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Assured destination for investment
Published: Mar 26, 2011 01:08 Updated: Mar 26, 2011 01:46
BANGLADESH is a vibrant economy that has, despite the recent global economic meltdown, maintained a consistent growth rate of around 6 percent. With a population of close to 150 million people, Bangladesh boasts of an efficient and entrepreneur work force that is changing the profile of the economy.
Bangladesh’s seaports, historically, had been “ports of call” for ancient traders, and a hub of economic activity connecting the West and the Far East. Today we are witnessing Bangladesh’s resurgence as a regional hub. Bangladesh occupies a strategic location as a bridge between South and South-East Asia and beyond.
Despite the recent global economic crisis, Bangladesh’s undisturbed and consistent growth over the past decade has proven the resilience of its economy. Its favorable investment climate has been lauded by many around the world. Bangladesh is listed in Goldman Sachs’ “Next II” and JP Morgan’s “Frontier Five.” Standard and Poor as well as Moody’s have placed Bangladesh ahead of all countries in South Asia except India.
Bangladesh offers a well-educated, highly adaptive and industrious work force with the lowest wages and salaries in the region. Over 57 percent of the population is under 25, providing a youthful group for recruitment. The country has consistently developed a skilled work force aiming to cater to the need of investors. English is widely spoken, making communication easy. Thousands of Bangladesh nationals who have wide work experience abroad add to the national reservoir of skill.
It offers a strong local market and growth. Bangladesh has proved to be an attractive investment location with its 150 million population and consistent economic growth leading to strong and growing domestic demand. Its policy is to establish a strong regional connectivity among its immediate neighbors. Already, agreement on connectivity has been reached between Bangladesh, India, Nepal and Bhutan, which opens the great opportunities in the huge next-door markets. Its close proximity to China and India also opens doors to a vast market projected to grow to 3 billion by 2050.
The cost of energy and land in the country is low. Energy prices in Bangladesh are the most competitive in the region. Transportation using green compressed natural gas is less than 20 percent of the price of diesel. Many multinational companies have already invested in gas exploration in Bangladesh. The cost of land is also the lowest in the region.
Bangladesh offers proven export competitiveness. It enjoys quota and tariff-free access to the European Union, Canada, Australia and Japan. It enjoys GSP facilities as an LDC country for export to the United States. The country’s annual export growth has been recorded recently as 19.6 percent, which is testimony to its export competitiveness.
Bangladesh offers the most liberal FDI regime in fiscal and non-fiscal incentives in South Asia, allowing 100 percent foreign equity with an unrestricted exit policy, remittance of royalty and repatriation of profits and income.
Bangladesh offers export-oriented industrial enclaves with infrastructural facilities and logistical support for foreign investors. The country is also developing its core infrastructures, including roads, highways, surface transport and port facilities for a better business environment. A billion dollar credit has been inked with India recently for infrastructure development, including communication and transport sectors and facilities at seaports.
Bangladesh has been praised for its positive climate. It has a largely homogenous society with people living in harmony irrespective of race and religion. Bangladesh, a democratic country enjoying broad bi-partisan political support for private investment, now boasts of political stability and containment of extremism. It offers 100 percent foreign equity or ownership in industrial investment. Foreign exchange regulations have been relaxed to the maximum limit and its currency Taka has been made convertible. Repatriation of foreign capital along with profit/dividends has been made easy and simplified. There is no restriction on issuing work permits to a foreign national. The local Board of Investment offers a one-stop service for investors.
In addition, all major organizations dealing with investment have been kept under direct supervision of the prime minister in order to ensure timely services, easy process and a one-stop service for investment and to address directly any problems therein.
An Act of Parliament passed in 1980 guarantees legal protection against nationalization and expropriation. Noncommercial risks of investment are also covered by the Multilateral Investment Guarantee Agency.
Bangladesh is also a party to the Overseas Private Investment Corporation, US; International Center for Settlement of Investment Disputes (ICSID); World Intellectual Property Organization (WIPO). Agreements on Avoidance of Double Taxation have been signed with 28 countries including Japan, UK, Italy, Canada, Sweden, Malaysia, Singapore, Saudi Arabia and the Republic of Korea. Nine more such agreements are being negotiated.
Furthermore, Bangladesh offers some competitive investment incentives:
— Corporate tax holiday (Outside EPZs): five to seven years for selected sectors;
— Accelerated depreciation on cost of machinery for new industry in lieu of tax holiday;
— Reduced corporate tax for five to seven years in lieu of tax holidays and accelerated depreciation;
— Tariff concessions on import of capital machinery, tariff concessions on import of raw materials of the export-oriented industries, bonded warehousing facilities, among others;
— Cash incentives and export subsidies ranging from 5 percent to 20 percent on the FOB value of selected products;
— Funds for exports promotion, exports credit guarantee scheme, permission for domestic sales up to 20 percent by export-oriented companies outside EPZ;
— Remittance of royalty, technical know-how and technical assistance fees;
— Citizenship by investing a minimum of $5 million and permanent resident permits on investing $75,000.
The special incentives offered to business located in eight EPZs include:
— 10 years tax holiday;
— Concessionary tax for five years, after 10 years;
— Duty and tax-free exports from the EPZ;
— Readymade factory buildings;
— Excellent infrastructure logistics;
— Duty free import of machinery, raw and construction materials;
— Business and administrative support services;
It offers also special incentives for investment in the power sector. The power sector is at the forefront of all infrastructure projects. Special incentives in this sector include 15 years tax holiday; exemption of import duties, value added tax (VAT), surcharges and import permit fees on imports of plants, equipments and spare parts up to 10 percent of the original value of the plant and equipment within a period of 12 years of commercial operation. Incentives also include exemption of tax on foreign lending, foreign loan interest, royalties, technical know-how and assistance fees, free repatriation of equity and dividends, and so forth.
http://arabnews.com/world/bangladesh...icle329592.ece
Published: Mar 26, 2011 01:08 Updated: Mar 26, 2011 01:46
BANGLADESH is a vibrant economy that has, despite the recent global economic meltdown, maintained a consistent growth rate of around 6 percent. With a population of close to 150 million people, Bangladesh boasts of an efficient and entrepreneur work force that is changing the profile of the economy.
Bangladesh’s seaports, historically, had been “ports of call” for ancient traders, and a hub of economic activity connecting the West and the Far East. Today we are witnessing Bangladesh’s resurgence as a regional hub. Bangladesh occupies a strategic location as a bridge between South and South-East Asia and beyond.
Despite the recent global economic crisis, Bangladesh’s undisturbed and consistent growth over the past decade has proven the resilience of its economy. Its favorable investment climate has been lauded by many around the world. Bangladesh is listed in Goldman Sachs’ “Next II” and JP Morgan’s “Frontier Five.” Standard and Poor as well as Moody’s have placed Bangladesh ahead of all countries in South Asia except India.
Bangladesh offers a well-educated, highly adaptive and industrious work force with the lowest wages and salaries in the region. Over 57 percent of the population is under 25, providing a youthful group for recruitment. The country has consistently developed a skilled work force aiming to cater to the need of investors. English is widely spoken, making communication easy. Thousands of Bangladesh nationals who have wide work experience abroad add to the national reservoir of skill.
It offers a strong local market and growth. Bangladesh has proved to be an attractive investment location with its 150 million population and consistent economic growth leading to strong and growing domestic demand. Its policy is to establish a strong regional connectivity among its immediate neighbors. Already, agreement on connectivity has been reached between Bangladesh, India, Nepal and Bhutan, which opens the great opportunities in the huge next-door markets. Its close proximity to China and India also opens doors to a vast market projected to grow to 3 billion by 2050.
The cost of energy and land in the country is low. Energy prices in Bangladesh are the most competitive in the region. Transportation using green compressed natural gas is less than 20 percent of the price of diesel. Many multinational companies have already invested in gas exploration in Bangladesh. The cost of land is also the lowest in the region.
Bangladesh offers proven export competitiveness. It enjoys quota and tariff-free access to the European Union, Canada, Australia and Japan. It enjoys GSP facilities as an LDC country for export to the United States. The country’s annual export growth has been recorded recently as 19.6 percent, which is testimony to its export competitiveness.
Bangladesh offers the most liberal FDI regime in fiscal and non-fiscal incentives in South Asia, allowing 100 percent foreign equity with an unrestricted exit policy, remittance of royalty and repatriation of profits and income.
Bangladesh offers export-oriented industrial enclaves with infrastructural facilities and logistical support for foreign investors. The country is also developing its core infrastructures, including roads, highways, surface transport and port facilities for a better business environment. A billion dollar credit has been inked with India recently for infrastructure development, including communication and transport sectors and facilities at seaports.
Bangladesh has been praised for its positive climate. It has a largely homogenous society with people living in harmony irrespective of race and religion. Bangladesh, a democratic country enjoying broad bi-partisan political support for private investment, now boasts of political stability and containment of extremism. It offers 100 percent foreign equity or ownership in industrial investment. Foreign exchange regulations have been relaxed to the maximum limit and its currency Taka has been made convertible. Repatriation of foreign capital along with profit/dividends has been made easy and simplified. There is no restriction on issuing work permits to a foreign national. The local Board of Investment offers a one-stop service for investors.
In addition, all major organizations dealing with investment have been kept under direct supervision of the prime minister in order to ensure timely services, easy process and a one-stop service for investment and to address directly any problems therein.
An Act of Parliament passed in 1980 guarantees legal protection against nationalization and expropriation. Noncommercial risks of investment are also covered by the Multilateral Investment Guarantee Agency.
Bangladesh is also a party to the Overseas Private Investment Corporation, US; International Center for Settlement of Investment Disputes (ICSID); World Intellectual Property Organization (WIPO). Agreements on Avoidance of Double Taxation have been signed with 28 countries including Japan, UK, Italy, Canada, Sweden, Malaysia, Singapore, Saudi Arabia and the Republic of Korea. Nine more such agreements are being negotiated.
Furthermore, Bangladesh offers some competitive investment incentives:
— Corporate tax holiday (Outside EPZs): five to seven years for selected sectors;
— Accelerated depreciation on cost of machinery for new industry in lieu of tax holiday;
— Reduced corporate tax for five to seven years in lieu of tax holidays and accelerated depreciation;
— Tariff concessions on import of capital machinery, tariff concessions on import of raw materials of the export-oriented industries, bonded warehousing facilities, among others;
— Cash incentives and export subsidies ranging from 5 percent to 20 percent on the FOB value of selected products;
— Funds for exports promotion, exports credit guarantee scheme, permission for domestic sales up to 20 percent by export-oriented companies outside EPZ;
— Remittance of royalty, technical know-how and technical assistance fees;
— Citizenship by investing a minimum of $5 million and permanent resident permits on investing $75,000.
The special incentives offered to business located in eight EPZs include:
— 10 years tax holiday;
— Concessionary tax for five years, after 10 years;
— Duty and tax-free exports from the EPZ;
— Readymade factory buildings;
— Excellent infrastructure logistics;
— Duty free import of machinery, raw and construction materials;
— Business and administrative support services;
It offers also special incentives for investment in the power sector. The power sector is at the forefront of all infrastructure projects. Special incentives in this sector include 15 years tax holiday; exemption of import duties, value added tax (VAT), surcharges and import permit fees on imports of plants, equipments and spare parts up to 10 percent of the original value of the plant and equipment within a period of 12 years of commercial operation. Incentives also include exemption of tax on foreign lending, foreign loan interest, royalties, technical know-how and assistance fees, free repatriation of equity and dividends, and so forth.
http://arabnews.com/world/bangladesh...icle329592.ece
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Bangladesh Ambassador to Germany Mosud Mannan and State Secretary of German Federal Foreign Office Martin Biesel cut a cake to celebrate 40 years of Bangladesh's independence at the atrium of Deutsche Bank of Germany recently. Photo: Sharaf Ahmed
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