bangladesh · bangladesh is the largest exporter of jute and jute goods of the world; environmental...
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Dr. S. M. Saiful Hoque Ambassador of Bangladesh To the Republic of Latvia,
Republic of Lithuania, Republic of Belarus and Russian Federation
20 November, 2019
Bangladesh: An unexplored area for Latvia
Discussion Today
Bilateral Relationship 01
Economic potential of Bangladesh 02
03
04
Foreign Trade &Exportable Items, scope of FDI
Q & A
“Bangladesh is the
Next China”
“28th & 23rd largest economy of
World by 2030 & by 2041”
“Low cost and high return
manufacturing destination in Asia”
“Bangladesh will be
the 12th economic
power of the world
in 2050”
“Bangladesh one of the Frontier 5
economies”
“The Next Eleven” Bangladesh among
the 11 nations, have high economic
potential”
9
Economy of Bangladesh: Overview
Source: Bangladesh Economic Review 2016, Ministry of Finance, World Bank, Digital Year Book 2016, World Development Indicators, World Bank and 7th five year plan, GoB
GDP
USD 275 Billion
Poverty rate
dropped to
12.9% from
44.2%
Each year Bangladesh
creates around 1.2
million jobs
Export climbs to
44 billion in FY18 from
16 billion in FY10
Average GDP
Growth
6% - 7% (Last 10 Years)
FY 2018
GDP Growth
7.86% (All Time High)
GDP
Per Capita
USD 1,827
Share of Investment
to GDP
30.3%
Foreign Trade of Bangladesh
IMPORT- 60 BN EXPORT- 44 BN
Main sources of import China, India, USA, Singapore, Japan, EU etc
01
Major Export Destinations
Germany, USA, UK, Spain, France, Canada etc
02 Goods Petroleum, Food grains, Edible oil, Automobiles, Electronics, Machineries & equipments, Food items Service ICT, Financial etc
Major Import Items
Goods-Ready Made Garments, Leather & Leather goods, Agricultural
goods, Frozen fishes, Jute & Jute goods, Pharmaceuticals, Light engineering, Plastic products
Services- ICT, Travel, goods related
Major Export Items
Our Products Our Pride
RMG Hometextile
Leather goods
Pharma
Agro based
Frozen, Processed
foods
Light engineering
Plastic
Jute
Ready Made Garments Largest cotton t-shirts exporter in the world;
Second largest knitwear exporter of the world;
Third largest apparel exporter in the world;
Bangladesh is the second largest denim exporter to
the world;
6,500 garment factories in Bangladesh;
4 million workers are employed in apparel sector;
90% of the workers are women;
GSP facilities for the apparel sector to EU, Japan,
Australia, New Zealand, Canada;
Leather & Leather Goods • Leather Sector (combining leather, leather products and shoe) is
the 3rd largest exporting sector of Bangladesh;
• US$ 1.90 billion worth export earning comes from this sector;
• More than 220 tanneries, 3500 medium SMEs and 110 large
firms are involved in this sector;
• More than 7 million employments are generated, especially
women are involved in this sector;
• ECO Friendly Leather Technology has been introduced;
• Bangladesh is in the spotlight for shoe due to the fact that
western importers are looking for new sourcing destinations;
• Chrome free leather and Central Effluent Treatment Plant
(CETP) technology implementation is under process;
Pharmaceuticals 246 companies registered with food & drug administration
of Bangladesh;
US$ 69.24 million worth of medicine export from
Bangladesh;
Export to 97 countries in the world;
Quality & Price Competitive products;
Maintain GMP (Good Manufacturing Practice);
Second largest contributor to the National Exchequer;
Only successful LDC in the world to produce generic
medicine, license to produce patent medicine;
Good number of products registered with EU, Latin
America & African countries
200 acres of land allotted for making API
Jute & Jute products
Jute is an environment-friendly product which is the best alternative to synthetic products such as carbon or ceramic fibers which are subject to environmental concerns;
Bangladesh is the largest exporter of Jute and Jute Goods of the world;
Environmental issues, use of present awareness about synthetic fiber, are potential opportunities for Bangladesh to expand business in jute & jute sector.
Developed world is focusing on eco-friendly products and the demand for Jute goods is increasing.
Jute is a natural fiber and biodegradable. Bangladesh has invented biodegradable poly-shopping bag with jute which will hit the world market soon.
ICT ICT Industry at a Glance
• 1000+ IT & ITES Companies
• 300,000+ IT HR Across Industries
• $700+ million ICT Export in 2016
• Bangladeshi diaspora working in Google,
Facebook, IBM, Intel, Microsoft, Apple,
Amazon, eBay etc.
• 50,000 Freelancers earning $100+ m
Potential areas of Investment:
• Computer Software & IT Based Services
• Communication Software & Hardware
• R&D
• Electronic Products
• Manufacturing & Assembling
• HR Development Institute
• Bioinformatics
Hi Tech Park: Incentives
• 12 years tax exemption for Developers
• 10 years tax exemption for IT/ITES Co.
• Duty free import of capital machineries, vehicles etc.
• Bonded Warehouse station facilities in
HTP/STP
• 100% ownership for foreign investors
• 100 % profit repatriation for investors
Major Infrastructure Developments
• Dhaka Metro Rail
• Deep Sea Port
• Bangabandhu Satellite (launch 2017)
• Digital Island Moheshkhali
• Tier-4 Data Center, NEA Implementation & CIRT
• SEAMEWE 5, 1300 Gbps Launch of
4G & LTE
• A Strong Network of HTPs & STPs
Recent Key Investments 2
01
8
Summit Corporation Limited, Mitsubishi and General Electric-
$3 billion, making it the biggest ever private FDI in the power sector
of Bangladesh.
Japan Tobacco Inc-$1.47 billion, the biggest ever single foreign direct
investment in Bangladesh.
Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) has
bought share in the Dhaka Stock Exchange worth $.11 billion
Alipay has bought 20 percent stakes in bKash, Bangladesh's largest mobile financial
service provider
Alibaba has expanded its footprints in Bangladesh after it snapped up online marketplace Daraz
Amazon and Walmart are planning to start operations
in Bangladesh within the next couple of years
USA
UK
GERMANY
DENMARK
UAE
INTERESTED
NATIONS
WHO WANT
TO INVEST
IN BANGLADESH
UK
SAUDI
ARABIA
GERMANY
DENMARK
UAE
CHINA JAPAN
MALAYSIA
SINGAPORE
INTERESTED
NATIONS
WHO WANT
TO INVEST
IN BANGLADESH
7 Reasons for you
to Invest in Bangladesh
Energy & Infrastructure Power Economic Zones
Ports and Logistics
Oil and gas
Transport Infrastructure
ICT & Electronics ICT and IT Enabled Services Computer software & ICT Electronics
Textile & Clothing Home Textiles
Textiles industry
Readymade garments
industry
High value added RMG
Agribusiness & Food
Processing
Agro-based/processing
Flower cultivation
Furniture & Handicrafts
Jute & Jute goods
Commercial plantation
Silkworm & Silk Industry
Integrated shrimp
cultivation
Frozen Food &
Horticulture
Pharma & Chemicals Pharmaceuticals
Herbal medicines Textile Dye & chemicals Basic chemicals
Healthcare Health care Medical Equipment
Others Plastics & Ceramics
Leather & leather goods
Footwear
Light engineering incl.
automobiles
Cosmetics and toiletries
Tourism
Jewelry and diamond
cutting polishing
Reserved Sectors: Arms & ammunitions, Nuclear Power, security printing and minting, afforestation and mechanize extraction within the boundary of reserved forest
01. OPEN TO INWARD INVESTMEN
1 2 3 4 5 6 7
02. Opportunities in Domestic Market
Nationwide a network of 1.3 Million Retail
Outlets
17 Key MAC Cities by year 2020
33 Key MAC Cities by year 2025
Domestic Consumption
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
In Billion
MAC (Middle and Affluent Class) 2 million MAC
POPULATION being added per
annum (BCG 2015)
Plain land delta crisscrossed
with 700+ rivers offering the fastest
‘firm to shelf’ expansion
1 2 3 4 5 6 7
• Median age of Bangladeshi citizen is
26.7 years.
• 118 Million working age population
• 46.83 Million people is less than
15 years old
• Homogenous culture: In South Asia, Bangladesh
has a high degree of linguistic, religious, and
ethnic homogeneity.
1 4 5 6 7
03. DEMOGRAPHIC DIVIDEND
Kunming
Mandalay
Sylhet
Dhaka
Jessore
Kolkata
One Belt One Road Initiative:
Connect China, Myanmar, India and
Bangladesh through Overland and
Sea Route.
04. Bangladesh: South Asia’s Geo-Strategic Gateway
Connecting the Payra seaport with the
Chittagong port through railway, which will
also create a network between the
neighboring countries of India, Nepal,
Bhutan and Myanmar. Access to 2.71
Billion consumers who are spending more
than 8.325 trillion USD
1 2 3 5 6 7
05. Preferential Market Access Bangladesh is getting GSP facilities from 38 countries; 28 countries of European Union and 10 other countries:
Australia, Belarus, Canada, Liechtenstein, Japan, New Zealand, Norway, Russian Federation, Switzerland & Turkey.
DFQF Access in GSP schemes of Developed Members: Australia, Canada, European Union, Iceland, Japan, New Zealand, Norway, Switzerland, Russia, United States DFQF Access of selected Developing Countries: Chile, China, India, Republic of Korea, Chinese Taipei, Turkey
1st in denim export to EU market
2nd largest apparel exporter worldwide after
China
8th largest exporter of the leather
products in the world
8th largest exporters of bicycle
1st in Jute (natural Fibre) production
and export
1 2 3 6 7
06. Infrastructure Support
66 Economic Zones selected
100 Economic Zones in the next 15 years
Padma bridge linking the south-west of the country, to northern and eastern regions.
Power & Energy
Energy Diversification through introduction of LNG, Nuclear power, Solar, Wind, LPG etc.
Rail Road & 4 Lane Highway
All the national highways are being
converted into 4-lane ones
Metro Rail, Elevated Expressway and High
Speed Express Railway connecting
the mega cities
Hi-Tech & Software Parks
28 Hi-Tech & Software Parks to
attract foreign direct investment in hardware and
software manufacturing
industry.
2019 2021 2030
20,133
MW
24,000
MW
30,000
MW
1 2 3 4 5 6 7
07. Initiatives to Foster Competitiveness
Tax Holidays 5 – 10 Years for some sectors and up to 10 Years
for Infrastructure and Economic Zones
Tax Concessions for Capital Machines and import of Raw Materials
Avoidance of Double Tax under DTIs
TAXES FINANCIAL OTHERS
Cash Incentives
Export Development Fund
Equity Entrepreneurship Fund
Accelerated Depreciation In lieu of tax holidays
Fast Track Approvals
Citizenship Permanent
Residency
Quick
Immigration Skilled Work
Permits
NRB
Preferences
Bonded
Warehousing
1 2 3 4 5 6 7