taka

Source: IIMC, BOI. * Provisional

Engineering11.79%

Printing1.70%

Glass & Ceramics

0.05%

Chemical19.53%

Leather1.24%

Textile48.61%

Services9.62%

Misc.0.49%

Agrobased5.26%

Food & Allied1.71%

Source: IIMC, BOI. * Provisional

Trend in Registration of Local Investment Projects (Crore Taka)

Exhibit 1.4

Sectoral Distribution of Local Investment Projects Registered in FY 2005-06

Exhibit 1.5


d. Import of Capital Machinery

Nearly half of the import payments of Bangladesh are spent for importing capitalmachinery and industrial raw materials. During the first 8-months of FY 2005-06 (uptoFebruary 2005), import of industrial raw materials and capital machinery grew by 16%and 37% respectively (Exhibit 1.6). In the last four years and eight months, totalimport of capital machinery stood at US$ 3.80 billion which is 123% higher than theprevious five years. This higher trend in import of capital machinery clearly indicatesthat the manufacturing growth would continue for a considerable period of time.

e. Growth in Manufacturing Sector

Manufacturing sector has shown a double-digit growth (10.45%) in FY 2005-06.Because of this robust growth, manufacturing has now turned to be the single largestcontributor to GDP (17.05%) and has overtaken agriculture (16.91%). This clearlyshows that the economy of Bangladesh has been transforming quickly from agrarianto industrial structure. Notably, the average growth in manufacturing during FY1992to FY1996 was 8.21% that came down to 5.64% during FY1997 to FY2001.However, a strong policy support by the government facilitated manufacturing torebound. Exhibit 1.7 presents the recent trend in manufacturing growth.

To uphold and support this unprecedented growth of manufacturing sector, BOI hasstrengthened its facilitating services with transparent, easier and customer-orientedprocesses. BOI introduced an Online Service Tracking System to provide status ofthe service requests online at real time basis.

333185

294 314482 554 548

729

1,115864

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06*

Source: Bangladesh Bank, Monthly Statistics Reports, 2006. * Provisional (Jul-Feb).

Trend in Import of Capital Machinery (Million US$)

Exhibit 1.6


f. Private Investment as Percentage of GDP

Total private investment during the last 5 years from FY 2001-02 to FY 2005-06amounted Tk. 302,550 crore which is 82% higher than that of the previous 5 years.During FY 1995-96 to FY 2000-01, total private investment was Tk. 166, 560 crore.In FY 2005-06, private investment stood at 18.7% of GDP from 15.8% in FY 2000-01 (Exhibit 1.8).

g. Employment Opportunities and Potential

Poverty reduction in a densely populated and geographically small country likeBangladesh largely depends on employment generation. Accelerated investmentin labor-intensive manufacturing sector increased. Recent surge in manufacturingactivity in Bangladesh has not only nearly doubled our export earnings, but alsocreated plenty of new jobs.

10.45%8.43%

7.10%6.75%5.48%5.64%

8.21%

1992-96 1997-2001 2002 2003 2004 2005 2006*

Source: Bangladesh Economic Review 2006. * provisional.

24,75030,560 33,990 37,010 40,150

45,84051,720

59,37068,290

77,700

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Source: Bangladesh Economic Review 2006

Trend in Manufacturing Growth since 1992

Exhibit 1.7

Trend in Private Investment since FY 1996-97

Exhibit 1.8


During the last five (5) years, more than 1.8 million new jobs have been created inthe BOI-registered projects alone. Yearwise breakdown of new job creation from FY2001-02 is illustrated in the following Exhibit 1.9:

h. Continued Interests of Foreign Investors

The recent years have witnessed tremendous interests of foreign investors to investin different sectors in Bangladesh. In FY 2005-06, major foreign investors includeDhabi Group of United Arab Emirates, Singtel of Singapore, Orascom of Egypt, YKKof Japan and Microsoft of USA. Besides, a number of large investment proposalsworth about US$ 10.5 billion are at negotiation and / or approval stages. Theseinclude investment proposals from Tata Group of India, Toray of Japan, IndoramaGroup of Thailand, Luxon Global of South Korea, Delta Pacific Mining of UnitedKingdom, Dawood Group of Pakistan, Kingdom Group of Saudi Arabia and otherproposals from China, Malaysia, India, Taiwan, UK, USA, Australia, Singapore,Thailand, Saudi Arabia, UAE and Kuwait.

The govt has taken proper measures to make the industrial growth trendsustainable.

373,625

273,754319,516

425,232 418,529

2001-02 2002-03 2003-04 2004-05 2005-06*

Source: IIMC, Board of Investment, September 2006.

Potential Employment Opportunities in BOI-Registered projects

Exhibit 1.9

ww ww ww .. bb oo ii .. gg oo vv .. bb dd

Conducive investment climate is of critical concern to the investors. The investment climate and incentive offered by Bangladesh are presented in this chapter that would facilitate in: � initial screening by the investors; � conducting comparative studies on investment destinations; and � assessing strengths of Bangladesh as a competitive investment location.

A glimpse of central business area of Dhaka

33

2.1 Investment Climatea. General Featuresb. Legal Framework for Foreign Investmentc. Bilateral Investment Agreementsd. Credit Rating and Country Risks

2.2 Infrastructure Readinessa. Utilitiesb. Transportationc. Communication

2.3 Facilitation and Promotion a. BSCIC b. BEPZAc. Privatization Commissiond. Board of Investment

2.4 National Taskforce for Investment Facilitation2.5 Investment Incentives2.6 CIP Policy

2Investment Climate

and Incentives


34



a. General Features

Bangladesh offers conducive investment climate compared to the other South Asianeconomies.

● Bangladesh is a largely homogenous society with no major internal or externaltensions and a population with great resilience in the face of adversity (e.g.natural calamities).

● Bangladesh is a liberal democratic country. The people irrespective of race andreligion have been living in harmony for years.

● It enjoys broad non-partisan political support for market-oriented reform andoffers the most investor-friendly regulatory regime in South Asia.

● Bangladesh owns a trainable, enthusiastic, hardworking and low-cost (even byregional standards) labor force suitable for any labor-intensive industry.

● Geographical location of the country is ideal for global trades with veryconvenient access to international sea and air routes. Bangladesh is the bridgebetween ASEAN and SAARC nations.

● Bangladesh is endowed with abundant supply of natural gas, coal, water andvery fertile soil.

● Although Bangla is the official language, English is widely spoken as secondlanguage.

● As a result of low per capita GNI of only US$ 482, present domestic consumptionis not significant. However, it may be considered that there exists a middle classwith significant purchasing power. As economic growth picks up, the purchasingpower will also grow substantially. And in a country of more than 138.8 millionpeople, even a small middle class may constitute a significant market.

● All Bangladeshi products other than armaments enjoy complete duty and quotafree access to EU, Japan, Canada, Australia, Norway and most of the developedcountries. However, for apparel export to USA, Bangladesh had a quota regimewhich ended on 1st January 2005. Despite quota phase out, Bangladeshi apparelhas successfully taken up a better position in US market and experiencingsubstantial growth in an even competitive market.

Investment . . .2.1 Investment Climate


b. Legal Framework for Foreign Investment

Investment in Bangladesh is well protected by law and by practice. Major lawsrelated to private investment-both foreign and local-are:● The Foreign Private Investment (Promotion and Protection) Act of 1980● The Bangladesh Export Processing Zones Authority Act of 1980● The Investment Board Act of 1989● The Companies Act 1994● The Bangladesh Private Export Processing Zones Authority Act of 1996● The Industrial Policy 2005● The Import Policy Order 2003-2006● Bangladesh Export Policy 2003-2006● Private Sector Infrastructure Guideline 2004

In addition, foreign investors are required to follow the regulations of theBangladesh Bank – and the National Board of Revenue for taxation and customsmatters.

Important legislations are appended (Appendix II).

c. Bilateral Investment Agreements

The Foreign Private Investment (Promotion and Protection) Act 1980 includesguarantee of fair and equitable treatment to foreign private investment. Such nationaltreatment is also provided in bilateral investment treaties (BITs) for the promotion andprotection of foreign investment which was concluded with 26 countries listed below:

Negotiations on concluding BITs have also been going on with other 17 countriesi.e. India, Hungary, Oman, Maldova, Egypt, Mauritius, Russia, Ukraine, Australia,

1. Austria

2. Belgium

3. Canada

4. China

5. France

6. Germany

7. Indonesia

8. Iran

9. Italy

10. Japan

11. Korea, DPR

12. Korea, Republic of

13. Malaysia

14. Pakistan

15. Poland

16. Romania

17. Switzerland

18. The Netherlands

19. The Philippines

20. Turkey

21. Thailand

22. UK

23. USA

24. Uzbekistan

25. Vietnam

26. Singapore

BITs Concluded with


Romania, Byelorussia, Bahrain, Spain, Finland, Nigeria, Saudi Arabia and Vietnam.

Separate bilateral agreements for avoidance of Double Taxation, Treaties (DTTs)were also signed with 23 countries as listed below:

Negotiations on DTTs are also progressing with the following 21 countries:

In addition, Bangladesh is a signatory to Multilateral Investment Guarantee Agency(MIGA), Overseas Private Investment Corporation (OPIC) of USA, InternationalCenter for Settlement of Investment Disputes (ICSID) and a member of WorldIntellectual Property Organization (WIPO) permanent committee on developmentcooperation related to industrial property. Bangladesh ensures adequate protectionfor intellectual property rights, such as patents, designs & trademarks and copyright.

d. Credit Rating and Country Risks

Bangladesh does not have any sovereign credit rating till date. However, thecreditworthiness of Bangladesh is regularly quantified on monthly basis by thevarious Export Credit Rating Agencies (ECAs). These ECAs are members of theBerne Union. Detail activity profiles are available at Berne Union websitewww.berneunion.org.uk/members.html. Some of these ECAs could be contactedand viewed from following websites:

DTTs Concluded with

DTTs Under Negotiation

1. Belgium2. Canada3. China4. Denmark5. France6. Germany7. India8. Italy

9. Japan10. Malaysia11. Pakistan12. Poland13. Romania14. Singapore15. Republic of Korea16. Sri Lanka

17. Sweden18. Thailand19. The Netherlands20. UK 21. USA22. Norway23. Turkey

1. Austria2. Australia3. Byelorussia4. Cyprus5. Finland6. Greece7. Hong Kong

8. Indonesia9. Iran10. Saudi Arabia11. Mayanmar12. Morocco13. Nepal14. Nigeria

15. Norway16. South Africa17. Spain18. Switzerland19. The Philippines20. Tunisia21. Uzbekistan


Regular Country risk analysis is also conducted and reported by most ofinvestment banks and economic research agencies like Economist IntelligenceUnit (EIU) of the Economist fracture of the Credit Rating Companies Act 1996,two companies were established to conduct corporate credit rating in Bangladeshmember Credit Rating Information and Services Ltd. And Credit Rating Agency ofBangladesh Ltd. Please visit www.boi.gov.bd. and www.iifc.net for detail servicesof these companies.

a. Utilities Utility provisions for industrial undertaking include gas, electricity, water, wastemanagement, sewerage etc. in Bangladesh are as below:

● In EPZs, all kind of utility facilities and supports are pre-installed and ready forutilization. There is no disruption in power, gas and water. Industrial wastemanagement and sewerage system do sufficiently ensure a conduciveenvironment.

● BSCIC Industrial Estates provide utility facilities including plot allotment.● Other industrial areas are also being brought under the uninterrupted and

sufficient coverage of utility services.

BOI Utility Services Cell provides one window service to the investors.

Private investors can avail utility services through BOI Utility Service Cell. SeniorOfficials from the respective utility service offices of the Government providecounseling, accept applications and facilitate full services within a stipulated period.

b. TransportationSince the mid 80s, construction of road network all over the country has beenmassively undertaken. Today, almost all parts of the nation are networked with roadconnection. Roads are well supported by sufficient numbers of bridges and culverts.The longest bridge of the country and 12th longet Road Bridge in the world, JamunaMultipurpose Bridge has connected the east and west both by road and rail network. Well-developed navigable waterways in the country also provide transportationfacilities even to the low remote areas. Both passengers and domestic freight arecarried over at cheaper cost.

www.oekb.co.atwww.hermes-kredit.comwww.ecgd.gov.ukwww.ekn.se

www.isace.itwww.cofac.comwww.ekf.dkwww.finnvera.fi

Source : Guidebook for European Investors in Bangladesh, European Commission, August 2006

Web Addresses of some ECAs

Infrastructure . . .2.2 Infrastructure Readiness


Regular international flights from world business destinations of South, East andSouth East Asia, Middle East and Europe are directly connected to Bangladesh by17 International Airlines. Besides, Biman Bangladesh Airlines, the national airwaysof the country, is also networked to 29 international and 7 domestic destinations.Number of Private sector airways are connecting to domestic destinations. Whileone of them is also operating on international route. Private Helicopter Services arealso available to reach any place of the country.

Between two international seaports-Chittagong and Mongla, Chittagong is thegateway of both the export and import serving more than 80% of all international seafreights. Chittagong port is also well connected to domestic road, rail and air routes.The government is concerned to enhance the efficiency of the ports and invitesprivate sector participation in port management and establishment.

Most of the international shipping and freight-forwarding companies / agents arepresent in the country providing transportation services to the investors.

Description AmountRailways 2,854 km

Broad Gauge 660.22 kmMeter Gauge 1,829.74 kmDual Gauge 365 km

Highways 21,571 kmPaved 16,500 kmUnpaved 5,071 km

Waterways 8,046 km(maximum depending on season)Bridges & Culverts (Nos.) 14,731

Bridges (Nos.) 3,790Culverts (Nos.) 10,94

Airports (Nos.) 12International (Nos.) 03Domestic (Nos.) 09

Seaports 09International (Nos.) 02Domestic (Nos.) 07

Transportation in Bangladesh


Table 2.1


c. Communication

In August 2002, Government has opened up the telecom sector (fixed line) to theprivate sector participation.

Government has already given licence to private sector for fixed line operations.Such market-oriented move for telecom sector would enhance thetelecommunication service of the country to a desired level.

62 Internet Service Providers (ISPs) are in the Internet market. Divisional cities andmajor industrial areas have been brought under Internet servicing.

Bangladesh has joined the consortium of SEA-ME-WE-4 submarine cable, whichstarts its commercial activities from 21st May, 2006. This will especially helpprosperous data entry and software sectors.

With about 9,859 domestic postal stations including 164 Guaranteed Express Post(GEP) providing stations and Express Mail Service (EMS) agreement with 49countries, postal service in Bangladesh has been serving the nation. Internationalcourier service companies like DHL, FedEx, UPS etc. are also present to serve theinvestors.

Description AmountSatellite Television Network 7Private Switched Telephone Network (PSTN) Operator 3Cellular Mobile Phone Operator 6Telephone in Use (Fixed Line) 10,00,483NWD Circuit 33,781Overseas Circuit 3,700Card Phone Booth 1,497Cellular in Use 11,600,000ISP 62Internet Users 4.5 LackRadio Broadcast Station AM – 12

FM – 12Short-wave – 2

Television Broadcast Station 15

Communication in Bangladesh


Table 2.2


The role and importance of private sector investment in accelerating industrialdevelopment of Bangladesh were significantly identified and outlined by the visionaryleadership and put into the policy framework of the Government in early 1980s. Formallegislative move was made through enactment of the Foreign Private Investment(Promotion and Protection) Act, 1980 (Appendix-II) and the Bangladesh ExportProcessing Zones Authority Act, 1980. With the changing global economic scenario,the need for specialized institutions in promoting private investment, both foreign anddomestic, had emerged. As a result, BOI was established in 1989 (Appendix II: TheInvestment Board Act 1989). Following are the four key investment promotion andfacilitation agencies of Bangladesh.

To facilitate and promote private sector infrastructure, two other GOB Companies –Infrastructure Investment Facilitation Center (IIFC) and Infrastructure DevelopmentCompany Limited (IDCOL) were also established.

a. Bangladesh Small & Cottage Industry Corporation (BSCIC)

Back in 1957, BSCIC was established by parliamentary legislation, which wasamended in 1992 to match the industrialization and macro economic policies of theGovernment. It provides comprehensive services to development and expansion ofsmall and cottage industries (SCIs). The major functions of BSCIC include: ● promotion and registration of small and cottage industries;● conducting advisory and industrial promotion services including scouting and

training of entrepreneurs, skill development of artisans and craftsman and creation of job opportunities;

● construction and development of industrial estates with necessary infrastructural facilities for the SCIs;

Agency Areas of Concern Investment Type a. Bangladesh Small & Cottage Small and cottage industries Domestic

Industries Corporation (BSCIC)b. Bangladesh Export Processing Zones Industries located in EPZs. Domestic & FDI

Authority (BEPZA)c. Privatization Commission Privatization of SOEs. Domestic & FDId. Board of Investment (BOI) All other industries including Domestic & FDI

promotion of the above.

Investment Promotion & Facilitation Agencies

Facil i tat ion. . .2.3 Facilitation & Promotion


● development of linkages between SCIs and other medium and large industries.Development of small and medium enterprises (SMEs) has been encouraged by the Government with a view to creating a cluster of reliable, quality andcompetitive supply source to the large foreign investments. An initiative toestablish an SME Foundation has been undertaken converting the SME Cell ofMinistry of Industries.

b. Bangladesh Export Processing Zones Authority (BEPZA)

Under the BEPZA Act 1980, it was established to set up and operate exportprocessing zones in Bangladesh with a view to providing a congenial investmentclimate free from procedural complications. EPZs are export-oriented industrialenclaves that provide infrastructural facilities, administrative and support services tothe investors along with rewarding incentives.

The first EPZ in Bangladesh was established in 1983 in Chittagong and the secondone in Dhaka in 1993. Five (05) more EPZs in Mongla, Ishwardi, Uttara (Nilphamari),Comilla and Adamjee (Narayanganj) are in operation. Another EPZ namedKarnaphuli EPZ in Chittagong was inaugurated on 12th September 2006.

Three types of ownership prevail in the EPZs - 100% foreign ownership (A-type),Joint ownership (B-type) and local ownership (C-type), Existing investments in EPZs

Fiscal Incentives Non-Fiscal Incentives Infrastructure & Facilities

For details on setting up at EPZs, its incentives, facilities and amenities, please contact BEPZA.

● Tax Holiday for 10Years

● Concessionary Taxfor 5 years aftercompleting initial 10years.

● Duty free import ofmachinery & rawmaterials

● Avoidance ofDouble Taxationbased on DTTs

● All other incentivesas provided by BOI

● 100% foreign equityallowed

● Unrestricted exit policy● Full repatriation

facilities of dividendand capital at theevent of exit

● Import of raw materialsallowed onDocumentaryAcceptance basis.

● Intra and Inter-zoneexport is allowed.

● Subcontracting withinEPZs permitted.

● Fully Serviced Plots● Ready Factory

Building● All Types of Utilities● Warehouse and

Secured Bonded Area● Business Support

Services● Administrative Services● Customs Clearance at

Plant Site● Workers Dormitory

Enclave● Recreational Amenities

Major Incentives & Facilities provided by BEPZA


represent 30 countries like South Korea, China, Japan, USA, Germany, Pakistan,Malaysia, Taiwan, India, Singapore, Panama, Denmark, Thailand, France, UAE,Sweden, Italy, Belgium, the Netherlands and Canada etc. At present 242 industriesare operating and producing different famous brand products, which are exportingthroughout the world.

c. Privatization Commission

After the independence of Bangladesh in 1971, all major industries like jute, textiles,chemicals etc. were nationalized under a nationalization program. In 1993,Privatization Board (now Privatization Commission) was set up and entrusted withthe overall responsibility of privatizing State-Owned Enterprises (SOEs) that havebeen identified by the government.

Since the establishment of Privatization Commission, so far 65 (sixty five) SOEswere privatized. Among them, 44 SOEs were privatized by direct sale and the rest21 through transfer of share. Recently another 7 SOEs privatization process isfinalized and letter of Intent has circulated for buyers. Latest list of SOEs to beprivatized could be obtained from Privatization Commission at www.pc.gov.bd.

As the SOEs have an already infrastructure and facilities, investing by acquisition ofthese SOEs is a gainful option to the private investors.

d. Board of Investment (BOI)

As enacted, BOI was established “to encourage investment in the industry in privatesector and to provide necessary facilities and assistance in the establishment ofindustries“. Details on BOI, its structure and objectives, functions and services andprocedures have been cited in Chapter 3.

a. Project Proposal Formb. Bank Solvency Certificatec. Memorandum of Associationd. Articles of Associatione. Certificate of Incorporationf. Joint Venture Agreeementg. Sanction Letterh. Lease Agreementi. Performa Invoice /

Quotation on Machineries

Requisites / StepsItems Fees in US$

● Application Form 18● Registration Fee 250● 6-month Rental 2,000

(Land)● 6-month Rental 2,000

(Factory Buildingfor 1,500 m.)

Fees and Rental

Investing in EPZ : Requirements


In a major development towards fostering an investment-friendly atmosphere in thecountry, the Government instituted a National Taskforce for Facilitating of InvestmentClimate on 08 October 2003.

a. All Investment-related Agencies Involved

The Taskforce consists of 17 members representing the Ministries of Home, ForeignAffairs, Finance, Industries, Shipping, Planning, Post & Telecommunications, CivilAviation & Tourism, Bangladesh Bank, Power Division, Mineral Resources Division,National Board of Revenue, Chittagong Port Authority, Bangladesh ExportProcessing Zones Authority, and Bangladesh Standards & Testing Institution. BOIExecutive Chairman has been made Chairman of the Taskforce while the office ofBOI has been entrusted to act as the Secretariat of the Taskforce.

b. Taskforce Fosters Investment Climate

The Taskforce meets in every three months to review the prevailing investmentsituation. However, the Chairman of the Taskforce has also been empowered toconvene meeting anytime when it deems necessary. It will also receive complaintsrelating to investment for review. The Taskforce shall put recommendations to thegovernment for removal of any hurdles and suggest necessary suggestions toenable faster growth of foreign investment. The Taskforce, along with FBCCI andrepresentatives of foreign investors, will also conduct surveys on identifying effectivestrategies to attract foreign investment in the country.

c. Review of Investment Climate Started

Since its formation, the Taskforce has been holding regular meetings and takingdecisions on procedural simplification for utility connections, immigration formalitiesand monitoring industrial law and order issues.

National . . .2.4 National Taskforce


Bangladesh is keen to stimulate the economy and transform a poverty-strickeneconomy to NIE within short time. Government has liberalized the industrial andinvestment policies in recent years by reducing regulatory requirements and openingup many areas. Substantial incentive program has also been implemented which ispresented below:

Sectoral Incentives are cited in Chapter 6.

Following sub-sections present a overview of each incentive scheme in a nutshell.Exact information on these incentives may be collected from respective agencies.

a. Tax Holiday & Concessions:

i. Incentive : 1. For Existing Industry:Tax holiday facilities (THF) are available in the existing industry for 4 or 6 years depending on the location of the industrial enterprise.

● Ministry of Finance● Bangladesh Bank● National Board of

Revenue● Bangladesh Export

Processing ZonesAuthority

● Board of Investment● Bangladesh Small &

Cottage IndustriesCorporation

● Tax Holiday● Accelerated

DepreciationAllowance instead oftax holiday

● Concessionaryincome tax in lieu ofTax Holiday andAcceleratedDepreciationAllowance

● Concessionary dutyon importedmachinery

● Avoidance of DoubleTaxation

● Remittance of royalty,technical know-how,technical assistancefee.

● 100% Foreign Equityallowed.

● Unrestricted ExitPolicy.

● Full Repatriationfacilities of dividendand capital at theevent of exit.

● Permanent ResidencePermit on investing US$75,000 and CitizenshipOffer for investing US$5,00,000.

Approval Authorities Major Fiscal Incentives Major Non-Fiscal Incentives

Summary of Incentives Provided to the investors

Location yearsDhaka and Chittagong Divisions 4(excluding 3 Hill Tract districts of Chittagong Division)Khulna, Sylhet, Barisal & Rajshahi Divisions and 63 Chittagong Hill Tract districts

Investment . . .2.5 Investment Incentives


List of Tax Holiday Applicable Sectors (Up to 30th June 2008)

1. Textile 2. Pharmaceuticals3. Melamine 4. Plastic5. Ceramic & Sanitary ware 6. Steel Production from Iron ore7. Fertilizer Production 8. Insecticide and Pesticide9. Computer Hardware Production 10. Residential Hotels of Three Star Standard and above11. Petro-Chemicals 12. Basic Ingredients of Drug,Chemicals &

Pharmaceuticals13. Agro Machineries 14. Ship Building15. Boilers and compressor 16. Textile Machinery 17. Physical Infrastructure

a. Sea/River Portb. Container terminal/Internal Container depot/Container Freight Stationc. LNG terminal and Transmission line d. CNG terminal and Transmission linee. Gas Pipe Linef. Flyoverg. Large Scale water treatment plant and its supply through pipe lineh. Waste Processing plant and i. Export Processing Zone

(Subject to Conditions. For details please contact National Board of Revenue www.nbr.gov.bd)

Important to note:● THF for Extension Unit is not allowed.● THF will be available for the industrial undertaking formed as a Separate Company.● THF availing companies are required to reinvest at least 30% of their exempted

income during Tax Holiday period and also extra more 10% of income have to beinvested in any registered company of stock exchange during last 3 months of thefiscal year.

ii. How to Avail : 1. Register your project with BOI.2. Apply for Tax holiday approval and

certification from NBR.3. NBR issues Tax holiday certificate within 90

days of submission of application.


b. Depreciation Allowance:

i. Incentive : 1. Accelerated Depreciation Allowance: Only New industrialundertakings will enjoy accelerated depreciation allowancein lieu of tax holiday as per following schedule:

a) For the first year in which - Fifty percent of the actualthe undertaking starts cost plant and machinery

to commercial productionthe assessee

b) Next following second year - Thirty percent of the actual cost of plant an machinery to the assessee

c) Next following third year - Twenty percent of the actual cost of plant andmachinery to the assessee

2. Initial Depreciation Allowance has been reintroduced from the FY 2006-07 as per following schedule:● On the Machinery : 25% of its costs.● On the Factory : 10% of its costs.

3. Restructuring of Depreciation Allowance to ensure better pofitability of the industry as following: ● General Building : 10%● Factory Building : 20%● Furniture : 10%● Machinery : 20%● Vehicle : 47%(not plying for hire)

ii. How to Avail : 1. By setting up and operating business in Bangladesh.

c. Duty Exemptions and Concessions on Machinery:

i. Incentive : 1. For 100% export oriented industry, no import duty is charged in case of capital machinery and spares up to 10% value of such capital machinery.

2. For other industry, import duty, at the rate of 5% ad valorem,is payable on capital machinery and spares imported for initial installation or BMR/BMRE of the existing industries. The value of spare parts should not, however, exceed 10% of the total C&F value of the machinery.


3. Value Added Tax (VAT) is not payable for imported capitalmachinery and spares.

4. Import duty @ 5% ad valorem, is secured in the form of bank guarantee or an indemnity bond is returned after installation of the machinery

ii. How to Avail : 1. Register your project with BOI.

2. Apply for Import Permit (IP) at BOI for importation of machinery against foreign equity.

3. BOI sends recommendation to CCI&E for issuance of IRCand IP within 7 days from the date of application.

4. Apply for import duty exemption certificate at BOI.

5. BOI issues certificate within 7 days from the date of application.

d. Avoidance of Double Taxation:

i. Incentive : 1. For foreign investors, double taxation can be avoided on thebasis of bilateral Double Taxation Avoidance Treaties (DTTs).

2. Exemption of income tax upto 3 years for the expatriate employees in industries specified in the relevant schedule of Income Tax ordinance.


2. Apply for Tax Avoidance approval at NBR.

3. NBR arranges Tax Avoidance facilities.

e. Remittance:

i. Incentive : 1. For investors, remittance of royalty, technical know- how, technical assistance fee.


2. Apply for remittance of royalty, technical know-how, technical assistance fee approval from BOI.

3. BOI gives remittance approval.

f. Repatriation:

i. Incentive : 1. For investors, full repatriation of invested capital, profit and dividend is allowed.


2. Apply for repatriation approval from Bangladesh Bank (BB) through nominated bank.

3. Bangladesh Bank gives repatriation approval.


g. Exit:

i. Incentive : 1. Foreign investors can wind up on investment either througha decision of the AGM or EGM.

ii. How to Avail : 1. Decide wind up in company AGM or EGM.

2. Complete the formalities to exit the country.

3. Apply for repatriation approval for sales proceeds from Bangladesh Bank (BB).

4. Bangladesh Bank gives repatriation approval within a specified period.

h. Ownership:

i. Incentive : 1. Foreign investors can set up ventures either wholly ownedor in joint collaboration with local partner.

ii. How to Avail : 1. Incorporate a company.

2. Register your project with BOI.

i. Incentives to Non-Resident Bangladeshis (NRBs):

In recognition to enormous contribution of NRBs to the economy, the Government hasestablished Ministry of Expatriate Welfare and Overseas Employment in early 2002 tolook after the interests of the NRBs.

i. Incentive : 1. Investment of NRBs is treated at par with FDI and enjoy facilities similar to those of foreign investors.

2. NRBs can buy newly issued shares/ debentures of Bangladeshi companies.

3. A quota of 10% has been fixed for NRBs in primary public shares.

4. They can maintain foreign currency deposits in the Non- resident Foreign Currency Deposit (NFCD) account.

5. On fulfillment of certain conditions “Important Non-ResidentBangladeshi (INRB)” is selected.

ii. How to Avail : 1. Contact BOI and Ministry of Expatriate Welfare and Overseas Employment.

2. Register your project with BOI.


J. Other Incentives:

There is no discrimination in case of duties and taxes for the same type of industriesset up by foreign and local investors and in the public and private sectors.

k. Incentives to Export-Oriented and Export-Linkage Industries:

Export-oriented industrialization is one of the major objectives of the Industrial Policy2005. Export-oriented industries are given priority and public policy supports are ensuredin this respect. An industry exporting at least 80% of its manufactured goods or anindustry contributing at least 80% of its products as an input to finished exportables, andsimilarly, a business entity exporting at least 80% of services including informationtechnology related products are considered as an export-oriented industry. To makeinvestment in 100% export-oriented industries attractive, the following incentives andfacilities will be provided :

Cash Incentives/Export subsidy

To encourage further export, Government has offeredfollowing cash incentives/export subsidy on net FOBvalue of following export items :Local Textile 5%, Frozen Fish 10%, Leather Products 15%,Tobacco 10%, Potato 10%, Bicycles 15%, Jute Products7.5%, Light Engineering Products 10% etc.

[For details please contact Foreign Exchange Policy Dept. ofBangladesh Bank. (www.bangladesh-bank.org.bd)]

● Tax exemption on royalties, technical know-how fees received by anyforeign collaborator, firm, company and expert.

● Tax exemption on the interest on foreign loans under certain conditions.

● Exemption of income tax up to 3 years for the foreign technicians employedin industries specified in the relevant schedule of income tax ordinance.

● Tax exemption on income of the private sector power generation companyfor 15 years from the date of commercial production.

● Multiple entry visa facilities for the prospective new investors.

● Re-investment of repatriable dividend treated as new investment.

● Citizenship by investing a minimum of US$ 5,00,000 or by transferring US$10,00,000 to any recognized financial institution (non-repatriable).

● Permanent residentship by investing a minimum of US$ 75,000 (non-repatriable).

● Tax exemption on capital gains from the transfer of shares of public limitedcompanies listed with a stock exchange.


Apart from the above-mentioned facilities, other facilities announced and provided in theExport Policy is applicable to export-oriented and export-linkage industries.

BOI Counseling Service at Investment Facilities and Services Section provides allnecessary assistance with regard to the above incentives. Investors are encouraged tocontact BOI (also see Chapter 3).

a. Duty free import of capital machinery and spare parts up to 10% of thevalue of such capital machinery.

b. Bonded Warehouse and back-to-back Letter of Credit facility.

c. Duty drawback facility.

d. Providing loans up to 90% of the value against irrevocable and confirmedLetter of Credit/Sales Agreement.

e. Supporting backward linkage "deemed exporters".

f. The export-oriented industries, further to the provisions of BangladeshBank foreign exchange regulations, are entitled to receive additionalforeign exchange, on case to case basis, for publicity campaign, openingoverseas offices and participating in international trade fairs.

g. The entire export earning from handicrafts and cottage industries areexempted from income tax. For all other industries, income tax rebate onexport earning are given.

h. The facility for importing raw materials included in the banned/restrictedlist, but required in the manufacture of exportable commodities.

i. The import of specified quantities of duty-free samples for manufacturingexportable products is allowed consistent with the prevailing relevantgovernment policy.

j. The local products supplied to local industries or projects against foreignexchange L/C are treated as indirect exports and are entitled to all exportfacilities.

k. The Export Credit Guarantee Scheme facility.

l. 10% products of the enterprises, located in both public and private EPZsare allowed to be exported to domestic tariff area against foreign currencyL/C on payment of applicable duties and taxes.

m. 100% export-oriented industry outside EPZ is allowed to sell 20% of theirproducts in the domestic market on payment of applicable duties and taxes.

n. The Export-oriented industries which are identified by the government as"Thrust Sector" are provided special facilities and venture capital support.


CIP (NRB) 2.6 CIP (NRB) Policy1. Commercially Important Person (Non Resident Bangladeshi) Selection Policy 2006

2. Classification and number of Commercially Important Persons-The categories for selection, classification and number of Commercially Important Person (Non Resident Bangladeshi) then known as CIP (NRB) is given below:

SL.� Classification for Selection� Number

� 1)� NRBs investing directly�� in industrial sector� Maximum 10� 2)� NRBs remitting highest amount of foreign currency �� through formal channel. � Maximum 10� 3)� NRBs importing Bangladeshi goods �in foreign country.� Maximum 05 ��

3.� For selection of CIP (NRB) [ investors in industries]

� 1)�For a Calender year, Amount of investments in Bangladeshi industry by a non�� resident Bangladeshi in previous fiscal year

� 2)�Capital investment in foreign currency equivalent to US$ 5,00,000 or more. and

� 3)�For industries under implementation, bill of landing, bill of entry, LC etc. shall have to be furnished �� as an evidence in shipment of machinery

4.� For selection of CIP (NRB) [ foreign Currency remitters]

� 1)�For a calender year, the amount of non repatriable foreign currency remitted in a particular �� account through legal banking channel in previous fiscal year.

� 2)�Remittance to Bangladesh of a nonrepatriable minimum amount equivalent to US$ 1,50,000�� through legal Banking channel.

5.� For selection of CIP (NRB) [ Importers]� The following determinants will be considered

� 1)�For a Calender year, the value of commodity imported from Bangladesh during �� the previous fiscal year by the NRB.

� 2)�For the year in consideration, Bangladeshi goods amounting to a minimum of �� equivalent to US$ 500,000 FOB value shall have to be imported.

� 3)�Amount of imports through Proceeds Realisation Certificate (PRC) and

� 4)�Priority shall be given to the importers importing high value added products.

Maximum 25


1.� The Expatriate Welfare and Overseas Employment Ministry of Bangladesh will provide indentity Card �� to the selected CIPs (NRB).

2.� CIPs (NRB) will receive entry pass to enter the Bangladesh secretariat during valid period of ID Card.

3.� CIPs (NRB) shall be eligible to become members in different policy making concerned committees of �� the Govt. of Bangladesh.

4.� CIPs (NRB) will be given priority in meeting with local and foreign high officials.5.� CIPs (NRB) will be invited by foreign Bangladeshi missions in different occasions like Independentce� and National Day, Eid-ul-Fiter, Eid-ul-Azha, 21st February International Mother Language Day etc. � important days.

6.� CIPs (NRB) will be given priority to reserve seats in Air, Rail, Roads & Water ways for their business trips.

7.� CIPs (NRB) and their wives, sons, daughters will be given priority to get cabin facilities for treatment in � government hospitals.

8.� For Investment in Bangladeh, CIPs (NRB) investors shall be entitled facilities like that of foreign �� investors and their investment will be protected under the Foreign Private Investment (Promotion and �� Protection) Act 1980 (Act No. XI of 1980)

9.� CIPs (NRB) will be entitled to use VIP lounge to and facilities of special handling in Airport.

In the following cases, an individual will be disqualified to be selected as CIP (NRB)

1.� If applicant is loan defaulter/tex defaulter in his country or foreign country.

2.� If the applicant has got business dispute with foreign buyer and if the applicant is unwilling to resolve� the dispute or adopted means to linger the issue.

3.� If the applicant is convicted by Court and unless five years has not been elapsed after imprisonment or� has been declared persona non Greta.

4.� If it is proved that the applicant has furnished false information, he will be disqualified to be CIP; � even if a person has already been selected as CIP. Moreover, Such case shall not be eligible to apply.

Privileges for selected CIP (NRB)

Disqualification to be a CIP (NRB)

Source : Original Version is in Bangla, This is an unofficial English Version Translated bythe institute of Modern Languages, University of Dhaka, Bangladesh

This part presents the formation, function and services of BOI. As the apex investment promotion agency of the country, BOI’s role is central to all investors in Bangladesh. This would enable the investor to : � Know about BOI and its services; � Smooth working with BOI functionaries; and � Exchange views and opinions in developing investment climate.

Jiban Bima Tower, BOI Office at Dilkusha C/A, Dhaka

55

3.1 Structure and Objectivesa. Formation of BOIb. Objectives of BOI

3.2 Functions and Facilitiesa. Functions of BOIb. Services Available from BOI

3.3 Procedural Mapping : First Contacts3.4 BOI Partnership with Private Sector

a. Advocacy for Private Sector Developmentb. Institutional Partnership Initiative : CSDC

3Board of Investment

Profile & Procedures


56



a. Formation of BOI

Board of Investment (BOI) was established by the Investment Board Act of 1989 topromote and facilitate investment in the private sector both from domestic and overseassources with a view to contribute to the socio-economic development of Bangladesh. Itis headed by the Prime Minister. Its membership includes representatives (at thehighest level) of the relevant ministries – industry, finance, planning, textiles, Jute,commerce, energy, power, as well as others, such as the Governor of BangladeshBank, Presidents of FBCCI and BCI (Appendix II-b).The Operational Head and CEO of BOI is the Executive Chairman. The keyorganogram of BOI is depicted below:

b. Objectives of BOI

Broadly, the objective of BOI is to encourage and promote investment in the privatesector both from domestic and overseas sources and to provide necessary facilitiesand assistance in the establishment of industrial setup with a view to contribute tothe socio-economic development of Bangladesh.

BOI BOARD

Prime Minister

CHAIRPERSON

Executive Council Chairedby Executive Chairman

Executive Chairman

Source : Derived from Investment Board Act 1989

BOI Office

Head Office Regional Office

Structure . . .3.1 Structure & Objectives

Exhibit 3.1Key Organization Structure of BOI


a. Functions of BOI

Broadly, BOI is responsible for facilitating private investment in the country. itsfunctions are :i. Providing of all kinds of facilities in the matter of investment of local and foreign

capital for the purpose of rapidindustrialization in the private sector;

ii. Implementation of the Governmentpolicy relating to the investment ofcapital in industries in the private sector;

iii. Preparation of investment schedule inrelation to industries in the private sectorand its implementation;

iv. Preparation of area-schedule for establishment of industries in the private sectorand determination of special facilities for such areas;

v. Approval and registration of all industrial projects in the private sector involvinglocal and foreign capital;

vi. Identification of investment sectors and facilities for investment in industries inthe private sector and giving wide publicity thereof abroad;

vii. Invention of specific devices for the purpose of promotion of investment inindustries in the private sector and their implementation;

viii. Creation of infrastructural facilities for industries in the private sector; ix. Determination of terms and conditions for employment of foreign officers, experts

and other employees necessary for industries in the private sector ; x. Preparation of policies relating to transfer of technology and phase-wise local

production in the private sector and their implementation; xi. Providing necessary assistance in the rehabilitation of sickly industries in the

private sector; xii. Financing and providing assistance in the financing of important new industries

in the private sector;xiii. Adoption of necessary measures for creation of capital for investment in

industries in the private sector; xiv. Collection, compilation, analysis and dissemination of all kinds of industrial data

and establishment of data-bank for that purpose; andxv. Doing such other acts and things as may be necessary for the performance of the

above functions. BOI has been entrusted to give approval of foreign commercialoffices.

BOI Functions are broadlycategorized into three:

1. Investment promotion2. Investment facilitation and3. Policy advocacy

Functions . . .3.2 Functions & Services


xvi Work with PICOM to foster Private Infrastructure Committee. (For details please see page 80).

b. Services Available from BOI

To summarize, BOI services available for the investors could be categorized in threestages.

Stage 1: Pre-investment Information and Counseling

At this stage, BOI provides all sorts of information required by an investor toundertake initial investment move (also see Chapter 4). Professional Investment &Business Counselors provide cordial assistance upon visit to the BOI office, overphone, by email & fax and express mailing. It also assists in company formation andregistration.

Stage 2: Special Welcome Service to Foreign Investors

BOI has Welcome Service Desk at Zia International Airport Dhaka, and ShahAmanat International Airport Chittagong, operating round-the-clock. It assists inobtaining necessary immigration and Visa on Arrival / Landing Permit, hotelaccommodation and counseling arrangement.

Stage 3: Investment Implementation and Commercial Operation

Once the investor decides to invest and forms a company, BOI provides followingspecific facilities and comprehensive services.

a. Industrial registrationb. Industrial Plotc. Utility Connectionsd. Approve Terms & Condition of Foreign Loan, Suppliers' Credit, deferred

payment PAYE Scheme etc.e. Recommand for Import of Machinery & Raw Materialsf. Work Permit g. Remittance of Royalty, Technical Know-How and Technical

Assistance Fees


To avail the facilities and services provided by BOI to the investors, approaching the rightServing Desk brings efficiency in the process and interaction. Following Guide Tableshows a summary of such desks by functions / services:

In the first visit, investors are advised to have clarifications of the following issues:● How could BOI assist him in the project implementation?● What procedures have to be completed?● What are the preconditions or requirements in each procedure?● How much time would take to complete each process?

Such specific queries would remove any ambiguity therein and help in efficientfunctioning of the process.

Facilities / Services Service Desk First Contact1. Pre-Investment Counseling Investment Facilities & Assistant Director

Services2. Welcome Service at BOI Welcome Desk at Assistant Director3. Immigration & Visits Communication Director4. Registration of Industries Investment Facilities & Assistant Director

Services5. Pemission/Approval of Branch/Liaison/ R&I - 1 Deputy Director

Reprsentative office and Buying House6. Obtaining Work Permit for foreign Nationals R&I - 1 Director

7. Obtaining Industrial Plot Investment Facilities & DirectorServices

8. Registration/Approval for R&I – 1 Deputy DirectorForeign Loan, Suppliers' Credit, (Bangladesh Bank Desk)PAYE Scheme etc.

9. Obtaining Utility Connections Utility Service Cell Director(gas, electricity, telephone, water& sewerage, environmental clearance)

10. Import of Machinery & Raw Materialsa. 100% Foreign & Joint Venture R&I – 1 Directorb. Local R&I - 2 Director

11. Remittance of Royalty, Technical Know- R&I - 1 DirectorHow and Technical Assistance Fees

12. Policy Counseling Policy & Planning Member13. Strategic Guidance Executive Chairman Private Secretary to

Executive Chairman

To Whom to Interact at BOI

Guide Table :

Procedural . . .3.3 Procedural Mapping : First Contacts


a. Advocacy for Private Sector Development

BOI is a key agency for policy advocacy and facilitation for private sector. It maintainsa strong relationship with the private sector business chambers, industryassociations, professional development bodies, economic research initiatives etc.The 19-Member Board of BOI is also represented by two private sector chambersnamely FBCCI and BCI. Besides, BOI also engages private sector in all the policymaking and implementation initiatives.

b. Institutional Partnership Initiative: Chittagong Skills Development Centre(CSDC)

In responding to its investors’ changing business requirements, BOI has undertakena pioneering initiative by partnering with industry and academia to establish CSDC –the Chittagong Skills Development Centre. CSDC is an industry-led, non-profit skillsdevelopment centre that caters to the present and future skill requirements of theindustry, modeled after the highly-acclaimed Penang Skills Development Centre –PSDC, of Malaysia.

CSDC’s industry-focused skills training strives to galvanize the nation’s abundanthuman resource to boost industrial productivity and growth. By strategicallyleveraging the nation’s cost-effective labor base into a skilled workforce, CSDC willhelp add greater value to existing and future Foreign Direct Investments; A broaderskilled workforce will further expand and attract multinational and particularly ICTmanufacturing in Bangladesh for regional markets. As a smart partnership, CSDC’smembership includes multinational and local companies, Chambers of Commerce &Industry, NGOs and the BOI. The Bangladesh Government is firmly committed to thispolicy of Private-Public partnership for accelerated economic development.

Through its strategic partnership with PSDC as well as its members’ internal traininginstitutions, CSDC offers state-of-the-art, cutting edge technical trainings and globalbest practices in business management education. By sharing, developing,importing and localizing high-caliber training programmes cost-effectively, CSDCstrives to redress the lack of high-quality training services in Bangladesh and reducecompanies’ costly dependence on foreign training. Furthermore, its industryorientation ensures proactive skills upgradation in response to evolving skillrequirements and new technologies.

BOI Partnership. .3.4 BOI Partnership with Private Sector

Setting up a business in a foreign country requires a number of activities to perform. This chapter gives a simplified presentation of those activities with a view to enabling investors to: � approach in the most simplified manner. � avoid unjustified steps in a multi-step cycle. � ensure the best and efficient use of time in business set-up.

Partial view of the Chittagong Port

63

4.1 Business Set up at a Glance4.2 Info Searching4.3 Physical Verification

a. Immigration Procedures b. BOI Counseling

4.4 Getting Structureda. Selecting a Business Structureb. Incorporating a Companyc. Opening Branch/Liaison/Representative Officesd. Securing Trade License

4.5 Operational Set up for Industriesa. Registering with BOIb. Obtaining Industrial Plotc. Registration/Approval for Foreign Loan, Suppliers'

Credit, PAYE Scheme etc.d. Obtaining Utility Connectionse. Import of Machinery & Raw Materialsf. Obtaining Work Permit g. Registering with Factories Acth. Registering with Environmental Legislationi. Remittance of Royalty, Technical know-how and

Technical Assistance Fees4.6 Commercial Operation4.7 Human Resources and Employment4.8 Listing Private Infrastructure Projects4.9 Exchange Control

4Business Set-up

Roadmap


64



Implementing a private sector industrial project in Bangladesh either local, jointventure or 100% foreign follows a rather simplified process. The entire process couldbe divided into 5 (five) major steps as presented the following diagram. BOI supportsare available in Step 1 through 4.

Detail roadmap is presented in the next page.

Once an investor intends to do business in Bangladesh, the first thing is to have

relevant, sufficient and reliable information on the investment and business climate,

opportunities, competitive strengths, industry structure etc. of the country. This could

be collected from a number of agencies like:

● BOI : The most reliable and state of the art information source in

the Government.● GOB Agencies : Other sources of the Government of Bangladesh like

Ministries and trade related offices.

1 Info Search

2 Physical Verification

3 Getting Structured

4 Plant Set-up

5 Commercial Operation

Assistance

Available

Business . . .4.1 Business Set-up at a Glance

Info Searching4.2 Info Searching

Table 4.1Major Steps to Set up a Plant in Bangladesh & BOI Assistance


Intention toInvest in

Bangladesh

Intention Collection

Arrive Bangladesh

Reception byBOI Welcome Service at Airports

Immigration &Customs Formalities

BOI Counseling at Investment Facilities

& Services Section

More Information& Documents from BOI

& website others

Trade License from Local Govt. Bodies

Company Formation& RJSCF Registration

Opening Bank Account

Project ProfileMemorandum of Assoc.Articles of AssociationLand Information & DocumentMachinery DetailsFinancing SourcesTax Identification Number

Import of MachineryOpen Letter of Credit (LC)or as Equity Investment

CIFE : Chief Inspector of Factories & Establishments. DOE : Department of Environment.RJSCF : Registrar of the Joint Stock Companies and Firms. VAT : Value Added Tax

VAT Registration

Plant Set-up

Commercial Operation

Application forBOI Registration

CIFE Registration

DOE Clearance

Consignment Release

Industrial IRC

IndependentCounseling / Services at investors discretion

Decisionto Invest

Hotel / Accommodation

Information/data onCountry, Industry &

Overall Climate from BOI

Info

Sea

rch

ing

Ph

ysic

al v

erif

icat

ion

Get

tin

gS

tru

ctu

red

Ope

ratio

nal S

et-u

pD

oing

Busi

ness

Exhibit 4.2Business Setup Road Map


● Missions : Direct queries to the Bangladesh Missions in the country of the

investor would also result in reliable information.Diplomatic

Mission of the intending country could also be a dependable

source of information (Appendex ).● Chambers : Chambers can provide real experiences of the existing investors.

These include FBCCI, FICCI, ICC, DCCI, MCCI, BCI, CCCI

and other regional chambers. Joint Business Councils and

Chambers between the countries (Appendex ).● Associations: Business associations of the country could also privide sector-

specific information related to the respective industry

(Appendex ).● International : UN bodies like World Bank, UNCTAD, UNDP, WTO, IFC, MIGA,

FIAS Organizations etc. and other international organizations

could also be a reliable source (Appendex ).

● Consultants : Independent business consulting firms and consultants provide

professional services and assistance (Appendex ).● Websites : A number of independent websites on Bangladesh hosted in

different locations of the world could be surfed. The keyword

searching by ‘Bangladesh Investment’, ‘Bangladesh Business’,

‘Bangladesh Profile’, ‘FDI Bangladesh’ etc. would provide

numerous results. To have more results, please search in

different search engines like Google, Yahoo, Altavista, Lycos

etc. BOI official website is www.boi.gov.bd while the official

website of Government of Bangladesh is www.bangladeh.gov.bd.

Contact address of the above mentioned sources are given in Chapter 8.


Upon analysis of the collected information and initial decision to move forward, theinvestor requires to visit Bangladesh to have physical verification. He could eithervisit independently or ask BOI to arrange the visit. However, to make the visit moremeaningful and effective, BOI recommends the investor to contact and avail BOIWelcome Service.

a. Immigration Procedures

Business travellers may request for visas for a specified duration and multipleentries. Bangladesh issues appropriate categories of visas to business persons toconduct feasibilities, do business and make investment and also work in the privatesector industries. Period of visa may vary from 1 month to five years with entry-restrictions depending on applications. Please see present visa policy in Annex II (d).

Landing Permit (LP) / Visa on Arrival (VOA)

The foreign investors and businesspersons could avail LP/VOA from ZIA formaximum 30 days under the following conditions:

● The foreign investors are identified on the basis of certification from Board ofInvestment (BOI) / BEPZA. Officials from the BOI are on duty round-the-clock tofacilitate certification of the relevant documents to get VOAs / LPs.

● The foreign businesspersons who are directly associated with import ofBangladeshi products are identified on the basis of the certificate by the relevantassociations of export-oriented commercial/industrial organizations or the FBCCIor the BGMEA. The certificate shall include Tax Identification Number (TIN) of therespective local commercial/industrial organizations.

The conditions of issuing LP/VOA include following:i. The period of LP/VOA can not be extended;ii. The LP/VOA applicant shall have endorsement of US$500 in the passport / in cash;iii. The LP/VOA Fee will be determined on Reciprocity Policy with the respective countries;iv. The applicant shall have Return Air Ticket;v. The applicant shall utilize same port for entry and departure.

Also please contact Bangladesh mission in your country.

b. BOI Counseling

On arrival in Bangladesh, investors could avail in-depth BOI counseling.Professional Investment and Business Counselors provide cordial assistancethrough Over-the Desk-Meeting at BOI office, attending phone, by email and fax andexpress mail. They also assist in company formation.

Physical . . .4.3 Physical Verification


a. Selecting a Business structure

To know the appropriate procedures for doing business in Bangladesh, it is importantto select the type of business operation. These could either be:

- Operating as a Branch/Liaison Reprsentive Office or Buying House or

- Establishing Industrial Projects.

b. Incorporating a Company

Various Types of Company:

Business in Bangladesh may be carried on by a company formed and incorporatedlocally or by a company incorporated abroad but registered in Bangladesh. Theincorporation or registration is done by the Registrar of Joint Stock Companies andFirms (RJSC&F) under the provisions of the Companies Act 1994. Companies couldbe classified in following categories:

1. Limited Companies:a. Company Limited by Shares

i. Public Limited Company andii. Private Limited Company

b. Company Limited by Guarantees.

2. Unlimited Companies

Unlimited companies and companies limited by guarantees may or may not haveshare capital.

Private Limited Company:

A private limited company is a business entity thata. restricts the rights to transfer the shares,b. limits the number of its members to minimum 2 and maximum 50 excluding the

persons employed in the company,c. prohibits any invitation to the public to subscribe for the shares or debentures of

the company andd. entitles to commence business from the date of its incorporation.

gett ing4.4 Getting Structured


Public Limited Company:

On the other hand, a public limited company, a. may issue invitation to the members of the public to subscribe the shares and

debentures of the company through a prospectus which complies with the requirements of the Companies' Act 1994 and the Securities and Exchange Commission Act 1993 as amended from time to time,

b. has minimum 7 members, but there is no maximum limit,c. has at least 3 Directors andd. may a private company converted into a public company.

Incorporation Options for Foreign Investor:

Incorporation options to a foreign investor include:a. Setting up a 100% foreign-owned company in Bangladesh;b. Setting up a Joint Venture with Bangladeshi company / investor;c. Establishing the Company’s Place of Business in Bangladesh;d. Setting up a branch or a subsidiary of a foreign company in Bangladesh;e. Setting up a Bangladeshi Company or participate in a Bangladeshi Company

already formed.

Company Formation Procedure:

To register a company with the Registrar of Joint Stock Companies and Firms(RJSCF), promoter have to undertake activities in following steps:

1. Step 1: Selection of the Company Name. The name should not be identical with or closely resemble to the name of an existing company. An application in plain paper along with required nominal fees is to be submitted to the RJSRF for verification and clearance of the proposed name.

2. Step 2: Memorandum of Association (MOA). MOA states the name of the company, whether it is public limited or private limited and the location of theregistered office at the company. The MOA should clearly spell out the mainobjectives, the authorized capital, the division of this capital into shares of fixedamount and liability of its members.

3. Step 3: Articles of Association (AOA). The AOA are the regulations governing theinternal management of the affairs of the company and the conduct of itsbusiness. These articles are subordinate to and controlled by MOA.


4. Step 3: Registration Application. Prescribed Application Form for registrationhas to be filled in, signed and submitted to the Registrar of the Joint StockCompanies and Firms. The application should include:

● Application Form. Duly filled in, signed and stamped;● MOA. Duly signed and stamped;● AOA. Duly signed and stamped;● Registration Fees. As applicable. (See Costs of Doing Business)● Stamp Duty for MOA. Fixed.● Stamp Duty for AOA. Variable. (See Costs of Doing Business)

For private companies, also required :● Form I : Declaration on Registration of Company;● Form VI : Notice of situation of registered office or any change therein;● Form IX : Consent of Director to Act;● Form X : List of Persons Consenting to be Directors;● Form XII : Particulars of Directors, Managers and Managing

Agents and any change therein.

For public companies, also required :● Form XI : Agreement to take Qualification Share of the Propose

Company● Form XIV : Declaration before commencing business in case of the

company filling a Statement in lieu of Prospectus.

Upon complete submission of the above, registration is given by the RJSCF. Forlatest information, please contact the Registrar of the Joint Stock Companies & Firmsor visit www.roc.gov.bd.

Establishing Place of Business:In establishing a place of business of a foreign company, the company has to beregistered with the Registrar of Joint Stock Companies as the place of business.Such registration is required in respect of capital issue and obtaining clearance fromthe central bank i.e. Bangladesh Bank.

Documentary requirements include:● Prescribed Application Form. Duly filled in, signed and stamped● Copies of Charter, statutes or MOA and AOA or other similar instrument. Duly

certified by Oath Commissioner or Notary Public and authenticated by Bangladesh Embassy in the respective country;

● List of Company Directors and Secretary; and● Complete address of the Registered or Principal Office in the country of origin.


c. Opening of Branch/Liaison/Representative Office:

To open or seek extension of Branch/Liaison Representative Office of a foreigncompany, the company has to submit in prescribed Application Form to Board ofInvestment along with following documents:● Prescribed Application Form. Duly filled in, signed and stamped;● MOA and AOA of the Principal Company;● Certificate of Incorporation;● Name and Nationalities of the Directors/Promoters of the Principal Company;● Board Resolution to open a Branch/Liaison/Representative Office in Bangladesh;● Audited Accounts of the last financial year;● Proposed organogram of the office;● List of activities of the proposed office.

All papers/documents must be attested by the Bangladesh Embassy/HighCommission of the country of origin. Embassy/High Commission of the applicant’scountry of origin or Apex Chamber of Commerce of the country of origin.

d. Securing Trade License

The Trade License has to be secured from the local government office like CityCorporation or Municipality or Union Parishad, as applicable. More information on theprocedures of Trade Licence could be viewed at www.dhakacity.org.

a. Registration with BOI

i. Joint venture and 100% foreign investment proposals in the private sector

● Entrepreneur/investors are advised to apply for registration to BOI in order toavail of facilities and the institutional support services provided by theGovernment

● Prescribed application form has to be collected from BOI Office or downloaded from BOI website www.boi.gov.bd. (Appendix I). Documents to be enclosed with the application are:

Operational . . .4.5 Operational Set up for Industries


i. Application in prescribed Form duly filled in. 2 (two) copies.ii. Certificate of incorporation along with Memorandum & Articles of

Association in case of Public / Private Limited Company. In case of JointVenture Project (JVP), JVP Agreement duly signed in by both the parties.2 (two) copies.

iii. Attested copies of Deeds/Documents in support of project land (in case ofown land, Purchase Deed and in case of lease / rental premises, Deed ofAgreement). 2 (two) copies.

iv. If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile.2 (two) copies.

v. Background of the Promoters in official letterhead pad describing a) Name,b) Permanent and c) Mailing Address, d) Position and e) Nationality. 2 (two)copies.

vi. List of machinery indicating quantity and price. 3 (three) copies.vii. In case the project is financed by loan, copy of relevant documents in

support of loan. 2 (two) copies.viii. Pay order / bank draft amounting required amount in favor of "EXECUTIVE

CHAIRMAN AND MEMBER-SECRETARY, BOARD OF INVESTMENT".● After receiving the application duly filled in, signed and required documents

enclosed, BOI reviews the application and, if found suitable, Registration Certificate is issued by 7 days.

● BOI registration makes the company eligible to avail the incentives and facilities provided by the government.

ii. Self financed local investment proposals including industries sanctioned/financed by financial institutions or commercial banksThe entrepreneurs of such projects are to fill up a simple prescribed applicationform and submit to BOI for registration. After a first hand scrutiny of the information,BOI issues registration letter.

● Entrepreneur/investors are advised to apply for registration to BOI in order toavail facilities and the institutional support services provided by the Government.

● Prescribed application form has to be collected from BOI Office or downloaded from BOI website www.boibd.org. Documents to be enclosed with the application are:i. Application in prescribed Form duly filled in. 2 (two) copies.ii. Certificate of incorporation along with Memorandum & Articles of

Association in case of Public / Private Limited Company. In case ofPartnership Project, Partnership Agreement duly signed in by both theparties. 2 (two) copies.


iii. Attested copies of Deeds/Documents in support of project land (in case ofown land, Purchase Deed and in case of lease / rental premises, Deed ofAgreement). 2 (two) copies.

iv. If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile.2 (two) copies.

v. Pay order / bank draft amounting required amount in favor of "EXECUTIVECHAIRMAN AND MEMBER-SECRETARY, BOARD OF INVESTMENT".

● After receiving the application duly filled in, signed and required documentsenclosed, BOI reviews the application and, if found suitable, RegistrationCertificate is issued by 7 days.

● BOI registration makes the company eligible to avail the incentives and facilitiesprovided by the government.

iii. Permission for setting up industrial units with the public sector corporations

Any individual entrepreneur either local or foreign can set up an industry with publicsector corporation. Such joint venture is required to be registered with the BOI if theprivate sectors contribution is more than 50% of the project cost and in such a caseit is treated as private sector project. For any public sector which makes contributionout of their own fund needs approval of the Ministry concerned. If the contributionof the corporation is 50% or above, it is treated as a public sector project. The publicsector project is processed by the Ministry concerned for approval of the PlanningCommission.

● Government promotes rapid privatization of the state-owned enterprises (SOEs).

● Infrastructure and high investment projects like power have been encouragedfor public-private partnership.

b. Obtaining Industrial Plot

Entrepreneurs requiring industrial plot for setting up of industry in any industrialareas/estates apart form BEPZA and BSCIC, may apply to BOI as following with aview to justifying actual requirement:

● Mention the location and size of the plot

● Copies of sanction / registration letter and

● Industrial Layout Plan.


After receiving the application, BOI provides assistance to get the industrial plot.Most of the industrial areas/ estates are owned / controlled by city developmentauthorities in three divisional headquarters., RAJUK in Dhaka, CDA in Chittagongand KDA in Khulna. Besides, a few industrial estates are owned and controlled bysome other government agencies namely (a) Public Works Department and (b)Housing and Settlement Directorate.

BOI also recommends for acquisition of land to the concerned if required by theindustrial units. In such cases, the entrepreneurs are required to submit relevant papersand information in connection with the land to be acquired by the Deputy Commissioners(DC) concerned.

c. Approval of Foreign Loan, Suppliers' Credit, PAYE Scheme etc.:

Entrepreneurs in the private industrial sector arranging foreign credit in the form ofloan, suppliers' credit, PAYE scheme etc. are required to obtain prior approval fromthe Scrutiny Committee headed by the Governor of Bangladesh Bank. However, allneccesary processes are completed at BOI. Representatives from Bangladesh Bankprovide technical assistance to the applicants.

d. Obtaining Utility Connections ● Utility connections and respective providers are:

i. Electricity : Power Development Board (PDB), Dhaka Electric Supply Authority (DESA), Dhaka Electric Supply Company (DESCO) and Rural Electrification Board (REB).

ii. Gas : Titas Gas Transmission & Distribution Company Ltd. (TGTDCL), Bakhrabad Gas System Ltd. (BGSL) and Jalalabad Gas Transmission & Distribution System Ltd. (JGTDSL)

iii. Telephone : Bangladesh Telegraph and Telephone Board (BTTB) for Land phone, and other companies for cellular phone services.

iv. Water : WASA or self generated.v. Sewerage : WASA or self serviced.vi. Tube well Licensing : WASA.

● Enterpreners are encourged to contact BOI Utility Service Cell for obtaining utilityservices


● BOI Utility Service Cell has been sufficiently strengthened with placement of Senior Officials from the utility service providers.

● Investors may apply in prescribed forms for specific connectivity to BOI Utility Service Cell (USC). The Cell arranges necessary utility services from the

respective providers within the stipulated period.

e. Import of and Raw Materials

● Prescribed application form for IRC should be collected from BOI and CCI&E.After receiving the application duly filled in, signed and required documentsenclosed, BOI reviews the application, arranges necessary inspection of theplant.

● BOI, BEPZA and BSCIC fix up the import entitlement and recommend to ChiefController of Imports & Exports (CCI&E) for issuance of Import RegistrationCertificate (IRC).

● CCI&E issues IRC in favor of the industrial enterprise within 30 days. ???

● Items included in the banned list cannot be imported unless specified otherwise.

● In case of import of raw and packaging materials for pharmaceutical industry,the Drug Administration Directorate under the Ministry of Health and FamilyWelfare prepares the Block list on half-yearly basis. BOI/BEPZA/BSCICprovides necessary assistance relating to import of their respective jurisdictions.

f. Work Permit

Work permit for foreign nationals is required for employment in Bangladesh. Privatesector industrial enterprises (outside EPZs), branch/liaison/ representative office offoreign origin and also local commercial enterprises desiring to employ foreignnationals are required to apply in the prescribed form obtainable from BOI. Forexpatriate employment the guidelines are as follows:● Nationals of the countries recognized by Bangladesh are considered for

employment.

● Employment of expatriate personnel are considered only in industrialestablishments and commercial enterprises duly sanctioned / registered by theappropriate authority.

● Employment of foreign nationals is normally considered for the job for whichlocal experts / technicians are not available and persons below 18 years of ageare not eligible for employment.


● Decision of the Board of Directors of the company concerned for newemployment/ extension has to be furnished.

● Initially employment of any foreign national is considered for a term of one yearwhich may be extended on the basis of merit of the case.

● Necessary security clearance has to be obtained from the Ministry of HomeAffairs after issuance of Work Permit and the duration of visa should be extended upto the period of Work Permit.

● For obtaining new Work Permit, the expatriate investors and employee mustarrive in Bangladesh with ‘PI’ and ‘E’ types visa respectively obtainable fromBangladesh Mission concerned in abroad.

● Recommendation from BOI/BEPZA is required for obtaining ‘PI’ and ‘E’ type visa.

● Application for Expatriate Work Permit must be submitted to BOI within 15(fifteen) days from the date of arrival.

● Number of the expatriate employees in an industrial enterprise should notexceed 1:20 (foreign:local) ratio at any time during regular production and theratio for commercial enterprises be 1:5 (foreign:local).

● Prescribed application form has to be collected from BOI. The application formcould also be downloaded from BOI website www.boi.gov.bd.

g. Registering with Factories Act

● In order to regulate working conditions and to ensure safety in the factory, anymanufacturing company employing ten or more workers is required to beregistered under the Factories Act, 1965 along with the office of the ChiefInspector of Factories and Establishment (CIF&E).

● The act is primarily to regulate working conditions and to ensure safety in the factory.

● Prescribed Application Form has to be collected from the office of the ChiefInspector of Factories and Establishment, filled in and submitted withrequirements. The CIF&E office issues registration within the stipulated period.

h. Registering with Environmental Legislation

● Environment Conservation Act 1995 made it mandatory to all industrial projectsto obtain Environmental Clearance Certificate from the Department ofEnvironment.


● The main criteria for obtaining clearance are set out in the EnvironmentConservation Rules 1997 which was established under the Act.

● Different levels of assessment are required depending on the particular industryconcerned.

● Investors may apply in prescribed forms for Environmental ClearanceCertificate to BOI Utility Service Cell (USC) enclosing required documents. TheUSC arranges necessary clearances from the DOE within the stipulated period.

i. Remittance of Royalty, Technical Know-How and Technical Assistance Fees

● Prior permission of BOI is not required for entering into agreements for thepurpose of royalty, technical know-how and technical assistance if the total feesand other expenses connected with technology transfer are within the followingprescribed limits:- For new projects, such fees and other expenses should not exceed an

aggregate limit of 6 % of C&F value of imported machinery.- Recurrent annual fees for royalties and other expenses such as fees for

technical know-how, technical assistance, operational services, marketingof products etc. should not exceed an aggregate limit of 6% of the previousyear's sales of the firms as declared in the tax return.

● Proposals which are not covered under the prescribed limits require priorapproval of BOI for which application has to be submitted along with necessarydocuments and copy of the relevant draft agreement.

● Prior approval from BOI must be required for remitting any technical fees.● Industrial concern desiring to remit technical fees must be registered with BOI.● Application in prescribed form to be submitted to BOI along with necessary

documents. Sample application form is annexed at appendix-1e.


● After completion of the setup, the plant goes into trial production.

● Successful trial production leads to commercial production.

● The investor is required to submit half-yearly performance report to BOI on production and employment in the project.

● Any changes in information provided in the registration letter has to be informedand ammended approved by BOI immediately.

Bangladesh offers a substantial manpower reserve-skilled, unskilled, educated andotherwise. There is a good supply of relatively low cost labor in the country. Manyof them have a working knowledge of English and possess the basic skills requiredby industries. Of late, there is an increasing supply of professionals, technologistsand other middle and low-level skilled workers. They receive technical training fromuniversities, college, technical training centers, polytechnic institutions etc. Theexpenditure incurred by an employer to train his employees is exempted fromincome tax.

Laws related to consolidate and amend the matter relating to employment of labor,relation between employees and employers, fixation of minimum rate of wages,payment of wages, compensation for the workers in industrial hazards, formation oftrade union, occurrence of industrial dispute and dispute settlement mechanism,labor health, security, safety, environment of working place, probation and other laborrelated matter and death with the recently enacted “The Bangladesh Labour Act,2006”. This law has replaced the previously used laws for labor related issues.

Commercial . . .4.6 Commercial Operation

Human. . .4.7 Human Resources & Employment


The Government of Bangladesh has adopted a policy for promoting the developmentof infrastructure projects through private sector. There was an absence of consistentprocedures to identfy, develop and process private infrastructure projects, as therewere no guidelines. In October 2004, GOB published the Bangladesh ''Private SectorInfrastructure Guidelines'' (PSIG) for encouraging infrastructure projects with privatesector financing, management and operation.

The objectives of PSIG are:

● to establish within the Government, procedures to identify Private Infrastructure Projects;

● to document a set of guidelines, for both the private investors and the Government; and

● to establish institutional arrangements to monitor and expedite the implementation of such projects at a national level.

Full text of the PSIG are available online and can be downloaded from www.boi.gov.bd and www.iifc.net

Private Infrastructure Projects may be initiated for listing, through the following mechanism:

a) Submitted by a Line Ministry to PICOMb) Submitted directly by the private sector to the BOIc) Submitted directly by the private sector to PICOM

The initiation of projects for the List shall be made in forms prescribed by PICOM. Foritems (b) and (c), the relevant Line Ministry shall confirm whether the Project isconsistent with the sector plan and is desirable.

Projects. shall be approved for inclusion in the List in the following manner:(a) Projects of capital cost less than US$ 5 million shall be approved by the Line

Ministry and notified to PICOM for inclusion in the list;

Exchange. . .4.8 Listing Private Infrastructure Projects


(b) Projects of capital cost US$ 5 million or more shall be approved by the Cabinet Committee on Economic Affairs.

Public

Infrastructure

Projects

PC Prepares

Preliminary ADP

Draft

ADP

PICOM examines Private

Infrastructure Projects

Private

Infrastructure

ProjectsProjects from

the Private

Sector

LMs Prepare

Public Sector

and Private

Sector Lists

ECNEC

Approval

CCEA

Approval

LMs and

PICOM monitor

EAs

Implementation

by LMs & Mon-

itoring by IMED

ADP = Annual Development Programme

CCEA = Cabinet Committee on Economic Affairs

EAs = Executing Agencies

ECNEC = Executive Committee for the National Economic Council

IMED = Implementation Monitoring and Evaluation Division

LMs = Line Ministries

PC = Planning Commission

PICOM = Private Infrastructure Committee

Exhibit 4.3Segregation of Public and Private Infrastructure Project


* Subject to approval of CCEA

Table : 4.2List of the Projects approved by PICOM


Bangladesh Bank (BB) is the central Bank of the country and is responsible forissuing Bangladeshi currency and maintaining its value. BB administers the foreignexchange regulations. It has been continuing to liberalize foreign exchangeregulations in conformity with the government’s reform agenda in macro economicpolicies with a view to creating an environment conducive to investment andproductivity.

Instructions relating to foreign exchange transactions by a foreign investor areavailable in the Guidelines for Foreign Exchange Transactions (1996), Volume-I andVolume-II and Circulars issued by Bangladesh Bank from time to time. For detailedinstructions, investors may consult the relevant guidelines/circulars. Salient featuresof some of those instructions are given below.

a. Convertibility of Bangladesh TakaThe Taka is fully convertible for current account transactions. All current transactionsincluding trade and investment & investment related transactions may be conducted byindividuals / firms through authorized dealer (AD) banks without prior permission of BB.

b. Opening of Bank Account by a Foreign InvestorA non-resident may open with any Authorized Dealer (AD) branch of a bank ForeignCurrency (FC) accounts and Non-resident Foreign Currency Deposit (NFCD)accounts with foreign exchange brought in from outside. Balances of these accountsare freely transferable abroad. A foreign investor may also open and operate a Takaaccount freely with any bank while he is a resident. A non-resident can open a Non-Resident Investor's Taka Account (NITA) with any AD bank in Bangladesh withforeign exchange remitted from abroad through normal banking channel or bytransfer of funds from the non-resident investor's foreign currency account forportfolio investment in Bangladesh.

c. Bringing in Cash from Abroad by a Foreign InvestorA foreigner can bring in foreign exchange in any form including cash without limit. Butfor amounts, in excess of US$ 5,000 a declaration on FMJ form is required to bemade to the Customs Authorities at the time of entry. Amounts brought in may alsobe taken out freely, subject to production of the declaration where applicable.

d. Transfer of Capital and Capital GainsForeign Investors are free to make investment in Bangladesh in industrial enterprisesexcepting a few reserved sectors. An industrial entity may be set up in collaborationwith local investors or may even be wholly owned by the foreign investors. The repatriation of sale proceeds (including capital gains) of shares of companies

Exchange. . .4.9 Exchange Control


listed in a Stock Exchange in Bangladesh may be made through an AD if suchinvestment takes place through NITA operation. Remittance of sale proceeds ofshares of companies not listed in a Stock Exchange requires prior Bangladesh Bank(BB) permission, which is accorded to for amounts not exceeding the net asset valueof the shares. Transfer of shares and securities from one non-resident to anothernon-resident requires no prior BB approval.

e. Remittance of Proceeds from Liquidation of Industrial UndertakingRemittance of proceeds arising out of liquidation of industrial undertaking requiresprior BB approval.

f. Transfer of Profit and Dividend Accruing to a Foreign Investor

i. Profits : Branches of foreign firms/companies including foreign banks, insurancecompanies financial institutions are free to remit their post-tax profits to their head officesthrough ADs.

ii. Dividends: Remittance of dividend income to non-residents in respect of theirinvestments in Bangladesh may be made through an AD.

g. Repatriation of Savings, Retirement Benefits & Salary of Foreigners Employedin Bangladesh

Foreigners employed in Bangladesh with the approval of the Government may remit50% of salary, actual savings and admissible retirement benefits through an AD. Netsalary of foreign nationals payable for the period of leave admissible to them as pertheir service contract duly approved by the Government will be remittable.

h. Local BorrowingsBanks may extend working capital loans or term loans in local currency to foreigncontrolled or foreign owned firms/companies (manufacturing or non-manufacturing)operating in Bangladesh on the basis of prevailing credit norms and normal banker-customer relationship.

While the term loan in taka may also be obtained without prior Bangladesh Bankapproval provided:

a) The term loan in taka does not exceed the amount of equity of the firm/companyheld by Bangladesh nationals and firms/companies not owned or controlled by foreigners and

b) Total debt of the firms/company does not exceed the total equity of thatcompany/firms.

Banks are free to grant local currency loans to joint venture industries in ExportProcessing Zones (EPZ) up to the amount of short-term foreign currency loansobtained from abroad.


i. Borrowing Abroad

Borrowing abroad in foreign currency requires prior BOI approval. Application as perproforma (Annexure-A) for approval of foreign borrowings should be submitted toBOI with analyses and supporting document as per the check list enclosed. Inexamining the approval request for foreign borrowing proposals, the Board ofInvestment shall attach priority mainly to medium and longer term borrowing. Havingscrutinized fully documented proposals only will be submitted to the committeeheaded by Governor, Bangladesh Bank for approval. Repayment of principal andinterest on approved foreign currency borrowing may be made through AuthorizedDealer (AD) bank as per agreed terms. 100% foreign owned and joint venture unitsin EPZs may, however, obtain foreign currency loans from overseas banks andfinancial institutions without prior BOI or BB approval. Joint ventures in EPZ cannot,however, create charge on their assets favoring non-residents.

j. Investment Facilitating Measures:

Prior approval of Bangladesh Bank is no longer required for:

a. Remittance of profits to the head office of foreign investors.

b. Issuance of shares to non-residents against investment in industrial setup in Bangladesh.

c. Remittance of dividends on such shares to the non-resident investors.

d. Portfolio investment by non-residents including foreign individuals/enterprises in shares and securities through stock exchanges of Bangladesh.

e. Remittance of dividends on portfolio investment by non-residents through stock exchanges of Bangladesh.

f. Remittance of sale proceeds including capital gains.

g. Remittance of principal and interest installments on loans/supplier’s credit obtained by industrial units from foreign lenders with approval of BOI.

h. Remittance in repayment of principal and payment of interest on such loans.

i. Remittance of royalty, technical know-how and technical assistance fees in conformity to the BOI guidelines.

j. Remittance of savings of expatriate personnel, out of salaries and benefits stated in BOI approved contract, at the time of their leaving Bangladesh.


k. Export Encouragement Measures:

a. Annual foreign exchange retention quota for exporter has been refixed at 50% of FOB export earning.

b. Retention quota for high import content exporters is 10% of FOB export earnings.

c. Exporters are allowed to keep foreign exchange retention quota in foreign cur rency accounts in a bank in Bangladesh dealing with foreign currency.

d. Usage of funds of the retention quota of exporters in setting up offices abroad and bonafide business expenses such as business visits abroad, participation in export fairs & seminars, import of raw materials, machineries and spares etc. are allowed keeping the bank informed.

Cost is the prime determining factor in any investment decision. At the end of the day, the investor calculates how much return on investment has been earned. Higher business costs lead to losses that ultimately results in investment termination, discontinuation and closure. This chapter presents: � Detail costs of doing business in Bangladesh � A comparison of basic cost elements among competing destinations in Asia


89

5.1 Typical Costs of Doing Business in Bangladesh a. Arrival and Getting Startedb. Industrial Land and Factory buildingc. Business Setupd. Utilitiese. Telecommunicationf. Human Resourcesg. Transportationh. Living Costs

5.2 Taxation in Bangladesh5.3 Customs Tariff5.4 Comparative Costs in Competing Locations

5Costs of Doing

Business


90



The cost of doing business in Bangladesh is significantly competitive in comparisonto other economies in the region. A summary of relevant costs of doing business isgiven below for the prospective investors.

a. Arrival and Getting Started

Cost Heads� in Taka� In US$Trade License�� Securing Trade License� 250-2,500� 3.57-35.7Incorporation with RJSC&F1.� Name Clearance (for each name search)� 5.00� 0.071

2.� Stamp Affixing with MOA� Stamp Value� Stamp Value� - Authorized Capital of any amount� 500� 7.14

3.� Stamp Affixing with AOA� Stamp Value� Stamp Value� - Authorized Capital upto Tk. 1,000,000� 1,500� 21.42� - Authorized Capital upto Tk. 30,000,000� 4,000� 57.14� - Authorized Capital above Tk. 30,000,000� 10,000� 142.85

Immigration & Visa1. Pre-arranged Visa from Missions

a. Single-entry for 3 monthsb. Single-entry for 6 monthsc. Multiple-entry for 6 monthsd. Multiple-entry for 1 yeare. Multiple-entry for 5 yearf. Multiple-entry for Work period

2. Landing Permit / Visa on Arrival a. Visa on Arrival for 30 days

Cost Heads Costs

Varies by Country.

Please contactBangladesh Mission

in yourCountry/nearest

Country

Note : Exchange Rate US$ 1 = BDT 70 Tk.

Business Startup Costs : Arrival

Business Startup Costs : Structuring

Typical Coast . . .5.1 Typical Costs of Doing Business


b. Industrial Land and Factory Building

Registered industrial projects are eligible to obtain land from the government. Priceof land in most of the industrial estates/areas is relatively lower than the market rate.These estates are developed with necessary infrastructure and utility facilities suchas electricity, gas, water, sewerage etc. Industrial plots are allotted by BEPZA andBSCIC in industrial areas developed by them. Plots in other industrial estates/areas,owned by the government or owned/controlled by any local authority, are allotted onthe recommendation of BOI.

Quality construction materials including civil, structural and architectural design andlabor force are locally available in every part of the country. Moreover, internationalconstruction firms are also present in the country.

Fully serviced Industrial plots and standard factory buildings are offered byBangladesh Export Processing Zones Authority (BEPZA) as per rate stated below:

Cost Heads

Business Startup Costs : contiued

in Taka In US$

- Authorized Capital: upto Tk. 50,000

- Authorized Capital: upto Tk. 1,000,000

- Authorized Capital: upto Tk. 5,000,000

- Authorized Capital: above Tk. 5,000,000

120+ @ 60

for each 10,000

above 20,000

300+ @ 15

for each 10,000

above 50,000

1,725+ @ 8

for every 10,000

above 1,000,000

4,925+ @ 15

for every

100,000

1.70+@ 0.85

for each 142

above 284

4.28+@ 0.21

for each 142

above 714

[email protected]

for every 142

above 14285.71

[email protected]

for every

1428.57

4. Registration Fees based on Capital Limit

- Authorized Capital: upto Tk. 20,000

Fee

120

Fee

1.70

Cost Heads Unit In Taka In US$

Land in EPZs (30 years renewable lease)

a. Dhaka, Chittagong, Comilla, Adamjee & Karnaphuli

b. Mongla, Ishwardi, Uttara

Standard Factory Building Rental

a. EPZs : Dhaka, Chittagong, Comilla, Adamjee & Karnaphuli

b. EPZs : Mongla, Ishwardi, Uttara

c. Average Construction Cost

Sq.m/year

Sq.m/year

Sq.m/month

Sq.m/month

Sq.m

140

70

145

72

5,790-7,238

2.00

1.00

2.5

1.25

86.98-108.73

Industrial Land & Factory Building


c. Business Setup

Following is a list of costs incurred in various kinds of registration and license.

d. Utilities: Electricity, Gas, Water, Sewerage

Electricity: Bangladesh Power Development Board (BPDB) is the responsibleagency for generation, transmission and distribution of electricity in Bangladesh.

Business Setting Up CostsCost Heads in Taka in US$

BOI Registration

1. Registration Fees based on Project Cost

Project Cost: upto Tk. 100,000,000



Project Cost: upto Tk. 1,000,000,000

Project Cost: above Tk. 1,000,000,000

2. Updating the changes in Registration Info

Fee

5,000

10,000

25,000

50,000

100,000

1,000

Fee

71

142

357

714.28

1428.57

14.28

Work Permit

1. For Private Sector (permit given by BOI)

Work Permit Fee per Person (Industry) NewWork Permited fee per Person (Branch/Liason Office) New 3,000 45Extension 1,000 15

Fee

5,000

Fee

71.42

DOE Clearance / Renewal

1. Fees based on Project Cost

Project Cost : upto Tk. 1,000,000



Project Cost : above Tk. 500,000,000

Fee

300

3,000

5,000

10,000

Fee

4.28

42.85

71.42

142.85

Registration with CIFE

1. Fees based on No. of Factory Workers

Worker Nos. : 10 - 300

Worker Nos. : 301 - 1,000

Worker Nos. : Above 1,000

Fee

80 - 800

1,400 - 2,000

2,400

Fee

1.14-11.4

20-28.57

34

VAT Registration with NBR

1. Registration Fees No Fee

Required


Power is generated in hydro, steam, gas turbine and diesel power plants, All thegenerating stations are interconnected through a national grid. The Dhaka ElectricSupply Authority (DESA) started operation to maintain uninterrupted supply ofelectricity in the capital city. The industrial consumption rate of electricity varies fromTk. 3.30 to Tk. 5.75 per kW (US$ 0.05 to 0.10) depending on the size of theindustries, load capacity and peak & off-peak hour consumption. However, captivepower generation is also allowed for private sector enterprise.

Gas: Natural gas supply is available in major industrial areas of Dhaka andChittagong Division. Gas tariff for industrial consumption is Tk. 5.07 (US$ 0.09) percubic meter including supplementary duty and VAT.

Water and Sewerage : Water is supplied by the Water Supply and SewerageAuthority (WASA) in metropolitan areas of Dhaka and Chittagong. In other municipalareas, local municipalities are provides the service. Dhaka WASA supplies freshwater to the city consumers at the following rate :

● Residential / Domestic : Tk 5.15 (US$ 0.074) / 1000 litter● Commercial / Industrial : Tk 19.48 (US$ 0.34) / 1000 litter

Sewerage bill is equal to water bill for those who has sewerage connection. Theconsumer who does not have a sewerage connection but there is sewerage mainline within 100 ft distance from the respective premise, he has to pay an amount of10.02% to municipal valuation annually as sewerage bill.

Cost Heads in Taka in US$

Electricity

(Providers: BPDB, DESA, DESCO, REB)

1. BPDB, DESA & DESCO

Temporary Connection

a. Application Form

b. Connectivity Fee & Tariff

Permanent Connection

a. Application Fee

b. Security Deposit (per kW load 220-440)

c. Instruments, Transformers, Service Line

Drawing, Bay Extension, Installation etc.

(In DESA, 'Item c' except Bay Extension,

is Fixed At lti-ht)

d. Tariff per Unit (excluding VAT and SD)

- Pump used in Agriculture

- Small Enterprise (as on usage time)

Flat

No

As may be

determined

15-250

375-550-600

As per Rate

5000-55,000

1.84

4.02

No

As may be

determined

0.21-3.57

5.35-8.57

As per Rate

71.4-785.71

0.026

0.057

Utility Costs



Off Peak

Peak

- Commercial (as on usage time)

Flat

Off Peak

Peak

- Class F : Medium Pressure (11 KV)

Flat

Off Peak

Peak

- Class G1 :Very High Pressure

DESA (132 KV)

- Class G2 :Very High Pressure

General Use (132 KV) / Flat

2. REB

Provisional Connection for Construction

period only

a. Application Form

b. Security Advance

c. Transformer Supply Charges

- Advance Installation & removal

For Single Phase

For Three Phase

- Monthly Rental

For Single Phase

For Three Phase

a. Application Deposit (non refundable)

b. Capacity Retention Charge for entire

period (06 months - 02 years)

3.20

5.62

5.30

3.80

8.20

3.80

3.13

6.73

2.22

2.75

No

As per Rules of

PBS

1,500

3,000

500

1,000 or 30/KVA

whichever is

higher

1,000

2.50 per

KVA/month,

but min. 250

As per Rules of

PBS

0.045

0.080

0.075

0.054

0.117

0.054

0.044

0.096

0.031

0.039

No

As per Rules of

PBS

21.42

42.85

7.14

14.28 or

0.42/KVA

whichever is

higher

14.28

0.035 per

KVA/month,

but min. 3.57

As per Rules of

PBS


Gas


(Providers: TGTDCL, BGSL, JGTDSL)

1. TGTDCL

a. Application Form

b. Demand Note

c. Tariff (including VAT and SD) (per cubic meter)

- Industrial

- Tea Garden

- Captive Power Generation

- Fertilizer

- Power

- Commercial

- Household

100-300

As actual

expenditure

5.23

5.23

3.73

2.24

2.61

8.23

4.59

1.42-4.28

As actual

expenditure

0.074

0.074

0.053

0.032

0.037

0.117

0.065

- Feed gas for CNG 2.47 0.035

Water (WASA)

1. Piped Water

a. Application Form

b. Connectivity

For Size of Connection: 0.75 Inch Dia

- Connection Fee

- Meter Cost with Installation Fee

- Other Charges

For Size of Connection: 1 Inch Dia

- Connection Fee


- Other Charges

For Size of Connection: 1.5 - 2 Inches Dia

- Connection Fee


- Other Charges

c. Water Tariff Domestic/Residential

In taka in US$ In taka in US$

Commercial/Industrial

(Domestic,Industrial,Commercial)

During Construction Period

- 0.75 Inch Dia (per month)

- 1.00 Inch Dia (per month)

- 1.50 Inches Dia (per month)

- 2.00 Inches Dia (per month)

100

500

2780

As may be

determined

1500

4500

As may be

determined

3,500

17000

As may be

determined

662 9.45

1134 16.20

2268 32.40

4725 67.50

27.17

48.80

97.57

203.28

1.42

7.14

39.71

As may be

determined

21.42

64.28

As may be

determined

50

242.85

As may be

determined

1902

3416

6830

14230



- Commercial/Industrial (per 1000 liter)

Post Construction Operation Period

- Residential / Domestic (per 1000 liter)

2. Deep Tube Well (DTW) max.6 Inch Dia

a. Application Form

b. Permission Fee (annual)

- 2 & 3 Inch Dia

- 4 Inch Dia

- 6 Inch Dia

c. Meter Charge (annual)

- 2 & 3 Inch Dia

- 4 Inch Dia

- 6 Inch Dia

d. Renewal Fee (annual)

Renewal Application deadline:

15 February

- 2 & 3 Inch Dia

- 4 Inch Dia

- 6 Inch Dia

17.50

5.25

100

80,000

1,40,000

2,20,000

6,945

63,384

1,07,070

0.25

0.075

1.42

1,142.85

2,000

3,142.85

1,50,000

3,00,000

3,50,000

2,142.85

4285.71

5,000

50,000

1,00,000

1,20,000

714.28

1,428.57

1,714.28

75,000

1,50,000

2,20,000

1,071.42

2,142.85

3,142.85

99.21

905.48

1,529.57

Sewerage (WASA)

1. Application Form

2. Connectivity

a. 4 Inch Dia

b. 6 Inch Dia

c. 8 & 9 Inch Dia

3. Sewerage Tariff

a. Have both Water & Sewer Connection

b. Have No Sewerage Connection, but lying

within 100 ft of the Sewer Line.

c. Have Sewerage, but no Water Connection

* annual valuation of the holding per year. But,

not exceed Water Tariff.

100

400

1000

5000

Same as Water.

10.02% of

annual valuation*

27.80% of

annual valuation

1.42

5.71

14.28

71.42

Same as Water.

10.02% of

annual valuation*

27.80% of

annual valuation

Source: BPDB, DESA, REB and WASA.

Domestic/Residential

In taka in US$

In taka in US$

In taka in US$


Domestic/Residential

In taka in US$ In taka in US$



e. Telecommunication:

Comprehensive telecommunication service such as fully automatic telex, fax, e-mail, internet, telephone including international direct dialing are available withimportant countries of the world.


Telephone

a. Installation and Security

- Dhaka, Chittagong and Other Divisions

- Districts (existing)

- Upazilas (existing)

2. Tariff Rate

- ISDPlease visit

www.bttb.gov.bd

- NWD

- Economy ISD

- Local

6,000

5,000

4,000

85.71

71.42

57.14

1. Connectivity with Standard Set

a. Mobile to Mobile

b. Regular with Fixed Line Access

1,399 - 5,000

3,500 - 5,000

19.98-71.42

50-71.42

Internet & Broadband

1. Dial Up Connection

a. Connection Fee

b. Connectivity Rate per minute

2. Broadband (available in selected areas)

a. Connection Fee (depends on bandwidth)

300

0.20 - 0.40

10,000-20,000

4.28

0.002-0.004

142.85-285.71

Source : BTTB. Also visit www.bttb.gov.bd and other Cell phone companies & ISPs

For details visit www.grameenphone.com; www.teletalk.com;

www.citycell.com; www. aktel.com; www.banglalink.com;

www.ispab.org

Telecommunication Costs


f. Human Resources

The government is committed to provide fair wages to all level of industrial workers.Wages may be fixed through collective bargaining process. In case of inadequacy ofthe collective bargaining procedure, wages, would, however, be fixed by theMinimum Wages Board. Due emphasis is given so that the interests of themanagement and the workers are properly safeguarded.

g. Transportation

Road Transport: Bangladesh has about 40,344 km of paved roads. Ports andimportant business centers are well connected by roads and highways.

Bangladesh Land Port Authority was established under Ministry of WaterTransportation to make easy and smooth transportation of merchandise throughland ports. Only Benapole land Port is handled by government among thirteen landports. In 2005-06 FY, Land port authority earned 67.78 crore taka, while itsexpenditure was 43.99 taka.

Railway: Bangladesh Railway has a network of about 2,854.96 km connecting allthe administrative and business points of the country. Railway container service fromChittagong Port to Dhaka is available.

Airway: Bangladesh is connected with important major cities of the world by air.Many of the world's reputed airlines have their air link with ZIA International Airport,Dhaka, Shah Amanat International Airport, Chittagong and Osmani InternationalAirport, Sylhet.

Human ResourcesCost Heads Salary Benefits Total

Executive Salary & Benefits

a. Senior Management

b. Mid-level Executives

c. Entry-level Executives

Non-Executive Salary & Benefits

a. Skilled Workers

b. Semiskilled Workers

d. Unskilled Workers

in US$

1,000-2,000

400-600

200-400

in US$

50-70

40-55

30-40

in US$

500-1,000

200-300

100-200

in US$

25-30

20-25

20-25

in US$

1,500-3,000

600-900

300-600

in US$

75-100

60-80

50-65

Note : According to Labour Act 2006, Minimum Gross Monthly Labour Wage 1662.50 Tk.


Marine Transportation: Bangladesh has two sea-ports Chittagong & Mongla.World's reputed shipping lines are operating through these two ports.

Cost Heads 20 ft Container 40 ft Container

Ocean Freights to Int'l Destinations

Major European Ports

USA - East Coast (NY)

USA - West Coast (LA)

Canada (Toronto / Montreal)

Australia (Melbourne)

New Zealand (Auckland)

Hong Kong

UAE (Dubai)

900

In US$In US$

2,000

1,900

2,700

800

1,250

500

800

1,800

3,000

2,550

3,700

1,600

2,400

900

1,600

Express Mail Service

(depending on destinations)

Weight : 20 gm

Weight : 01 kg

Weight : 02 kg

Weight : 10 kg

in Taka

200 - 655

435 - 990

590 - 1,395

1710-5200

in US$

3.00-9.84

6.35-14.87

8.86-20.9

25.68-78.11

Transportation


h. Living Costs

Living in Bangladesh is highly affordable and pleasant. Following are the major livingexpenses in Dhaka Metropolis:

Accommodation Costs


Accommodation: Apartment Rental/month

- 2-3 Bedroom Unfurnished Flats 25,000 - 60,000 257.14-857.14

- 3-4 Bedroom Unfurnished Flats 40,000 - 85,000 571.42-1214.28

Domestic Help / Maid Services

- Full time Living Maid 4,000-5,000 57.14-71.42

- Car Driver 6,000 - 8,000 85.71-114.28

Hotel Rental: Single Room

- Deluxe Room (5 Star) - 170 - 260

- Executive Suite (5 Star) - 330 - 460

- Standard (3 Star) - 70 - 100

- Guest House - 40 - 80

Car Retail Prices

- Low Price Cars (900-1299cc) 600,000-700,000 8571-10000

- Compact Cars (1300-1799cc) 1,200,000-1,800,000 17142-25714

- Family Cars (2500cc upwards) 2,500,000-5,000,000 35714-71428

Petrol & Gas

- Unleaded Petrol 65.00 /liter 0.9 / liter

- Octane 67.00 /liter 0.95 /liter

- CNG 8.50/m3 (vol) 0.121 /c.ft

Car Operating Expenses

- Annual Road Tax 4,845 69.21

- Annual Insurance Premiums 40,000 - 85,000 571-1214

Eating Out (one person)

- 3-Course Dinner at Top Restaurant

- Buffet Lunch/Dinner Per person

3,000 - 5,000

250 - 500

42.85-71.42

3.57-7.14

- Simple Meal at 5-Star Coffee Shop 1,000 - 1,500 14.28-21.42

Health Services (one person : First visit)

- To call on a General Practitioner 100 - 200 1.42-2.85

- Specialist (Asstt. Professor & Professor) 400 - 700 5.71-10

- Expatriate Specialist 1,500 - 2,000 21.42-28.57


Corporate tax rate for industrial companies whose shares are publicly traded is 30%and the rate of whose shares are not publicly traded is 37.5%.

a. Tax rate on other companies: Tax rate on income of all other companiesincluding banks, financial institutions, insurance companies and local authoritiesranges from 37.5% to 45%.

b. Investment requirement by companies enjoying tax holiday: Companies enjoyingtax holiday are required to invest 30% of their exempted income within two yearsfrom the end of the tax exemption period in the said undertaking or in newindustrial undertaking or in stocks and shares of a public company or ingovernment bonds or securities.

c. Acceptance of returns of public limited companies : Returns field by the public limited companies shall be accepted if it is accompanied by audited accountsand certified by a chartered accountant as to the correctness of the total income of the assessee.

d. Salary of foreign technician : Salary received by or due to a foreign technicianunder contract of service approved by the NBR is fully exempted from paying tax(subject to prescribed conditions and limitations) for a period of 3 years from thedate of his arrival in Bangladesh.

e. Tax payable by the employer on remuneration of foreign technician: Expenditure incurred by an employer in respect of remuneration of the foreign technician isfully exempted from income tax (subject to the stipulated conditions).

f. Remuneration of foreign technicians employed by the consulting andengineering firms : Expenditure incurred as remuneration payable to a foreigntechnician by a Bangladesh firm carrying on the business of consulting andengineering is fully exempted from tax (subject to prescribed conditions andlimitations).

Taxation. . .5.2 Taxation in Bangladesh


Taxation (Fiscal year 2005-06)Cost Heads Rate

Personal Income (of total Income)

1. On the first Tk. 120,000

2. On the next Tk. 200,000



5. On the balance

Nil

10%

15%

20%

25%

Minimum Tax (of total Income)

1. For All Individual Category

2. For Spot Assessment

Tk. 1,800(Normal)

Tk. 3,600(self)

Tk. 2,400

Corporate Tax

1. For Public Listed Companies

(except Bank, Insurance, Leasing &

Other Financial Institutes)

2. For Other Companies

(except Bank, Insurance, Leasing &

Other Financial Institutes)

3. For Bank, Insurance, Leasing &

Other Financial Institutes

4. For Branch Companies, on repatriable profit

30%

37.5%

45%

15%

5. For Hospital under company law, Computer Software Business by Bangladeshi Fish farm, Poultry farm and Dairy farm (upto 30th June 2008) Exempted

Capital Gain Tax

For all type of Companies

regardless of the retention period of assets

15%

Tax Abatement

Any listed company declares dividend @ 20%, or higher, will get Tax

Abatement @ 10%.

Source : National Board of Revenue, Bangladesh


For the updated customs tariff rate, please visit our official website www.boi.gov.bdor the official website of National Board of Revenue www.nbr-bd.org.

Comparative cost structure of doing business in the similar cities of competingeconomies like Dhaka, Bangkok, Colombo, Hanoi, Jakarta, Karachi, Kuala Lumpur,Manila, New Delhi, Seoul, Shanghai and Yangoon have also been presented. Thiswould enable investors to easily compare the costs of contending investmentdestinations and facilitate undertaking decisions.

Customs tariff5.3 Customs Tarrif

Comparative . . .5.4 Comparative Costs


Sl 1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Ban

gkok

cost

(US$

)

146

316

584

4.4

0/d

ay

BW

x2.6

mn

1.1

-1.9

-3.7

58.7

1

4.8

6

11

.67

1581

81.4

1

0.0

4-0

.22

Nil

0.0

5

12.1

5

-

0.0

41-0

.042

0.0

4-0

.07

0.0

24-0

.51

0.1

9-0

.36

0.3

6

0.4

1

- -

0.6

1

30%

37%

7%

Dha

ka

cost

(US$

)

33-5

8

107-1

98

305-5

33

22-6

3

BW

x 1

mn

10%

182.0

9-2

27.6

2

0.0

8-0

.17

2.1

3-9

.92

609-1

523

152.2

5

2.6

3

150.6

5-2

79.3

1

0.0

4-0

.07

98.9

6

342.9

6

0.0

2-0

.08

0.0

4-0

.08

0.3

6

0.1

1

0.0

3-0

.13

0.0

7

- -

0.6

9

37.5

%

25%

15%

Jaka

rta

cost

(US$

)

131

270

618

71.4

0/m

onth

BW

x2-2

.5m

n

-

35-4

0

3.6

0-4

.10

22-2

6

1800-2

500

45.1

4

0.0

1

6.5

2

0.0

9

5.0

2

-

0.0

4

0.0

6

0.9

8

0.7

5

4.5/

1mill

ion

BT

U

0.1

5

- -

0.4

5

35%

10%

Ho ch

i Minh

City

cost

(US$

)

111

-185

249-3

73

572-1

054

- -

no o

ffic

ial d

ata

-

0.1

6

23

2200

37.8

2

0.0

03-0

.008

12.6

1

0.0

9

47.2

8

-

0.0

5-0

.06

0.0

3-0

.08

0.2

8

0.1

8-0

.47

0.7

9

0.8

7-0

.92

- -

0.6

0

28%

40%

0%

,5%

,10%

Kar

achi

cost

(US$

)

11

8-2

28

216-7

39

557-1

256

5016/m

onth

BW

x4-7

mn

1.8

-1.2

-14.3

8.2

6

0.0

09

8.3

6-2

2.3

0

585-5

017

25.9

6

0.0

07

105.7

7

0.0

1

60.2

0

-

0.0

9

0.1

2

1.8

5/1

000gallo

n

9.8

7/1

000gallo

n

5.9

3/1

mill

ion B

TU

5.4

9/1

mill

ion B

TU

- -

0.9

4

37%

0-19

65/ye

ar (F

ixed)

+0-3

5%

15%

Col

ombo

cost

(US$

)

69-1

00

138-2

10

333-5

03

36.3

3/M

onth

BW

x1.3

9m

n

7.4

-7.0

-2.3

12.3

6

0.8

7

8.7

2

982-2

455

193.9

4

0-0

.03

24.5

5

0.0

9

19.6

4

-

0.0

7

0.0

3-0

.16

0.4

1

0.0

1-0

.49

0.7

6/k

g

0.6

7/k

g

- -

0.7

9

32.5

%

30%

15%

Note

: B

W =

Basic

Wage: A

ll figure

s r

epre

sent avera

ge o

r avera

ge r

ange o

nly

for

sta

ndard

cases. F

or

specific

info

rmation o

n c

osts

, ple

ase c

onta

ct re

levant auth

orities in the r

espective c

itie

s/ are

as.

Sourc

e : 1

6th

Surv

ey o

f In

vestm

ent-

Rela

ted C

ost C

om

parison in the M

ajo

r C

itie

s a

nd R

egio

ns in A

sia

, JE

TR

O, M

arc

h 2

006

New

Del

hi

cost

(US$

)

105-2

39

303-4

98

737-1

219

69.4

1

BW

x0-2

mn

-

76.7

4

-

18.8

8-3

5.4

0

1535-3

289

10.9

6

0.0

2-0

.03

32.8

9-1

75.4

0

0.0

3-0

.06

21.9

3

-

0.0

9

0.0

3-0

.08

0.4

9-1

.64

0.3

3

0.0

7H

BJ

0.4

6/k

g

- -

0.9

5

33.6

6%

33.6

6%

12.5

%

Yang

oon

cost

(US$

)

17-3

3

28-8

9

56-2

22

-

BW

x0-3

mn

No

offic

ial D

ata

-

0.3

3

15.0

0

1600-2

400

1500

0.1

5

2200

0.3

0

230 -

0.0

8

0.0

8

0.8

8

0.4

4

1.0

0/k

g

1.0

0/k

g

- -

0.3

7%

40%

15-4

0%

0-3

0%

Shan

ghai

cost

(US$

)

172-3

01

334-5

93

772-1

521

85.5

1/m

onth

BW

x1-3

mn

9.6

-13.8

-10.1

25-3

0

1.0

0

28.3

5

3400-3

500

16.1

-37.2

0.0

2-0

.03

Nil

0.0

6

Nil -

0.0

4-0

.11

0.0

7

0.1

5

0.1

3

0.2

5-0

.32

0.1

3

- -

0.5

7%

33%

45%

17%

Kua

lam

pur

cost

(US$

)

205

790

1643

-

BW

x1.8

mn

5.3

-10.6

-

9.9

6-1

4.2

1

924-1

056

48.8

5-1

61.0

8

0.0

1

42.2

5

0.0

4

43.0

4

-

0.0

5

0.0

6-0

.07

0.4

8

0.1

5

0.1

3

0.2

0

- -

0.4

3

28%

28%

5-2

5%

Man

ila

cost

(US$

)

182

279

649

4.8

5/d

ay

BW

x1m

n

10.3

-0-3

.6

45-5

0

1.0

0

7.4

1726

36.5

8-6

4.0

4

0.0

9-0

.25

Nil

0.1

1-0

.12

Nil -

6.9

3

0.1

0

0.4

2-0

.47

0.1

3-0

.39

0.7

3

0.7

9-0

.83/k

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Comprehensive information on industrial sectors significantly assists the investors to match their strengths and choose most competitive sectors for investment. This Chapter would allow the investor to have a glimpse over: � the competitive and priority sectors in Bangladesh � existing structure and profile of the sectors and � Long term industry outlook and government’s strategic moves.


107

6.1 Textiles6.2 Spinning6.3 Frozen Foods 6.4 Leather 6.5 Electronics 6.6 Agro-based Industry 6.7 Information Technology 6.8 Ceramics6.9 Light Engineering6.10 Natural Gas-based Industries6.11 Steel6.12 Pharmaceuticals

6Competitive Sector

for Investment


108



a. Sector Highlights● The Ready Made Garments industry experienced an export boom in the 1990s

because of the excellent negotiation with the U.S in 1984-85.● The most beneficial public policy of introducing back to back LC and bonded ware

house facility gave a tremendous impetus to the export scenario in Bangladesh.● Bangladesh is best placed in the region for textiles and garments because of low-

cost labor, preferential trade status and advantageous global market access.● Government incentives for the spinning and weaving industries include a 15%

cash subsidy of the fabric cost to exporters sourcing fabrics locally.● There is a huge fabric demand supply gap in the RMG industry which is being

met by imports. Thus, the potential for backward linkage industry is enormous.

b. Industry Background and Status

The phenomenal growth in RMG was experienced in the last decade. In 1984-85,no of Garment factories was 800 RMG jointly with knitwear accounted for more than70% of total investments in the manufacturing sector during the first half of the1990’s. At present with about 4000 factories and a workforce of two million, 80% ofwhich are women, employing over 50% of the industrial workforce and having 75%of the total exports earning of the country. Exhibit 6.1 shows the growth of RMGexports from Bangladesh since 1981-82.

Exhibit 6.1

Ready Made Garments ● Textiles ● Composite Textiles

Growth of RMG Exports from Bangladesh (1980-81 to 2005-06)

In million US$

4,5844,860

4,3524,020

3,783

3,0012,547

1064

131

0

1,000

2,000

3,000

4,000

5,000

6,000

1991-9

2

1985-8

6

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

4,912

3,5383,598

4,084

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2001-0

2

Source: Bangladesh Economic Review 2006. Export Promotion Bureau

Texti les6.1 Textiles

“Bangladesh: Growth and Export Competitiveness”“By developing-country standards, Bangladesh’s growth for the past two decades and more has been notable. The pastdecade’s boom in exports – with earnings in 2003/04 (of $7.6 billion) about three times the level of 1991/92 – and thesuccess in having the 1980’s average rate of population increase have helped raise the country’s per-capita growthranking to twice the global median for 1991-2000. By that measure, over the past 30 years, it has overtaken Pakistanand Nepal and narrowed the gap significantly between its standing and that of India and Sri Lanka.”Source : The World Bank


c. Industry Outlook

Multi-Fibre Agreement (MFA) and Generalised System of Preferences (GSP) of theEU are the main actors behind acquainting Bangladesh RMG products to globalmarket ensuring assured market access. Bangladesh is now a significant RMGsupplier to North America and Europe. Due to phasing out of MFA, many are doubtfulabout Bangladesh’s ability to maintain the fast growth of the recent years in thissector but Bangladesh has taken a better position in the U.S.A market throughcompetition. However, on a more positive note, Bangladesh is expected to maintainits tariff-free access to EU under the European GSP, since the GSP is not coveredby the Uruguay Round Agreement. Recently, Canada has also provided tariff-freeaccess of all the items from Bangladesh.

Meantime, Bangladesh RMG industry has earned strong competitiveness as a globalstandard RMG source. Marketing network has been spread over the economies of thecontinents. End users could well recognize and differentiate the products confidently.

Till today, Bangladesh RMG industry largely depends on the imported yarns andfabrics. Bangladesh produces only 10% of export-quality cloth used by the garments


industry. The need for establishment of backward-linkage industry has become animmediate concern to the government and the exporters. There are enormousopportunities in setting up composite textiles industry combining textile, yarn andgarments.

d. Investment Opportunities

RMG and textile sectors have enormous investment opportunities. Governmentprovides highly favorable policy framework for investment in these sectors. Investorshave the following choices:● Establishment of new textile / RMG mill in the private sector.● Joint ventures with the existing textile / RMG mill.● Acquisition of public sector textile mills that are being privatized.● Indirect investment through financial services and / or leasing.

a. Value Addition to the Fibrous Substances

Spinning is the first step in textile value chain that adds value to the fibroussubstances by converting them into yarn or thread through the processes of drawing,twisting and winding (Exhibit 1). Characteristics of the yarn vary based on thematerials used, fiber length and alignment, quantity of fiber used and degree of twist.The earliest spinning probably involved simply twisting the fibers in the hand. Later,the use of a stick to help twist the fiber was introduced.

Drop spinning involves the use of a stick with a whorl or weight to stabilize thespinning of the stick (called a spindle). The spindle is spun, and hangs supported bythe yarn as more fiber is introduced. This introduced fiber picks up the twist andbecomes yarn. However, the development of spinning wheel allowed a continuousand faster yarn production. Spinning wheels are either foot or hand powered. Modernpowered spinning, originally done by water or steam power but now done byelectricity, is vastly faster than hand spinning. Materials that can be used to createyarn fall into three broad classes: plant, animal, and synthetic.

Spinning6.2 Spinning


● Plant materials: cotton, flax (to produce linen), hemp, raffia, yucca, coconut husk, ...; ● Animal materials: wool, goat (angora or cashmere goat), rabbit (angora), llama,

alpaca, dog, camel, silk, ...;● Synthetic materials: polyester, nylon, rayon, acetate, mylar...;

Apart from the above, mineral materials like asbestos are also used, but not veryoften.

b. Spinning Industry in Bangladesh

Development of spinning industry in Bangladesh is closely associated with thedevelopment of Textile and Clothing (T&C) sector as a whole. Power-driven moderntextiles in Bengal were traced back to early twentieth century. Before 1947, moderntextiles were only the composite textile mills having spinning and weaving facilities.

......

Source: European Research in Textiles and Clothing Sector by EURATEX, 2002, Page 15

Fiber

Thread

Fabric

Clothing

Private

Consu-

mption

Indus-

trial

Use

Finished

Fabric

Distribution/

Retail

Home Textile

Natural

Fibers

Filament

Yarn

Woven

Fabric

Dyed

Fabric

Printed

Fabric

Laminated

FabricHotels

Type 1

Type 2

Type ...

Type n

Hospitals

Public

Services

Automotive

Construction

Machinery

Aeronautics

Other Industries

HouseholdFurniture

Functional

Clothes

Non-conventional

Application of

Technical Textiles

Protective

Corporate

Knitted

Fabric

Non-

WovensTwisted

Yarn

Texturized

YarnM anmade

Fibers

......

......

......

Figure: Textile Chain Typology © IT V Denkendarf

The Textile-Clothing/Making Up-Application- Retail- Network

Machinery/Services/Software/... Providers

Services

Yarns

Grey

Spinning Weaving orKnitting

DyCutting Sewing

Finished

Garments

Source: Textiles and Apparel: Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S. Market, U.S.

International Trade Commission, Washington, DC 20436, www.usitc.gov

SpinningWeaving or

Knitting

Dyeing,

Printing and

Finishing

Fabrics

Cutting Sewing

Cut

Garment

PiecesFibers Fabrics

Finished

Exhibit 6.2

Major Production Steps for the Textile & Apparel Sector


Later, activities like specialized textile weaving, knitting and hosiery and dyeing-printing-finishing were added. During 1947, there were about 11 composite textilemills in Bangladesh (then East Pakistan) with 1.1 millions spindles and 2.7 thousandlooms. Spindles grew to 3.2 millions in 1956 but declined to 0.8 million in 1972 asworn-out obsolete spindles went out of operation. In 1972, large-scale manufacturingunits including textile mills were nationalized. After 1982, state-owned spinning millswere gradually denationalized. By 1999, spindles installed were 2.8 million (2.4 millionin the private sector and 0.4 million in the public sector) with an annual productioncapacity of 200 million kg. BOI sectoral Survey found that in 2004, about 3.44 millionsspindles are producing 382 million kg of yarn for the textile industry (Exhibit 2).

c. BOI Spinning Sector Study 2004

The spinning sector census was conducted during March–June 2004. Initially, a spinningpopulation frame was prepared combining the lists of BOI registered mills and BTMAmembers. Total 198 spinning mills were listed and all of them were surveyed. In practice,10 units could not be traced, while 17 mills were found closed and 13 mills undertook noaction to implement their projects. In terms of spindle capacity, only 10.7% spindles werefound inactive while 81.2% spindles are in production (Table 1).Mainly Dhaka-based Production: A geographical analysis of the active spinning millsdemonstrates that about 81.6% of millsare located in Dhaka Division and 11.4% inChittagong Division. On the other hand, Khulna, Rajshahi, Sylhet and BarisalDivision have only 2.5%, 1.3%, 1.3% and 1.9% mills respectively.

Dominated by the Local Entrepreneurs and Human Resources: It is observed thatamong all 158 active mills, almost all the mills (96%) were set up by the localentrepreneurs. Only 4% mills have been established jointly with the foreign investors.Total investment in the active spinning mills is amounted to Taka 8,554 crores. Thesurvey found that about 92,172 people are working in the spinning sub-sectorincluding only 85 foreign experts / technicians.

1.1

3.2

0.8

2.83 2.91 2.802.28

2.563.04

3.32 3.44

1947 1956 1972 1997 1998 1999 2000 2001 2002 2003 2004

(Cumulative Number of Spindles in Million)

Sources: BOI Sectoral Survey 2004, USITC Report and Banglapedia.

Exhibit 6.3

Spindles Growth in Bangladesh Spinning Industry


d. Yarn Types and Market Scenario

The products of the spinning sub-sector are yarns of different categories like cotton,

polyester, synthetic, acrylic, filament, woolen, blended, etc. Production data shows

that 138 ‘in production spinning mills’ produced 382.11 thousand MT of yarn in 2003

of which 81% are cotton yarn. Some secondary sources indicate that in 1999, yarn

production of 112 million kg satisfied only 22% of total yarn requirement of the Value

country. The total demand-supply gap of yarn for 1996-97 was 429 million kg, which

increased to 639 million kg in 2002.

Import pattern of yarn into Bangladesh also illustrates the intensity of demand.Exhibit 3 presents data on import of yarn to Bangladesh since FY 1990-91. Majorsources of yarns are Taiwan, China, Hong Kong, Korea, Indonesia, India andThailand. It shows the potential of spinning for further investment.

e. Challenges of and Supports to the Spinners

The success of a robust textile sector largely depends upon an improved and reliablespinning sub-sector. If spinning sub-sector produces substandard / inferior yarn, itsadverse effect persists right across the entire value chain. Availability of rawmaterials, transportation, port facilities and tariff rationalization are the keychallenges to the spinners.

Spinning Mills Status Plants Spindles * Rotors*

In Production 138 3,125.326 101.351

On Trial Production 9 1.810

Ready for Production Ready for Production 6 163.160 0.911

Under Implementation 5 65.700 -Sub-Total : Active 158 3,437.986 104.072

Closed 17 338.696 14.096

No Action 13 14.400 -Untraceable 10 59.000 0.100

Sub-Total : Inactive 40 412.096 14.196

Grand Total 198 3,850.082 118.268

Source: BOI Sectoral Survey 2004. * Number In Thousand

83.800

Table 6.1

State of Spinning Sector in Bangladesh in 2004


The Government has been supporting the spinners providing lower tariff formachinary spares and raw materials, cash incentives, reduced tax rate, and low-costfunding etc.

f. Investment Outlook

Textile & Clothing is the largest manufacturing sector of Bangladesh providing over 4million jobs, accounting for 5% of GDP, 40% of manufacturing value addition and75% of total foreign exchange earnings.

The growing demand for yarn in the local market, comparatively low cost of doingbusiness, lucrative incentive package, favorable investment policy regime etc are themain reasons for investment in this sustainable sector. Spinning could be chosen.

5292

127168 200

296

395327

283 300 322283 270

FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003

(in Million US$)

Source: Statistics Department, Bangladesh Bank.

Description Mill s 2002* 2003*

Cotton Yarn 139 233.5283 10.119

Cotton & Polyester Yarn 6 34.518 33.158

Polyester Yarn 5 3.654 6.035

Acrylic Yarn 4 2.110 2.176

Filament Yarn 3 7.565 14.179

Others 1 16.457 16.443

Total 158 297.832 382.110

Source: BOI Sectoral Survey 2004. * In ‘000 MT

Table 6.2

Exhibit 6.4

Production by the Active Spinning Mills

Import of Yarn in Bangladesh Since 1991


Installed Capacity 2000 Cumulative Purchases 1992-2001

Country Spindles Spindles

Short-staple Long-staple

Open-end

Rotors Short-staple Long-staple

Open-end

Rotors

United States 3,331,000 628,000 860,000 787,236 63,488 529,84407

European Union 5,493,500 4,449,000 496,700 1,681,338 686,518 303,653

Canada 305,000 51,000 40,000 67,920 5,984 26,603

Mexico 3,500,000 227,000 100,000 814,328 102,820 96,840

China 34,435,000 3,600,000 623,800 2,005,480 961,610 208,363

Hong Kong 48,000 24,000 20,100 96,672 12,676 16,739

Korea 1,803,000 676,000 13,700 409,820 90,708 14,384

Taiwan 2,716,000 339,000 85,700 710,872 66,652 33,105

India 37,698,000 990,000 453,100 11,041,023 233,164 162,083

Pakistan 8,567,000 35,000 149,500 1,351,632 - 8,604

Sri Lanka 246,000 - - 35,616 - 160

Indonesia 8,500,000 103,000 56,000 1,419,912 90,948 19,247

Malaysia 650,000 35,000 6,000 437,614 21,900 5,451

Philippines 950,000 13,000 50,000 160,112 2,032 14,049

Thailand 3,719,000 65,000 58,500 893,324 61,042 41,609

Andean countries 1,900,000 148,000 54,500 165,536 58,140 20,287

Other:

Egypt 2,600,000 98,000 41,000 148,936 66,000 1,976

Turkey 5,554,000 743,000 430,400 2,646,076 299,768 402,513

Table: Spinning equipment: Number of installed spindles and rotors in 2000 and number of

new spindles and rotors purchased during 1992-2001 by types and by selected countries

1 Also includes a number of countries in Oceania, including Australia and New Zealand.

Asia is believed to have the world’s largest capacity to spin yarn and was also the largest buyer of

new textile production equipment during 1992-2001. There has been a shift of world yarn spinning

capacity from developed countries to developing countries in the past two decades. In 2000, Asia

accounted for 71% of the short-staple spindles, 45% of the long-staple spindles, and 27% of the

open-end (O-E) rotors. China and India have the largest number of short-staple spindles in the world

with 46% of the 2000 total, followed by Pakistan and Indonesia with 11%.

World 156,913,000 15,372,000 8,284,700 30,257,491 3,316,120 2,530,091

Asia, total1

111,904,500 6,881,000 2,230,700 21,481,335 1,756,282 726,389

Bangladesh 2,469,000 15,000 55,900 929,376 2,520 25,616

CBERA countries 489,000 3,000 28,600 77,948 5,280 13,745

Sub-Saharan Africa 391,000 70,000 20,200 127,864 10,752 14,064

Asia as % of World 71% 45% 27% 71% 53% 29%

Source: International Textile Manufacturers Federation, International Textile Machinery Shipment Statistics, Vol.24/2001 cited in the USITC Report entitled “Textiles and Apparel: Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S. Market.

Table 6.3

World Yarn Production Capacity


a. Sector Highlights

● Government is promoting semi-intensive shrimp farming. ● Fish and prawn exports registered a modest growth in the past decade.● Shrimp processing and export industry is largely dominated by the smaller

unorganized sector. ● Government has taken different initiatives of quality assurance of frozen foods in

co-operation with exporters. ● 15% cash incentive is given to shrimp export amount.

b. Industry Situation

The frozen foods export is the second largest export sector of the country. After someinitial difficulties in terms of quality achievement, exporters have earned credibilityand trustworthiness in the global market. Assurance of reliable and continued productquality is a major challenge in this sector. Technology orientation, marketingperceptions, and quality improvement aspects invite foreign investment in this sector.The current challenges of international trading are largely dictated by price, quality,time and service.

c. Industry Outlook

Frozen food sub-sector has credible opportunities in Middle East, EU and NorthAmerican countries and Far Eastern countries. In 2004-05, total fish production was22.16 lack metric tons of which 8.82 metric .tons were shrimp. At present , there are868 fish hatcheries and farm of which 2.18 lack hectors of shrimp farm. This export-oriented industry includes the following sub-sectors, which need proper attention for

Frozen Shrimp ● Frozen Fish ● Other Items

Frozen Food Exports from Bangladesh

in million US$

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

1999

/00

1995

-96

1991

-92

142

314322

390421

459

344363

276

Frozen Foods6.3 Frozen Foods

Exhibit 6.5


augmentation of production, attain international standard quality and export earnings.● Hatcheries ● Sustainable aqua-culture technology ● Feed meals plants ● Processing unit for value-added products.

Investment in frozen food sector with new technology and equipment has a vast potential forgrowth.


● The labor-intensive leather industry is well suited to Bangladesh having low-costand abundant labor.

● Bangladesh has a domestic supply of good quality raw material, as hides andskins are a by-product of large livestock industry.

● Adequate government support in the form of tax holidays, duty free imports ofraw materials and machinery for export-oriented leather market

● The industry lacks domestic technology and expertise and local supportindustries such as chemicals are still under-developed.

Finished Leather ● Leather Goods

Leather6.4 Leather


b. Investment Incentive● Present government is in the process of setting up of separate Leather Park

relocating the existing industry sites to a well-organized place.● Leather exporters have been given 15% Duty drawback of cash incentive.

c. Industry Situation

Bangladesh leather industry is dominated substantially by the domestic investmentwhich are mostly export-oriented. The leather includes some ready-made garments,although that aspect is continued mainly to a small export-trade in "Italian-make"garments for the US market. Footwear is more important in terms of value addition.This is the fast growing sector for leather products.

Presently Bangladesh produces between 2 and 3 percent of the world’s leathermarket. Most of the livestock base for this production is domestic which is estimatedas comprising 1.8 percent of the world’s cattle stock and 3.7 percent of the goatstock. The hides and skins (average annual output is 150 million sq.ft.) have a goodinternational reputation. Foreign direct investment in this sector along with theproduction of tanning chemicals appears to be highly rewarding.

Having the basic raw materials for leather goods as well as for the production ofleather shoe, a large pool of low cost but trainable labor force together with tariffconcession facility to major importing countries under GSP coverage, Bangladeshcan be a potential off shore location for leather and leather products manufacturingwith low cost but high quality. In 2004-05 total export of leather goods was 220.93million US$ on the other hand it is 257.27 million US$ during 2005-06 FY.

in million US$

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

1996-9

7

1995-9

6

1994-9

5

202

212

254

207

191

195

190

168

212

195

2003-0

4

2004-0

5

221

2005-0

6

275

Source : Export Promotion Bureau, 2006

Trends of Leather Export from Bangladesh

Exhibit 6.6


d. Industry Outlook

Provision of newly announced infrastructural facilities through establishment of anintegrated Leather Park and simultaneously, growth in the global demand,opportunities for investing in and setting up export-oriented leather industry inBangladesh is definitely attractive. Foreign investors are welcome to capitalize on thisopportunity.

a. Sector Highlights● Rapid urbanization, migrations to urban centers and emergence of a consuming

middle class have resulted in a modest growth in home appliance usage in Bangladesh.

● Global market of semi-conductor amounting about US$ 200 billion is clearly dominated by the Asian NIEs.

● Manufacturing of semi-conductors could be established as a potential cottage industry.

Home Appliances ● Telecommunication Equipment ● Semi-Conductor

Electronic6.5 Electronics


● Since 1996, phenomenal growth in cellular phone usage in Bangladesh hasbeen registered and today, the number of customers reached at nearly two million.

● The labor-intensiveness nature of electronic industry highly matches with theBangladesh’s competitiveness and invites foreign investment in this sector.

b. Industry Background

The electronics industry in Bangladesh mostly produces consumer items. Homeappliances like television, radio, VCD and CD players, refrigerator, air conditioners,oven, electronic fan, blenders etc. are being assembled to a large extent. To ensurethe performance reliability, the key challenges in this sector are technical assistanceand proper technology orientation of the industry. Developing the significant capacityand skill in assembly and manufacture of a wide range of electronic components andparts is crucial.

As yet, Bangladesh does not have any telecommunication equipment industry in theprivate sector. However, an urgent need for diversification and modernization is feltamong the existing entrepreneurs, government and professionals. Government iskeen to provide and ensure enabling assistance to the development of this sector.

c. Industry Outlook and Opportunities

Skilled, easily trainable and low-cost human resources are the main cost advantageof setting up electronic industry in Bangladesh. Growing domestic demand andinternational market access are some key attractive issues to the investors. In theeconomies like Malaysia, Singapore, Korea and Thailand, electronics contribute amajor portion in the GDP. They are encouraging electronic industry to shift from low-end assembly operations with high import content of inputs to upstream higher-value-added activities. In this context, relocation, outward investment and jointventure with Bangladeshi companies could be gainful strategies. To capitalize on thecomparative advantages, substantial foreign investment from those countries ishighly encouraged.


a. Sector Highlights● Bangladesh has a tropical climate, a lot of fresh water, indeed a land interspersed

with numerous rivers, fertile soil and possibility to cultivate crops round the year. So, it unique to supply raw materials for the agro-based industry.

● Fruits and vegetable production has increased significantly in recent years.● Government and NGOs have been conducting regular training programs in

developing skilled manpower for agro-based industry.● Substantial demand supply gap in the agro-based industry both in the

domestic and international market.

b. Industry Incentives

1. Specially arranged Equity Entrepreneurship Fund for development of agro-basedindustry.

2. Special loan facilities available to set up an agro-based industry.3. Agro-based industry enjoys tax holiday.4. Any investment in this sector will enjoy similar tax amnesty as available in other sectors.5. Imposition of supplementary duty on mango, orange, grape, apples, dates and

others to utilize the high quality and cheaper local resources.6. Cash incentive to the exporters ranges from 15% to 20% in various sub-sectors.

c. Sector Background

Being an agrarian economy, agriculture has dominated in the economy for years. Ithas fulfilled the preconditions of access to input and raw materials in setting upsuccessful agro-based industries. Alluvial soil, a year-round frost-free environment,adequate water supply and abundance of cheap labor are available in Bangladesh.Increased cultivation of vegetables, spices and tropical fruits now grown inBangladesh could supply raw materials to local agro-processing industries for bothdomestic and export markets.

In 2005-06, Export of agricultural products accounted for about 1.00% of total exportamounting US$ 76.24 million.

d. Industry Outlook

To avail the competitive and comparative advantages, Bangladesh invitesprogressive agricultural practices, improved marketing technique and modernprocessing facilities. The government emphasizes development of the agriculturalsector through appropriate measures to increase crop sector productivity and

Fresh Fruits & Vegetables ● Cooked/Semi Cooked Food ItemsCanned Juice ● Dairy and Poultry ● Livestock and Fisheries

Agro-based. . .6.6 Agro-based Industry


production of non-crop agriculture by providing increased credit, and facilitatinggreater access to inputs and modern technology. Investment interests in setting upagro-based industries in Bangladesh are highly encouraged.

To promote agro-based industries and attract investment in this sector, Board ofInvestment organized ‘Agri-Invest 2003 Bangladesh’ in December 2003. This firstever exposition created huge interest among the foreign and local investors.

a. Sector Highlights● To investigate the IT industry robustly, deregulation of the telephone has been

decided and executed by mid 2003. ● The extensive growth of mobile telephony resulted in significant opportunities.● The industry is at its introductory stage and has opportunity of capitalizing the potential. ● Bangladesh has a well-educated, skilled, dedicated and growing IT workforce.● There is a fast growing domestic market and export demand.● Strong research assistance from the universities and research institutions are available.● Government is keen in establishing IT related infrastructure for the development

of the industry.

b. Industry Incentive

● IT is declared as one of the thrust sector for development. Soft loan facilities fromthe Equity and Entrepreneurship Fund is available.

● Tax holiday for Software and IT services companies.● All other facilities and incentives applicable in general to a foreign investor.

c. Industry Background

Compared to the neighboring India, Pakistan and other South and South East Asiannations, Bangladesh is lagging behind in IT Sector. But it is true that the sector hasvast potentiality to develop. Availability of substantial number of qualified andexperienced young people in various branches of engineering, science andtechnologies have opened up the scope of profitable investment in these sectors.

Existing investment in IT sector is mainly small-scale and domestic in nature.Collaboration in the IT sector is mainly based on licensing agreements andrepresentation. A growing number of computer training schools and institutes are

Data Processing ● Software Development ● Hardware Manufacturing

Information. . .6.7 Information Technology


being opened. Management of most of the IT firms is professionally strengthenedwith the Bangladeshis who have studied and worked in both North America andEurope, and returned home.

The annual market size for IT including computer hardware, peripherals and softwarewas estimated to be worth approximately US$ 20 million. The market is fast growingat an annual rate of about 25%. The country has over 400,000 PCs. And the numberis increasing rapidly. Most of them are locally assembled clones. Taiwan, SouthKorea, Malaysia and Singapore are the main sources of motherboard and othercomponents.

Since the introduction of Internet service in 1996, computer has becomecommunication equipment to a growing number of businessman, professionals andindividuals. At present 4-5 lac of internet connections are using in the country.

The development of telecommunication infrastructure is a major precondition to thedevelopment of IT. The Government of Bangladesh has adopted NationalTelecommunication Policy 1998. However recent policy shift towards deregulation oftelecommunication would give real infrastructural advantage of the country in ITdevelopment.

d. Industry Outlook

Formalization of VOIP by the early 2003 and telecom deregulation in mid 2003 wouldboost the overall IT sector lucrative for investment. Foreign investors from Asian,European and North American countries could avail these opportunities. A number ofBangladeshi IT firms are interested in finding international investors or joint venturepartners in various sub-sectors.

e. Submarine Cable

Bangladesh has joined the consortium of SEA-ME-WE-4 submarine cable, whichstarts its commercial activities from 21st may, 2006. This will especially helpprosperous data entry and software sectors. The landing station of this cable issituated at Jhelong in Cox’s bazaar. There are 14 countries of this consortium, thecountries are Singapore, Thailand, UAE, Bangladesh, India, Pakistan, Srilanka, KSA,Egypt, Tunisia, Italy, Algeria and France. It has connected 16 telecommunicationorganizations of 14 countries. With the direct help from submarine cable Bangladeshcan earn more foreign currency by increasing international voice circuit (e.g.submarine cable will give support to establish 1 lac voice circuit. Voice and datacommunication will be faster. Consortium has created capacity pool, which we cansell also can manage IRV. Broad band service, data transmission, call centre,software export will be cheaper. Unemployed youths can easily engage themselves


in those services by taking short term training. Bangladesh has right to land 15landing station without charge. It will help smoother operation of E-commerce, E-governance, E-education, Telemedicine etc. So, there are huge chances ofdevelopment of ICT sector and finally government will be financially benefited.


● Global market of ceramic tableware is about US$ 10 billion.● Bangladesh Ceramic tableware has a good reputation is the international market

like North America and EU countries. ● Bangladesh has achieved technical expertise on ceramic tableware manufacturing.● Historically, tableware industry is labor-intensive and Bangladesh has a skilled

manpower in ceramic industry.● Sanitary ware and insulator has also a domestic and international market demand.● The clean gas reserve required for firing is a great competitive advantage for

Bangladesh.

Marseille

Palemo

Annaba

Bizerte AlexandriaSegment 3

Suez

JeddahKarachi

Fujairah

Cox's Bazar

Chennai

Satum

Melaka

Singapore

INDIAN

OCEAN

Colombo

Segment 4 Segment 2 Segment 1

Mumbai

Source : www.bttb.gov.bd

Tableware ● Sanitaryware ● Insulator

Ceramics6.8 Ceramics

SEA-ME-WE- 4 LANDING MAP

Exhibit 6.7


b. Industry Status

A few ceramic tableware manufacturers dominate the industry producing high qualityproducts for the international brands. A pool of skilled manpower has been developed.The latest technological advancements in ceramic are also acquainted. Bangladeshproduces high quality Bone China transferring the technology from Japan. The domesticmarket is also attractive. Some low-quality tableware are imported mainly from China tocater the demand of lower segment of the domestic market.

c. Industry Outlook

Global ceramic tableware industry is currently going through a phase of acquisitionand consolidation as smaller industries in the developed countries are becominguncompetitive and bankrupt. As a result, the big names like Noritake, Wedgewood,Lenox, Villeroy & Boch and Royal Doulton are all individually becoming billion-dollaroperations.

Historically, tableware industry is labor-intensive and even after spending billions ofdollars on automation, developed countries could not reduce the number of workforceaccording to their expectations. As a result, the cost of production will always remainextremely high in developed countries and the premium brands are only survivingbecause they are charging huge price to the consumers for their brand equity.

Bangladesh, being a gas-rich and low-labor-cost economy, offers to be strategicpartners in production and supply of ceramic products. Investment interests in thissector are strongly encouraged.

In million US$

1994/95 1995/96 1996/97 1997/98 1998/99 99/2000 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06

17.519.0718.82

24.07

28.75

27.5

9.4610.02

10.86

14.21

11.32

8.49

Source : Bangladesh Economic Review 2006

Growth of Ceramic Tableware Exports from Bangladesh

Exhibit 6.8


The growing sanitaryware and insulator items has a large domestic market. Besides,international market, both in terms of demand and access, is highly potential.


● Bangladesh has about 40,000 small-scale light engineering enterprises spread over the country.

● Current light engineering industry manufactures about 10,000 types of items forthe local industry amounting an annual value of approximately US$ 120 million.

● As the demand and usage of engineering and electronic goods increase, demand for light engineering products are also increasing.

● Significant number of cottage industries engaged in production of simpleelectronic goods.

● Government provides cash incentive facilities to exporters of value-added light engineering products.

Machinery Parts ● Bicycle ● Other Consumer Items

Light Enginee . . .6.9 Light Engineering


b. Industry Situation

Light engineering industry in Bangladesh has grown with informal cottage status overthe years. This labor-intensive operation produces a diverse range of items havingan annual valuation of about US$ 120 million. These items include import-substitutemachinery spares, plant machineries, small tools, toys, consumer items and paperproducts for the domestic market. Most of these enterprises are located in andaround Dhaka metropolis. The industry has been turning to more formal set up andexpected to grow remarkably in the upcoming years.

Bicycle is one of most important item in light engineering industry. Its role in the worldtransport system is expanding. Not only does it provide low-cost mobility, but in citiesit offers more mobility than the automobile. Because it provides mobility andexercise, does not pollute the air or disrupt the earth’s climate and is efficient in itsuse of land, the bicycle is emerging as the transport vehicle of the future.

c. Industry Outlook

Because of the shortage in labor and wage hike in the light engineering sector, andsimultaneously, strategy shift of the NIEs to concentrate on upstream higher-value-added industries, establishment and development of light engineering industry inBangladesh has a huge potential. Foreign investors could take advantage ofBangladesh’s low-cost and easily trainable labor and already established lightengineering industry and its infrastructure facilities to manufacture quality productsfor the export market.


● Bangladesh has a net recoverable gas reserve of approximately 28.4 TCF of which primary recoverable is 20.51 TCF.

● Amount of gas production till January, 05 was 6.033 TCF.● Joint venture opportunities between BPDB and private sector are open.● There is a huge demand for fertilizer in Bangladesh as the agriculture is the

principal sector of the economy.● Usage of indigenous resources and conservation of environment are important

policy concerns of the Government.● Introduction of CNG fuelling in the metropolises has geared the need for estab

lishment of sufficient CNG Distribution Stations.

Electricity ● Fertilizer ● Petrochemicals ● CNG Distribution Network

Natural Gas . . .6.10 Natural Gas-based Industries


● Each year 5000 metric ton LPG is produced from Koilashtila small LPG plant atGopalganj in Sylhet .

b. Industry IncentivesEnergy and Power sector has significant investment incentives like:

● Tax holiday for 15 years.● Tax exemption from interest payable on foreign loans.● Tax exemption from royalties, technical know-how and technical assistance fees payable.● Tax exemption from profit arising from transfer of shares.

c. Industry SituationAmong the three main operators in power sector, until recently, BPDB was the solepublic sector power generator in Bangladesh. It is also responsible for transmissionand distribution of electricity outside Dhaka and in some rural areas. DESA isresponsible for transmission and distribution of electricity in and around Dhaka – thelargest load center in Bangladesh. REB distributes electricity in rural areas throughoperating Palli Bidyut Samities (PBSs). All of them are controlled by the Ministry ofEnergy and Mineral Resources (MEMR). PDB at presents owns some 3,091 MW ofgeneration capacity.

With the increasing growth in industry, commerce and household usage, the demandfor electricity in Bangladesh is enormous. It is assumed that the power demand willincrease at around 6% per annum in the upcoming years.

CNG is a highly efficient, eco-friendly and cost-effective fuelling option for motorized


vehicles. It could also make significant cross-savings in the health sector and reducepublic health hazard. The increasing demand for maintaining air quality inmetropolises like Dhaka has become the nation’s top-most priority. As such, two-stroke petrol fuelled taxies are being replaced with CNG-fuelled taxies. Othervehicles are also being converted to CNG orientation. At present we have 117 CNGfilling station and 72 conversion workshops. There are 46501 CNG driven cars inBangladesh and no. is increasing. Also steps have taken to set up more CNG fillingstation with the financial assistance of World Bank.

In these circumstances, a huge opportunity for investment in CNG DistributionNetwork has become imminent.

d. Industry Outlook

Opportunities exist for foreign investors include:● Developing new plants (barge-mounted and other, large, small and mini) in joint

venture with BPDB.● Maintaining and expanding existing power transmission and distribution system.● Rehabilitating or upgrading existing plants and supplying a variety of support services.● Privately owned Remote Area Power Supply System (RAPSS).● Technology transfer through manufacturing / assembly of power equipment.● Investing in CNG distribution network development.

Sector 2004-05 2005-06 2006-07 2007-08 2008-09

Electricity 211.02 233.6 247.8 268.3 291.6

Captive power 37.87 42.48 46.97 53.4 61.25

Fertilizer 93.97 98.91 98.91 107.03 136.15

Industry 51.68 68.98 76.99 86.0 112.5

Commercial 4.85 5.5 5.8 6.3 6.7

Brick field 0.0 0.1 0.1 0.1 0.1

House hold 52.49 59.45 65.41 72.0 79.1

Tea garden 0.80 0.8 0.8 0.8 0.8

CNG 3.62 2.5 2.7 2.9 3.7

System loss 30.45 23.8 23.0 21.1 20

Total 486.75 536.12 568.48 618.2 711.7Source : Bangladesh Economic Review 2006

Table 6.4

Trends of Gas Usage in Different Sectors.


a. Sector Highlights● Iron has been a vital material in technology for well over three thousand years.● Usage of steel products in Bangladesh increased remarkably in 80s when this

industry flourished due to relaxation/liberalization of country’s Industrial Policy.● World crude steel production for the 63 countries reporting to the International

Iron and Steel Institute stood at an estimated 81.7 million metric tons in October 2003.

● Steel industry in Bangladesh has huge potential of growth in the coming years.

b. Industry Background and Status

Steel Production in BangladeshUsage of steel products in Bangladesh increased remarkably in 80s when thisindustry flourished due to relaxation/liberalization of country’s Industrial Policy. Until1987, people had to depend on imported CI sheet and on the only state-ownedChittagong Steel Mills Limited, which produced small quantity of CI sheet/GP sheet.Statistics showed the use of CI/GP sheet rose to 4.85 lakh metric tons in 1999 from1.00 lakh metric tons of 1987. In this backdrop to meet up this huge demand,production of GP/CI sheets in private sector began in 1987. This industry expandedrapidly in recent times.

In Bangladesh, there are about 300 manufacturing units to produce steel and steelproducts. In terms of the products diversity, these manufacturing plants could becategorized into at least six broad categories like:

● Billets used as feedstock to merchant mills, section mills, wire rod and seamlesstube mills etc ;

● Finished long products e.g. wire rods, rebars, plain rounds, squares, flats, angles,channels, beams, rails etc;

● Plates used in production of boilers, merchant ships, off-shore platforms, line pipes, railway coaches, wagons and locomotives, structures etc;

● HR Coils /sheets mainly used for manufacture of pipes and tubes and as feedstockto cold rolling units;

● CR Coils/sheets used for production of automobiles, consumer durables, galvanized sheets, metal products etc;

● Galvanized sheets used in consumer durable industries and domestic applications including GP / CI sheets.

Steel6.11 SteelBillets ● Plates ● HR Coils ● Galvanized Sheets


Recent implementation status Survey by BOI, revealed that annual installed capacityof 48 GP/CI sheet units registered with BOI are 6.74 lakhs MT and their averageproduction was 4.70 lakh MT.

According to statistics, on an average, about 5.14 lakhs MT BP Sheet/CR Coil wereimported annually from 1996 to 1999. In response to the huge demand for BP sheet/CR coil, entrepreneurs became keen to set up CR coil industry to produce it locally.During 2001-02, three CR Coil manufacturing units were established in the country.The total annual production capacity of these three industries is 2.66 lakh MT. Todate, nine CR coil/sheet manufacturing units have been established, seven are inoperation and rest two will go to very soon. The total annual installed capacity ofthese nine industries is 9.51 lakhs MT and the estimated investment is Tk. 8.83billion. Table 6.5 summarizes the steel plants registered with BOI during FY 2002-03.

Bangladesh has around 250 Steel Re-rolling Mills consisting of five large automaticunits. The country’s only state-owned major steel producer Chittagong Steel Millswas closed permanently by the Government in July 1999. The open-hearth furnaceshad crude steel making capacity of 150,000 metric tons per year. The mill producedangles, blooms, and plates and also operated three hot-dip galvanizing lines fed byimported coil. Bangladesh consumed 2 million metric tons per year of finished steel,and the deficiencies were met by imports (Metal Bulletin, 2002).

Demand and Supply ScenarioThe demand for steel is highly corelated to the growth of investment in the industrialsector.

Above Table 6.6 presents the projected demand scenario of steel products at presentand the FY 2007-08. There remains a substantial demand-supply gap in the steel

Products FY-2003 FY-2007Billets 1,110 1,120

Bars & Rods/Structural 1,161 1,598

Railway Materials 19 26

HR Coils/Sheets 340 523

CR Coils/Sheets 640 795

GP/GP/CI Sheets 696 955

Electrical Steel Sheets 2 3

Tin Plates 6 8

Pipes & Tubes 63 134

Total 4,037 5,162Source: Various.

Table 6.5

Demand of Steel Products in thousand tones


products. With the increasing investment in infrastructure, construction, machinery,railway machinery like locomotives, wagons, coaches; refinery machinery, pipelines;household appliances like air conditioners, refrigerators, consumer durables; ship-breaking and other steel intensive segments, the demand for steel is growing.

Steel ImportsGiven the local production constraint, Bangladesh imports substantial amount ofsteel and steel products from a number of countries. Table 6.4 presents last 5-yeardata on import of iron, steel and steel products. Major sources of steel productsinclude Australia, Belgium, Canada, China, France, Germany, Greece, Hong Kong,India, Indonesia, Italy, Japan, Malaysia, Mexico, Netherlands, North Korea, Poland,Russia, Saudi Arabia, Singapore, South Korea, Turkey, UK and the USA.

Export PotentialThere remains a substantial market for steel products in the neighboring South Asiancountries like Myanmar, India, Sri Lanka, Nepal etc. Export of CI Sheets havealready started to Middle East, Sri Lanka, Singapore, China, and some Africancountries like Sierra Leone, Senegal, Uganda, Angola, Mozambique, Ghana etc.There also remains export potentials for billets, slabs, reinforcement bars and plates.Table 6.6 presents the recent export data of steel and steel products.

Description 2001-02 2002-032004-05

(July-June)

Iron Chain 28.28 55.55 1896.65

Cast Iron Articles 0.13 0.14 476.06

Generator 14.82 9.05 53.79

Fishing Reel 1.11 - 1.4

GI Pipes - - 6.9

Coil Assembly - - 244.4

Others 25.46 659.77 275.6

2005-06(July-June)

1108.8

15.04

71.8

0.002

11.5

485.8

3291.1

Source: Export Promotion Bureau, 2006

Table 6.6

Export of Major Steel & Engineering Products in Million Taka


c. Challenges in the Steel IndustryAvailability of raw materials, transportation, port facilities and tariff rationalization arethe key challenges for the development of steel industry. Bangladesh urgentlyrequires a number of basic steel industries to help the rapid industrialization process.Consistent and sufficient supply of gas is a major issue in steel manufacturing.

d. OutlookConsidering the overall development and industrialization process, steel industry inBangladesh has huge potential of growth in the coming years. Steel could be chosenas a prime sector for investment to earn a sustainable return.

a. Sector Highlights● Pharmaceutical products have huge demand both in local and overseas market.● There are huge demand-supply gap in pharmaceutical products.● Bangladesh offers a good number of qualified, skilled Pharmacists, Bio-chemists,

Micro-biologists, and Chemists for Pharmaceutical industries.● Government offers support for importing raw materials for production.● Present Government has taken initiatives to modernize, expand and attract foreign

investment in pharmaceutical industries, and for this adopted national medicine

Source : Export Promotion Bureau, 2006

Pharmaceuticals6.12 Pharmaceuticals

Trends of Pharmaceuticals Export from Bangladesh

Exhibit 6.9


policy (revised) 2005, which will help to adapt with the changing world under WTO/TRIPS

b. Outlook:

Considering the overall demand, Pharmaceuticals is one of the emerging sectors inBangladesh. Bangladesh Government offers different incentives for importing rawmaterials and establishing industries.This particular sector has huge potential of growthin the future. For sustainable return, Pharmaceutical sector could be a rational choice.

As a newcomer to a country, there always remain some uncertainities in settlement. This Chapter describes � Essential of adapting to a new culture and society; and � Facilities available for social life in Bangladesh.

Jatiya Sangshad Bhaban (National Parliament Building), Dhaka

137

7.1 Harmonious Living7.2 Cultural Shock7.3 Adapting to Life7.4 Affordable Living Costs7.5 Schooling and Healthcare7.6 Entertainment and Recreations7.7 Tours and Travels7.8 Workdays and Business Hours7.9 Flight Schedules7.10 Useful Bangla Words

7Settling

in Bangladesh


138



Bangladeshi people are by nature very polite, courteous, friendly and hospitable. Andthat’s why it is an exciting place to live and visit. Historical and archeological sites dotthe countryside, some dating as far back as the third century, B.C. It is blessed withenchanting scenic beauty, mighty rivers, sunny beaches, historical relics and colorfultribal life. Today, Bangladesh is a home to some of the major religions of the worldlike Islam, Hinduism, Buddhism and Christianity are all found here. Owing to a longtradition of tolerance, there is no communal animosity or ethnic conflict inBangladesh. The constitution of the country also guarantees full freedom of religionand there is no discrimination based on race, religion, caste, sex or place of birth.

It is really challenging for a family or individual to adjust to a new culture. Although itmay involve some periods of pain, its accomplishment is certain to be gratifying.Coping with the stresses experienced in an unfamiliar situation in Bangladesh israther easier. Human beings are actually very good at adjusting to changes andlearn to live happy and productive lives in many settings.

Harmonious . . .7.1 Harmonious Living

Cultural Shock. . .7.2 Cultural Shock


Physical signs of culture shock include sleep disturbances, stomach ailment, loss ofappetite, and pain with no organic cause, lack of energy etc. Psychologically,depression, groundless fear, irritability, apathy etc. may also result in. Children mayhave difficulties at schools, regress in their behavior, and either become quiet orwithdrawn. Adults, especially non-working spouses may found themselves acutelylonely, irritated by and critical of the surroundings.

In these cases, primarily recognize culture shock, engage in more socialization, learnand take active participation in culture and cultural events etc.

You are probably no less secure in Bangladesh than you would be in your countrybecause of the guards and other staff who look after your household. Professionaldomestic help and maid services suitable for a foreign family are available.

Hospitalities are much more relaxed, cordial and warm. There are numbers of goodrestaurants for eating out. Muslims do not eat pork. Hindus and many Buddhists do noteat beef. All types of cuisines are readily available in Bangladesh. You may also enjoy thedifferent cultural festivals on different occasions.

Lalbag Fort, Dhaka

Adapting. . .7.3 Adapting To Life


For the expatriates, Bangladesh is affordable and comfortable to live in. Expatriates’accommodation is available in centrally located apartments and houses. In severalsuburban areas, much quiet, more secluded houses are also available for rent. Forthose visiting Bangladesh, Dhaka offers three international five-star hotels – the PanPacific Sonargaon Hotel, Dhaka Sheraton Hotel and newly launched RadissonWater Garden Hotel. All the hotels provide deluxe accommodation, restaurants,health-club and entertainment facilities. In addition, there are a number of mediumstandard hotels and guesthouses in Dhaka, Chittagong and Khulna to accommodatethe expatriates. Please see Chapter 5 for details on Living Costs.

Hotel Radisson Water Garden, Dhaka

Bangladesh Cricket TeamBangladesh Vs India, 2nd ODI, 26 December 04

Affordable . . .7.4 Affordable Living Costs


There is a good number of schools are available in Dhaka and also in Chittagong. AnAmerican International School for grades 1 to 12 is located near the high-classresidential area of Gulshan in Dhaka. The professional teaching staffs follow theAmerican school curriculum. The school library maintains a substantial collection.Tuition charges are reasonable. A Japanese school is located in the residential areaof Baridhara in Dhaka. The school is managed by the Japanese Association inBangladesh. Also there have some English medium schools with internationalstandards with having examination center of O-level and A-level examination.

Basic health care needs can be met at any of the country’s hospitals or clinics, or bya foreign-trained registered physicians, engaged in various state owned and privatehospitals and clinics. Most of them are highly qualified, well experienced andeducated in U.S.A., U.K. Japan, and other European countries. There are also somegood hospitals and clinics with modern diagnostic equipment and facilities.

Expatriates have access to 3 private clubs in Dhaka to play tennis, squash, golf andbilliards, and to swim or dine. Local entertainment includes plays, art exhibits, filmsand instrumental and vocal music groups. As Bangladesh is enriched with richculture, special occasions are often marked by folk, dance festivals or observingdifferent rituals. Similar sports and recreational facilities are also available inChittagong and Khulna.

Both the rural and urban people are very sound in culture. Local drama, film festivals,cultural exhibitions etc. are regularly held in the urban centers. People observenational days in a very festive and joyous manner.

Schooling &. . .7.5 Schooling & Healthcare

Entertainment . . .7.6 Entertainment & Recreations


Chittagong and Khulna – these two places have some special attractions for visitors.Chittagong, the second largest city, is the gateway to the Bay of Bengal with apicturesque hinterland of large hills and forests, broad sandy beaches and finetemperate climate always attract holiday-makers. It combines the humming of busysea-port with the pleasure of a charming hill-town with undulating topography.Chittagong is the country’s principal sea-port and is the main site of heavy, mediumand light industries. Chittagong is also close to other unique tourist spots like Cox’sBazar, Kaptai and Rangamati.

Khulna, the country’s third largest city, serves as the gateway to the port of Monglaand the Sundarbans, the home of the Royal Bengal Tiger. A journey by paddlesteamer from Dhaka to Khulna along the southern river system running through thegreen countryside is guaranteed to be an unforgettable experience for foreigners.Saint Khan Jahan Ali’s sixty-domed ancient mosque (1459 A.D.) and his mausoleumat Bagerhat about 32 kms. away from Khulna are the popular tourist attractions.

Tours &. . .7.7 Tours & Travels

Hanging Bridge, Rangamati


Bangladesh observes Friday and Saturday weekend for government offices.Business hours are 9:00 – 17:00. Banks observe the same hours while industry hasa 48-hour week. But different business and private organizations observe a Fridayweekend.

It is very easy and simple to travel Bangladesh from any country in the world. Pleasecontact your travels agent or the airline offices for latest flight schedules from majorinternational hubs like London, Dubai, Bangkok, Singapore Also visit the officialwebsite of Biman Bangladesh Airlines. www.bimanair.com.

Bangladeshi people regard Bangla as central to the sense of pride of their nation.Speaking a few words in Bangla will not facilitate your communication a lot. But thiswould be appreciated by every Bangladeshi. Here are some very common Banglawords and phrases:

Shahid Minar, Dhaka

Workdays &. . .7.8 Workdays & Business Hours

Flight schedules7.9 Flight Schedules

Useful . . .7.10 Useful Bangla Words


For more information on living in Bangladesh, its culture, travel information, places to visit andsecurity, you may also please contact Bangladesh Parjatan Corporation.

Greetings & Conversation

Muslim Greeting : Assalamu AlaikumResponse : Wa Alaikum AsslamHindu Greeting : NomoshkarResponse : NomoshkarMuslim Farewell : Khuda Hafez/Allah HafezResponse : Khuda HafezThank you : DhanyabadYes : Ji or HaNo : NaOK : AchchaHow are you? : Kemon aachen?I am well. : Bhalo Aachi.What is your name : Apnar nam ki?My name is .. : Amar nam ...I have ... : ... AacheI don't have ... : ... naiI need ... : ... lagbeI don't need : ... lagbe na

Food / Shopping

Numbers

1 : Ek2 : Dui3 : Tin4 : Char5 : Panch6 : Choy7 : Shat8 : Aat9 : Noy10 : Dosh20 : Bish30 : Trish40 : Chollish50 : Ponchash100 : Ek Sho200 : Dui Sho1,000 : Ek Hajar1,00,000 : Ek Lakh

Time

Vegetable : ShobjiPotato : AluOnion : PeyajCauliflower : PhulkopiCabbage : BadhakopiBanana : KolaMango : AamLemon : LebuApple : ApelPapaya : PepeOrange : KomlaRice (cooked) : BhatRice (uncooked) : ChaalLentils : DalCurry : TorkariSugar (white) :

:Chini

Water:

PaniMarket BazarShop : Dokan

Morning : ShokalIn the morning : ShokaleAfternoon : BikalNight : RaatToday : AajYesterday : GotokalTomorrow : AgamikalHour : GhontaDay : DinWeek : ShoptaMonth : MashYear : BochorEveryday : RojWhole Day : Sara dinLater : Pore

Useful Bangla Words

Information is the key and life-blood of an investment decision. Without reliable and legitimate information sources, decisions are always at stake. This chapter records all possible sources of business and relevant information on Bangladesh. Investors would be able to � Arrange independent contacts, cross-refer and study. � Build relationship with a wide range of stakeholders. � Equip them with the real and true information.


147

8.1 Government Bodies

8.2 Trade and Chamber Bodies

8.3 Specialized Associations

8.4 Foreign Missions in Bangladesh

8.5 International Organizations

8.6 Bangladesh Missions Abroad

8.7 Board of Investment (BOI)

8Important Contacts &

Information Sources


148



Ministry of Civil Aviation & TourismBhaban No. 6, 19th Floor Bangladesh Secretariat, Dhaka 1000Tel : (880-2) 716 7244 Fax : (880-2) 716 9206E-mail : [email protected] : www.bangladeshtourism.gov.bd

Ministry of CommunicationsBhaban No. 7 (8th floor), Secretariat, Dhaka 1000Tel : (880-2) 716 2866Fax : (880-2) 955 3900Email : [email protected] : www.moc.gov.bd

Ministry of CommerceRoom No. 129, Building 3, Bangladesh Secretariat, Dhaka-1000Tel : (880-2) 716 5741, 716 0346Fax : (880-2) 716 7999Email : [email protected] & [email protected] : www.mincom.gov.bd

Ministry of FinanceBhaban No. 7 (3rd floor), Bangladesh Secretariat, Dhaka 1000Tel : (880-2) 716 2785, 716 0406, 716 2641Fax : (880-2) 716 5581Email : [email protected] : www.mof.gov.bd

Ministry of Foreign AffairsSegun Bagicha, Dhaka-1000Tel : (880-2) 956 2862Fax : (880-2) 955 5283Email: [email protected] : www.mofa.gov.bd

Ministry of IndustriesShilpa Bhaban (2nd floor), 91 Motijheel Commercial Area, Dhaka 1000Tel : (880-2) 956 7024, 956 3582Fax : (880-2) 956 3553, 955 9531Email : [email protected] : www.moind.gov.bd

The Web address of Government is www.bangladesh.gov.bd

Government . . .8.1 Government Bodies


Ministry of Power, Energy & Mineral ResourcesBhaban No. 6 (1st floor), Bangladesh Secretariat, Dhaka 1000Tel : (880-2) 716 6188Fax : (880-2) 716 1110Email : [email protected]

Ministry of Posts & TelecommunicationsBhaban No. 7 (6th floor), Bangladesh Secretariat, Dhaka 1000Tel : 880-2-716 2160Fax : 880-2-716 5775Email : [email protected] : www.mopt.gov.bd

Ministry of Textiles and JuteBhaban No. 6 (11th floor), Bangladesh Secretariat, Dhaka 1000Tel : (880-2) 716 7266Fax : (880-2) 716 0600, 7168766Email : [email protected] : www.motj.gov.bd

Bangladesh BankMotijheel Commercial Area, Dhaka 1000Tel : (880-2) 712 6101-20, 712 6280-95Fax : (880-2) 956 6212E-mail : [email protected]: www.bangladesh-bank.org

Bangladesh Export Processing Zones Authority (BEPZA)BEPZA Complex, House # 19/D, Raod # 6,Green Road, Dhaka-1205, BangladeshTel : (880-2) 865 0059Fax : (880-2) 966 1849, 856 0063Email : [email protected] : www.epz-bangladesh.org.bd

Bangladesh Standard & Testing Institution (BSTI)Ministry of IndustriesMann Bhaban, 116/KA, Tejgaon Industrial Area, Dhaka-1208Tel: (880-2) 881 0673, 989 9030, 989 8115Fax: (880-2) 913 1581Email: [email protected]: www.bstibd.org



Bangladesh Tariff Commission1st Twelve Storied Govt. Building (10th Floor)Segunbagicha, DhakaTel : (880-2) 933 5935, 831 4542Fax : (880-2) 831 5685Email : [email protected] : www.bdtariffcom.org

Bangladesh Telephone & Telegraph BoardTelejogajog Bhaban, 37/E Eskaton Graden, Dhaka-1000Tel: (880-2) 831 1500, 865 1800Fax: (880-2) 831 2577E-mail: [email protected]: www.bttb.gov.bd

Dhaka City CorporationNagar Bhaban, Fulbaria, DhakaTel: (880-2) 956 3447, 956 3504Fax: (880-2) 956 3514Web: www.dhakacity.org

Export Promotion Bureau (EPB)TCB Bhaban, 1-2, Kawran Bazar C/ACommercial Area, Dhaka 1215, BangladeshTel : (880-2) 914 4821-4, 912 8377, 815 1496, 811 2427Fax : (880-2) 911 9531Email : [email protected]: www.epb.com.bd

National Board of RevenueSegunbagicha, DhakaTel : (880-2) 831 8120-26, 831 8101-8Fax : (880-2) 831 6143E-mail : [email protected], [email protected]

Office of the Chief Controller of Export & Import (CCEI)111-113 Motijheel Commercial Area (2nd Floor), Dhaka-1000Tel : (880-2) 955 1556Fax : (880-2) 955 0217Email : [email protected]



Privatization CommissionJiban Bima Tower (14th floor)10, Dilkusha Commercial Area, Dhaka 1000Tel: (880-2) 955 1986Fax: (880-2) 955 6433Email: [email protected]: www.pc.gov.bd

PetrobanglaPetrocenter, 3 Kawran Bazar, Dhaka-1215Tel: (880-2) 811 4972Fax: (880-2) 912 0224Email: [email protected].

Power Development BoardWAPDA Building, (1st floor) Chairman Bhaban, Dhaka 1000Tel: (880-2) 956 2154Fax: (880-2) 956 4765Email: [email protected]: www.bpdb.gov.bd

Registrar of Joint Stock Companies and Firms24-25 Dilkuha C/A, DhakaTel: (880-2) 956 4005Fax: (880-2) 955 4452Email: [email protected]: www.roc.gov.bd



The Federation of Bangladesh Chambers of Commerce & Industry (FBCCI)Federation Bhaban 60 Motijheel Commercial Area, Dhaka 1000Tel : (880-2) 956 0102-3, 956 0588-9, 956 0482Fax: (880-2) 861 3213, 955 1233Email : [email protected] : www.fbcci-bd.org

Foreign Investors’ Chambers of Commerce and Industry (FICCI)Prime View (03-303) 7 Gulshan Avenue, Gulshan-1, Dhaka-1212Tel : (880-2) 989 3049Fax : (880-2) 989 3058Email : [email protected] : www.ficci.org.bd

Bangladesh Chamber of Industry (BCI)BCIC Bhaban (3rd Floor) 30-31, Dilkusha C/A, Dhaka-1000, BangladeshTel : (880-2) 955 1669, 956 9601, 956 5345Fax : (880-2) 956 4170Email : [email protected] : www.bangladeshchamber.org

International Chamber of Commerce Bangladesh (ICC-Bangladesh)Chandrashila Suvastu Tower (6th Floor), 69/1, Panthapath, DhakaTel : (880-2) 956 4174, 862 2583-84Email : [email protected], [email protected]

Metropolitan Chamber of Commerce & Industry (MCCI)Chamber Building, (4th floor) 122-124, Motijheel C/A, Dhaka-1000Tel : (880-2) 956 5208-11, 716 1028-29 (PABX)Fax : (880-2) 956 5212Email : [email protected] : www.mccibd.org

The Dhaka Chamber of Commerce & Industry (DCCI)Dhaka Chamber Bhaban 65-66, Motijheel C/A, DhakaTel : (880-2) 955 2808, 955 2562Fax : (880-2) 956 0830Email : [email protected], [email protected] : www.dhakachember.com

Trade &. . .8.2 Trade & Chamber Bodies



Chittagong Chamber of Commerce & Industry (CCCI)Chamber House # 38, Agrabad C/A, Chittagong, BangladeshTel : (880-31) 713 366-69, 711 355Fax : (880-31) 710 183Email : [email protected]

Khulna Chamber of Commerce & Industry (KCCI)Chamber Mansion, 5, KDA C/A P.O. Box 26, Khan-A-Sadur Road, KhulnaTel : (880-41) 723 953, 811 248Fax : (880-41) 726 535

Rajshahi Chamber of Commerce & Industry (RCCI)Chamber Bhaban, Station Road, RajshahiTel : (880-721) 812 122, 812 133 (Office)Fax: (880-721) 812 133

Barisal Chamber of Commerce & Industry (BCCI)P.O. Box 30, Shaow Road, (Nazirer Pool) Barishal, BangladeshTel : (880-431) 522 20, 618 76Fax : (880-431) 546 91

Sylhet Chamber of Commerce & Industry (SCCI)Chamber Building P.O. Box 97 Jail Road, SylhetTel : (880-821) 714403, 716069, 716808Fax : (880-821) 715210

Joint Chambers

Australia-Bangladesh Chamber of Commerce & Industry (ABCCI)House # 296 (Ground Fl.), Road # 04 (east side), DOHS Baridhara, Dhaka-1206Tel : (880-2) 988 3926Fax : 880-2-988 8450Email : abcci@citek_bd.com

American Chamber of Commerce in Bangladesh (AmCham)Dhaka Sheraton Hotel (Room 319) 1, Minto Road, Dhaka 1000Tel : (880-2) 861 3391, 988 5881Fax : (880-2) 934 9217, 8312915Email : [email protected] : www.amachambd.org



Bangladesh-Malaysia Chamber of Commerce & Industrics (BMCCI)House # 14, Road # 27, Block # J, Banani, Dhaka 1213Tel: (880-2) 989 5124, 989 5525, 988 7071Fax : (880-2) 989 5541, 988 7072, 885 8527Email : [email protected]

Bangladesh-China Chamber of Commerce & Industrics (BCCCI)House # 432, (2nd Floor) Road # 30, New DOHS, Mohakhali, DhakaTel: (880-2) 885 9080, 0172-290417, 0171-031049Fax: (880-2) 988 3444

Bangladeshi-German Chamber of Commerce & Industry (BGCCI)H.R. Bhaban (4th Floor), 26/1 Kakrail Road, Dhaka-1000Tel: (880-2) 989 3536Fax: (880-2) 989 344Email : [email protected], [email protected] : www.bgcci-bd.com

Bangladesh-Norway Chamber of Commerce & Industry (BNCCI)East Coast Centre, SW(G), 8 Gulshan Avenue, Gulshan-1, Dhaka-1212Tel : (880-2) 988 4312-7Fax: (880-2) 988 3783, 988 3785E-mail : [email protected] : www.ecg.com.bd

Bangladesh-Thai Chamber of Commerce and Industry (BTCCI)52/1, New Eskaton Road (2nd Floor), Dhaka - 1000Tel: (880-2) 934 3948, 934 5174, 935 6085Fax : (880-2) 831 4933Email: [email protected] : www.bscl.net

Dutch-Bangla Chamber of Commerce & Industry (DBCCI)Chowdhury Centre (2nd Floor) 23Ka New Eskaton RoadTel : (880-2) 8359337Fax : (880-2) 8359562Email : [email protected] : www.dbcci.org


Japan-Bangladesh Chamber of Commerce & Industries (JBCCI)Sharif Plaza (3rd Floor), 39, Kemal Ataturk Avenue, Banani, Dhaka-1213Tel : (880-2) 881 8222-3Fax : (880-2) 881 8224E-mail : [email protected] : www.jetro.gojp/bangladesh/eng/jbcci/index.hdml

Bangladesh-France Chamber of Commerce & Industry (BFCCI)House No. 2, Road No. 1, Baridhara, Dhaka-1212Tel: (880-2) 882 1540, 882 2751-4Fax: (880-2) 882 1450, 986 0712Email: [email protected]

Russia-Bangladesh Joint Chamber of Commerce & Industry (RBJCCI)House 2, flat 6/1, Road 17, block C, Banani, DhakaTel : (880-2) 881 2050, Fax: (880-2) 882 2275Email: [email protected]

Association of Cargo Agents of BangladeshHouse # 45, Road # 17, Block # E Banani C/A, DhakaTel : (880-2) 988 1663-4Fax : (880-2) 988 1663Email : [email protected]

Bangladesh Automobiles Assemblers & Manufacturer AssociationEastern Trade Centre, Room # 510-5111 (5th floor)56, Purana Paltan Line, VIP Road, Dhaka-1000, BangladeshTel : (880-2) 935 1927, 955 1273, 955 2212Fax : (880-2) 956 6324E-mail : [email protected]


Special ized8.3 Specialized Associations


Bangladesh Association of Construction Industry (BACI)ABC House, (5th floor) 8 Kamal Ataturk Aveneu Banani C/A, Dhaka 1213Tel : (880-2) 882 8202, 882 4754-55Fax: (880-2) 882 3085E-mail: [email protected]

Bangladesh Association of Consulting Engineers (BACE)House # 95/A, Road # 4, Block-F, Banani, Dhaka-1213, BangladeshTel : (880-2) 986 2713-5, 986 27717Fax : (880-2) 989 3321E-mail : [email protected] : www.bclgroup.com

Bangladesh Bread, Biscuit & Confectionery Manufacturers Association62/2, Purana Paltan Lane, Kakrail, DhakaTel : (880-2) 832 1064, 934 8490 (Factory)

Bangladesh Corrugated Carton & Accessories Manufacturers’ & Export Association“SONARTARI TOWER” (9th Floor), Plot No. 12, Biponon C/ASonargaon Road (Link Road), Dhaka-1205Tel : (880-2) 966 6763, 862 1200, 710 2452Fax : (880-2) 862 1200, 710 2451

Bangladesh Computer AssociationHouse 8/A, Road 14(New) Sobhanbag, Dhanmondi, Dhaka-1205

Bangladesh Cold Storage AssociationBCSA Bhaban 38, Purana Paltan, (2th floor), Dhaka-1000Tel : (880-2) 956 2932, 955 5252, 955 4883, 955 4883Fax : (880-2) 956 2932, 989 8246

Bangladesh Computer Samity (BCS)Sonartori Tower (12th Floor) Plot # 12Biponon C/A, Sonargaon Road, Dhaka-1205, BangladeshTel: (880-2) 967 0955-56 Ext-108Fax: 880-2-967 0955-56 E-mail: [email protected]: www.bcs-bd.org




Bangladesh Cargo Vessel Owners Association47/4, Toyenbee Circular Road (3rd floor), Dhaka-1000, BangladeshTel : (880-2) 711 1013Fax : 880-2-956 4292

Bangladesh Electronics Manufacturers AssociationArafat Tower, 94, Malibagh, DIT Road Dhaka 1217Tel : (880-2) 955 2078, 955 7967Fax : (880-2) 831 2913E-mail : [email protected]

Bangladesh Engineering Shilpa Malik Samity38, Tipu Sultan Road, Dhaka-100067, NayapaltanTel : (880-2) 711 9011, 711 5425

Bangaldesh Fruits, Vegetables & Allied Products Exporters AssociationSharif Mansion (6th floor)56/57, Motijheel C/A, DhakaTel : (880-2) 956 0506Fax: 880-2-956 0506

Bangladesh Frozen Foods Exporters Association (BFFEA)Sky Lark Point (10th floor) 24/A Bijay Nagar, Dhaka-1000Tel : (880-2) 812 0434, 914 1750, 913 2452Fax : (880-2) 913 2452Email : [email protected]

Bangladesh Finished Leather & Leather goods and footwear ExportAssociationHouse 61, Road 2/A Dhanmondi, DhakaTel : (880-2) 862 2167, 861 5977 Fax : (880-2) 862 2168E-mail : [email protected] : www.dif.net

Bangladesh Furniture Silpa Malik Samity 129/C Shopping Centre (4th Floor)Gulshan-1, Dhaak 1212Tel : (880-2) 882 7703, 882 8776, 882 7703Fax : (880-2) 882 8756



Bangladesh Garment Manufacturers & Exporters Association (BGMEA)23/1 Panthapath Link Road, Karwan Bazar (3rd & 4thFloor) Dhaka-1215Tel : (880-2) 811 5597, 811 5751Fax : (880-2) 811 3951Email : [email protected] : www.bangladeshgarments.info

Bangladesh G. P & C.I Sheet Manufacturers Association387, North Tejgaon I/A, Dhaka 1215Phone : (880-2) 811 7420, 811 7795, 811 9227Fax : (880-2) 811 8997, 811 3417

Bangladesh Handicrafts & Manufacturers Exporters AssociationBTMC Bhaban, 7-9 Karwan Bazar (4th Floor). Dhaka-1215Tel : 01710 296359

Bangladesh Hosiery AssociationHosiery Bhaban, Hosiery Shilpa Nagar Sashangaon, Fatulla, NarayanganjTel : (880-2) 760 1023, 7601629

Bangladesh Jute AssociationBJA Bhaban, 77, Motijheel C/A, Dhaka 1000Tel : (880-2) 955 2916 Fax : (880-2) 956 3589

Bangladesh Jute Mills AssociationAdamjee Court (4th floor) 115-120 Motijheel C/A, DhakaTel : (880-2) 955 0664, 913 2520, 912 4982Fax : (880-2) 955 0664

Bangladesh Jewelery Manufacturers & Exporters AssociationF-37, Anarkoli Super Market (1st Floor) Mowchak, DhakaTel : (880-2) 935 7539, 934 3491

Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA)233/1, B.B. Road, Narayanganj-14000Tel : (880-2) 955 3866, 955 3422, 971 5494Fax : (880-2) 971 6050Email : [email protected]

Bangladesh Milk Products Manufacturers & Traders Association46/1, Lake Circus, Kalabagan, DhakaTel : (880-2) 811 6576Fax : (880-2) 811 6576



Bangladesh Marine Fisheries AssociationHead Office-Suite no. 10/4, Eastern Plaza (9th floor) Hatirpul, Dhaka.Tel : (880-2) 861 6934 Fax : 880-2-861 6934Email : [email protected]

Bangaldesh Poultry Industries AssociationAdamjee Court (Ground floor) 115-120, Motijheel C/A, DhakaTel : (880-2) 956 46133, 955 0543Fax : (880-2) 933 2866Email : [email protected]

Bangladesh Re-rolling Mills AssociationAsif Mansion (9th Floor) 77/1 Kakrail, Dhaka-1000Tel : (880-2) 835 3051

Bangladesh Reshom Industry Owners Association23, Liknath High School Market, Rajshahi-6000Tel : (880-721) 775 271, 772 739

Bangladesh Ship Breakers AssociationRoad # 13, House # 375, Agrabad Abashik Area, ChittagongTel : (88-031) 714 778, 721 182Fax: (88-031) 723 403

Bangladesh Tea SangsadDar-E-Shahidi, 69, Agrabad C/A, P.O. Box 287, Chittagong

Bangladesh Tanners Association99, Hazaribagh, Tannerbag Jame Masjid Area, Dhaka 1209Tel : (880-2) 966 2836Fax : (880-2) 861 8564

Bangladesh Terry Towel & Linen Manufacturers & Exporters AssociationPaltan Tower, 87 Purana Paltan Line (5th Floor)South East Corner, Dhaka-1000, BangladeshTel : (880-2) 935 1815, 935 1820Fax: (880-2) 935 1815E-mail: [email protected]



Bangladesh Textile Mills Association (BTMA)Unique Trade Centre (Level 8)8 Panthapath, Karwan Bazar, Dhaka, BangladeshTel : (880-2) 914 3461, 913 0969, 811 2361Fax: (880-2) 912 5338E-mail : [email protected] : www.btmadhk.com

National Association of Small & Cottage Industries of Bangladesh79, Siddeswari Circular Road, Malibagh Moor, Dhaka-1217Tel : (880-2) 832 2709Fax : (880-2) 832 2709

Packaging Industries Association of Bangladesh68, Dilkusha C/A, Dhaka 1000Tel : (880-2) 955 7275, 955 7271Fax : (880-2) 956 4528E-mail : [email protected]

Real Estate & Housing Association of Bangladesh (REHAB)National Plaza (6th floor) 1/G, Free SchoolStreet, Sonargaon Road, Dhaka-1205, BangladeshTel : (880-2) 966 2482Fax : (880-2) 956 8520E-mail : [email protected] : www. rehab-bd.org


Embassy of the Republic State of AfghanistanHouse CWN(c) 2A, Road 24, Gulshan, Dhaka-1212Phone : (880-2) 989 5994, 989 5819, 989 5901Fax : (880-2) 989 4767E-mail: [email protected]

Australian High Commission184 Gulshan Avenue, Gulshan # 2, Dhaka-1212Phone: (880-2) 881 3101-5Fax: (880-2) 881 1125E-mail: [email protected]: www.bangladesh.embassy.gov.au

Royal Bhutanese EmbassyHouse # CEN 12, Road # 107, Gulshan # 2, Dhaka-1212Phone: (880-2) 882 6863, 882 7160Fax: (880-2) 882 3939E-mail: [email protected], [email protected]

High Commission of Brunei DarussalamHouse # 26, Road # 6, Baridhara, Dhaka-1212Phone: (880-2) 881 9552, 881 3304, 9861837Fax: (880-2) 881 9551E-mail: [email protected]

Canadian High CommissionHouse 16/A, Road 48, Gulshan, Dhaka-1212Phone: (880-2) 988 7091-7Fax: (880-2) 882 3043, 882 6585E-mail: [email protected]: www.bangladesh.gc.ca

Embassy of the People’s Republic of ChinaPlot # 2 & 4, Road # 3 Block # 1, Baridhara, Dhaka-1212Phone: (880-2) 882 4862, 882 2599, 882 4164, 885 5405Fax: (880-2) 882 3004E-mail: [email protected]: www.bd.china-embassy.org

Royal Danish EmbassyHouse # 1, Road # 51, Gulshan # 2, DhakaPhone: (880-2) 882 2499, 882 2599, 882 2699Fax: (880-2) 882 3638E-mail: [email protected]: www.danishembassybd.com

Foreign. . .8.4 Foreign Missions in BangladeshFor Latest Update please visit www.mofa.gov.bd



Embassy of the Arab Republic of EgyptHouse NE(N) #9, Road # 90, Gulshan # 2, Dhaka-1212Phone: (880-2) 882 2766-7, 881 3828Fax: (880-2) 885 8747E-mail: [email protected]

Embassy of the Republic of FranceHouse 18, Road 108, Gulshan, Dhaka-1212Phone: (880-2) 881 3812-4, 988 3851Fax: (880-2) 882 3612E-mail: [email protected]: www.ambafrance-bd-org

Embassy of the Federal Republic of Germany178, Gulshan Avenue, Gulshan, G.P.O Box 108, Dhaka-1212Phone: (880-2) 885 3521-24Fax: (880-2) 885 3260, 885 3528 E-mail: [email protected]: www.dhaka.diplo.de

High Commission of IndiaChancery address: House # 2, Road # 142, Gulshan, Dhaka-1212Phone: (880-2) 988 8789, 8820243- 7Fax: 880-2-9893050E-mail: [email protected]

Embassy of the Republic of IndonesiaPlot # 14, Road# 53, Gulshan #2, Dhaka-1212Phone: (880-2) 988 1640-41, 8812260Fax: (880-2) 882 5391, 8810993E-mail: [email protected], Web: www.jakarta-dhaka.com

Embassy of the Islamic Republic of IranHouse #7, Road#6, Baridhara, Dhaka-1212Phone: (880-2) 882 5948, 882 5896, 989 6664, 989 6754Fax: (880-2) 882 8780E-mail: [email protected]

Embassy of the Republic of ItalyPlot 2/3, Road 74/79, Gulshan Model Town, DhakaPhone: (880-2) 882 2781-3(PABX), 988 2802, 882 6359Fax: (880-2) 882 2578E-mail: [email protected]



Embassy of JapanPlot 5 & 7, Dutabash Road, Diplomatic Enclave Baridhara, Dhaka-1212Phone: (880-2) 881 0084, 881 0087Fax: (880-2) 882 6737, 882 3714E-mail: [email protected]: www.bd.emb.japan.go.jp

Embassy of the Democratic people's Republic of KoreaHouse # 5/A, Road # 54, Gulshan # 2, Dhaka-1212Phone: (880-2) 881 1893-9 ( Economic Section: 8915690)Fax: (880-2) 881 0813 (Economic Section: 8915690,8915511)E-mail: [email protected]

Embassy of the Republic of Korea4, Madani Avenue, Baridhara, Dhaka-1212Phone: (880-2) 881 2088-90Fax: (880-2) 882 3871E-mail: [email protected]: www.mofat.go.kr

Embassy of the State of KuwaitHouse# 16, Road# 4, Baridhara, Dhaka, GPO box no.6099Phone: (880-2) 882 2700-3Fax: (880-2) 882 3753E-mail: [email protected]

Embassy of The Great Socialist People's Libyan Arab JamahiriyaHouse # 17, Road # 7, Baridhara, Dhaka-1212Phone: (880-2) 989 5808-9Fax: (880-2) 882 3417

High Commission of MalaysiaHouse 19, Road 6, Baridhara, Dhaka-1212Phone: (880-2) 882 7759-60, 989 1651, 988 5543Fax: (880-2) 882 3115, 882 7761, 989 6266E-mail: [email protected]

Embassy of the Kingdom of MoroccoHouse 44, United Nations Road, Baridhara, Dhaka-1212Phone: (880-2) 882 3176, 988 0329Fax: (880-2) 881 0018E-mail: [email protected]



Embassy of the Union of MyanmarHouse no. NE(L) 3, Road 84, Gulshan 2, Dhaka-1212Phone: (880-2) 989 6373, 989 6298Fax: (880-2) 882 3740E-mail: [email protected]

Royal Nepalese EmbassyUnited Nations Road, Road 2, Baridhara Diplomatic Enclave, DhakaPhone: (880-2) 989 2490, 989 2568Fax: (880-2) 882 6401E-mail: [email protected]

Royal Netherlands EmbassyHouse 49, Road 90, Gulshan, Dhaka-1212Phone: (880-2) 882 2715 Fax: (880-2) 882 3326E-mail: [email protected], Web: www.netherland.dhaka.org

High Commission of NigeriaPlot #9 EP 4, Road 111, Gulshan, DhakaPhone: (880-2) 881 7999

Royal Norwegian EmbassyHouse 9, Road # 111, Gulshan, Dhaka Phone: (880-2) 882 3065, 881 3880, 881 6276, 881 6303, 881 6273Fax: (880-2) 882 3661E-mail: [email protected], Web: www.dhaka.mfa.no

High Commission for the Islamic Republic of PakistanHouse NE(C) 2, Road # 71, Gulshan Avenue, Dhaka-1212Phone: (880-2) 882 5388-9 Fax: (880-2) 8850673E-mail: [email protected]

Embassy of State of PalestineChancery Address: House # 15/A , Road# 35, Gulshan Model Town, Dhaka-1212Phone: (880-2) 989 3895-6Fax: (880-2) 882 3517E-mail: [email protected]

Embassy of the Republic of the PhilippinesHouse 6, Road 101, Gulshan 2, Dhaka-1212Phone: (880-2) 988 1590-93, 988 1578Fax: (880-2) 882 3686E-mail: philem1@ citechco.net, philem2@ citechco.net,



Embassy of the Republic of PolandHouse # House # 111, Road # 4, Banani, Dhaka-1212Phone: (880-2) 882 5895, 989 3895-6Fax: (880-2) 882 7568, 881 1458E-mail: [email protected]

Embassy of the State of QatarHous # 1, Road # 79/81, Gulshan # 2, Dhaka-1212Phone: (880-2) 881 9930, 882 3950 Fax: (880-2) 989 6071

Embassy of the Russian FederationHouse NE(J) 9, Road 79, Gulshan # 2, Dhaka-1212Phone: (880-2) 8818142, 882 8147 Fax: (880-2) 882 3735E-mail: [email protected], [email protected]: www.rusdhaka.org

Royal Embassy of Saudi ArabiaHouse # 5(NE)L, Road#83, Gulshan # 2, Dhaka-1212Phone: (880-2) 882 9125, 882 9128-9, 882 6989Fax: (880-2) 882 3616Email: [email protected]

Consulate of the Republic of SingaporeHouse 15, Road 68/A, Gulshan-2, Dhaka-1212Phone: (880-2) 988 0404, 988 0337 Fax: (880-2) 988 3666

The High Commission of the Democratic Socialist Republic of Sri LankaHouse # 4A, Road # 113, Gulshan Model Town, Dhaka-1212Phone: (880-2) 989 6353 Fax: (880-2) 882 3971E-mail: [email protected]

Embassy of SwedenHouse # 1, Road # 52, Gulshan, Dhaka-1212Phone: (880-2) 882 4761-4,882 0220 Fax: (880-2) 882 3948E-mail: [email protected]: www.citechco.net/swedhaka

Embassy of SwitzerlandHouse # 31-B, Road # 18, Banani, Dhaka-1212Phone: (880-2) 881 2874-6Fax: (880-2) 882 3872E-mail: [email protected]



Royal Thai EmbassyHouse # 14, Road # 11, Baridhara, Dhaka-1212Phone: (880-2) 881 2795-6, 881 3260-1Fax: (880-2) 885 4280Email: [email protected]: www.thaidac.com

Embassy of the Republic of TurkeyHouse# 14A, Road # 62, Gulshan, Dhaka 1212Phone: (880-2) 882 2198, 882 3536, 882 3297 Fax: (880-2) 882 3873Email: [email protected]

Embassy of the United Arab Emirates191 Gulshan Avenue, Dhaka-1212Phone: (880-2) 988 2255, 988 2266, 988 2277, 9882244 Fax: (880-2) 882 3225, Email: [email protected]: www.uaeembassydhaka.org

British High CommissionUnited Nations Road, P.O. Box: 6079, Baridhara, Dhaka-1212Phone: (880-2) 882 2705-9 Fax: (880-2) 882 3437Email: [email protected], [email protected]: www.ukinbangladesh.org

Embassy of the United States of AmericaMadani Avenue, P.O. Box: 323, Baridhara, Dhaka-1212Phone: (880-2) 885 5500-22 Fax: (880-2) 882 3744, 8823648

Consular Agency of the Republic of UzbekistanWali Centre, 3rd floor, House 74, Gulshan Avenue, Dhaka 1212Phone: (880-2) 601 022 Fax: (880-2) 882 3452

Delegation of the European CommissionHouse 7, Road 84, Gulshan, Dhaka.Phone: (880-2) 882 4730-32, 986 2826Fax: (880-2) 882 3118Email: [email protected]: www.eudelbangladesh.org


Asian Development BankPlot # E-31, Sher-e- Bangla NagarGPO Box no. 2100, Dhaka 1000Phone: (880-2) 8165000-8, 8154009-16Fax: (880-2) 81566018-19Email: [email protected]: www.adb.org

Australian Aid Agency (AusAID)184 Gulshan Avenue, Gulshan, Dhaka BangladeshPhone: (880-2) 881 3101 - 05Fax: (880-2) 882 3794Email: [email protected]: www.bangladesh.embassy.gov.au

Canadian International Development Agency (CIDA)House # 16A, Road # 48, Gulshan - 2, Dhaka 1212, BangladeshPhone: (880-2) 988 7091-7Fax : +880 2 882 3043 & +880 2 882 6585Email: [email protected]: www.dfait-maeci.gc.ca/bangladesh/cida-en.asp

Department for International Development (DFID)10 Gulshan Avenue, Gulshan-1Dhaka-1212, Bangladesh.Tel: (880-2) 881 0800 [Lead/Pilot] Fax: (880-2) 882 3181, 882 4661, 882 6454E-mail: [email protected]: www.dfidbangladesh.org

Islamic Development BankIDB Bhaban (4th Floor), E/8-A Rokeya Sharani Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh Phone : (880-2) 912 3821, 913 1150, 913 1151Fax: (880-2) 811 0450E-mail: [email protected]: www.idb-bisew.org

AusAID

IDB.BISEW

International . . .8.5 International Organizations



IMF Office in BangladeshBangladesh Bank BuildingRoom 4 (4th floor)Motijheel C/A, Dhaka 1000Phone: (880-2) 955 0275, 955 0293Fax: (880-2) 958 6217Web: www.imf.org

International Finance CorporationC/O World BankBay's Galleria (2nd Floor), 57, Gulshan AvenueGulshan-1, Dhaka-1212, BangladeshPhone: (880-2) 988 6773, 8833752-67Fax: (880-2) 989 4744Email: [email protected]: www.ifc.org

JICA BangladeshJICA BANGLADESH OFFICE UDAY TOWER (7th floor), Plot No.57 & 57/A, Gulshan Avenue (south), Circle-1, Dhaka-1212, Bangladesh(Banani P.O.Box No.9030, Dhaka-1213, BANGLADESH )Phone: (880-2) 989 1897, 989 1899, 989 1073, 989 3106, 882 6547Fax: (880-2) 989 1689, 989 1753Email: [email protected]: www.jica.go.jp/english

South Asia Enterprise Development Facility (SEDF)Bay's Galleria (2nd Floor), 57, Gulshan Avenue (CWS-A 19) Gulshan-1, Dhaka-1212, BangladeshTel: (880-2) 883 3752-67, 986 1711-20Fax: (880-2) 989 4744Email: [email protected]: www.sedf.org

The World Bank Office in BangladeshPlote E # 32, Agargaon, Sher-e-Bangla Nagar, Dhaka-1207Phone: (880-2) 815 9001-28Fax: (880-2) 815 9029-30Web: www.worldbank.org.bd



United Nations Development Programme (UNDP)IDB Bhaban, E/8-A Begum Rokeya SharaniSher-e-Bangal Nagar, Dhaka 1207Phone: (880-2) 811 8600-06, 811 8632Fax: (880-2) 811 3196,8117811Email: [email protected]: www.un-bd.org/undp

United States Agency for International Development,Bangladesh Madani Avenue, Dhaka Bangladesh Phone: (880-2) 885-5500 Fax: (880-2) 882-3648Email: [email protected]: www.usaid.gov/bd


For Latest Update please visit www.mofa.gov.bd

AustraliaHigh Commission for the People`s Republic of Bangladesh, Canberra21, Culgoa Circuit, O` Melley Act-2606, Canberra, Australia.Phone; (61-2) 6290-0511, 6290-0522,Fax: (61-2) 6290-0544Email: bdoot@[email protected]: http://users.cyberone.com.au/bdeshact

Bahrain Embassy of the People's Republic of Bangladesh, Manama, Bahrain.House # 2280 Road # 2757, Adliya-327, Bahrain, P.O. Box 26718, Adliya Manama, Bahrain.Phone: (00973) 17714717 (PABX)Fax: (00973)-17710031, 17742252Email: [email protected]

Belgium Embassy of the People's Republic of Bangladesh,Brussels, 29-31, Rue Jacques Jordaens, 1000 Phone: +(32-2) 6405500, 6405606 (PABX)Fax: +(32-2) 6465998Email: [email protected]: www.banglaeshembassy.be

Bhutan Embassy of the People`s Republic of Bangladesh,Thimphu, Bhutan. Plot# HIG-3, Upper ChubachuPhone: (00975-2) 322 539,Fax: (00975-2) 322 629Email: [email protected]

Brazil Embassy of the People`s Republic of Bangladesh, Brasilia-DF, SHIS QI-7, Conj-3, Casa-4, Brasilia-DF, BrazilPhone: (55-61) 248-4830/248-4905/248-7218 Fax: (55-61) 248-4609 Email: [email protected]

BruneiHigh Commission for the People`s Republic of Bangladesh, Bandar Seri BegawanHouse No. 10 Simpang 83-20, Jalan SungaiAkar, BC-3915, Bandar Seri Begawan, Brunei Darussalam.Phone: (673) 2342420 (PABX)Fax: (673) 2342421Email: [email protected]

CanadaHigh Commission for the People`s Republic ofBangladesh, Ottawa, 275 Bank Street, Suite 302,Ottawa, Ontario K2P 2L6, (Ottawa).Phone: (1-613) 236-0138, 236-0139Fax: (1-613) 567-3213Email: [email protected]: www.bdhc.org

China (Hong Kong)Consulate General of the People`s Republic of Bangladesh, Hong-Knog, Room 4007, China Resources Building, 26, Harbour Road, Wanchai, Hong-Kong.Phone: (852) 28274278-79 Fax: (852) 28271916 Email: [email protected]

ChinaEmbassy of the People`s Republic ofBangladesh, Beijing42, Guang Hua Lu, chaoyang District Beijing-100600Phone: (0086-10) 65322521, 65323706 Fax: (0086-10) 65324346Email: [email protected]: www.bangladeshembassy.com.cn

EgyptEmbassy of the People`s Republic ofBangladesh, Cairo, Egypt20 Gazeret EI Arab Street, Mohandession-12655,Phone: (20-2) 3462003, 3462009Fax: (20-2) 3462008E-mail: [email protected]

FranceEmbassy of the People`s Republic ofBangladesh, Paris, 39, Rue Erlanger, 75016Phone: (33-1) 01-4651-9033, 4651-9830 (PABX)Fax: (33-1) 01-4651-9035Email: [email protected]

GermanyEmbassy of the People`s Republic ofBangladesh, Berlin, Dovestrasse 1, 10587 Phone: (49-30) 0049-30-3989 750 (PABX) Fax: (49-30) 0049-30-3989 7510 Email: [email protected]: www.bangladeshembassy.de

Bangladesh. . .8.6 Bangladesh Missions Abroad



IndiaHigh Commission for the People`s Republic of Bangladesh, New Delhi, EP-39,Dr.S.Radhakrishnan Marg, Chanakyapuri,New Delhi-110021Phone: (91-11) 24121389-94 (PABX)Fax: (91-11) 26878953, 26878955Email: [email protected]: www.bhcdelhi.org

India (Kolkata)Deputy High Commission for the People`sRepublic of Bangladesh in India Kolkata,9 Bangabandhu Sheikh Mujib SaraniKolkata-700017Phone: (91-33) 2290-5208-9, 2290-0341, (PABX)Fax: (91-33) 2290-0941Email: [email protected]

IndonesiaEmbassy of the People`s Republic of Bangladesh, Jakarta, Jalan Denpasar Raya, Block A-13, Kav 10,No.3 Kuningan, Jakarta Selatan-12950, Indonesia.Phone: (62-21) 5221574, 5251987Fax: (62-12) 5261807Email: [email protected]: www.bangladeshembassyjakarta.or.id

IranEmbassy of the People`s Republic of Bangladesh, TehranBuilding # 14, Street # 5, Gandhi Ave. Tehran,Phone: (98-21) 88772979 & 88772980 (PABX)Fax: (98-21) 88778295 Email: [email protected]

IraqEmbassy of the People`s Republic of Bangladesh, Baghdad, House No. 9, Road No. 13, Area # 915, Jadria, Baghdad, Iraq, POBOX No. 2092 (Jadria Post Office)Phone: (964-1) 7763002-3Email: [email protected]

ItalyEmbassy of the People`s Republic of Bangladesh, RomeVia Antonio Bertoloni, 14, Rome-00197, ItalyPhone: (0039-06) 8083595, 8078541 (PABX)Fax: (396) 8084853Email: [email protected]

JapanEmbassy of the People`s Republic of Bangladesh, Tokyo4-15-15, Meguro, Meguro-KU, Tokyo-153-0063Phone: (81-3) 5704-0216-8 (PABX)Fax: (81-3) 5704-1696 Email: [email protected]: www.bdembjp.com

JordanEmbassy of the People`s Republic of Bangladesh, AmmanUm Uthaina, Price Zeid Bin Al Hussein St.,Villa No. 47, Amman.Phone: (962-6) 5529192-3 Fax: (962-6) 5529194 Email: [email protected]

KenyaHigh Commission for the People`s Republic of Bangladesh, Nairobi, KenyaOle Odume Road, Off Argwings-KodhekRoad, Kilimani, P.O. Box: 41645, Nairobi, Kenya.Phone: +(254-20) 3862816, 3870467 (PABX) Fax: +(254-20) 3874133 Email: [email protected]

South KoreaEmbassy of the People`s Republic of Bangladesh, SeoulEmbassy of Bangladesh, 310-22,Dongbinggodong, Yongsan-gn, Seoul, 140-817, Republic of Korea.Phone: (82-2) 796-4056-7, 795-6535 (PABX)Fax: (82-2) 790-5313Email: [email protected]



KuwaitEmbassy of the People`s Republic ofBangladesh, KuwaitBlock-1, Street no.102, House no.26 Hateen,South Surra, KuwaitPhone: (00965) 5030551 Fax: (00965) 5316041Email: [email protected]

LibyaEmbassy of the People`s Republic ofBangladesh, Tripoli, LibyaHi Damask, (Opposite to Khadra Hospital)PO Box # 5086, Tripoli, LibyaPhone: (0218-21) 4911198, 4911199, (PABX)Fax: (0218-21) 4906616 Email: [email protected]

MalaysiaHigh Commission for the People`s Republic ofBangladesh, Kuala Lumpur, Block-1, Lorong Damai-7, Jalan Damai, Kuala Lumpur-55000, MalaysiaPhone : (60-3) 21487940, 21423271, 21422505 (PABX)Fax: (60-3) 21413381Email: [email protected]: www.bangladesh-highcomkl.com

MaldivesHigh Commission for the People`s republic of Bangladesh, Male, MaldivesM. Kuribee Lodge (5th Floor), Izzudheen Magu,Male, MaldivesPhone: (960) 315541, 3320859 Fax: (960) 3315543Email: [email protected]

MoroccoEmbassy of the People`s Republic of Bangladesh, Rabat25 Avenue Tarik Ibn Ziad, Rabat MoroccoPhone: (212-37) 766 713, 766 731 Fax: (212-37) 766729 Email: [email protected]: www.bangladeshembassy-morocco.org

MyanmarEmbassy of the People`s Republic ofBangladesh, Yangon11/B Than Lwin Road, Yangon, MyanmarPhone: (95-1) 515275, 526144 Fax: (95-1) 515273Email: [email protected]

NepalEmbassy of the People`s Republic ofBangladesh, KathmanduMaharaajgunj, Chakrapath (Ring Road), Kathmandu, NepalMunicipality, Ward No.4, Shanti AshramKitta No. 9, kathmandu.Phone: (977-1) 4372843, 4370438Fax: (977-1) 4373265Email: [email protected]

The NetherlandsEmbassy of the People`s Republic ofBangladesh, the Hague, Wassenaarseweg 39, 2596 CG The Hague, The NetherlandsPhone: (31-70) 3283722 Fax: (31-70) 3283524Email: amb.vanbangladesh@wanadoo,nlWeb: www.bangladeshembassy.nl

OmanEmbassy of the People`s Republic ofBangladesh, MuscatBuilding No. 5903, Street No, 664, Opposite, CCC qurum, P.O. Box No. 3959, Postal Code 112, Ruwi, Muscat, Sultanate of Oman.Phone: (968) 2456739 (PABX)Fax: (968) 24567502Email: [email protected]

PakistanHigh Commission for the People`s Republic ofBangladesh, IslamabadHouse No. 1, Street No.5, F-6/3,Islamabad, Pakistan.Phone: (0092-51) 2279267 (PABX)Fax: (0092-51) 2279266 Email: bdhcisb@sat,net.pkWeb: www.bdhcpk.org



PolandEmbassy of the People`s Republic of Bangladesh, Warsawu1. Rejtana 15, m.20/21, 02-516 Warsaw, Poland.Phone: (48-22) 848 0637, 848 3200 Fax: (48-22) 848 4974Email: [email protected]: www.banmglaemb.pl

PhilippinesEmbassy of the People`s Republic of Bangladesh, ManilaUniversal-Re Building, 2/F, 106 Paseo de rexas, Makati City, Metro,Manila, The Philippines.Phone: (63-2) 8175001, 8175010Fax: (63-2) 816-4941Email: [email protected]

QatarEmbassy of the People`s Republic of Bangladesh, DohaHouse No. 77, Musaab bin Omair Street Al Hilal Area (Near Lancy Supar Market)P.O. Box: 2080, Doha Qatar.Phone: (974) 4671927, 4673471 Fax: (974) 4671190Email: [email protected]

Russian FedarationEmbassy of the People`s Republic of Bangladesh, MoscowMoscow, Zemledelcheski Pereulok-6,Moscow-119121.Tel: (7-495) 2467804Fax: (7-495) 248-3185/247-2887E-mail: [email protected]

Saudi Arabia (Riyadh)Embassy of the People`s Republic of Bangladesh, RiyadhAl-Warood Quarters North of ArubaStreet, House No. 50, Sulaimania, Riyadh.Tel: (00966-1) 4195300, 4192594Fax: (00966-1) 4193555E-mail: [email protected]: www.bangladeshemmassy.org.sa

Saudi Arabia (Jeddah)Consulate General of the People’s ofBangladesh, Jeddah.Kilo 3, Makkah Road,(Behind Mitsubishi Car Office) JeddahTel: (966-2) 6878465, 68947126817140, 6881752 & 6817149 (PABX)Fax: (966-2) 6800392E-mail: [email protected]: www.bcgjeddah.com

SingaporeHigh Commission for the People’sRepublic of Bangladesh, Singapore101, Thomson Road # 05-04, UnitedSquire, Singapore-307591.Tel: (65) 62550075 (PABX)Fax: (65) 62551824E-mail: [email protected]: www.bangladesh.org.sg

South AfricaHigh Commission for the People’sRepublic of Bangladesh, Pretoria410 Farenden Street, SunnysidePretoria-0002Tel: (27-12) 3432105-7 (PABX)Fax: (27-12) 3435222, 3435224E-mail: [email protected]

Spain (Madrid)Embassy of the People`s Republic of Bangladesh, MadridC/Diego De Leon, 69-2nd Floor-DMadrid-28006, Spain.Tel: (34) 91 3092735, 91 4019932 (PABX)Fax: (34) 91 402-9564E-mail: [email protected]

Sri LankaHigh Commission for the People’sRepublic of Bangladesh, Colombo85, Dharmapala Mawatha, Colombo-7,Sri LankaTel: (94-11) 2303943, 2303944Fax: (94-11) 2303942E-mail: [email protected]



Switzerland (Geneva)Permanent Mission of Bangladesh to theUN Offices and other InternationalOrganisations in Geneva and Vienna.65, Rue De Lausanne, 1202, Geneva.Tel: (41-22) 9068020Fax: (41-22) 7384616E-mail: [email protected]

Sweden (Stockholm)Embassy of the People`s Republic of Bangladesh, StockholmAnderstorpsvagen 12, 1st floor, 171 54Solna, Stockholm.Tel: (46-8) 7305850, 7305851, 7305852Fax:(46-8) 730 5870E-mail: [email protected]: www.bangladoot.se

Thailand (Bangkok)Embassy of the People`s Republic of Bangladesh, BangkokHouse No. 727, Thonglor, Soi-55,Sukhumvit Road, Bangkok-10110Tel: (66-2) 02-392-9437, 02-392-9438Fax: (66-2) 391-8070E-mail: [email protected]

Turkey (Ankara)Embassy of the People`s Republic of Bangladesh, Ankara, 78/7-10, CinnahCaddesi, Cankaya, Ankara, turkeyTel: (90-312) 439 2750-51 (PABX)Fax: (90-312) 442 2561E-mail: [email protected]

UAE (Abu Dubai)Embassy of the People`s Republic of Bangladesh, Abu DubaiVill No. 21, Plot No. W-14/01.AlRowdha Area Abu Dhabi.Tel: (971-2) 4465100 (PABX)Fax: (971-2) 4464733E-mail: [email protected]

UAE (Dubai)Consulate General of the People’sRepublic of Bangladesh for Dubai andNorthern Emirates, Dubai, UAE.Villa No. 24, Abdul Aziz Al Mulla Villa,Al Muteena Area, Deira, Dubai.Tel: (00971-4) 272 6966 (PABX)Fax: (00971-4) 272 7965, 271 8131E-mail: [email protected],ae

United KingdomHigh commission for the People’Republic of Bangladesh, London28, Queen’s Gate, London SW7 5JA, (UK)Tel: PABX (44-20) 7584-0081-4Fax: (44-20) 7581 7477E-mail: [email protected]: www.bangladeshhighcommission.org.uk

UK (Birmingham)Bangladesh Assistant High CommissionBirmingham, UK31-33, Guildhall Building-12, NavigationStreet, Birmingham, B2 4BT, UKTel: (44-121) 6432386Fax: (44-121) 6439004E-mali: [email protected]

UK ( Manchester)Assistant High Commission for thePeople’s Republic of Bangladesh,Manchester, UKCedar House (3rd Floor), 2, FairfieldStreet, Manchester M1, 3GF, UKTel: +(44-161) 236-4853Fax: +(44-161) 236-1522E-mail: [email protected]

USA (Washington)Embassy of the People`s Republicof Bangladesh, Washington DC.3510 International DriveWashington DC 20008.Tel: (1-202) 244 0183 (PABX)Fax: (1-202) 244 2771, 2447830Email: [email protected]: www. bangladoot.org



USA (New York) PMPermanent Mission of Bangladesh to theUnited Nations, New York.227 East 45th Street (14th flr.)New York, N.Y 10017, (U.S.A)Tel: (1-212) 867-3434/3435/3436/3437Fax: (1-212) 972-4038Email: [email protected]: www.un.int/bangladesh

USA (Los Angeles) Consulate General of the People’sRepublic of Bangladesh, Los Angeles4201 Wilshire Boulevard, Suite # 605,Los Angeles, CA 90010, USATel: (323) 9320100, 932-0013 (PABX)Fax: (323) 932-9703Email: [email protected]: www.bangladeshconsulatela.com

Uzbekistan (Tashkent)Embassy of the People`s Republicof Bangladesh, Tashkent17, 1st Mirobod Street, Tashkent-700015.Tel: (998-7) 1522692Fax: (998-71) 1206711Email: [email protected]

Vietnam (Hanoi)Embassy of the People`s Republicof Bangladesh, Hanoi.7th Floor, Daeha Business Center360 Kim Ma Street , HanoiSocialist Republic of Vietnam.Tel: (84-4) 771 6625, 771 7829 (PABX)Fax: (84-4) 771 6628Email: [email protected]

Zimbabwe44 Downie Avenue, Belgravia, harare,ZimbabweTel: 263-4-307714Fax: 263-4-336389


Board of Ivestment8.7 Board of Ivestment (BOI)

Executive ChairmanBoard of InvestmentPrime Minister officeJiban Bima Tower19th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9559378, 9561430-1

9561433, 9560789 (Ex-100)Fax : (880 2) 9562312Email : [email protected]

Member Executive CouncilBoard of InvestmentPrime Minister officeJiban Bima Tower19th floor 10 Dilkusha C/A, DhakaTel : (880 2) 7172144, 9561430-1

9561433, 9560789 (Ex-103)Fax : (880 2) 9562312

Member Executive CouncilBoard of InvestmentPrime Minister officeJiban Bima Tower19th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9562414, 9561430-1

9561433, 9560789 (Ex-102)Fax : (880 2) 9562312

SecretaryBoard of InvestmentPrime Minister officeJiban Bima Tower19th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9563572, 9561430-1

9561433, 9560789 (Ex-105)Fax : (880 2) 9562312

Director (S & P)Board of InvestmentPrime Minister officeJiban Bima Tower18th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9562426, 9561430-1

9561433, 9560789 (Ex-109)Fax : (880 2) 9562312

Director (Industrial Park)Board of InvestmentPrime Minister officeJiban Bima Tower18th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9561430-1

9561433, 9560789 (Ex-120)Fax : (880 2) 9562312

Director (R & I-2)Board of InvestmentPrime Minister officeJiban Bima Tower17th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9551644, 9561430-1

9561433, 9560789 (Ex-110)Fax : (880 2) 9562312

Director (Communication)Board of InvestmentPrime Minister officeJiban Bima Tower19th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9562426, 9561430-1

9561433, 9560789 (Ex-129)Fax : (880 2) 9562312

Director (P & P)Board of InvestmentPrime Minister officeJiban Bima Tower18th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9552097, 9561430-1

9561433, 9560789 (Ex-112)Fax : (880 2) 9562312

Director (IIMC)Board of InvestmentPrime Minister officeJiban Bima Tower18th floor 10 Dilkusha C/A, DhakaTel : (880 2) 9552089, 9561430-1

9561433, 9560789 (Ex-227)Fax : (880 2) 9562312


Director Board of InvestmentChittagong Divisional Office, 1CGO Building, Agrabad, ChittagongTel : (031) 810608, 721038Fax : (031) 722382

Director Board of InvestmentRajshahi Divisional Office, Hia Bitan,Kazihata, C&B Road, RajshahiTel : (0721) 772047

Director Board of InvestmentKhulna Divisional Office,Shilpa Bank Bhaban 9th Floor.25-26, KDA, C/A, Khulna.Tel : (041) 724716, 720017

Director Board of InvestmentBarisal Divisional Office, 90/87, Jhordan Road, BarisalTel : (0431) 64797, 63869

Director Board of InvestmentSylhet Divisional Office, Prabah-18,Telihaor, Taltala, SylhetTel : (0821) 724306

Director Board of InvestmentSylhet Divisional Office, Prabah-18,Telihaor, Taltala, SylhetTel : (0821) 724306

This part presents supplementary information as appendices.


I. Investment Application Formsa. Registration of Foreign/Joint Venture Investmentb. Employment of Foreign Nationals in the Industriesc. Registration of Foreign/Joint Venture Commercial Officesd. Application for Employment of Foreign Nationals

in Commercial Officese. Visa Applicationf. Application for Approval of Foreign Borrowing Agreement

II. Relevant Legislation & Highlightsa. Foreign Private investment (Promotion and Protection)

Act 1980b. Investment Board Act 1989c. Baggage Rulesd. Visa Policye. Highlights from Relevant Legislation

III. Bangladesh Industrial Policy 2005

9Appendices

I thru’III


182



Application for Registrationo f F o r e i g n I n v e s t m e n t

/ J o i n t V e n t u r e P r o j e c t

BOARD OF INVESTMENTPrime Minister's Office, Jiban Bima Tower

10 Dilkusha C/A , Dhaka 1000, Bangladesh

Phone: 880-2-9561430-1 Fax: 880-2-9562312

This space is for OFFICIAL USE ONLY. Please DO NOT write in this space.

Registration No. :

Date of Approval :

[Please fill in each of the following fields accurately and clearly in BLOCK letters.]

a. Project Status (please tick ( ): Proposed Existing b. Application Date: / /200 .

1. Name of Industrial Project:

2. Addresses:

a. Office

House / Holding No.: Road No.: Phone :

Area : Fax :

City / District : Email :

b. Factory

Mouza / Village : Phone :

Plot / Holding No.: Post Office: Fax :

Upazila: City / District: Email :

3 Background of the Promoters (Local & Foreign): Details Enclosed

a. Name of the Main Promoter :

b. Permanent Address :

c. Mailing Address :

d. Experience (business/ industrial):

4. Type of Industry:

5. Target Date of Commercial Operation:

6. Investment Details:

ItemsLocal

(Million Taka)

Foreign

(Million Taka)

Total

(Million Taka)

a. Fixed Investment:

i. Land

ii. Building

iii. Machinery & Equipment

iv. Others

b. Working Capital (3 months):

In Million TakaTotal

In Million US$

7. Sources of Finance:

SourcesLocal

(Million Taka)

Foreign

(Million Taka)

Total

(Million Taka)

Investment

Country (ies)

a. Equity

b. Loan

In Million TakaTotal

In Million US$

8. Equity (in percentage): Local : % Foreign: %

Continued to Page 2

a. Application for Registration of Foreign/Joint Venture Investment

Appendix I: Investment Application Forms


9. List of Machinery & Equipment: List Enclosed

Estimated ValueProcurement Sources Quantity(Million Taka) (Million US$)

a. Procured/ To Be Procured Locallyb. Imported / To Be ImportedTotal Value :

10. Annual Production Capacity:

Estimated ValueName of the Product / Services(Top Five Only)

Quantity(Million Taka) (Million US$)

1.

2.

3.

4.

5.

11. Description of Raw & Packing Materials:

a.�Local� :

b.�Importable� :

12. Utility Service Requirement:

Utility Type Required Quantity(Minimum - Maximum)

Targeted Date ofCommissioning (mm-yy)

Distance of the Site fromNearest Source (in meter)

a. Electricity

b. Gas

c. Telephone

13. Employment

Job Level Local (person) Foreign (person) Total (person)

a. Managerial

b. Worker

Total

14. Marketing (not applicable for service): Local : ............% Foreign : ...........%

15. Tax Identification No. (TIN), if any :

16. Enclosed Pay Order / Bank Draft No.: Amount: Tk.

Name of the Bank and Branch :

I do hereby declare that the information furnished above are true and correct to the best of myknowledge.

Signature : .................................................

Name : .................................................

Designation : (Managing Director/Partner/Proprietor)

Date : .................................................

List of documents to be enclosed with the application:

i. Application in prescribed Form duly filled in. 2 (two) copies.

ii. Certificate of incorporation along with Memorandum & Articles of Association in case of Public / PrivateLimited Company. In case of Joint Venture Project (JVP), JVP Agreement duly signed in by both the parties.2 (two) copies.

iii. Attested copies of Deeds/Documents in support of project land (in case of own land, Purchase Deed and incase of lease / rental premises, Deed of Agreement). 2 (two) copies.

iv. If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile. 2 (two) copies.

v. Background of the Promoters in official letterhead pad describing a) Name, b) Permanent and c) MailingAddress, d) Position and e) Nationality (as part of Item # 3). 3 (three) copies.

vi. List of machinery indicating quantity and price (as part of Item # 9). 3 (three) copies.

vii. In case the project is financed by loan, copy of relevant documents in support of loan. 2 (two) copies.

viii. Pay order / bank draft amounting required amount in favor of "EXECUTIVE CHAIRMAN AND MEMBER-

SECRETARY, BOARD OF INVESTMENT".

App-P2


Application for Employmentof Foreign Nationals in the

Private Sector Industries

BOARD OF INVESTMENTPrime Minister's Office, Jiban Bima Tower

10 Dilkusha C/A , Dhaka 1000, Bangladesh

Phone: 880-2-9561430-1 Fax : 880-2-9562312

For Official Use Only. Please do not write in this space.

Work Permit No. :

Date of Approval:

[Please fill in each of the following fields accurately and clearly in BLOCK letters.]

A. Particulars of Sponsor / Employer:

1. Name and address of the Enterprise :

2. Type of industry (please specify :

Products)

3. Whether local, foreign or joint :

venture company (if joint venture,

percentage of local and foreign

investment is to shown).

4. Recommendation of Company's Board :

B. Particulars of the Foreign Incumbent

1. Name (in block letters) :

2. Nationality :

3. Date of birth :

4. Marital status :

5. Particulars of passport of the

incumbent (Attested copy should

be enclosed). :

a. Passport No. :

b. Valid upto :

c. Permanent address of the

incumbent :

Applicant's

Photograph

Passport Size

b. Application for Employment of Foreign Nationals in the Industries


6. Qualification and experience:-

a. Academic qualification :

b. Professional qualification :

c. Experience :

(please attach copies of

relevant certificates)

C. Particulars of Job

1. Designation/post for which :

the incumbent will work

2. Brief job description :

3. Date of employment/extention :

4. Period of employment/extention :

D. Monthly Remuneration

(inclusive or exclusive of income tax) Payable locally / Payable abroad

1. Basic pay :

2. Dearness allowance :

3. Overseas allowance :

4. House rent :

5. Conveyance allowance :

6. Entertainment allowance :

7. Bonus :

8. Other fringe benefits, if any :

9. Monthly estimated expenditure to :

be incurred on accommodation, car,

driver, mali, servants insurance,

club subscription (if any) and

other house-hold amenities :

10. If remittance claimed (please attach :

copy of the agreement) entered into

with the incumbent

E. Other Particulars

1. Whether advertisement was made :

to employ local people (if so,

relevant press cutting is to be attached)

2. Justification for employment of :

foreign national

3. Has the project been approved by :

any sanctioning authority ? If so,

please attach copy of the sanction

letter

4. Arrangements for training of local :

employees to replace the foreign

national

5. No of existing local and foreign :

employees

App-P2


Salary brackets Local Foreign

Upto Tk. 1000/- p.m.

From Tk. 1001/- p.m. to Tk. 2500/- p.m.

Above Tk. 2500/- p.m.

Date : Signature with name and

designation of the applicant

(Managing Director/Director/Managing Partner/Proprietor).

Note : 1 Application is to be submitted in 4 copies with 4 passport size photographs.

2. Instead of writing "see attached sheet"/"bio-data" etc. specific replies in short should be given

in each column.

3. Additional sheets may be attached, if required.

4. Copy of approval of the Board of Directors regarding employment of foreign national is to be

attached.

5. Employment of foreign national is subject to prior govt. approval.

6. Appointment letter/employment contract.

7, Certificate of Incorporation along with Memorandum and Articles of Association is case

App-P3


The following papers/documents are required to be furnished for

Extension of Work Permit in favour of the expatriate(s) employment in

Branch/Liaison Office and other Commercial Establishment.

Application in prescribed form along with passport size photograph of the expatriate (1 copy)

Decision of Board of Director's of the company/partners of the firm regarding extension of

employment of foreign national (s) including salary & other facilities to be provided duly

signed by Directors/Partners present in the meeting (one copy)

Attested photocopy of passport (full set) with ''E'' type visa for employment and 'PI' type for

Investors 1 set (1 copy)

Attested copy of extension of service contract/agreement and appointment letter (1 copy)

Attested copy of tax assessment order sheet, tax payment receipt and income tax clearance

certificate from concerned tax circle for the previous working period (1 copy)

Bangladesh Bank's Permission under sector 18 (A), in case of foreign company/Firm

Statement of existing manpower showing list of local and expatriate personnel with salary

break-up designation, nationality and date of first appointment

Encashment certificate of inward remittance in favour of Liaison/Branch office for the last 2

years.

Encashment certificate of inward remittance of at cash US$ 50,000.00 for joint venture and

100% foreign ownership company incorporation in Bangladesh as equity investment of the

foreign shareholders.

N.B. All documents should be signed /attested by Managing Director/Managing

Partner/proprietor of the company.

1.

2.

3.

4.

5.

6.

7.

8.

9.

App-P4


APPLICATION FOR OPENING/EXTENSION OF BRANCH OFFICE/LIAISON

OFFICE/COMMERCIAL ENTERPRISE OF FOREIGN ORIGIN

A. INFORMATION ABOUT PRINCIPAL COMPANY

01. Name and address of the principle company including :

phone/fax number

02. Nature of the organization :

(Private/Public Limited Company)

03. Major activities in details :

04. Type of business:

05. Capital:

(i) Authorized capital :

(ii) Paid up capital :

06. Country of origin and full address with

telephone & fax no.

B. INFORMATION ABOUT LIAISON /BRANCH OFFICE

01. Name and local address of the Liaison/Branch office

including phone/fax number.

02. Intended field of business in Bangladesh through :

proposed branch/liaison office

03. Major activities of the principal company in brief :

04. Target date of operation/extension of the proposed :

branch/liaison office/commercial enterprise.

05. period for which permission/extension is sought for :

06. Reference on of the previous permission in case of :

extension (copy to be enclosed)

07. Proposed organizational set up of the company :

(in case of new application)

08. Establishment expenses and operational expenses : (a) Estimated initial expenses:

forecast of the concerned office and source of financing (b) Estimated operational/monthly

expenses:

(c) Source of financing:

C. REMITTANCE :

Amount of remittances made from Bangladesh/into

Bangladesh for the last two years (in case of extension

(..........................................)

Signature with name and

Designation of the applicant

(Chairman/managing Director/Proprietor)

BOARD OF INVESTMENT

PRIME MINISTERS'S OFFICE

JIBAN BIMA TOWER, 10, DILKUSHA C.A

DHAKA-1000, BANGLADESH

c. Application for Registration of Foreign/Joint Venture Commercial Offices[Commercial Offices include Branch/Representative/Liaison Office, Buying House, Educational Institute of Foreign Origin ]


The following papers/documents are required to be furnished for application

for opening of NEW Branch Office/Liaison Office/ Representative Office

1. Application in prescribed form signed by authorized persons for establishment of

Branch Office/Liaison Office - 4 copies;

2. Memorandum and Articles of Association of principal company - 2 copies;

3. Certificate of Incorporation - 2 copies;

4. Name and nationality of the Directors/Promoters of the principal company - 4 copies;

5. Company's Board of Directors resolution regarding opening of office in Bangladesh -2 copies;

6. Audited Accounts of last financial year of the principal company - copies

7. Proposed organogram of the office showing the posts to be occupied by expatriates as well

as local personnel - 2 copies;

8. Details of activities to be performed through the proposed office in Bangladesh - 2 copies.

N.B. Documents (item 2-6) must be attested by Bangladesh Mission/Principal country's

Mission in Bangladesh/Principal country's Apex Chamber.

The following papers/documents are required to be furnished for application

for EXTENSION of Branch Office/Liaison Office/ Representative Office

1. Application in prescribed form to be submitted to the BOI for renewal of the

permission at least 2 months before expiry of the existing permission.

2. Following documents are to be enclosed:

a. Duly filled in Prescribed Form in duplicate;

b. Permission letter of Bangladesh Bank under Article-18 (B);

c. Income tax clearance certificate for the previous period from concerned Tax Circle;

d. Company's Board Resolution for extension/renewal;

e. Audit Accounts of the office;

f. List of manpower employed showing designation/salary/functions;

g. Encashment certificate of remittance for the last 2 years;

h. Security clearance of the office, if any.

App-p2


BOARD OF INVESTMENTPRIME MINISTERS'S OFFICEJIBAN BIMA TOWER, 10, DILKUSHA C.ADHAKA-1000, BANGLADESH

APPLICATION FOR EMPLOYMENT OF FOREIGN NATIONAL INBRANCH OFFICE/LIAISON OFFICE AND OTHER COMMERCIAL ENTERPRISE

A. PARTICULARS OF SPONSOR/EMPLOYER1. Name and address of the Enterprise including :

Phone/Fax number2. Type of the organization :

(Proprietorship/Partnership/Private/PublicLimited Co.)

3. Nature of business :4. Reference of permission for opening :

Liaison/Branch office issued by Ministry ofIndustries/BOI and duration of Permission

5. Capital structure:(i) Authorized capital :(ii) Paid up capital :

6. Gross income:(i) Remittance received during last 12 months :(ii) Total export earning during last 12 months

B. PARTICULARS OF FOREIGN INCUMBENT1. Name of the foreign national in BLOCK letters :2. Nationality with passport No., date & place of :

issue and period of validity3. Permanent address :4. Date of birth :5. Marital status (married, unmarried, divered)

(i) If married, number of family members :(ii) Whether any of the incumbents family :members will live in Bangladesh, if yes,name (s), relationship & age

6. Academic qualification (Please attach :certificates)

7. Professional qualification (Please attach :certificates)

8. Work Experiences (Please attach certificates) :

PHOTOGRAPHOF THE

INCUMBENT(4 copies)

C. PARTICULARS OF JOB1. Name of the post employed for :2. Brief job description :3. Whether the post has bee :4. Advertised in Bangladesh (if advertised, please

attach copy of paper clipping)5. Justification for employment of foreign incumbent :6. Expected date of arrival in Bangladesh :7. Type of visa &period of validity8. Date of employment/joining :9. Period of employment (in years) :10. Whether the employment is fresh, extension or :

transfer from other company in Bangladesh

d. Application for Employment of Foreign Nationals in Commercial Offices.[Commercial Offices include Branch/Representative/Liaison Office, Buying House, Educational Institute of Foreign Origin ]


D. MONTHLY REMUNERATION (inclusive or exclusive of income tax)

Items (in US$/BD Taka)

1. Salary support (monthly) Payable locally Payable in abroad

(a) Basic salary :

(b) Overseas allowance :

(c) House rent :

(d) Conveyance allowance :

(e) Entertainment allowance :

(f) Annual bonus :

(g) Other fringe benefit, if any :

2. Whether remittance will be made from :

Bangladesh or to Bangladesh (whole or part)

E. EXISTING/PROPOSED MANPOWER OF THE OFFICE

Local Foreign Ratio

Officer Staff Total Officer Staff Total Local : Foreign

Date:

(..........................................)Signature with name and

Designation of the applicant(Chairman/managing Director/Proprietor)

The following papers/documents are required to be furnished forNew Work Permit of in favour of the expatriate(s) employmentin Branch/Liaison Office and other Commercial Establishment.

Attested copy of permission letter for opening Branch/Liaison Office/Commercial enterprise from the appropriate authority, if not submitted earlier (one copy).

Decision of Board of Director's of the company/partners of the firm regarding employment of foreign national (s) including salary & other benefit to be provided duly signed by Directors/Partners Present in the meeting (one copy).

Memorandum & Articles of Association and Certificate of Incorporation of the company duly signed by shareholders along, if not submitted earlier (1 copy).

Copies of application in prescribed form along with 4 passport size photographs of the expatriate (s) with name duly attested by the Managing Director/Partner/Proprietor of the Company/Firm.

Attested photocopy of Passport (full set) with arrival stamp and ''E'' type visa for employees and ''PI'' type visa for investors (4 sets).

Attested copy of service contract/agreement and appointment letter in case of employee (4 copies).

Attested copies all academic, professional & experience certificates for employee (4 copies).

Paper clipping showing advertisement made for recruitment of local personnel prior to appointment of the expatriate (s) (1 copy).

Statement of the manpower showing list of local & expatriate personnel employed in the office with designation, salary break-up, nationality and date of first appointment.

Encashment certificate of inward remittance in favour of Liaison/Branch office for the last 2 years.

Encashment certificate of inward remittance of at cash US$ 50,000.00 for Joint-venture and 100% foreign ownership company incorporation in Bangladesh as equity investment of the foreign shareholders.

N.B. All documents should be attested by Managing Director/Managing Partner/Proprietor of the Company/Firm.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

App-p2


D.I.P. - 4 a. VISA APPLICATION FORM

To

(1) The Director General, Department of Immigration & Passports

Government of Bangladesh, Dhaka.

(2) The Assistant Director, Regional Passport Office ..................................................

Dear Sir,

I shall be grateful if a Multiple/Entry/Re- entry/ Extension of Visa is granted to me. My full particulars are as follows:

NOTE: 1. All the columns should be filled in properly. 2. If any of the particulars furnished below is found to be incorrect of information withheld

the visa/extension of stay is liable to be cancelled at anytime.

1. Name in full (Surname in Capital) .......................................................................................................

2. (a) Permanent address ...................................................................................................................... (b) Present address in Bangladesh ..................................................................................................

.......................................................................................................................................................

3. Date of birth ........................................................................................................................................

4. Place of birth (Country, Town and District) ......................................................................................... ..............................................................................................................................................................

5. Present Nationality ..............................................................................................................................

6. Nationality at birth ...............................................................................................................................

7. Name of father/ husband with his nationality ......................................................................................

8. Whether holder of a passport from his/her government ....................................................................

9. Passport No ............................................... Date of issue .................................................

Place of issue ............................................. Date of Expiry ..............................................

10. Profession/Occupation (give detail) : (a) Business (Nature & detail) ............................................................................................................ (b) Employment : Name of Organisation ............................................................................................

Capacity in which employed .................................................................................... (c) Annual income/salary ...................................................................................................................

11. Whether previously visited Bangladesh and, if so, place of residence with dates and the purpose of previous visits ................................................................................................................................... ...........................................................................................................................................................

12. If working in Bangladesh, details of employment are to be given : (a)� Name and address of the organization ...................................................................................... (b)� Capacity in which employed ...................................................................................................... (c)� Terms of employment ................................................................................................................

A copy of photograph to be

affixed here.

e. Visa Application Form


App-P2

(d)� Period of employment with date .......................................................................................................................................

(e)� Monthly salary ..................................................................................................................................................................

(f) Whether income tax payee ...............................................................................................................................................

(If the reply is yes, receipts of income-tax payment for the last two years should be attached.

If not, necessary reasons for nonpayment to be stated.)

13. Period and purpose for which Entry/Re-entry/Multiple entry/Extension of Visa is required :

(a)� Period .........................................................................

(b)� Purpose ......................................................................

14. For applicant of Multiple/Re-entry visa only :

(a)� Name of country to which applicant is proceeding and purpose of journey .....................................................................

.........................................................................................................................................................................................

(b)� Purpose of return to Bangladesh .....................................................................................................................................

(c)� Period of stay in Bangladesh after Re-entry ....................................................................................................................

NOTE : Extension of transit visa which is valid for a fortnight will not generally be granted.

15. Date of last arrival in Bangladesh ............................................................................................................................................

16. Last Visa number with date and the name of the Visa issuing authority.

17. Name and address of persons in Bangladesh who will furnish information as to the applicant and also

furnish financial guarantee for maintenance and repatriation if necessary.

1. (a)� Name and address 2. (a)� Name and address

..................................................... ...................................................

..................................................... ...................................................

.....................................................

.....................................................

....................................................

....................................................

........................................................................................................

(b) Profession/Occupation (b) Profession/Occupation

(c) Annual income .............................. (c) Annual income .............................

(d) Whether income-tax payee (d) Whether income-tax payee

If the reply is yes, receipts of incometax payment for the past two years should be attached.

18. Date on which present permission of stay in Bangladesh expire ............................................................................................

..................................................................................................................................................................................................

19. Remarks, if any ........................................................................................................................................................................

Dated .......................... 20...........

..................................................

(Full signature of the applicant)


ANNEXURE-'A'

APPLICATION FOR APPROVAL OF FOREIGN BORROWING AGREEMENT

1. a. Name Address with location and :

telephone number of the firm

b. i) Registration/Permission letter No. :

ii) Date :

iii) Issuing authority :

(Please attach copy)

C. Type of industry : Please Tick

i) Export oriented and export linkage

industries. :

(ii) Pioneering industries :

(iii) Industry based on new/high Technology. :

iv) Industry that generates employment :

v) Industry based on local natural

resources and its diversified uses. :

vi) Industry that involves high value

added. :

vii) Increase Industrial efficiency &

productivity. :

viii) Employment opportunity. :

2. a) Name & address of the Foreign firm(s)

from whom borrowing has been

proposed :

b) Principal amount of the borrowing :

c) Purpose of borrowing :

3. Foreign Borrowing proposal :

a) Copy of Draft/Final Agreement Should

be attached. :

b) Effective rate of interest @ :

c) Repayment period :

d) Effective date :

e) Down payment, if any :

f. Application for Approval of Foreign Borrowing Agreement


4. Type of Borrowing :

a) Loan :

b) Supplier's Credit :

c) Pay-As-You-Earn Scheme :

d) Deferred payment :

5. Commercial viability report of project along with the analysis and papers in regards to :

a) Name of the sector/sub-sector of the

project with item of products. :

b) The commercial viability of the project. :

c) The capacity of the project to service the proposed debt with income flows

from the project. :

d) The cost competitiveness of the outputs from the project in the

domestic and external markets. :

e) Existing production capacity in : Bangladesh and demand of the products on local as well as export market abroad on the basis of market study.

f) existing indebtedness structure of the sponsors of the project, duly certified by report of their bankers as to their credit worthiness. :

6. Please outline the reasons for entering into agreement on foreign borrowing (please attach separate sheet, if necessary)

7. Schedule of Repayment in brief :

8. Name and address of the firms :

nominated Bank.

9. Please enclose the following papers : a) Certified copy of the memorandum and Articles of Association. b) Board of Director Resolution in favour of the loan proposal. c) Proforma Invoice of machinery to be imported.

Signature:

Name and designation of applicant:Date:

@ Effective rate of interest is the sum of the stated annual rate of interest and the annualized fee, such as, commitment fee, syndication fee, project appraisal fee etc.

App-p2


Check List Foreign Borrowing

1. Copy of BOI Registration (Full set);

2. Loan Agreement;

3. Board's Resolution;

4. Application form (Annexure-A) duly filled in;

5. Repayment Period along with Repayment schedule in details;

6. Grace period if any;

7. Calculation of effective rate of interest as defined in the application form (Annexure-A);

8. Feasibility report of the project;

9. Financial Analysis :

a) Internal Rate of Return (I.R.R);

b) Break-Even Analysis;

c) Payback Period;

d) Sensitivity Analysis;

e) Debt Service Coverage Ratio (DSCR) analysis;

f) Track Record of past FDI including Foreign borrowing;

g) Credential of the Sponsors;

h) Debt-equity ratio of the project.

10. Memorandum & articles of Association (Certified copy);

11. Certificate of Incorporation with Joint Stock Company;

12. Relevant inquiry forms (CIB-1A, CIB-2A, CIB-3A) and under taking from sponsors

Director duly filled in for collection of up-to-date CIB report from Bangladesh Bank;

13. Proforma Invoice/Price Quotation through international tender for importing of capotal

machinery;

14. Bank certificate as to indebtedness and creditworthiness of the borrowing company and

its sponsors based on latest CIB report;

15. Certificate from BRTC, BUET in respect of Quality, Price and Economic life of capital

machinery to be imported (in case of supplier's credit only).

App-p3


Appendix II : Relevant Legislation and Highlight

a. Foreign Private Investment (Promotion & Protection) Act 1980

Act No. XI of 1980

An Act to provide for the promotion and protection of foreign private investment in

Bangladesh. WHEREAS it is expedient to provide for the promotion and protection of

foreign private investment in Bangladesh;

It is hereby enacted as follows:-

1. Short Title -

This Act may be called the Foreign Private Investment (Promotion and Protection)

Act, 1980.

2. Definitions -

(1) In this Act, unless there is anything repugnant in the subject or context, -

(a) "foreign capital" means capital invested in Bangladesh in any industrial

undertaking by a citizen of any foreign country or by a company incorporated

outside Bangladesh, in the form of foreign exchange, imported machinery

and equipment, or in such other form as the Government may approve for

the purpose of such investment;

(b) "foreign private investment" means investment of foreign capital by a person

who is not a citizen of Bangladesh or by a company incorporated outside

Bangladesh, but does not includ investment by a foreign Government or an

agency of foreign Government;

(c) "industrial undertaking" means an industry, establishment or other

undertaking engaged in the production or processing of any goods, or in the

development and extraction of such mineral resources or products, or in the

providing of such services, as may be specified in this behalf by the

Government.

(2) Words and expressions used but not defined in this Act shall have the same

meaning as in the Companies Act. 1913 (VII of 1913).


3. Foreign Private Investment -

(1) The Government may, for the promotion of foreign private investment, sanction

establishment with foreign capital of any industrial undertaking:

(a) Which does not exist in Bangladesh and the establishment whereof, in

the opinion of the Government is desirable; or

(b) Which is not being carried on in Bangladesh on a scale adequate to the

economic and social needs of the country; or

(c) Which is likely to contribute to:-

(i) the development of capital, technical and managerial resources of

Bangladesh; or

(ii) the strengthening of the balance of payment of Bangladesh; or

(iii) increasing employment opportunities in Bangladesh; or

(iv) the economics development of the country in any other manner.

(2) Sanction of the establishment with foreign capital of an industrial undertaking

under sub-section (1) may be subject to such condition as the Government may

deem fit to impose.

4. Protection and Equitable Treatment -

The government shall accord fair and equitable treatment to foreign private

investment which shall enjoy full protection and security in Bangladesh.

5. Terms of Sanction, etc. -

The terms of sanction, permission or licence granted by Government to an industrial

undertaking having foreign private investment shall not be unilaterally changed so as

to adversely alter the conditions under which the establishment be accorded a less

favorable treatment than what is accorded to similar private investment by the

citizens of Bangladesh in the application of relevant rules and regulations.

6. Indemnification etc. -

In the event of losses of foreign investment owing to civil commotion, insurrection, or

riot, foreign private investment shall be accorded the same treatment with regard to

indemnification, compensation, restitution, or other settlement as is accorded to

investment by the citizens of Bangladesh.


7. Expropriation and Nationalization -

(1) Foreign private investment shall not be expropriated or nationalized or be

subject to any measures having effect of expropriation or nationalization except

for a public purpose against adequate compensation which shall be paid

expeditiously and be freely transferable.

(2) Adequate compensation for the purpose of sub-section (1) shall be an amount

equivalent to the market value of investment expropriated or nationalized

immediately before the expropriation or nationalization.

8. Repatriation of Investment -

(1) In respect of foreign private investment, the transfer of capital and the returns

from it and, in the event of liquidation of industrial undertaking having such

investment, of the proceeds from such liquidation is guaranteed.

(2) The guarantee under sub-section (1) shall be subject to the right which, in

circumstances of exceptional financial and economic difficulties, the

Government may exercise in accordance with the applicable laws and

regulations in such circumstances.

9. Removal of Difficulty -

If any difficulty arises in giving effect to any provision of this Act, the Government may

make such order, not inconsistent with the provisions of this Act, as may appear to it

to be necessary for the purpose of removing the difficulty.

[Act Ended]


b. Investment Board, Act, 1989Act No. XVII of 1989

AN ACT

For the establishment of a board to encourage investment in the private sector and toprovide necessary facilities and assistance in the establishment of industries;

WHEREAS, it is expedient to make provision for the establishment of a Board toencourage investment in the industry in private sector and to provide necessary facilitiesand assistance in the establishment of industries;

It is hereby enacted as follows:-

1. Short title and commencement.- (1) This Act may be called the Investment Board Act, 1989.(2) It shall be deemed to have come into force on the 8th Poush, 1395

corresponding to the 22nd December 1988.

2. Definitions - In this Act, unless there is anything repugnant in the subject orcontext:-(a) "Board" means the Board established under section 4; (b) "Chairman" means the Chairman of the Board: (c) "Executive Council" means the Executive Council constituted under section

8(1); (d) "letter of approval" in relation to the establishment of an industry, means a letter

of approval issued under section 11(4); (e) "person" includes a group of individuals, a company or a commercial

establishment; (f) "rules" means the rules made under this Act.

3. Act to override other laws.-The provisions of this Act and the rules made hereunder shall have effect with notstanding anything to the contrary contained in any other law for the time being inforce.

BOI Act -P1


4. Establishment of the Investment Board -As soon as may be after the commencement of this Act, the Government shall, by-notification in the official Gazette, establish a Board to be called Board of Investment.

5. Head Office - The head office of the Board shall be at Dhaka and the Board may establish itsbranch offices at such other place or places as it considers necessary.

6. Composition of the Board -1. The Board shall consist of the following members, namely:-

a. Chairman; b. Minister in charge of the Ministry of Division dealing with industries who shall

also be its Vice-Chairman, ex-officio; c. Minister in charge of the Ministry or Division dealing with finance, ex-officio; d. Minister in charge of the Ministry or Division dealing with power, fuel and

mineral resources, ex-officio; e. Minister in charge of the Ministry or Division dealing with commerce,

ex-officio; f. Minister in charge of the Ministry or Division dealing with textiles, ex-officio; g. Ministry in charge of the Ministry or Division dealion with Jute. ex-officio;h. Minister in charge of the Ministry or Division dealing with planning, ex-officio; i. Governor of the Bangladesh Bank, ex-officio; j. Secretary of the Ministry or Division dealing with industries, ex-officio; k. Secretary of the Ministry of Division dealing with finance, ex-officio; l. Secretary of the Ministry or Division dealing with internal resources,

ex-officio; m. President of the Federation of the Bangladesh Chambers of Commerce and

Industry, ex-officio; n. President of the Bangladesh Chamber of Industry, ex-officio; os. Chairman of the Executive Council, who shall also be its Secretary,

ex-officio; 2. The Chairman of the Board shall be the Prime Minister or a person nominated

by him from amongst the Minister - members of the Board.3. The Board may co-opt not exceeding four additional members.4. No act or proceeding of the Board shall be invalid or called in question merely

on the ground of existence of any vacancy in, or any defect in the constitutionof, the Board.

BOI Act -P4


7. Functions - The functions of the Board shall be -(a) providing of all kinds of facilities in the matter of investment of local and foreign

capital for the purpose of rapid industrialization in the private sector; (b) implementation of the Government policy relating to the investment of capital in

industries in the private sector; (c) preparation of investment schedule in relation to industries in the private sector

and its implementation; (d) preparation of area-schedule for establishment of industries in the private sector

and determination of special facilities for such areas; (e) approval and registration of all industrial projects in the private sector involving

local and foreign capital; (f) identification of investment sectors and facilities for investment in industries in

the private sector and giving wide publicity there of abroad; (g) invention of specific devices for the purpose of promotion of investment in

industries in the private sector and their implementation; (h) creation of infrastructural facilities for industries in the private sector; (i) determination of terms and conditions for employment of foreign officers,

experts and other employees necessary for industries in the private sector; (j) preparation of policies relating to transfer of technology and phase-wise local

production in the private sector and their implementation; (k) providing of necessary assistance for rehabilitation of sickly industries in the

private sector; (l) financing and providing of assistance in the financy of important new industries

in the private sector;(m) adoption of necessary measures for creation of capital for investment in

industries in the private sector. (n) collection, compilation, analysis and dissemination of all kinds of industrial data

and establishment of data-bank for that purpose; (o) doing such other acts and things as may be necessary for the performance of

the above functions.

8. Executive Council.-(1) There shall be an Executive Council of the Board which shall consist of a

Chairman and other members not exceeding six in number.(2) The Chairman and other members of the Executive Council shall be appointed

by the Government, and the tenure of their office and terms and conditions oftheir service shall be determined by the Government.

(3) The Chairman of the Executive Council shall be called the Executive Chairmanand shall act as the Chief Executive of the Board.

BOI Act -P5


(4) The Executive Council shall advise and assist the Board in the efficientperformance of its functions, be responsible for implementation of the decisionsof the Board shall exercise such powers and perform such functions as may bedelegated to it by the Board.

(5) Where the office of the Executive Chairman becomes vacant or he is unable todischarge his duties due to absence, illness or any other reason, a member ofthe Executive Council nominated by the Government in this behalf shall act asthe Executive Chairman until the new Executive Chairman appointed to thevacant office enters upon that office or, as the case may be, the ExecutiveChairman becomes able to resume the duties of his office.

9. Meetings - (1) Subject to the other provisions of this section, the Board shall determine the

procedure for its own meetings and for the meetings of the Executive Council.(2) All meetings of the Board shall, with approval of the Chairman, be convened by

its Secretary and shall be held at least once in every three months at such timesand places as may be determined by the Chairman.

(3) All meetings of the Board shall be presided over by its Chairman or, in hisabsence, by its Vice-Chairman, and in the absence of both them, by suchmember as may be nominated by the members present in the meeting fromamongst themselves.

(4) All meetings of the Executive Council shall be convened under the direction ofthe Executive Chairman and shall be held at such times and places as may bedetermined by him.

(5) All meetings of the Executive Council shall be presided over the ExecutiveChairman and, in his absence, by a member thereof as may be specified by theExecutive Chairman.

10. Registration - (1) All industries set up in the private sector, other than those falling within the

jurisdiction of the Export Processing Zones Authority or of the Bangladesh Smalland Cottage Industries Corporation and textile industries set up by own financeand the industrial projects approved by the Board, shall be registered in theprescribed manner.

(2) An industry registered under this section shall be deemed to be an industryapproved by the Board under this Act, and such industry may, on its request, beprovided with all such facilities as may be provided to an industrial projectapproved by the Board.

BOI Act -P6


11. Approval etc. of an industrial project -(1) Every person intending to set up an industry in the private sector, other than an

industry falling within the jurisdiction of the Export Processing Zones Authorityor of the Bangladesh Small and Cottage Industries Corporation, shall apply tothe Board in the form and manner prescribed by it for obtaining the Board’sapproval on the proposed industrial project.

(2) Notwithstanding the provisions of sub-section (1) upon recommendation of theBoard, the Government may, by notification in the official Gazette, exempt anyindustry or any industrial project from the operation of the provisions of this section.

(3) The Board may, for the convenience of considering an application receivedunder sub-section (1) direct the applicant to furnish any information which itconsiders necessary for such purpose, and may also consult any relevantauthority on any matter relating to the proposed industrial project.

(4) If, after considering the application, the Board is satisfied that the project shouldbe approved, it shall, subject to such conditions and limitations as it deems fit toimpose, approve the same and shall issue a letter of approval to the applicantand shall specify in such letter the time-limit for the implementation of the projectand also the time-limit for commencement of production thereat.

(5) At the time of approving an industrial project under sub-section (4), the Boardshall give its decisions on all facilities that may be required for implementationof the project in due time and, in particular, on all or any of the following matters,subject to their relevancy, and shall send such decisions to the concernedpersons or authorities, namely:-(a) the extent and the terms and conditions of foreign loan and of suppliers credit; (b) allotment of land in the industrial areas under the control of, or belonging

to, the Government or a local authority other than the Export ProcessingZones Authority and the Bangladesh Small and Cottage IndustriesCorporation.

(c) time-limit for giving connections of electricity, gas and water-supply;(d) time-limit for giving sewerage connections; (e) time-limit for giving connections of all kinds of telecommunications; (f) time-limit for clearing by the customs authorities of imported machineries,

spares of such machineries and raw materials; (g) time-limit for issuing clearance regarding environment pollution; (h) other facilities and services that may be required for speedy setting up of

an industry.

BOI Act -P7


(6) A decision given by the Board under sub-section (5) shall be deemed to be adecision given by the Government or by such other person or authority as isauthorized by, or entitled to give such decision under, the provisions of therelevant law on the relevant subject, and such decision shall be implementedaccordingly.

(7) No person shall, except with the prior permission of the Board, use any serviceor facility availed of by him pursuant to a decision under sub-section (5) for anypurpose other than for the industrial project for which it was so availed.

(8) Where an industrial project is a company registered under the provisions of theCompanies Act, 1913 (VII of 1913), the Board may, in respect of all mattersrelating to the issue of capital and sale of shares of that company, exercise allpowers and perform all functions of the Government under the provisions of theCapital Issues (Continuance of Control) Act, 1947 (XXI of 1947).

(9) Where an industrial project faces any difficulty in the completion of the projectwithin the time-limit specified in the letter of approval or if, after such completion,it faces any difficulty in commencing, within such time-limit, production thereat,the entrepreneur of the project may apply to the Board for removing suchdifficulty, and upon such application, the Board shall endeavour to extend to theentrepreneur necessary assistance.

(10) The Board may, from time to time, require the entrepreneur of an industrialproject approved under sub-section (4) to furnish such information relating tothe implementation of the project as the Board may consider necessary.

12. Determination of import entitlement.-(1) If, an industry set up in the private sector, other than a textile industry or an

industry or an industry falling within the jurisdiction of the Bangladesh ExportProcessing Zones Authority or of the Bangladesh Small and Cottage IndustriesCorporation, is in need of import entitlement for importing machineries, spares ofmachineries, raw-materials and packing materials for its own use, it may, in theform and manner prescribed by rules, apply to the Board for such entitlement.

(2) The Board shall, issue to the applicant a clearance so that such machineries,spares of machineries, raw materials and packing materials may be imported inaccordance with the import entitlement determined by the Board afterconsidering the application.

13. Royalty and fees.-If an industry set up in the private sector, other than an industry falling within thejurisdiction of Export Processing Zones Authority, is required to pay to a foreignnational or a foreign organization any royalty or any fees in respect of technicalknow-how or technical assistance, that industry shall, in the manner prescribed bythe Board, apply to the Board for determination of such royalty or fees; and theroyalty or fees determined by the Board shall be payable by the industry.

BOI Act -P8


14. Duties of other concerned authorities regarding an approved industrial project -(1) If, at the time of approving an industrial project, the Board sends to any person

or authority any decision under section 11, that person or authority shall takenecessary steps so that the decision is implemented within the time-limitspecified by the Board.

(2) If such person or authority fails or is unable to take, within the time limit specifiedby the Board, proper steps pursuant to such decision, the Board may, afterconsidering the circumstances of the case, issue direction for taking proper steppursuant to the decision, and upon such direction the concerned person orauthority shall be bound to take necessary step accordingly.

15. Cancellation of approval -If an industrial project approved under section 11 contravences any of the provisionsof this Act or of any rules made thereunder or violates any of the conditions relatingto the approval, the Board may, in the manner prescribed by rules, cancel theapproval of the project.

16. Inspection, etc. -The Executive Council or a person or authority appointed by it may inspect theprogress of the implementation of an industrial project approved under section 11and shall, after such inspection, submit to the Board a report of the inspection.

17. Declaration of industrial area. -For carrying out the purposes of this Act, the Government may, by notification in theofficial Gazette, declare one or more areas specified therein to be an industrial areaor areas.

18. Acquisition of land for industrial areas.- If any land situated in an area declared under section 17 to be an industrial area isrequired for any industrial project approved under section 11, such land shall bedeemed to be required for public purpose and it may be requisitioned or acquired forsuch purpose under the provisions of the Acquisition and Requisition of ImmovableProperty Ordinance, 1982 (11 of 1982).

19. Committee.-The Board may appoint one or more committees to assist it in the performance of itsfunctions.


20. Appointment of officers and other employees - The Board may, for the proper performance of its functions, appoint such number ofofficers and other employees and consultants or advisers as it may deem fit.

21. Delegation of powers -The Board may, by order, delegate to the Executive Council or the ExecutiveChairman or a member of the Executive Council or a Committee appointed by theBoard any of its powers or functions under this Act or the rules made thereunder.

22. Power to make rules -The Government may, by notification in the official gazette, make rules for carryingout the purposes of this Act.

23. Abrogation and Preservation -(1) Biniog Board Ordinance, 1988 (Ordinance No. 32, 1988) is hereby abrogated.(2) In spite of such abrogation the acts and measures taken under abrogated

Ordinance shall be treated to have been done or adopted under this Act.

[Act Ended]


Un-Official Compilation of SRO-164 and its Ammendments by SRO.168 (Budget-04)

People’s Republic of BangladeshMinistry of Finance

Internal Resource DepartmentNational Board of Revenue

(Customs)

Dhaka ......................................

S.R.O. No. 164- Law/2000/1845/ Cus. Section 219 of Customs Act, 1969 (IV of 1969), to be readwith the Item 17 of the Third Schedule of the said Act. The National Board of Revenue by virtue of thepowers vested under the said Act, has drawn up the following rules after having cancelled the existingrules in this regard, namely:

1. Short Title and Aplication.- (1) These rules may be called the passengers ( non tourist) Baggage (Import) Rules, 2000.

2. These rules will be applicable in the cases of all passengers excepting those falling under the Tourists Baggage (Import) Rules, 1984 and Priviledged Persons Baggage Rules, 1985.

3. Definitions, In these rules, unless anything contrary appears from the subject or the context-

1[ ( a) “ Baggage” means food items, clothes, household or other personal effects in reasonable quantities imported by a passenger],

(b) “Passenger” means a passenger arriving from abroad:

(c) “ Schedule” means the schedule annexed to these rules.

4. Customs duty facilities for passengers arriving by air and by water.(1). All baggage brought bypassengers coming by air or by water in hand- bags, cabin bags and two cartons, bags or sacksweighing not more than 65 (sixty-five) kilograms, or in two suitcases or trunks measuring 32" (thirty-twoinches) in length can be taken delivery of without paying any customs duties.

(1) In addition to the baggage mentioned in the Sub-rule (1), clothes, books, periodicals or reading materials for personal use brought in a suitcase, trunk, carton, bag or sack weighing not more than 35 (thirty-five) kilograms can be taken delivery of without paying any customs duties.

(2) In case of a passenger under 12 (twelve) years of age, personal baggage brought in a carton, bag, sack weighing not more than 40 (forty) kilograms or in a suitcase or trunk measuring 32" (thirty- two inches) in length can be taken delivery of without paying any customs duties.

(4) Unaccompanied baggage can be taken delivery of without paying customs duties subject to making declaration in the form of the schedul 1/e and a copy of the declaration has to be submitted to the concerned customs officer at the time of taking delivery of the said baggage.

c. Baggage Rules 2000

25 Jyaitha, 1407 B.S

08 June, 2000 A.D

1 SRO No. 161-Act/2003/Customs, date: 12 June, 2003


(5) A passenger will be allowed to import once in every calendar year one from each of the goods mentioned in the schedule 2 without paying any customs duties and one from each of the goodsmentioned in the schedule 3 subject to the payment of the customs duties indicated in the said schedule.

(6) A foreign national will be allowed to import one bottle of or upto 1/6 gallon of alcohol or alcoholic drink (e.g. spirit, wine, beer etc) without paying any customs duties.

(7) In case a passnger has not brought with him from abroad the goods mentioned in the scheule 2and the schedule 3, he will be able to buy them at the city sales centre of the Bangladesh Parjatan Corporation within seven working days of his arrival after having mentioned them in theform of the schedule 4.

(8) A passenger will be able to import the instruments used in his professional activities and easily portable without paying any customs duties.

(9) A passenger under 12 (twelve) years of age will not be entitled to any other facilities other than the ones mentioned in the sub-rule (3).

2[(10) A passenger will be allowed to import gold or silver ornaments weighing not more than 200 (two hundred) grams without paying any customs duties.

3[(11) A passenger coming home from abroad will be allowed to import gold bar or gold ingot not exceeding ten (10) kg or silver bar or silver ingot not exceeding twenty (20) kg.]]

4. Facilities for sick and disabled passengers. Medical equipments and wheelchair to be used by a sick, disabled or old passenger can be taken delivery of without payment of any customs duties.

5. Facilities for passengers arriving by road. – A passenger arriving by road will be able to importbaggage to a maximum value of 200 (two hundred) US dollas irrespective of the period of his stayabroad without payment of customs duties.

6. Facilities for the crew. – (1) 4[A member of the crew or on officer of the Bangladesh Biman and aBangladeshi member of the cerew or officer engaged in a foreign airlines operating flights to anyBangladeshi airport] returning on completion of his professional responsibilities is entitled to bring abaggage to a maximum value of 100 (one hundred) US dollars without payment of customs duties.

(2) A Bangladeshi sailor or officer of a ship arriving from a foreign seaport will be entitled to bring abaggage to a maximum value of 300 (three hundred) dollars without payment of any customs duties.

(3) If a sailor or an officer mentioned under sub-rule (2) signs off, he will be entitled to import abaggage to a maximum value of 2,000 (two thousand) US dollars on payment of all the imposablecustoms duties.

2. Sub-rule (10) and (11) are added by S.R.O. No. 137 – Act/ 2002/1956/Customs, dated 6 June 2002.

3. Replaced by S.R.O. No. 161 – Act/2003/ Customs, dated 2 June 2003.

4. Replaced by S.R.O. No. 132 – Act/2002/1958/Customs, dated, 6 June 2002.


(4) Drivers and stewards (helpers/assistants) of passenger-buses coming from abroad will be entitledto import clothes, beddings and cooked food items and personal and household goods to a maximumvalue of 50 (fifty) US dollars without paying any customs duties.

7. Use of the Green and the Red channel. – (1) If a passenger does not carry any goods subject tocustoms duties, he may use the Green Channel (if any) of the airport.

(2) Notwithstanding anything in the sub-rule (1), a customs officer, on reasonable suspicion, will be ableto examine any passenger passing through the Green Channel.

8. Obligation of making customs declaration for all passengers. All passengers coming from abroad willmake declaration of baggage to the customs authorities by completing the form of the schedule 1.

9. Exemption in the case of deceased. – Notwithstanding whatever is in these rules, if a Bangladeshi citizen dies abroad, his baggage will be exempted from payment of all kinds of customs duties.

G:\ @ NBR \BRules 2000 Amend- BGT_2004 as on 140804.doc

1. substituted by SRO No. 161-law/2003/2013/customs,Dated 12th June, 20032. added by subrule (10) and (11) SRO No.-137-law/2002/1956/customs, Dated : 6th June 2002

3. substituted by SRO No. 161-law/2003/2013/customs, Dated 12th June, 20034. substituted by SRO No. 137-law/2003/1956/customs,Dated 6th June, 2002


Schedule 1Part -A

Form of Baggage announcement Letter

1.� Passenger’s Name� :

2.� Father/Mother Name� :

3.� Passport No.� :

4.� Flight No.� :

5.� Arrival Date� :

6.� Nationality� :

7.� The Countries you have visited� :� Country Name�Date of Visit

�� a)

�� b)

�� c)

8.� Information about your suitcase, Carton, � :� Number�� Weight

� Trunk, Bag, and Cabin Bag etc.

9.� Do you have Gold more than 200gm of weight ?� :� Yes/No

10.� Do you have more than 10kg of goldbar/goldpiece � : � Yes/No

� or more than 20kg of Silverbar/Silverpiece?

11.� Do you have Wine, Alcoholic drinks� :� Yes/No

� Cigarate or Alcohol ?

12.� Do you have more than 5000$ or same amount � :� Yes/No

� of foreign currency ?

13.� Do you have duty applicable goods in your baggage ?�:� Yes/No

14.� Information about Bag, Suitcase, Trunk, Carton, etc. �:� Number� Weight�� Airway Bill/Bill

� which you have not carried in your journey�� of Loading numbe

�� and date

Signature

Superintendent (Customs)

Signature of the Passenger (According to passport) :

�Date :


Schedule 1Part -B

Short list of the goods subject to imposition of customs duties

Schedule 2

List of duty free goods

1.� Cassette Player / 2 in 12.� Disk man/walkman (Audio)3.� Portable Audio CD player4.� Desktop/Laptop Computer (With Printer and UPS)5.� Video Camera6.� Still Camera7.� General/push button/Cordless telephone set8.� General/Electric Woven9.� Rice Cooker/Presser Cooker10.� Blender/Juicer/Coffee maker11.� General and Electric type writer12.� Sewing machine (Manual)13.� Table/Paddle stal fan14.� Sports Instruments (for personal usage)15.� 200gm of Gold or Silver Ornaments (Same type of ornaments not exceed 12)16.� One Carton Cigarate (200 sticks)17.� Computer Scanner.

(1) Television 7[(a)] upto 21� 2500/- (two thousand five hundred) taka, (b) above 21 and upto 29 600/- (six thousand) taka, (2) VCR/VCP/ Satellite receiver 500/- (five hunddred) taka, 6 The letter and the word �Part B� is added to S.R.O. No.137-Act/2002/1956/Customs, dated 6 June, 2002.G:\ @ NBR \BRules 2000_ Amend BGT_2004 as on 140804.doc7. Serial no. (1), (2) and (3) of the para (d) replaced by S.R.o. No. 186- Act /2004/2051 /cuostoms, dated 10 June 2004 A.D.

VCD/DVD/LD/MD Player 1500/- (one thousand five hundred) taka], (2) Music Centre (a) with ordinary CD and with detachable speaker 2,000/- taka, (b) conponent system (CD / VCD / DVD / LD / MD set) 8,000/- taka, (c) in detachable condition (CD / VCD / DVD / LD / MD set) 15,000/- taka, (5) Rrefrigerator / deep freezer 5,000/- taka, (6) dish washer/washing machine/cloth drier 3,000/- taka, (7) electric swinge machine/knitting machine 1,000/- taka (8) ordinary photocopier/photo enlarger 10,000/- taka, (9) air-cooler/air-conditioner (a) window type 10,000/- taka, (b) split type 25,000/- taka, (10) fax machine 5,000/- taka, (11) oven (a) microwave oven 2,000/- taka, (b) gas oven (including burner) 5,000/- taka, (12) dish antenna 7,000/- taka, 8[(13) gold bar or gold ingot (maximum 10 kg) 125/- taka per 11.664 gr), (14) Silver bar or silver ingot (maximum 20 kg) 6/- taka (per 11.664 gr.), 9[(15) mobile/cellular telephone ( per set 1500/- (one thousand five hundred ) taka], (16) airgun/air rifle 2,000/- taka, (17) chandelier 300/- taka (per point), (18) carpet upto 15 square meters 500/- taka (per square meter).

8. Serial no. 13 and its entries are replaced by S.R.o. No. 161-Act/2003/2013/Customs, dated 12 June 2003.

9. Replaced by the letter of the National Board of Revenue, file no. 2(17) Customs-Passengers and Diplomatic Privileges (Part-2) /210, dated 21/06/2003

Original version was in Bangla

(a)�If any goods which are not for personal or household use are imported in baggage, customs duties are to be paid for them.

(b)�Baggage brought in suitcases in excess of two suitcases are liable to imposition of customs duties. But books, periodicals or educational materials brought in the third suitcase can be taken delivery of free of customs duties.

(c)�If any goods are imported in the baggage in commercial quantities customs duties are to paid.(d)�Although the following goods are personal and household commodities, in case of their being imported as

baggage, customs duties are to be paid at the fixed rate shown against each item.


d. Visa Policy

Government has revised its visa policy rcecently. Only relevant portion of that policy hasbeen inserted below.

- Original version was in Banglafor further clarification please contact nearest Bangladesh mission

You can also visit www.mha.gov.bd

People’s Republic of BangladeshMinistry of the InteriorImmigration Branch-2

Memo No. Swa. Ma. (Bahi-2) 1P - 7/2006/2879 �� Dated : 19th October, 2006

Visa Rules

S.L.� Visa � Eligible Person� Purpose of Visit� Authority of issuing visa/increasing of visa � Class�� and condition

1.� A

2.� A-1

Performance of public/ official duty

Service/ performance of official duty

If a member ofthe entourage of a person coming on aA-1 category or arriving later

3.� A-2

Officials of government/semi-gove rnmen t /au tonomous organizations/members of government delegations and entourage, spouses and dependent children.

Officials and employees employed in an organization/office of the United Nations and its affiliated organizations, international/regional bodies bodies/offices established under bilateral/multilateral agreements with the Government of Bangladesh

Spouses and other dependent members of the family of the persons of coming on A-1 category

(a) The concerned visa issuing authorities will be able to issue visa for the necessary period mentioning the applicable travel facilities after having examined Note Verbale/ relevent papers regarding the purpose of the visit.(b) If it becomes necessary to extend the period of visa, the Directorate General of Immigration and Passport will be able to extend the visa for the required period on the basis of the recommendation of the Ministry / organizing authorities concerned.

(a) The visa issuing authorities will be able to issue visa with facilities of multiple entries for the entire period of service or for a maximum period of 5(five) years, whichever is less, on the recommendation of the organization concerned.(b) If it is necessary to extend the period of visa, the Directorate General of Immigration and Passport Directorate will be able extend the period of visa with facilities of multiple entries for the entire period of employment or for a maximum period of 5 (five) years, whichever is less, on the basis of the recommendation of the organization concerned and security clearance. But in this case obtaining security clearance will not be applicable for persons holding Diplomatic Passport and Laissez-passer.

(a) The concerned visa issuing authorities will be able to issue visa to the spouse and the dependent members of the family for a period equal to the one granted to the person coming on a A-2 category visa after having examined the necessary papers to this effect.In case of necessity of extending the visa, the Directorate General of Immigration and the Passport will be able to extend the visa for a period equal to the one granted to the person coming on a A-2 category visa. But in this case, obtaining security clearance will not be applicable for persons holding diplomatic passport and Laissezpasser.


S.L.� Visa � Eligible Person� Purpose of Visit� Authority issuing visa/increasing of visa � Class�� and condition

4.� FA2 Businessman/Businessrepresentative

Trade and commerce

5.� B Crew travelling on international routes beingemployed in airlines / ships and other transport sectors

Performance of professionalduties

(a) The visa issuing authorities will be able to issue visa initially for not more than 1 (one) year with facilities of multiple entries on the condition of staying upto a maximum of 01 (one) month on every visit, on being satisfied that the applicant is a genuine businessman, after having considered the certificate issued by the recognized Chamber of Commerce of the country concerned in favour of the visitor arriving for the purpose of prospecting feasibility of investment / trade and commerce and the recommendation of the local sponsor situated in Bangladesh and the genuineness of his business establishment etc. But if the visa issuing authorities thinks it necessary, they can see the lastest relevant documents (audit report of at least one year, statement of bank transactions, memorandum of understanding, memorandum of association of the firm etc.) of the business concern of the applicant for visa.(b) In case of necessity of extending the period of visa, the Directorate General of Immigration and Passport will be able to issue visa on the basis of the recommendation of the local sponsor and security clearance for a period of 3 (three) years on the condition of 01 (one) month�s stay on every visit with facilities of multiple entries on each occasion. But the period of visa may be extended for 05 (five) years on the same conditions, after recording the evidence / certificate, if any, to the effect that the applicant had come to Bangladesh several times for business purposes and performed his business according to the proper rules and regulations.

(a) The concerned authorities for issuing visa will be able to issue visa for a maximum period of 3 (three) years with facilities of multiple travels on the basis of the recommendation of the appointing authority. In the case of the ship�s crew the condition of a maximum period of one (1) month�s stay at a time and in other cases the condition of a maximum period of 7 (seven) day�s stay will be applicable.(b) In case it is necessary to extend visa, the Directorate General of Immigration and Passport will be able to extend the period of visa according to necessity on the basis of the recommendation of the proper authorities.



7.� D

6.� C

(a) experts / consultants / employees / persons employed in government /semi-government / autonomous organizations / projects and equivalent institutions(b)Employees/ persons appointed /employed in local / foreign government/liaison/industrial/ commercial organizations or equivalent organizations(c) Employees/persons appointed in local/foreigngovernment/non-government firms of contractors orequivalent firms

Domestic aid of the persons belonging to category A-1

Employment /Service

Accompanyingthe persons belonging to category A-1 arriving later

The concerned authorities for issuing visa will be able to issue visa for the required period with mention of the applicable travel facilities, after having examined Note Verbale /relevant papers regarding purpose of the visit and where applicable, following diplomatic etiquette. In case of necessity of extending the period of visa the Directorate General of Immigration and Pass-port will be able to extend the visa for the required period with multiple entries.

The concerned visa issuing authorities will be able to issue visa for a maximum period of 3 (three) months with the facilities of multiple entries, after having examined in each case the certificate, appointment letter issued by the Ministry / Board of Investment / BEPZA to the effect that the person has been properly appointed at the concerned organization and the authenticity of the appointing organization. (b)In case of extension of visa, the Directorate General of Immigration and Passport will be able to extend the period of visa for the entire period of work permit or for a maximum period of 01(one) year, whichever is less, with multiple entries, on the basis of the recommendation of the appointing authority, work permit of the concerned authority and security clearance. If extension of visa is applied for for the second time, the Directorate General of Immigration and Passport Directorate will be able to extend the period of visa for the entire period of the work permit or for 3(three) years, whichever is less, on the basis of satisfactory stay. However, if the period of employment in the same profession exceeds 03(three) years, approval of the Ministry of Interior has to be sought in case of extension of visa.(c) In the case of experts/ consultants/ employees/persons employed in government /semi-government/autonomous organizations/ projects, the period of the visa can be extended for the entire period of the work permit or for 03 (three) years, whichever is less, on the basis of the recommendation of the Ministry, work permit and security clearance.



8.� ND Spouses and other dependent members of the family of the persons entitled to D category

9.� DA Persons coming for supply /installation/maintenance/supervision of equipments and software /inspection of project and similar work

Supply/installation/maintenance/supervision of equipments and software/inspection of project etc.

10.� E Foreign investors of capital in the industries/mercantile firms established/ to be established as a joint venture or with entire foreign investment in the private sector

Management of investment/established business/business concern

Accompanyingthe persons entitled to Dclass or arrivinglater

(a) The concerned authorities for issuing visa will be able to issue visa for a period equal to the one granted to the person coming on a E category visa, after having examined the necessary papers to the effect that the applicant is spouse and dependent member of the family.(b) In case of extension of visa the Directorate General of Immigration and Passport will be able to extend the visa for a period equal to the one granted to the person coming on a E category visa, with multiple entries, on the basis of the recommendation of the appointing organization and security clearance.

(a) The authorities for issuing visa will be able to issue visa for a maximum period of 1(one) month after taking into consideration the recommendation of BOI/BEPZA to the effect that foreign nationals as described are required to come for the installation of the equipments / software at the inviting/importing firm, letter of invitation of the local sponsor, authenticity of the inviting/ importing firm, deed of contract of the sending/supplying firm.(b) The Directorate General of Immigration and Passport will be able to extend the visa for a maximum period of 01(one) year with multiple entries on the basis of deed of contract signed with the firm supplying the equipment, recommendation of the local sponsor, work permit and police report.

(a) The concerned visa issuing authorities may issue visa to an applicant for visa in an industrial/ mercantile enterprise established in Bangladesh in the private sector individually or as a joint venture or with entire foreign investment, for a maximum period of 01(one) year with facilities of multiple entries on the basis of a certificate of the Board of Investment (BOI)/ Bangladesh Export Processing Zones Authorities (BEPZA) (if applicable) to the effect that he is a genuine investor. However, if the visa issuing authorities feels necessary, it may see the relevant documents (for example, the Memorandum of Understanding, Memorandum of Association of the firm etc.) regarding the investment/business of the applicant.(b) In case of extension of visa, the Directorate General of Immigration and Passport may issue visa for a maximum period of 5(five) years with multiple



11.� FE Spouses and other dependentmembers of the family of the person coming on a E categoryvisa

12.� EI (a) Any person from a country with which Bangladesh has diplomatic relations (b) Persons coming for seminars / workshops / study tours organized at private level

13.� J a) Foreign spouse and childrenof Bangladeshi Citizen.b)Foreign Citizen of Bangladeshiorigin and his/her spouseand children.

Accompanyingthe personcoming on a E class visa or arriving later

Travel / tourism / meeting relatives /religions reasons / private seminars / workshops / study tour sector

Stay and travel inBangladesh

(a) The concerned visa issuing authorities may issue visa for a period equal to the one granted to the person coming on a PI category visa, after having examined the necessary papers showing that the persons concerned are spouse and dependent members of the family.(b) In case of extension of visa, the Directorate General of Immigration and Passport may extend the visa with multiple entries for a period equal to the one granted to the person coming on a PI category visa on the basis of the recommendation of the concerned establishment and security clearance.

(a) The concerned visa issuing authorities may issue visa for a maximum period of 15 (fifteen) days without any travel facilities.(b) For special need the Directorate General of Immigration and Passport may extend the visa upto 1 (one) additional month without ravel facilities on the basis of police report.

(a) The concerned visa issuing authorities may issue visa to foreign wife / husband and children for a maximum period of 1 (one) year with multiple entries on the basis of the proof of the Bangladeshi citizenship of the Bangladeshi citizen and affidavit sworty by the Bangladeshi citizen regarding his/ her spouse / children and marriage certificate.(b) The Directorate General of Immigration and Passport may extend the visa for a maximum period of 5 (five) years with multiple entries on the basis of favourable police report.

Source : Original Version is in Bangla, This is an unofficial English Version Translated bythe institute of Modern Languages, University of Dhaka, Bangladesh


Appendix III : Bangladesh Industrial Policy 2005[The Industrial Policy 2005 was adopted by the Government since 2006]

Chapter 1Introduction

Bangladesh is a developing country, and the present government is strivingrelentlessly to attain rapid economic development in the country. Many programstaken so far have been carried out successfully. Despite a lack of resources facedby the government, development programs in the key sectors have continued. At thesame time, considering the importance of the private sector, an all-out support isbeing provided to initiatives taken in this sector. As a result, a new kind of dynamism isunder way in both the public and private sectors. In this backdrop, it is essential toexamine various aspects of industrialization and its impacts on overall economicactivities.

Given the present environment of global competition, the private sector is playing animportant role in the industrialization of the county. Therefore, the Government in theMinistry of Industries has taken the role of a facilitator. Faced with the challenges ofthe free market economy and globalization, the government has accepted privateownership and management of industrial enterprises as one the major guiding forcesin achieving economic growth. Besides this, the government has also brought aboutmany constructive and timely reforms in the running of business, and liberalizedtrade so that private entrepreneurs can seize opportunities of establishing andrunning industrial enterprises profitably and freely.

In the meantime, quite a number of publicly managed industrial enterprises havealready been sold out and transferred to private ownership. In order to establisheconomically prospective industries in industrial sub-sectors, there are plans to setup industrial parks and special economic zones so that huge amount of unused andabandoned land can be utilized. All this is aimed at fostering industrialization andeconomic development and generating employment opportunities in the country.

To reduce poverty and generate employment opportunities, more efforts are neededto establish agro-based industries as well as to raise agricultural production. This willensure the protection and fair price of agricultural products and employment of ahuge number of unemployed people. In order to create further employmentopportunities beyond the agricultural sector, initiatives should be taken to set upsmall, medium and large industries across the country. If these types of industriesare set up in a planned way, then unemployment rates will decline and povertyalleviation will be accelerated. With these objectives in mind, the Industrial Policy hasbeen radically reshaped.


In order to provide administrative, institutional and infrastructural facilities in thecountry’s industrialization, there are organizations such as the BangladeshStandards and Testing Institution (BSTI), Bangladesh Industrial Technical AssistanceCenter (BITAC), Bangladesh Institute of Management (BIM), Bangladesh Small andCottage Industries Corporation (BSCIC), National Productivity Organization (NPO)and Small and Cottage Industries Training Institute (SCITI) under the Ministry ofIndustries, and the National Institute of Textile Training, Research and Design(NITTRED), Textile Vocational Institutes, Textile Diploma Institute and BangladeshSilk Research and Training Institutes under the Ministry of Textiles and Jute. For theleather industry, the Bangladesh College of Leather Technology and different districtlevel polytechnic institutes provide technical education. These Institutes also provideassistance for industrialization by providing training on management and qualitycontrol of goods, safeguarding consumers’ Interests, new tools necessary for theproduction of industrial goods that are in demand, and by improving efficiency andoverall productivity. However, many industrial entrepreneurs are not fully aware ofthe necessary technical and other assistance available for the industrial sectorthrough these institutes. Therefore, extensive publicity is necessary for the properuse of these important institutes and the facilities available there.

In order to further strengthen the country’s industrialization process, the presentgovernment has identified the Small and Medium Enterprises (SMEs) as a prioritysector and as the driving force for industrialization. A national taskforce led by thePrincipal Secretary of the Prime Minister’s Office has been formed so that properpolicies and planning are followed in establishing SMEs. At the same time, with aview to providing entrepreneurs with assistance in the establishment of SMEs. A cellhas been created under the supervision of the Ministry of Industries comprisingofficials experienced in SMEs from the Ministry of Industries, Bangladesh Small andCottage Industries Corporation (BSCIC), National Productivity Organization (NPO),Asian Development Bank (ADB), FBCCI, National Association of Small and CottageIndustries, Bangladesh (NASCIB) and women entrepreneurs.

The provisions of all facilities for attracting foreign investments have been envisagedin the Industrial Policy. The government has taken an initiative to formulate aseparate SME policy to provide entrepreneurs with necessary guidance andstrategic support in respect of the establishment of SME industries all over thecountry. These strategic guidelines will be followed in establishing SMEs across thecountry.

Far-reaching changes have occurred in the past decade in economic and socialactivities across the globe, especially with regard to the participation, contributionsand successes of women in industrial activities. Therefore, the creation of womenentrepreneurs and their participation in industrialization have been givenconsiderable prominence in the present Industrial Policy.

Necessary steps have been taken to hygienically preserve and market agriculturalproducts of Bangladesh. Wit this end in view, measures will be taken for the


preservation of frozen, pasteurized, canned and dry foods in a modern and hygienicway in order to sell them in local and overseas markets throughout the year.

Steps will be taken to properly utilized the natural and mineral resources of thecountry such as gas, coal, hard rock, limestone, silicon, monazite, zircon, rutile,oyster, pearl, coral, fossil, seaweeds, etc., available in the country’s long sea-beachso that new profitable industries can be set up. Steps will also be taken at the sametime to use solar power and municipal refuse to generate electric power in order tominimize power shortage in running small and cottage industries.

This is an age of information and communication technology (ICT). The applicationof ICT in running industrial enterprises efficiently and profitably can ensure qualitydevelopment of goods, make production cost-effective and ensure faster customerservices. So, providing further importance and incentives to the use of ICT in anumber of sectors is one the notable features of the Industrial Policy.

The industrial sector is likely to grow rapidly over the next decade raising itscontribution to the country’s GDP to 30 to 35 percent, and the workforce in this sectoris expected to increase to 35 percent of national employment need. I order to attainthis growth in this sector, special importance has been given in the Industrial Policyon agro-based and agro-processing industries and on steps to overcome possibleadverse conditions in the export oriented garment sector. Importance has also beengiven on considering the SMEs and cottage industries as one of the major drivingforces, providing assistance to women entrepreneurs on a priority basis, setting upspecial economic zones in different parts of the country, improving the quality ofindustrial products to world standard, marketing of goods at competitive prices, andenhancing productivity in the industrial sector.

There is a proposal in the Industrial Policy for the formation of a high level committeeled by Minister of Industries and comprising senior officials from public and privateorganizations involved in industrialization. This committee will submit a report to theCabinet for its decisive approval, and afterwards the relevant ministries /divisions / agencies will take necessary programs for industrialization to getunderway in the approved sectors.

In the end, it can be hoped that the guidelines contained in the new Industrial Policywill help expand planned industrialization in the country, bring about sustainable andcontinuous industrial growth, and overcome the past failures of industrialization to agreat extent. As a result, a sound and prospective foundation of economicdevelopment will be established. This will help baring about poverty alleviation,create further employment opportunities, reduce unemployment instances, improveliving standards of people, and achieve and overall economic growth in the country.


Chapter 2Objective

2.1 One of the foremost objectives of the Industrial Policy 2005 is to set up plannedindustries considering the real domestic demand, prospect of exporting goodsabroad, and discouraging unplanned industries in the light of past experience.

2.2 Accept private initiatives a the main driving force of economic development anduphold the government's facilitating role in creating a favorable atmosphere inorder to augment private investments in the country's industrialization, given thebackground of a free market economy and globalization.

2.3 Arrange for state-owned industrial enterprises to be sold/transferred/leased oradministered in any other way by the Privatization Commission or concernedministries in order to accelerate the privatization process.

2.4 Take necessary initiatives to set up industries with private entrepreneurships, andwhere that is feasible, establish industries on state initiative in those sectors thatare considered very important and essential because of national interest, whereprivate entrepreneurs are not forthcoming.

2.5 Catering the needs for local and foreign market and also for consumer satisfactionof the local products; measures to be undertaken (a) produce world class qualityproducts, (b) diversification of goods, (c) introduce cost-effective management inthe production system, (d) more value addition in the industrial sector, and (e)provide support for enhancing productivity by using continuous, appropriate andadvanced technology.

2.6 Provide assistance to augment the industrial sector's contributions to the GDP ofthe national economy, meet the general demands of local consumers and earnmore foreign exchange so that local industrial entrepreneurs can attain furthercapacity to establish industries and industrial goods can have access to theoverseas market on a competitive basis.

2.7 Provide inspiration for the speedy expansion of cottage industries and SMEs andfor further investment in these sectors so that new employment opportunities aregenerated, unemployment reduce and poverty alleviation program made in the country.

2.8 Prioritize the expansion and development of agro-based and agriculturalprocessing industries, and assist in the expansion of poultry, dairy and goat-sheepindustry as agricultural industries.

2.9 Provide women entrepreneurs with all necessary assistance in establishingindustries in various sectors.

2.10 Increase productivity at enterprise level; produce high-value added products step


by step through development and application of appropriate technology andincrease of export through export diversification.

2.11 Provide all necessary assistance for producing environment-friendly product withthe objective for crating a pollution-free environment in the industrial sector.

2.12 Expand the local market and establish more backward linkage industries in orderto accelerate the export of high value-added garments produced in the export-oriented garment industries and other relevant industrial sub-sector.

2.13 Further enrich the industrial sector with the proper utilization of the country'svarious natural and mineral resources.

Chapter 3Policy Strategy

3.1 Ensure full utilization of current production capacity in the industrial sector,especially by reusing that it is not hampered because of infrastructure deficiency.

3.2 Provide special facilities as well as infrastructure support to Cottage and Small andMedium Enterprises (SME) located in different parts of the country.

3.3 Provide financial, technical, technological and infrastructure facilities in order toinspire setting up and developing agro-based industries.

3.4 Take steps to preserve and market agro-based goods hygienically by processingin frozen, pasteurized, canned or dry form so that goods produced in the countryare preserved and marketed in compliance with modern standards in order toensure that they can be made available in the local market of exported throughoutthe year.

3.5 Take steps to properly utilize the natural and mineral resources in the country suchas gas, coal, hard rock, limestone, silicon, monazite, zircon, rutile, oyster, pearl,coral, fossil, seaweeds, etc, available on the long sea-beach so the new profitableindustries can be set up.

3.6 Take action to use solar power and municipal refuse to generate electric power inorder to run small and cottage industries.

3.7 Assist backward linkage industries on priority basis. The objective is to diversifyand produce goods of world standard and value added items so the they help todiversify our exports.

3.8 Consider the readymade garment and textile industries as a priority sector in viewof their special contributions to the country’s export trade.

3.9 Provide necessary assistance to value added linkage industries andsubcontracting industries so that they are developed.


3.10 Provide assistance to waste management development in order to ensure properwaste minimization and waste removal and produce pollution-free goods.

3.11 Strengthen and ensure efficiency in import substitution industries so that thegradually increasing demand for goods in the local market can be met.

3.12 Inspire well-proportioned industrialization across the country by providingincentives, wherever necessary.

3.13 Conduct a survey to determine the demand in the local market of goods producedin sick industries as a primary step towards the rehabilitation and development ofthose industries. In view of competition in the local market, take action to reducethe production cost of goods in sick industries in a cost-effective way so that thequalitative standards of goods and productivity are ensured.

3.14 Provide incentive to various institutions that are concerned with technological andtechnical efficiency enhancement, side by side with human resourcesdevelopment, in order to improve efficiency in the industrial sector.

3.15 Remove policy discrimination, if any, between domestic and foreign investments,and enhance regional and sub-regional cooperation.

3.16 Privatize non-profitable industries in the state sector quickly and in phases.Restrict state investment and administration only to those industries in the publicsector which the government think are not safe for investment in the private sector.

3.17 Provide all-out assistance to create a strong capital market so the investments inthe industrial sector are increased.

3.18 Give preference to infrastructural development including ports, power, transportand communications, and human resources development. Specifically promoteprivate investments along the principles of construction, administration and BOO,and construction, administration and BOT in these sectors.

3.19 Quite a number of publicly managed industrial enterprises have already been soldand transferred to private owners. Take initiatives to set up industrial parks with aview to establishing economically viable industries in these industrial sub-sectors.

3.20 Provide further structural and other facilities to establish and develop compactindustrial areas. Develop planned industrial areas by establishing SpecialEconomic Zones in areas with vast economic potentials, and utilizing localresources.

3.21 Take necessary steps to bring about the country’s industrial development in linewith different agreements with the World Trade Organization (WTO).


3.22 Consider highly developed technology-based seed breeding, production anddevelopment, and agricultural goods processing activities as industries. At thesame time, take strong steps regarding the diverse use of jute.

3.23 Market daily essentials such as flour produce from wheat in flour mills, refinededible oil, refined salt produced from unrefined salt, etc. after enriching them withvitamins, minerals and iodine.

3.24 Arrange for incentives to be given for research and development, acceptance andtransfer of environmentally friendly appropriate technology. At the same time,develop market-oriented institutional structure in overall technologicaldevelopment.

3.25 Promote foreign direct investments in order to bring about technology transfer,efficiency and management development and enhance marketing skills.

3.26 Establish coordinated and extensive Management Information Service (MIS)comprising different public and private agencies under the Ministry of industries(various chambers of commerce and industries) and arrange for informationreceived from MIS to be supplied to administrative divisions and districts levels.

3.27 Create a long-term credit fund to generate industrial production capacity and alsoa venture capital fund to support in the commercial production and marketing ofcreative industries.

3.28 Collect information on industrial development and arrange for technologydissemination through the Technology Dissemination Cell, set up at the Ministry ofScience and Technology, Industry and Business Association, and the Bangladeshmissions abroad.

3.29 Take assistance from extended administrative-judicial system (Financial LoanCourts, Arbitration Centers and various other tribunals) in order to resolve tradedisputes quickly and at minimum cost.

3.30 Ensure the availability of the working capital from financial institutions after theestablishment of an industry so working capital can be obtained in time.

3.31 Ensure the availability of assistance of the capital market so that industrialentrepreneurs can overcome the lack of capital and mobilize the necessary capitalfrom the capital market in order to establish or administer industrial enterprises.

3.32 Consider other industry related policies such as the Textiles Policy, Jute Policy,and Silk Policy as supplementary to the Industrial Policy.


Chapter 4Definitions and classifications of Industrial Enterprises

4.1 Broadly speaking, industry includes manufacturing and service activities

4.2 Production, processing and assembling, and rehabilitation and fabrication ofmanufactured goods are included in industry.

4.3 The services that are received through the use of machinery and durable resources areincluded in the service industries. The service industries have been enlisted in Annex-2

4.4 Definitions of industries in the manufacturing sector.(a) "Large Industry" means an industry in which the value/replacement cost of

durable resources other than land and factory buildings is above 100 million taka.(b) "Medium Industry" means an industry in which the value/replacement cost of

durable resources other than land and factory buildings is between 15 million and 100 million taka.

(c) "Small Industry" means an industry in which the value/replacement cost of durable resources other then land and factory buildings is under 15 million taka.

(d) "Cottage Industry" means an industry in which members of a family are engaged part-time of full-time in production and service-oriented activities.

4.5 Definitions of industries in the one-manufacturing sector (trading and other services):(a) "Large Industry" means an industry in which more than 100 workers work.(b) "Medium Industry" means an industry in which 25 to 100 workers work.(c) "Small Industry" means an industry in which fewer than 25 workers work (unlike

family members in a cottage industry).

Reserved industries:

4.6 Those industries that are necessary to be kept reserved by the government in theinterest of national security and are sensitive have been identified as reservedindustries. A list of reserved industries has been given in Annex-3.

Thrust sector:

4.7 The thrust sector will mean those industries/industrial sub-sectors which havealready been able to successfully contribute to the country's industrialization andpoverty alleviation by increasing GDP, creating employment opportunities andincreasing export income. Special incentives and financial facilities such as texexemptions, exemption from dual taxation, tax holiday, and taxation at a reducedrate or accelerated depreciation (if the tax holiday and tax exemption facilitiescannot be provided for new industries in the future) can be considered. Thefacilities provided to those industries that are established in EPZ areas includingexport-oriented industries can also be provided to the thrust sector. The objective


will be to use domestic technology, import substitution, adjustment and/or exportaugmentation. But entrepreneurs under the thrust sector will not receive thesefacilities automatically. The government will determine the facilities to be receivedby thrust sector entrepreneurs after analyzing and reviewing the performances andcontributions of their sub-sectors/industrial enterprises to the national economy. Alist of the thrust sector has been given in Annex-1.

4.8 The definitions of the abovementioned industries may change over time andvariation of location.

Chapter-5Facilitating Role of Relevant Ministries and

Public Institutions in Industrialization

5.1 The Bangladesh government gives importance to the private sector as a drivingforce of industrialization, and has brought about constructive and realistic reformsin formulating policies. The government will provide assistance in the following wayto play a supporting role through concerned public institutions:(a) Before setting up industries, all foreign investors will register with concerned

offices in a measured manner.(b) The Bangladesh Small and Cottage Industries Corporation will allot industrial

plots in its own industrial areas and in other industrial areas created with specific objectives. Similarly, the Bangladesh Export Processing Zones Authority (BEPZA) will allot plots in its own areas. The Board of Investment willmake necessary recommendations and take steps to allot land where public land is available.

(c) The concerned utility agencies will determine the timeline for providing electric power, gas, water and sewerage, and telephone connections in consultation with relevant authorities and provide clearance regarding environmental pollution. Wherever possible, these authorities will provide their services through one-stop service centers.

(d) The Board of Investment and BEPZA will approve, as necessary, the royalty, technology or technical assistance fees and the appointment and remuneration of foreign employees.

(e) The sponsoring authority will provide entrepreneurs with advance information in order to avoid investment risks because of unplanned and excessive investments in certain sectors.

5.2 Approval will be given for establishing EPZ areas and developing industrial parksin the private sector. The government will provide all possible assistance for theEPZ areas and parks to be developed.

5.3 Accreditation bodies will be set up and arrangements made for properlyconducting activities of public and private laboratories/institutions engaged inexamining and fixing the standards of goods produced at home or imported fromabroad.


5.4 Activities of training institutes under different ministries that are engaged in humanresources development in the industrial sector will be made more dynamic andeffective. These institutes include the Bangladesh Institute of Management (BIM),National Productivity Organization (NPO), Small and Cottage Industries TrainingInstitute (SCITI) and Training Institute for Chemical Industries under the Ministry ofIndustries; the Textile Industrial Development Center under the Department ofTextiles; the training institutes under the Bangladesh Jute Mills Corporation;Bangladesh Handloom Board and Bangladesh Silk Board; and some otherrelevant training institutes.

Chapter-6Privatizing State-Owned Industries and the Privatization Commission

6.1 The present policy of privatizing public sector industries will be pressured with vigour.

6.2 Investments in the public sector will be restricted to the "reserved sector". Stateinvestments in the industrial sector will be treated as residual investment in thefuture. State-owned enterprises will be complimenting to private sector industriesand will be encouraged to compete.

6.3 The present state-owned industries will be given autonomy as far as possible sothat they are run on commercial lines.

6.4 Except for the reserved sector, capital will gradually be withdrawn from state-owned corporations.

6.5 100% shares of public sector enterprises will be sold out, if necessary.Shares of public sector industries will be sold out to the public to ensure widerdistribution of shares and securities to the public and to involve the public in themanagement of these industries.

6.6 Bangladeshis working abroad will be encouraged to buy shares of industrialenterprises in foreign currency.

6.7 If the Privatization Commission cannot privatize state-owned enterprisessuccessfully, then the concerned ministry will sell/transfer/lease those enterprisesor take any other action in this regard.

The Privatization Commission and privatization policies:

6.8 The government is committed to bring about quick privatization of state-ownedindustries, businesses and service institutions. The reason is to strengthen the roleof the private sector in the national economy and establish the private sector as


the main carrier of development, given the sick and deteriorating condition of state-owned enterprises. With this end in view, the government has formed thePrivatization Commission. The main objectives of the Commission are to: (a)promote social welfare by enhancing efficiency; (b) attract foreign investments,enhance efficiency and improve mutual relations; (c) generate revenue; (d) releaseresources from loss-making industries and invest in other social and public welfareactivities; and (e) stimulate competition so that employment opportunities arecreated and protected.

Privatization policies to be followed:

6.9 (a) To protect the interests of workers, employees and officers; (b) give importanceto consumers' and good will; (c) avoid possible closure of any industrialenterprises; (d) consider the market price as the sale price; (e) safeguard theinterests of consumers; (f) conclude transfer documents or agreements; and (g)maintain transparency, privacy and unbiased behaviour.

Activities of the Privatization Commission in brief:

6.10 (a) To formulate program of privatization; (b) assess the value ofindustries/trade/service institutions marked for privatization; (c) draw up guidelinesfor preparing reports on privatization related assessment; (d) sell industrialenterprises through tender; (e) transfer portions of shares to staff when sellingshares through Stock Exchange; (f) sell the public shares of private limitedcompanies; (g) conclude management agreement; (h) give lease; (i) sell/liquidateassets directly; (j) prepare a progress report on privatization activities; and (k) takeback the possession of privatized enterprises.

Chapter 7Revenue and Financial Incentives

7.1 There will be no differences between the same types of industries established inthe public and private sectors in respect of customs duty and other taxes.

7.2 (a) As of today, the tax holiday facility will be provided till the end of 2005 on the basis of the locations of industrial enterprises. After that time, this facility will depend on what the government decides in this regard. However, tax holiday will not be applicable for extended units of industrial enterprises. At least 40% of the tax-free income must be reinvested.

(b) As an alternative to tax holiday, industrial enterprises will receive depreciationat the rate of 100% in the first year. Apart from this, industrial enterprises receiving tax holiday will be entitled to 80% depreciation in the second year and20% depreciation in the third year for their extended unit plants and machinery.

(c) If the tax holiday and tax relief facilities cannot be provided for setting up newindustries in the future, then taxation at a reduced rate will be considered.


(d) Agro-processing industries and computer software businesses will receive income tax relief form 1 July 2002 to 30 June 2006.

(e) Credit equity ratio will be fixed at a reasonable rate to inspire investment in textile industries.

(f) Industries established in EPZ areas will continue to receive income tax relief for10 years from the date of commercial production.

(g) As and alternative to tax holiday, industries established between 1 July 2002 and 30 June 2005 will receive the taxation facility at a reduced rate of 20%.

(h) Industrial enterprises engaged in the production of readymade garments will receive the taxation facility at a reduced rate of 10% n their export incomes till 30 June 2006; jute goods industries will receive the taxation facility at a reduced rate of 15% on their export incomes till 30 June 2006; and textile industries will receive the taxation facility at a reduced rate of 15% on their export incomes till 30 June 2006.

(i) Financing institutions will be encouraged to fix their interest rates at the minimum on their short-and long-term loans for industrialization.

7.3 The present structure of duty concession on machinery imports will continue.Imported machinery and spare parts will be exempt from payment of VAT subjectto existing conditions. In addition to other incentives schemes, activities of theEquity and Entrepreneurship Fund (EEF) will be intensified to give priority toentrepreneurs of under-developed areas and entrepreneurs of the BSCIC industrialenclaves in receiving loans from this fund.

7.4 The duty structures of imported raw materials, intermediate goods andmanufactured goods will be set at gradually escalating rates.

7.5 In order to eliminate unequal competition between goods produced at home andgoods imported, the prevailing duty structures will be made reasonable, ifnecessary. If any items are illegally imported at a dumping price - a price that isunjustified and below the production costs, then with recommendations room theBangladesh Tariff Commission, the anti-dumping law will be applied and counter-veiling duty imposed.

7.6 In order to eliminate unequal competitions between goods produced at home andgoods imported, the prevailing duty structures will be made reasonable, ifnecessary. I any items are illegally imported at a dumping price-a price that isunjustified and below the production costs, then with recommendations from theBangladesh Tariff Commission, the anti-dumping law will be applied and counter-veiling duty imposed.

7.7 Special incentives will be given to non-resident Bangladeshis in order to encouragethem to make investments in the country. They will be provided with the same


facilities that are given to foreign investors in respect of making investments inBangladesh. The Securities and Exchange Commission will reserve 10% of the initialpublic offers for non-resident Bangladeshis. Besides, they can keep deposits of foreignexchange in their NFCD (Non-resident Foreign Currency Deposit) accounts.

7.8 Special revenue facilities (as described in Section 4.7) will be provided to industriesmarked as "thrust sectors", SMEs and cottage industries.

7.9 Industrial enterprises registered with the Board of Investment nee not pay anytransfer fee and gains tax to purchase land for setting up new industries or totransform an industry into a limited company provided that no changes can bemade in the ownership structure after that transfer.

7.10 Steps will be taken to create an industry fund in the Bangladesh Bank, strengthenspecialized banks, establish a country fund, expand the capital market, create anendeavor fund, and rationalize the tax holiday system.

Chapter 8Massive Establishment of Small, Medium Enterprise (SMEs) and Cottage

Industries in Countrywide Industrialization

8.1 The development and expansion of SMEs is regarded as a very important mediumof achieving industrialization and economic growth in both developed anddeveloping countries. The role of SMEs in industrial revolution in the industrializedworld was enormous, and the trend has continued to-date. The role of SMEs ingeneration investment, saving, profit, employment opportunities, export, regionalindustrialization and improvement of people's living standard as well as nationaldevelopment is very important. To this end, forward linkage, backward linkage,value addition activities and productivity improvement should be accelerated inorder to establish and expand SMEs in the manufacturing sector. As such the SMEsector has been treated as a priority sector in the Industrial Policy 2005.

Scope of SMEs:

8.2 The structural arrangement of Bangladesh's industries show that jute, textiles,paper, steel and engineering, cement, chemical, fertilizer and pharmaceuticalindustries are under the big and medium scale industries. On the other handspecialized textile industries (including garment), backward linkage industries,hand-operated welding, food processing and food linkage industries, leatherceramics, light engineering including automobiles, basic metal engineering, smallscale chemical engineering, rubber industries, paper printing and publishingindustries, small fabrication industries, non-metal mineral products, batteries,electrical electronics, handicrafts, agro-based industries multilateral jute goods, silkindustries, fruit processing, poultry farming, fisheries, tea-gardening and processing,


vegetable seed farming, floriculture and agro-forestry, and printing industries,ginning and baling, construction industries, transportation (including automobiles),cinema and photography, pathological laboratories, cold storage, furniture, computerindustries, fast food, frozen food, etc, under service industries, and many othersectors are included in the SMEs.

8.3 SMEs will be established on a greater scale across the country in order to bringabout poverty alleviation, unemployment reduction and creating moreemployment opportunities so that national economic growth can be attained. Tothis end, the government has taken an initiative to draw up a separate SME policywith a view to provide necessary guidelines and strategic assistance in respect ofestablishing SMEs throughout the country. The guidelines and strategyincorporated in the relevant policies will be pursued in establishing and expandingSMEs of all kinds through the country.

Chapter 9Establishment of special Economic Zone based on the Importance of Industries,

Availability of Inputs and Regional Facilities.

9.1 In some of the Asian and Pacific countries, such as Taiwan, China, Singapore andMalaysia, industrial enterprises have been established in various regionsconsidering their socioeconomic conditions and importance, and economic andcommercial opportunities on the basis of the availability of various facilities manyother countries across the world are pursuing the concept. The setting up of specialeconomic zones in Bangladesh considering the socioeconomic background andfacilities available in various regions is equally important.

9.2 Because this concept to a great extent in cost-effective and economicallyprofitable, special economic zones will be established across Bangladesh on a prioritybasis considering the nature and types of industries and comparative costs acrossregions.

9.3 A Considerable size of land has remained unproductive because of salinity andinfertility in a number of regions in the country. On the other hand, the labor andcreative working capacity of a great number of efficient people cannot be utilizedbecause of lack of opportunity. Therefore, initiatives will be taken to establish andrun industries profitably in special economic zones on the basis of facilities available invarious regions so that unused land, human and other resources can be properly used.

9.4 By creating special economic zones. Cluster villages can be established quickly forrunning industrial enterprise. Cluster villages can be set up in especial economiczones for industries such as leather industries, hosiery industries, small chemicalindustries (paint, varnish, etc), dyeing, printing and finishing, electronics, electricalgoods, handicrafts, boutique, etc.


9.5 As a foremost strategy for maintaining balance in the country's economicdevelopment, initiatives will be taken to set up industrial enterprises on a limitedscale and on a trial basis in economic zones.

Chapter 10Productivity and Industrial Relations

10.1 Productivity improvement program shall be undertaken as a driving-force by usingcontinuous and modern technology in all national economic activities includingagriculture sectors, especially in industrial enterprises and institutions with theobjective to build a self-reliant Bangladesh and also for facing the presentchallenges of globalization and free market economy.

10.2 The productivity enhancement program will be pursued as a national movementunder government support. The objective is to establish good relations andunderstanding between all concerned parties (workers, owners and thegovernment) in order to speed up productivity in all national economic activities,especially in the industrial field.

10.3 It has been proposed that month of January will henceforth be observed as theproductivity month with a view to strengthening productivity enhancing activities inall industrial enterprise and institutions. The aim is to continue a positiveproductivity enhancing effort in the industrial sector throughout the year.

10.4 In recognition of success in manufacturing quality goods of international standardand successful running of an industrial enterprise, a national "Excellence inproductivity and Quality" award will be given every year from now on to aninstitution which will achieve the highest productivity records.

10.5 A separate policy entitled "Productivity Policy" will be drawn up which will providehelp to and exert influence on developing productivity in the country.

10.6 To ensure application of productivity enhancement strategies in all industrialenterprises and institutions, productivity-training programs for human resourcesdevelopment will be conducted at the enterprise level.

10.7 In its regular broadcasts, Bangladesh Television and Radio Bangladesh will stressthe importance of productivity and announce the positive results, so that peoplearound the country become more conscious and interested in it.

10.8 A Productivity Data Bank will be established in NPO so that workers, owners, thegovernment, professionals, researchers, planning specialists and othersconcerned can access information for necessary guidance on productivity.

10.9 The interrelationship between wage and productivity will be established as astrategy to increase productivity in industrial enterprises and institutions.


10.10 The total quality management culture will be adopted as a policy to introduce thejoint consultation system between workers and owners in order to continuouslyincrease productivity in the industrial sector.

10.11 The necessity for developing proper workers-management relations in theindustrial sector will be upheld, and if necessary, some of the sections of the presentlabor law will be reformed in line with recommendations of the labour law commission,as committed to the ILO, so that necessary steps can be taken to improve industrialrelations.

10.12 Collective bargaining will be given priority in fixing wage.

10.13 The Tripartite Consultation Council (the government, owners and the trade union),National Productivity Council and other national-level organizations will help thegovernment formulate polices on employment expansion, productivityenhancement, training, efficiency development, etc.

10.14 Employment of child labour will be stopped in industrial enterprises.

Chapter 11Participation and Development of Women Entrepreneurs

in Industrialization

11.1 Over the last decade, there have been substantial progress in women'sparticipation and successes in socioeconomic activities, especially in industrialactivities, in Bangladesh as elsewhere in the world. So, women's participation inthe country's industrialization must be ensured on a wider scale.

11.2 Special emphasis will be given to identify women entrepreneur capable of runningindependent and self-sufficient industries and businesses all across the country.

11.3 Necessary steps will be taken to provide women entrepreneurs with pre-investmentadvice and assistance in drawing up and implementing projects.

11.4 Various incentives and financial support will be considered for womenentrepreneurs to get established in small and cottage industries.

11.5 Technical, financial and training assistance will be provided for establishing SMEsconsidering the social stance and status of women entrepreneurs. Moderntechnical training will be arranged for enhancing the efficiency of womenentrepreneurs in cooperation with different institution established under theMinistry of Industries, such as BSCIC, BITAC, BIM, NPO, and SCITI.

11.6 Women entrepreneurs will be given preference in expanding and achieving growthin service industries.

11.7 Women entrepreneurs will be encouraged on a greater scale in setting up and


running agro-based industries in the country. Similarly, women entrepreneurs willbe given technical and financial assistance in establishing garment (knit andwoven), electronic, ceramic, hosiery, frozen food, cold storage and high value addedindustries.

11.8 Women entrepreneurs will be provided with incentives and financial assistance inestablishing cottage industries of decorative items, leather goods, embroidery, imitationitems, block boutique, handicrafts of bamboo and cane, toys and other gift items.

11.9 In order to crate women entrepreneurs of high standard, opportunities will begenerated for advanced training and necessary capital, and successfulimplementation of projects will be ensured to set up SMEs and cottage industries.With this end in view, a number of plots will be reserved for women entrepreneursin industrial parks in all divisional towns of the country.

11.10 Necessary initiatives will be taken to help improve the standard of goods producedby women entrepreneurs, crate new markets, publicize, promote and sell theirproducts in local and foreign markets.

11.11 The participation of women entrepreneurs in policymaking in the field of industrialdevelopment will be ensured.

11.12 The establishment of a separate bank under public or private initiative will beconsidered so that women entrepreneurs can have an easy access to industrialcredit, equity capital, venture capital and working capital. Co-lateral free loans willbe considered for women entrepreneurs after examining their competence.

Chapter 12Investment Criteria of feasibility study for planned industrialization

Policy Strategy for Investment Criteria

12.1 Because of the scarcity of capital in the country, financing institutions investing inthe industrial sector have the conduct pre-investment study properly. With this endin view, the investment criteria that are suitable should be examined and thenapplied. Special care should be taken in respect of big and medium scaleindustries because the require big amount of capital to be invested. While settingup large and medium scale industries, entrepreneurs and financing institutions shouldconsider improving the conventional investment tactics, examine and review thedifferent investment criteria, and then conduct the feasibility study on the basis of thecriterion which is most suitable. If necessary, more than one criterion can be used toconduct feasibility study. Investment criteria have been explained in brief in Annex 4.

12.2 Creating re-investment opportunities in manufacturing goods in the industrialsector is an important factor. So, production activities in the industrial sector shouldbe administered in such a way that re-investment opportunities are created.


12.3 The principles of productivity gain sharing are appropriately followed in manydeveloped and developing countries in order to attain continuous growth in theproduction sector. The objective is to distribute profit between workers, owners andthe government on an equal basis. This concept can also be pursued in runningindustrial enterprises in our country. To this end, a minimum productivity standardshould be set in each industrial enterprise.

Chapter 13Export-oriented and export linkage industries

13.1 Export-oriented industrialization is one of the major objectives of the presentindustrial policy. Prioritizing export-oriented industries and providing all-outgovernment assistance in respect of this will be ensured.

13.2 Those industries that export at least 80 percent of their produce or supply 80percent raw materials for exportable items or those business enterprises thatexport at least 80 percent of their services will be considered export-orientedindustries (IT-related goods are also included).

13.3 The following incentives and facilities will be provided in order to attract investmentin 100 percent export-oriented industries:a) The percent duty-free import policy will continue for the import of capital

machinery and for up to 10 percent of the value of the spares of that capital machinery. The rates of customs duty in the import sector have been reorganized into three tiers: 7.5%, 15% and 25%.

b) The duty drawback system has been further simplified, and with this in mind, aflat rate will be fixed for all exportable items. Exporters will get duty drawback facility at a flat rate from concerned commercial banks.

c) The system of providing up to 90 percent credit against non-negotiable and fixed L / Cs / sale agreements will continue.

d) In order to ensure backward linkage, export-oriented readymade garment industries and other local raw material using export-oriented industries will be provided with various facilities at a prescribed rate. Similar facilities will also be provided to local deemed exporters in export-oriented industries.

e) Export-oriented industries will be given the facility of handling foreign exchangeof certain amount which will be beyond the Bangladesh Bank's foreign exchange regime in order to facilitate the opening of their offices abroad, promoting their products and taking part in international trade fairs.

f) The export income earned from cottage industries will be 100% income tax-free, and the SMEs and other industries will be given income tax rebate at the rate of 50% of their export income.

g) The facility of importing raw materials necessary for the production of export goods but enlisted as banned/reserved items will continue.


h) Value-added jute, jute-mixed goods and diversified jute goods produced with new technology will be treated as export-oriented or import-substitute industries.

i) Consistent with present government policies, facilities will be given for tax-freeimport of raw materials (at a prescribed amount) necessary for the production

of exportable goods.j) If local raw materials are provided to local industries or projects through foreign

currency L/Cs, then those will be treated as indirect export and will be given facilities, which are applicable for export.

k) The export credit assurance scheme will be further expanded and strengthened.

13.4 The export-oriented industries identified, as the government's thrust sector will begiven special facilities including "venture capital' facilities.

13.5 The current facilities of duty and tax assessment and rebate on imported goods(before arrival) will continue. Clearing process and formalities will be furthersimplified so that the clearance process takes the least time to be completed.

13.6 In respect of export-oriented and export linkage industries, all sorts of facilitiesdescribed in the export policy will be given, apart from the facilities mentioned above.

13.7 Utility services will be provided to 100% export-oriented industries atreduced/rebated rates.

Chapter 14Foreign Investment

14.1 Foreign direct investment will be encouraged in all industries in Bangladesh exceptthose in the reserved lists. Banking, insurance and other financial institutions. Thistype of investments can be made in local public and private sector individually orjointly. The capital market will be open for "portfolio" investment.

14.2 The legal framework for foreign investments has been drawn up on the basis of theforeign investment (promotion & Protection) Act 1980. The framework is as follows:

a) Equal treatment of both local and foreign investments;b) Safeguarding foreign investment from state expropriation; andc) Assurance of repatriating finance and profit deriving from share disposal.

14.3 There will be no restrictions to foreign investment in terms of equity participation,i.e., 100% foreign equity can be invested. While setting up industries with completeforeign investment or in joint venture there will be no restrictions to the sale ofshares through public issue irrespective of paid-up capital. However, foreign investorsor institutions can purchase shares through stock exchange, and necessary guidelineson this will be drawn up. Foreign investors or institutions can avail loan from localbanks to meet their running costs. Conditions for such type of loan will be determinedon the basis of the relations between the bank and the borrower.


14.4 Foreign investors can avail of the same facilities as local investors in items of taxholiday, royalty payment, technical fees, etc. Personal income taxes need not bepaid by foreign technicians appointed in foreign companies for up to three years,and after that period, they have to pay on the basis of dual taxation revocationagreement or any other agreement reached with their respective countries.

14.5 In respect of foreign investment, full repatriation facility of invested capital will begiven. Profits and dividends are also repatriable. if foreign investors choose toreinvest their repatriable dividend or earned profit, then this will be treated as newinvestment. Foreign citizens appointed in Bangladesh will be entitled to a remittance of50% of their wage and full repatriation of their saving and retirement benefits.

14.6 There will be no restrictions to the issuing of work permit for efficient foreignprofessionals on the basis of the recommendations of local and foreign investingcompanies or joint venture companies. Multiple entry visa will be issued to foreigninvestors for three years and to efficient professionals for the whole period of theirappointment.

14.7 In respect of foreign investments in thrust sectors, preference will be given to smalland medium scale investors when allotting plots in BSCIC industrial enclaves.

14.8 Investments by non-resident Bangladeshis will be treated as foreign direct investment.

14.9 Steps will be taken to protect intellectual property in respect of new goods and formulae.

14.10 International norms and systems will be followed in respect of providinginvestment assurance and conflict resolution.

14.11 Initiatives will be taken to expand the facilities of EPZ areas to those 100% export-oriented industries that are established in non-EPZ areas.

Chapter 15Board of Investment

15.1 In accordance with the Board of Investment Act 1989, the Board of Investment willprovide necessary assistance and facilities to boost private investment inBangladesh. The Board, formed under the leadership of the Prime Minister, withMinister and Secretaries representing relevant ministries, will take necessarydecisions in order to help establish new industries and provide assistance toalready established industries.

15.2 The Board of Investment will provide one-stop service in the following fields so thatinvestors get infrastructure facilities quickly when setting up industries:

(a) Electric and gas connections:


(b) Water and sewerage connections: (c) Telecommunications facilities;(d) Customs clearance of imported machineries, spare parts and raw materials;(e) Clearance from environmental agencies; and(f) Other necessary facilities and services for speedy setting up and running of

industries.

15.3 With this end in view, all relevant public agencies will be involved with the one stopservice of the Board of Investment.

Chapter 16Export Processing Zones

16.1 Export Processing Zones have been set up in the country under the BangladeshExport Processing Zones Act 1980 in order to help establish export-orientedindustries. All infrastructure facilities including telecommunication and utilities havebeen provided in the zones. Under the Bangladesh Private Export ProcessingZones Act 1996, permission has also been given to bring in foreign investments orjoint ventures or for setting up private export processing zones.

16.2 Keeping in mind that agro-based industries can play an important role in the socio-economic sector of the country, cash incentives may be provided by thegovernment to entrepreneurs of agro-based industries in EPZs, especially in theMongla, Ishwardi and Uttara (Nilphamari) EPZs .

16.3 10 percent of the goods produced in EPZ industrial units can be exported inside thecountry subject to payment of applicable duties and taxes (through foreign currencyL/Cs)

16.4 100 percent export-oriented industries outside the EPZs can sell 20 percent oftheir products in the local market subject to payment of applicable duties andtaxes.

16.5 The following investments are allowed in the Export processing Zones:

Category (a): 100 percent foreign investment including those of non-residentBangladesh: Under this category, foreign investors should bear all costs includingconstruction, purchase of raw materials and the total working capital only with theirown sources of foreign exchange.

Category (b): Joint ventures of foreign and local investors: Under this type ofinvestment, project expenses should be borne in accordance with the partnershipagreement but the costs of importing all sorts of machinery should be borne byforeign partners.


Category (c): 100 percent investment of Bangladeshi investors living inBangladesh: Under this category, all project expenses including the import ofmachinery should be borne from the investor’s own resources, supplier’s credit,non-exportable foreign exchange, pay-as-you-earn scheme or any otheracceptable system.

Chapter 17Industrial Technology

17.1 One of the foremost objectives of the Industrial Policy 2005 is to help attaincompetitive efficiency by developing. Technology, reduce consumers’ costs byusing cost-effective technology, and assist in the development of anenvironmentally friendly industrial production system. Converted efforts will bemade in order for entrepreneurs to boost their profit with the help of improvedmanagement and production technology.

17.2 Assistance will be provided in the use of new technology in order to substitute forimports or expand exports in prioritized sectors.

17.3 Licensing process will be simplified in respect of imported, adapted or domestictechnology.

17.4 A subsidiary corporate culture will be established in order to create a team ofworkers consistent with planned human resources development and changingtechnology.

17.5 Approved research and development expenses will receive tax holiday. Fruitfulcontacts will be arranged between various research institutions and relatedindustrial enterprises so that research results can be utilized for the benefit of allconcerned.

Chapter 18Technical and institutional Assistance

18.1 Assistance will be taken form a number of specialized public and privateinstitutions to generate and sustain competition in the industrial sector. Theseinstitutions will be strengthened gradually so that they can play an effective role inthe country’s industrialization.

18.2 Development of sub-contracting: The policy of linkage between heavy, mediumsmall and cottage industries will be pursued in such a way that small and cottageindustries can work as “sub-contractors” of comparatively bigger industriesincentives will be given so that big industries manufacture and assemble basicgoods and small i9ndustries produce accessories.


18.3 Efficiency enhancement: Attempts will be made to develop the efficiency ofworkers, technicians and employees in the public and private sectors. A publicinstitution named national productivity Organization is working to this end. Apart fromthis, universities and training organizations/institution will be used for this purpose. In-service training courses will also be arranged for workers to enhance their efficiency.

18.4 Quality control: Manufactured goods must have an acceptable quality in order forthem to sustain demand in domestic and foreign markets. SO all manufacturers ofindustrial goods must strictly follow a quality control system. The BangladeshStandard and Testing Institution (BSTI) and some other quality control institutionare carrying out their task in this regard. BSTI, corporate organizations and otherquality control institution will jointly develop a system to provide InternationalStandard Organization ISO certificates (specially the ISO 9000) for Bangladeshigoods and services. Initiatives will also be taken to establish an accreditation body.

18.5 Advising on investment matters and management training Approving authoritiessuch as the Board of Investment, BEPZA and BSCIC provide domestic and foreigninvestors in the private sector with pre-investment and post –investment guidanceand services. To this end, the advisory and training facilities of the Small andCottage Industries Training Institute (SCITI) and the Bangladesh ManagementInstitute (BIM) will be further developed and expanded.

18.6 Environment pollution control: The Environmental Protection Act 1995 and otherrelevant legislation are gradually implemented to control environmental pollution.Those industries that pollute the environmental and endanger public health mustensure safety measures in respect of environmental pollution control. Industrialenterprises will be encouraged to obtain ISO-14000 certificates.

18.7 Capital market development: The Securities and Exchange Commission will drawup and carry out relevant legislation in order to mobilize market-oriented capital.

18.8 Recognition of industrial development: A new category will be added to theIndependence Day Award to recognize the special contribution of entrepreneurs tothe industrial sector. Successful entrepreneurs of the industrial sector will betreated as CIPs (Commercially Important Persons) at an increasing number. Inorder to provide incentives to non-resident Bangladeshi investors, 5 to 10important non-resident Bangladeshi will be selected every year.

18.9 An all-out effort will be made to encourage the production of diversified jute goodsand the diverse use of jute. The Jute Diversification Promotion Center (JDPC)under the Ministry of Jute will provide interested investors with all sorts ofinformation assistance.


Chapter 19Implementation, Monitoring and Review

19.1 Public agencies will follow thee Industrial Policy 2005. This policy will beimplemented properly and monitored regularly, and necessary changes will bebrought about consistent with the needs of economic development.

19.2 The Industrial Policy has upheld the present environment of industrial development byfollowing existing laws and other polices. In line with the industrial policy, concernedpublic agencies will review their rules and regulation, and amend them, if necessary.Apart from this, powerful new committees will be formed to implement this policy.

19.3 The special activities that will be undertaken to implement the Industrial Policy areas follows:a) In order to remain consistent with the objectives and strategy of the Industrial

Policy 2005, necessary amendments will be brought about the Board of Investment Act 1989, Foreign Investment (Development and Preservation) Act 1980 and other relevant legislation. If this policy contravenes any prevalent rules/legislation, the present rules/legislation will remain valid until an amendment is brought about.

b) A new set of policy entitled “Productivity Policy” will be formulated under the Industrial Policy 2005.

c) Necessary action will be taken to update the relevant legislation and principlesso that the standards of industrial goods are monitored and improved and consumer interests are safeguarded.

d) If there are ambiguities or difficulties in respect of application of rules regulations, ordinances and laws for industrialization, the Ministry of Industries will take steps to alleviate them in cooperation with various trade bodies and the Law Commission.

19.4 The Productivity Development Program should be declared and accepted as anational movement.

19.5 From now on, the month of January will be observed as a ‘productivity month’ every year.

19.6 In order to properly monitor and administer the Industrial Policy 2005, anInformation Management Service (MIS) will be set up in the Ministry of Industries.

19.7 The National Council for Industrial Development (NCID) undertaken variousdevelopment programs aiming at establishing countrywide small, medium andheavy industries at a massive scale. The Prime Minister of the People’s Republicof Bangladesh is its Chairperson and Minister for Industries is its Vice Chairman.The Council will also comprise the following:


(1) The Ministers for Finance, Commerce, Power and Energy, Agriculture, Textileand Jute, Environment and Forest, Post and Telecommunication, Science and ICT, Labour and Employment, Civil Aviation and Tourism, Expatriate Welfare and Foreign Employment, Women and Children, and Fisheries and Livestock, and the Deputy Minister for Industries.(2) Chairman, The Privatization Commission(3) A Member of Parliament from each of the administrative divisions(4) Governor, the Bangladesh Bank(5) Secretaries of the relevant Ministries/Divisions (Finance,

Industries, Commerce, Planning, ERD, Power and Energy, Textiles and Jute, Post and Telecommunication, Science and ICT, Labor and Employment)

(6) Members of the Industries and Energy Divisions of the Planning Commission(7) Executive Chairman, the Board of Investment(8) Chairman, the Tariff Commission(9) Chairman, the Bangladesh Small and cottage Industries Corporation(10) Executive Chairman, the Bangladesh Export Processing Zone Authority(11) Presidents of the FBCCI, DCCI, MCCI, BCI, FICCI, CCCI, NASCIB, BGMEA,

BTMA and BJMA(12) President, the Bangladesh Employers’ Federation(13) Chairperson, the Women Entrepreneurs’ Association(14) Government nominated five distinguished industrialists

The Council will meet once every six months, and the Ministry of Industries will providethe council with secretarial assistance.

19.8 An Overall Guidelines Committee has been proposed in the Industrial Policy 2005under the supervision of the Ministry o industry. This objective is to provideentrepreneurs with information-based advice and overall assistance in the interestof planned and proper industrialization in the country and also to provide necessaryrecommendations and assistance to public and private industries by coordinatingwith relevant ministers and agencies so that their problems are minimized. Thecommittee will comprise as follows:(1) Minister, Ministry of Industries Convener(2) Chairman, Privatization Commission Member(3) Principal Secretary, Prime Minister’s Office Member(4) Governor, Bangladesh Bank Member(5) Secretary, Planning Commission Member(6) Secretary, Finance Division, Ministry of Finance Member(7) Secretary, Ministry of Industries Member(8) Secretary, Ministry of Commerce Member(9) Secretary, Internal Resources Division and Chairman, NBR Member


(10) Secretary, Ministry of Agriculture Member(11) Secretary, Ministry of Fisheries and Livestock Member(12) Secretary, Ministry Science and ICT Member(13) Secretary, Ministry of Textiles and Jute Member(14) Executive Chairman, Board of Investment Member(15) Executive Chairman, BEPZA Member(16) President, FBCCI Member(17)President, NASCIB Member(18)Chairperson, Women Entrepreneurs’ Association Member(19)Additional Secretary, Ministry of Industries Member Secretary

The Committee will get together at least once every three months

19.9 The following sub-committee will submit to the Committee a report with specificrecommendations on the profitability and probable risks of industrial enterprises tobe set up and the scope and facilities of items produced in the local export marketso that suitable programs can be undertaken to set up industrial enterprises:

(1) Secretary, Ministry of Industries Member(2) Secretary, Ministry of Commerce Member(3) Chairman, National Board of Revenue Member(4) Member (Industry), Planning Commission Member(5) Secretary, Ministry of Textiles and Jute Member(6) Executive Chairman, Board of Investment Member(7) A Deputy Governor level representative from

Bangladesh Bank Member(8) A Member level representative from

Privatization Commission Member(9) Chairman, BSCIC Member(10) President, FBCCI Member(11) President, Bangladesh Chamber of Industry Member(12) President, BGMEA Member(13) President, BJMA Member(14) President, BTMA Member(15) President, NASCIB Member(16) Chairperson, Women Entrepreneurs’ Association Member(17) Joint Secretary (Autonomous Bodies),Ministry of Industries Member-Secretary

If necessary, new members can be co-opted in the committee.


Chapter 20Annexes

Annex 1

Thrust Sectors1. Agro-based and agro-processing industry2. Textiles industry3. Jute goods and jute-mixed goods4. Readymade garment industry5. Computer software and ICT goods6. Electronic7. Light engineering including automobiles8. Pharmaceutical goods9. Leather and Leather products10. Ceramics11. High fashion value added RMG12. Artificial flower production13. Frozen food14. Integrated shrimp cultivation15. Flower cultivation16. Infrastructure17. Jewellery and diamond cutting and polishing18. Oil and gas19. Silkworm and silk industry20. Stuffed toys21. Tourism industry22. Basic chemicals/raw materials used in industries23. Dye and chemicals used in textiles industry24. Optical frame25. Furniture26. Luggage fashion-based goods27. Cosmetics and toiletries28. CR coil29. Handicrafts30. Stationery goods31. Herbal medicines32. Commercial plantation33. Horticulture


Annex 2

In recent items, the boundaries of the industrial manufacturing sector have beenstretched to cover the transport (?) sector nationally important activities that includemany service sectors. For instance, agro-based and agro-processing industry;fishing, fish processing and marketing; horticulture, flower cultivation and marketing;food crops and oilseeds processing; and post-harvest processing of jute have beenbrought within the industrial sector. Similarly, tourism industry, hotel management,telecommunication, computer software and programming under ICT, e-commerce,digital network and alliance are all considered service industries in the context oftoday’s competitive world, Likewise, transport and communication, construction,housing, furniture, forest industry, and cinema and DVD for entertainment are alsoconsidered industries. Meanwhile, in the industrially developed world, the printingpresses, ginning and baling, construction business, photography, laboratory,warehouse, cold storage and container services are currently being consideredservice industries. Given this background, the list of service industries has beendrawn up as follows in the present Industrial Policy of Bangladesh:

Service industries1. Hospitals and clinics2. IT-based activities3. Agro-based activities such as fishing, fish preservation and marketing4. Telecommunication5. Transport and Communication6. Forestry and furniture7. Construction industry and housing8. Construction business9. Entertainment10. Photography11. Hotel and tourism12. Warehouse and container service13. Printing and packaging14. Ginning and baling15. Laboratory16. Cold storage17. Horticulture, flower cultivation and flower marketing18. Food crop and oilseed processing19. Knowledge society with high quality merit and efficiency

Annex 3

Reserved industries1. Arms and ammunition and other military equipment and machineries2. Nuclear power3. Security printing and minting4. Afforestation and Mechanized Extraction with the boundary of reserved fores.


Anenx 4

Investment indicators(1) Average rate of return method: The average production rate system is an important

indicator in project investment. In this system, production activities can be undertakenafter review and evaluation of average project production and average project costs.Entrepreneurs can properly follow this indicator while investing their capitals.

(2) Payback method of investment: This method means an opportunity of obtainingpayback through an efficient use of the primarily invested money for a certainperiod of time. By using this method, investors can ensure the return of theirprimarily invested money on a short-term basis. Entrepreneurs can pursue thisindicator while investing thei1r money in the country.

(3) Discount payback method: This method means a return or profit by deducting thepresent value of invested amount from that of the value of the amount to beobtained in the future. By using this method investors can have an opportunity touse their money in an efficient and profitable way. Entrepreneurs should considerthis investment indicator with importance while investing their capital in setting upindustrial enterprises.

(4) Internal rate of return method: The cost-benefit ratio is an important tactic in thefruitful and effective evaluation and review of the establishment of industrialenterprise and their efficient running and in determining how much the investmentflow is going favorable. the internal rate of return method is an investment methodwhich helps to obtain a forecast of the degree to which the invested amount isbeing used in an efficient and profitable way by examination the cost-benefit ratio.However, the even and uneven cash flow must be taken into account under theinternal rate of return method. This method is considered the most acceptablemethod of all investment indicators.

5) Present value method: Each entrepreneur should carefully consider the profitabilityindex of his invested money while considering or implementing the present valuemethod because the higher the profitability index, the greater the return.

Board o f Inves tment 2 0 0 7Board o f Inves tment 2 0 0 7248

Some important BOI publications are

Handbook and Guide1. Bangladesh Investment Handbook, 3rd Edition, May 2007 (English)2. Bangladesh Investment Handbook, 2nd Edition, May 2004 (English)3. Bangladesh Investment Handbook, November 2002 (English)4. Investing in Bangladesh: A Guide to Opportunities, October 1999 (English)

Newsletter1. Bangladesh Investment Review (Quarterly Newsletter of Board of Investment), Various Issues, 2003

and 2004 (English)

Investment Statistics1. FDI in Bangladesh during 20042. FDI Inflow Survey 2: FDI in Bangladesh - January-June 2003, November 2003 (English)3. Foreign Direct Investment in Bangladesh during 2002, March 2003, (English)4. GCC Countries & Bangladesh: Investment and Trade Cooperation, May 2002, (English)

Miscellaneous1. Utility Services and Environmental Clearance, January 2001, (English)

All the above publications are available online at www.boi.gov.bd /documents.html

Some Relevant Publication by UN and EC1. An Investment Guide to Bangladesh - Opportunities and Conditions, August 2000 (English). Published

by United Nations. Available for downloading at www.unctad.org/en/pub/investguide.en.htm

2. Guidebook for European Investors in Bangladesh, August 2001 (English). Published by EuropeanCommission, Asia Investment Facility. www.asia-invest.com

3. Guidebook for European Investors in Bangladesh, Sector Profiles, November 2001 (English).Published by European Commission, Asia Investment Facility. www.asia-invest.com

BOI PublicationBOI Publications