private sector engagement and trade facilitation

Private Sector Engagement and Trade Facilitation

Md. Sirazul Islam, Executive Chairman, Bangladesh Investment Development Authority

Dr. Md. Jafar Uddin, Secretary, Ministry of Commerce

29 January, 2020

I s s u e s t o D i s c u s s

• Vision for Prosperity and Peace

• Existing Scenario of Trade & Prosperity

• Trade Facil itation Status

• Opportunities and Challenges

• Areas that require Assistance/Support from

Development Partners 29 Jan 2020 Export Wing, Ministry of Commerce 2

The dream of the father of our nation

Bangabandhu Sheikh Mujibur

Rahman was to build a Shonar Bangla

(Golden Bangladesh).

Under the strong & dynamic leadership

of Honorable Prime Minister H.E.

Sheikh Hasina, Bangladesh is now

being considered as miracle for the

developed nations and a Dazzling

Delta.29 Jan 2020 Export Wing, Ministry of Commerce 3

J o u r n e y w i t h V i s i o n

429 Jan 2020 Export Wing, Ministry of Commerce

P ro g re s s

• Simpl i f icat ion of Bus iness ( fees and documents reduced for company registrat ion, Introduct ion of Advance Rul ing System in NBR, Draft Customs Act 2018)

• Automation (Registrar Jo int Stock Company, Company Registrat ion, Registered Exporter System, Onl ine Module, part ia l Nat ional S ingle Window)

• Harmonizat ion (Automated System for Custom Data, e -commerce, Inter -country Customs cooperat ion with Bhutan, India & Nepal)

• Infrastructure (Ports , Dhaka -ctg. 4 lane Road, PangaonContainer Terminal , A irport terminal)

29 Jan 2020 Export Wing, Ministry of Commerce 5

P ro g re s s ( 2 )

• Appointment of Author ized Economic Operator by NBR (3 companies of the Pharmaceut ica l sector were g iven AEO l icense)

• 100 Specia l Economic Zones (Many are now ready for investors from both home and abroad)

• Bangladesh Trade Porta l (BTP - 13.03.2016) and Customs Information Porta l (CIP)

• One Stop Serv ice (OSS) Act and 18 processes have been streamlined and made avai lable through onl ine


P ro g re s s ( 3 )

• Export Readiness Fund, Technology Development Fund and Green Fund

• Compl iance and Implementat ion of Due di l igence in factor ies and Establ ishments (Amendment of labor Law, EPZ labor Act , Modernizat ion of labor Court , Trade Union Registrat ion, Strengthening Dept. of Inspect ion and Factor ies Establ ishment & F ire Serv ice, and Overs ight of BGMEA/BKMEA)

• R a n k i n t h e D o i n g B u s i n e s s I n d e x ( 1 6 8 F r o m 1 7 6 )

• G r a d u a t i o n f r o m L D C s t a t u s ( B y 2 0 2 4 )


A c h i e v e m e n t : E x p o r t

9.34.0

29.3

5.7

10.110.5

3.3

8.91.2

5.5

9.5

0

10

20

30

40

50

60

FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Total Export (Billion USD) Growth

29 Jan 2020Export Wing, Ministry of Commerce

8

A c h i e v e m e n t : F D I

9 Source: Enterprise Survey, Bangladesh Bank

0

500

1000

1500

2000

2500

3000

3500

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

1480.34

1833.872003.53

2454.81 2580.44

3888.99FDI Inflow (Net) (in Million US$)


Tr a d e F a c i l i t a t i o n A g r e e m e n t I m p l e m e n t a t i o n S t a t u s

• According to the provision of TFA Ministry of Commerce finalized Category A, Category B and Category C measures for trade facilitation

➢ Category A : 21 sub measures - already implemented by February 2018.

➢ Category B : 19 sub measures - to be implemented from February 2020 to February 2022.

➢ Category C : 13 sub measures - to be implemented upon receipt of capacity building support from Development Partners. List of Categories_A_B_C.docx


List of Categories_A_B_C.docx

11

I n v e s t m e n t C l i m a t e o f B a n g l a d e s h

Secured by law

against

nationalization and

expropriation

Local and Foreign

investments are

given equal

treatment

100% foreign

equity is allowed

along with

unrestricted exit

Almost all

industrial sectors

are open for

foreign investors

Bilateral

Investment treaties

(BITs) signed

with 32 countries

Double taxation

treaties with 28

countries

including UK

All laws, regulations are

conducive to investment

C o m p e t i t i v e E d g e o f B a n g l a d e s h i n I n v e s t m e n t

12

Export OrientedAbundance of competitive work-force, Lowest Wage in Asia, Duty Free Market Access, Bond Facilities, EZs/EPZs

Consumer Market/ Finance

Population of more than 160 Million, along with 3 billion regional market with Young and Brand Conscious Consumers

Infrastructure/ Energy

Number of Mega Projects, Volume of ODA, external finance

Start-Ups / ITHigh Mobile Density, Internet Density, Tech Savvy Young Generation, Digital Bangladesh Policy

O p p o r t u n i t i e s

G o a l F Y 2 0 1 9 V i s i o n 2 0 2 1 V i s i o n 2 0 4 1

GDP (Billion USD) 302.43 335 2,580

GDP (Growth Rate) 8.15 8.2 9.9

GDP Per Capita (USD) 1,909 2,140 16,994

Export (Billion USD) 46.87 60 100

FDI (Billion USD) 3.9 9.56 153

Private Investment as % of GDP 23.0 24.0 33.9


C h a l l e n g e s

• Removal of DFQF upon Graduat ion form LDC

• Regular T ime Release Sur vey ( t ime reduced for Goods c learance at port )

• Ful ly funct iona l Nat iona l S ing le Window in the Nat iona l Board of Revenue

• Divers i f i cat ion of export product basket

• Transport Fac i l i tat ion and coordinat ion between border agenc ies

• Formulat ion of Comprehens ive Trade Po l icy

• Inst i tut iona l Capac i ty Development

• Commitment of the Development Partners for t imely implementat ion of T.F. measures


A s s i s t a n c e N e e d e d

• Category C measures (e.g . establ ishment of enquiry point , test procedures, r isk -management, post -c learance audit , authorized operators , expedited shipment, c learance of perishable goods, border agency cooperat ion, s ingle window, some aspect of t rans it ) . L ist of Category_C.docx

• Integrated Transport Modal i ty and logist ic support

enabl ing environment for enhanced investment and export

• Post LDC benef it for export sector


List of Category_C.docx

A s s i s t a n c e N e e d e d ( 2 )

• T i me re l ea s e S u r vey rep or t s ca n b e p rod u c ed for all border clearance on

re gu l a r b a s i s by t h e Nat i on a l S i n g l e W i n d ow

• C a p a c i t y D eve l op me nt o f O t h e r G ove r n me nt A ge n c i e s ( B ST I ,

Q u a ra nt i n e , F i s h e r i e s a n d L i ve stoc k , Por t A u t h or i t i e s a n d

n u me rou s l i c e n s e i s s u i n g a ge n c i e s a p a r t M i n i s t r y o f C omme rc e

a n d Nat i on a l Boa rd o f Reven u e)

• S t re n gt h e n i n g p r i vate s e c tor to re gu l ate wi t h t h e a u tomat i on o f

gove r n me nt a ge n c i e s a n d mod e r n i zat i on o f c u stoms p roc e d u re s29 Jan 2020 Export Wing, Ministry of Commerce 16

17

Her Excellency Sheikh HasinaHon’ble Prime Minister of the People’s Republic of Bangladesh05/06/2016, Kingdom of Saudi Arabia

As we (Bangladesh) strive to

materialize the goals of

'Vision 2021' and

'Vision 2041',

I request the international

investors and entrepreneurs to

partner with us in investment,

trade, profit sharing and

prosperity.


private sector engagement and trade facilitation

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