Investment opportunities in bangladesh

© Board of Investment  2015 www.boi.gov.bd
Foreign Direct Investment in Bangladesh:
regulations and opportunities
Md Ariful Hoque, Deputy Director

Bangladesh – a stable, fast growing economy
 Population :  159 million (Est, 2015)
 Area :   147,570 km2
 GDP total :   USD 174 bn (FY’15)
 GDP Per Capita :   USD 1314 (FY 2015)
 Total Exports :   USD  31.21 bn (FY2015)
 Total Imports :   USD 37.42 billon (FY2014)
 Total FDI (Gross) :   USD  2058.98* Mill. (CY 2014)
 Forex. Reserve : USD 25.02 billion (June’2015)
Source: Bangladesh Economic Review, 2015, BBS, EPB, Bangladesh Bank
-0.5
1.5
3.5
5.5
7.5
9.5
11.5
2008 2009 2010 2011 2012 2013 2014P 2015P 2019P
GDP Growth of South Asian Countries
India Pakistan Bangladesh Sri Lanka
Bangladesh
914
1137 1293
1599 1527
2010 2011 2012 2013 2014
FDI inflow in Bangladesh $mn
2
Source: Bangladesh Bank, 2015
Source: Various

Real GDP Growth (%)
Developing Economies
South Asia excl. India
Bangladesh
World
2013
6.1
2014e
5.6
2015
6.3
2016f
6.7
2017f
6.7
7%
6%
0%

Table 1- Comparative Economic Snapshot of Bangladesh
No. Indicators FY 2014 FY 2015
1. GDP (US$ billion) 173.95 194.55
2. GDP Growth 6.12% 6.51%
3. GDP Per Capita (US$) 1110 1235
4. GNI Per Capita (US$) 1184 1314
5. Export (US$ billion)
Export Growth
30.18
11.65%
31.20
3.35%
6. Import (US$ billion)
Import Growth
40.62
19.17%
37.16 (April’15)
12.21%
7. Export Import Coverage 74.3%
Source: Bangladesh Bank, BBS, EPB
4

Large educated and motivated youth
• 57% of the population is under 25 years old
• High literacy rate (72%) among youths aged 15-24
• Inspired young, hungry for work and growth
• 2 million youth entering in job market each year
Increasing trade integration
• Labor cost advantage (less than half the average of
other Asian economies)
• Already the second largest garments exporter globally
with other sectors coming up such as IT outsourcing,
ceramics, light engineering, etc.
• Progress on SAFTA, BIMSTEC talks
Increasing urbanization
• Urbanization rate is fast; will double over the next four
decades
• rapid industrialization, infrastructure development and
demographic shifts
• Dhaka will be the world’s 5th largest city with a
population of 19 million by 2019 (UN forecasts )
Bangladesh – an attractive investment location
Bangladesh offers
a profitable location
both as a market and a
production/sourcing base
 Faster growth in industry (overtaken
agriculture)
 Developing infrastructure – significant
target for infra investment
 Export springboard – access to all the
large markets of world
 High demand for technology transfer
 Continued business environment reforms
On global investors spotlight
 Strong local market and growth
 Competitive utility cost
3

© Board of Investment  2014 www.boi.gov.bd 6
 Bangladesh is one of the top exporters of readymade garments to US
& Europe
 Risk factors for FDI are the minimum in Bangladesh
 Bangladesh never posted negative economic growth during the past
30 years
 Bangladesh has ‘never defaulted in its debt repayments, nor asked for
its rescheduling
 Bangladesh has an open, market based economy led by a vibrant and
innovative private sector which provides the main stimulus to its growth
 Bangladesh is a homogeneous country with no religious, ethnic or other
forms of cultural conflicts
 Bangladesh is one of the largest contributors to UN peacekeeping
forces and missions and the records of the forces have been exemplary
and laudable
Bangladesh – an attractive investment location

Investment Promotion and Protection
 Foreign investment in Bangladesh is secured by law against
nationalization and expropriation.
 Local and Foreign investment is given equal treatment
 Bilateral and multilateral investment agreements ensures protection of
investment.
 The repatriation of return on investment is guaranteed
 Bangladesh is a signatory to ICSID, UNCITRAL, OPIC, MIGA, WAIPA,
WIPO and WTO.
 Bilateral Investment treaties (BITs) signed with 31 countries
Austria, DPR Korea , Thailand, Belgium, Republic of Korea, UK, Canada, Malaysia, USA, China. Pakistan Uzbekistan,
France, Poland, Vietnam, Germany, Romania, Singapore, Indonesia, Switzerland, Denmark, Iran, The Netherlands,
India, Italy, The Philippines, UAE, Japan, Turkey, Belarus)
Double taxation treaties (DTTs) with 28 countries
Canada, Poland, Norway, China, Romania, Turkey, Denmark, Singapore, Vietnam, France, Republic of Korea,
Philippines, Germany, Sri Lanka, Indonesia, India, Sweden, Switzerland, Italy, Thailand, Oman, Japan, The
Netherlands, Malaysia, UK)
7
Investment Climate

What is told about Bangladesh
 Citi Investment Research & Analysis termed Bangladesh, China, Egypt,
India, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and
Vietnam have the most promising (per capita) growth prospects .
 Goldman Sachs branded as Bangladesh is in ‘Next 11’ list after the BRIC
nations
 The International Monetary Fund (IMF) commented on the economy of
Bangladesh as Resilient export and remittance flows have bolstered
growth and external stability
 The Wall Street Journal (WSJ) dismissed the previous branding of
Bangladesh saying , 'Basket Case' No More - with a higher growth rate,
a lower birth rate, and a more internationally competitive economy,
 JPMorganChase commented Bangladesh The country ranks fourth in
growth in economically active population.
 Morgan Stanley has commented Bangladesh is at the very early stages
of an investment boom…
8
Investment Climate

 New York Times has termed Bangladesh as “an unlikely corner of Asia,
strong promise of growth”…
 An HSBC report (2012),titled ‘The World in 2050’, listed Bangladesh as
one of the top 7 countries expected to deliver the fastest growth en
route to 2050.
 “World Economic Situation and Prospects 2013” of United Nations
termed Bangladesh as “ …strong growth performances continued… ”.
 The Global Competitive Report 2013” of World Economic Forum (WEF)
reported that Bangladesh has elevated to 8 stages point this year
 McKinsey & Co. in its latest survey Viewed "Bangladesh is still No.
1,”as the global sourcing hub for RMG
Investment Climate

 The Deutsche Bank AG, Germany commented Bangladesh having
Robust economic growth pattern, Comfortable buffer against external
shocks, favorable external liquidity profile
 The World Bank has on July 1, 2015, categorized Bangladesh as a Low
Middle Income Country (LMIC), up from Low Income Country (LIC)
Investment Climate

Opportunities Unbounded
In this growing Bangladesh, investment
opportunities are unbounded, diverse and long‐term
Competitive
Services
IT & ITES, BPOs
Logistics, Health
Skills
Education,
Training, HR
development
Infrastructure
Communication,
Energy, Power,
Ports, Economic
Zones
Manufacturing
Competitive
Manufacturing
supporting global
value chains
All Modes of Investments
 100% FDI
 Joint Ventures
 Partnerships
 PPPs
 Non-equity modes
(Technology transfer, licensing
Franchising, Contracting etc)
• Foreign Lending
7

Opportunities Unbounded
Almost all the sectors are open to FDI
Reserved Sectors
1. Arms & ammunitions
2. Nuclear Power
3. Security printing and
minting
4. Afforestation and
Mechanize Extraction
within the boundary
of reserved forest.
8
Agribusiness &
Food processing
 Agro-based & agro-
processing
 Jute & Jute goods
 Flower cultivation
 Commercial plantation
 Horticulture
 Silkworm &Silk Industry
 Furniture
 Handicrafts
 Integrated shrimp
cultivation
 Frozen Food
Textile &
Clothing
 Home Textiles
 Textiles industry
 Readymade garments
industry
 High value added RMG
ICT &
Electronics
 ICT and ITES
 Computer software &
ICT goods
 Electronics
 Light engineering incl.
automobiles
Energy &
Infrastructure
 Power
 Ports and Logistics
 Economic Zones
 Oil and gas
 Tourism
 Transport Infrastructure
 Pharmaceuticals
 Herbal medicines
 Plastics  Ceramics
 Leather & leather goods
 Textile Dye & chemicals
 Basic chemicals
Pharma &
Chemicals
 Health care
 Footwear
 Cosmetics and toiletries
 Jewelry and diamond
cutting polishing
Healthcare
& Others

13
1. Arms and ammunitions and other military equipments and
machinery
2. Nuclear power
3. Security printing and minting
4. Forestation on and Mechanized Extract on within the boundary
of reserved forest
13
Investment Opportunities
Reserved Industries (as per the Industrial Policy 2010)
 Sectors Reserved for investment by public sector. Private sector may
participate in procurement process as vendor/contractor.

14
1. Fishing in the deep sea
2. Bank/financial institution in the private sector
3. Insurance Company in the private sector
4. Generation, supply and distribution of power in the private sector
5. Exploration extraction and supply of Natural gas/oil
6. Exploration, extraction and supply of coal
7. Exploration, extraction and supply of other mineral resources
8. Large-scale infrastructural project (e.g. flyover, elevated
expressway, monorail, economic zone, inland container depot/
container freight station)
14
Controlled Industries (as per the Industrial Policy 2010)
 Controlled Industries (considered as strategic investment. Free to
invest but requires pre-approval from specific regulatory agencies).

15
9. Crude oil refinery (recycling/refining of lube oil used as fuel)
10. Medium and large industry using natural gas/condescend and
other minerals as raw material
11. Telecommunication Service (mobile/cellular and land phone)
12. Satellite channel
13. Cargo/passenger vessels
14. Sea bound ship transport
15. Sea-port/deep sea-port
16. VOIP/IP telephone
17. Industries using heavy minerals accumulated from sea beach
15
Controlled Industries (as per the Industrial Policy 2010)
 Controlled Industries (considered as strategic investment. Free to
invest but requires pre-approval from specific regulatory agencies)

The National Industrial Policy, 2010 of Bangladesh recognizes:
a. Private sector is treated as the engine of growth
b. No upper ceiling for foreign investors or performance requirements
c. 100% foreign equity is allowed
d. All industrial sectors are open for foreign investors for investment
except 4 reserve sectors for the government.
e. Equal treatment for both local and foreign investment
f. Export oriented industries are given top priority
16
Investment Climate
FDI Policy Framework

Business Stage Policy & Regulation
1. General - Bangladesh Industrial Policy (as undertaken from time to time)
1. Business start-up - The Companies Act, 1994
- Securities and Exchange Commission Act, 1993
1. Protection - The Foreign Private Investment (Promotion & Protection) Act, 1980
1. Export Zones - Bangladesh Export Processing Zones Authority Act, 1980
- Bangladesh Private Export Processing Zones Authority Act, 1996
1. Facilitation - The Investment Board Act, 1989
1. Corporate /
Personal Taxation
and incentives
- Income Tax Ordinance 1984 and related rules and SROs
- National Budget
- The Finance Act/Bill
1. International Trade
(Export & Import)
- Bangladesh Export Policy (as undertaken from time to time)
- Bangladesh Import Order (as undertaken from time to time)
1. Sectoral - Bangladesh Energy Regulatory Commission Act, 2003 (BERC)
- Bangladesh Telecommunication Regulatory Commission Act, 2001 (BTRC)
- The National Drug Policy, 2005
1. Foreign Exchange - Bangladesh Foreign Exchange Guidelines (issued from time to time)
17
The broader FDI policy & regulatory framework include, among others, the following:
FDI Policy Framework
Investment Climate

Fiscal Incentives
• Corporate tax holiday: 5 to 7 years for
selected sectors and areas
• Tax holiday for infrastructure
investment: upto 10 years
• Accelerated depreciation on cost of
machinery for new industries in lieu of
tax holiday
• Avoidance of double taxation under
bilateral tax convention
• Tariff concessions on import of capital
machinery
• Tariff concessions on import of raw
materials of the export oriented
industries
• Bonded warehousing facility
Financial & Other Incentives
• Cash incentives and export
subsidies ranging from 5% to 20%
on the FOB value of selected
products:
• Funds for export promotion, export
credit guarantee scheme, permission
for domestic sales up to 20% by
export-oriented companies outside
EPZ.
• Remittance of royalty, technical
know-how and technical assistance
fees
• Citizenship by investing a minimum
of US$ 5,00,000
• Permanent resident permits on
investing US$ 75,000
• And many more .....
Investment Climate
FDI Policy Framework - Incentives

Investment Climate
Cash- Incentives (FY 2015-16)
Rate Particulars
3% new market and product expansion of textile market (except US, Canada, and
EU)
4% export oriented local textiles (instead of duty drawback and custom bond)
additional facility for SME textile
5% ship building, SME in textile industry, export of bone powder, potato, jute
thread
7.5% frozen shrimp
10% Diversified jute products, PET flex, Hessian and sacking (jute finished goods)
2-10% frozen fish (based on ice coating)
12.5% leather products
15% light engineering products
15% - 20% for hand made products using straw, sugarcane extract
20% agro-processing and agricultural produce(vegetable and fruit), potato export,
halal meat
Source Bangladesh Bank

Status Rate
Corporate Tax: (on net profit)
Publicly Traded Company 25%
Non-Publicly Traded Company 35%
Bank, Insurances, Financial Institutions (listed) 40%
Bank, Insurances, Financial Institutions (not
listed)
42.5%
Merchant Banks 37.5%
Cell Phone Company (40% if listed ) 45%
Cigarette producing companies 45%
Personal taxes (Based on defined income slabs) 10%-25%
A competitive Corporate tax structure:
Investment Climate
Taxation

 Investment Opportunities - Financial incentives: Tax holiday:
Year Rate of Tax exemption
Areas Out side the area of the city
Corporation of Rajshahi, Khulna,
Sylhet, Barisal and Rangpur
1st year 100%
2nd year 100%
3rd year 70%
4th year 55%
5th year 40%
6th year 25%
7th year 10%
 Tax holiday:
Depreciation allowances:
Accelerated depreciation allowed for new
industries instead of Tax holiday:
50%, 30% and 20% for 1st, 2nd, 3rd years on
cost of plant & machinery
(a) active pharmaceuticals ingredient industry and
radio pharmaceuticals industry; (b) automobile
manufacturing industry;(c)barrier contraceptive and
rubber latex; (d) basic chemicals or dyes and
chemicals; (e) basic ingredients of electronic
industry (e.g. resistance, capacitor, transistor,
integrator circuit); (f) bi-cycle manufacturing
industry (g) bio-fertilizer; (h) biotechnology; I)
boilers; (j) brick made of automatic Hybrid
Hoffmann Kiln or Tunnel Kiln technology; (k)
compressors; (l) computer hardware; (m) energy
efficient appliances; (n) insecticide or pesticide; (o)
petro- chemicals; (p) pharmaceuticals; (q)
processing of locally produced fruits and vegetables;
(r) radio-active (diffusion) application industry (e.g.
developing quality or decaying polymer or
preservation of food or disinfecting medicinal
equipment); (s) textile machinery; (t) tissue
grafting; (u) tyre manufacturing industry;
 Sectors:

 Investment Opportunities - Financial incentives
• 0% and 1% customs duty rate is in force for the import of industrial capital
machinery and spare parts…
• Special concessionary customs duty rate for import of raw materials for Ship-
Building Industry, Pharmaceuticals Industry, Textile Industry, Toys
Manufacturing Industry, Telecommunication Industry, Handloom Industry…
• Raw materials, machinery and spare parts of poultry and dairy farms, Solar
Panel Manufacturing Plants are exempted from customs duty
• Import of raw materials by Generator Producing and Assembling Industry is
exempted from customs duty
• Raw materials, machinery and spare parts imported by power generation
plants are exempted from customs duty
• raw materials, machinery and spare parts imported by Oil and Gas
exploration and extraction companies, and also by CNG filling station are
exemptions from customs duty
 Sector specific incentives:

 Investment Opportunities - Financial incentives
• Medical equipments and medication materials are exempted from customs duty
• Technical grades imported by the pharmaceutical raw materials producing
industries are exempted from customs duty
• Specific utility goods imported by textile industry are exempted from customs
duty
• Import of De-inking chemicals and waste paper by newsprint paper
manufacturing industries is exempted from customs duty
• Special concessionary customs duty rate is allowed for the machineries and
materials imported for the construction of residential hotels for the
development of tourism sector
• Special concessionary customs duty rate is in force for the import of chemical
materials by the leather industries
• Imports undertaken by 100% export-oriented industries are exempted from
customs duty
 Sector specific incentives:

Economic Zones: a part of planned industrialization
 The regulatory framework is as under:
 Economic Zones Act, 2010
 Draft Policy of Private EPZ ,2014
 Private Economic Zone Policy 2015( under approval)
Key Features:
 Comprehensive industrial Infrastructure
 Development under PPP (Private Public Partnership) model
 Owned and regulated by the government, but managed by the private sector
 Encompasses multiple business sectors within each zone
 Combines both bonded and non-bonded area
 EZ includes non processing & domestic area
 includes FDI and local investment

Govt EZ’s:
19 EZ comprising 17051 acres of land
Mongla, Mirsharai, Anwara-1, Sherpur, Sirajganj Sadar &
Belkuchi, Shreepur, Taknaf, Anwara-2, Karanigonj, Jamalpur
sadar, Sonarga, Bhola sadar, Ashugonj, Debiganj, Narsingdi
Sadar, Shibaloy, Bheramara, Agailjhara, Nilphamari Sadar.
Private EZ’s:
3 EZ’s comprising 908 acres of land
Polash (AK Khan), Gajaria ( Abdul Monem PEZ), Gajaria
(Garments Shilpa Park BGMEA, PSEZ),
Economic Zones: a part of planned industrialization

The objectives of this Policy and Strategy are to:
• Spell out the principles of partnership with private sector for undertaking
various projects related to infrastructure as well as public service delivery;
• Define an institutional framework, which is conducive and efficient in
handling the PPP projects as well as effective to protect public interest; and
• Ensure balance between risk and reward for both the government and
private partners
Public Private Partnership (PPP)
Govt has adopted PPP (Public Private Partnership) to spearhead mostly the
infrastructural development under PPP model.
The policy adopted are :
Policy and Strategy for Public-Private Partnership (PPP), 2010, Guideline for
PPPTAF 2012 & Scheme for PPPTAF, 2012, Guideline for VGF for PPP Project,
2012, PPP Law, 2015 (Draft).
Besides standard forms, guidelines, model documents are also made available

•Roads and highways
•Mass-transit
•Railways
•Ports
•Airports
•Electricity
•Tourism
•Irrigation and agricultural
services
•Industrial estates
•Water supply
and
distribution
•Wastewater
management
•Waste
management
•Information
and
•communicatio
ns technology
•Land
reclamation
and dredging
•Oil and gas
downstream
production
•Mineral
resources
•Health
•Education
•Public
facilities,
social
infrastructure
and other
social
services
•Other urban,
municipal and
rural projects
Sectors Covered under PPP Policy:
• Identify and Screen eligible
projects
• Develop projects to a standard
attractive for international
competitive bidding
• Ensure tendering in a robust
and transparent process.
• Facilitate Financing for PPP
projects
• Oversee the commercial
negotiation of PPP contracts
• Monitor and Support
sector line ministries during the
implementation phase of PPP
What PPPO doses:
Public Private partnership (PPP)

Total
42 projects
($14.5b)
Medium
Projects
6 Projects
($110m)
Large Project
25 Projects
($12b)
Small Projects
3 Projects
($7m)
PPP Projects by Size
SL. Sectors Implementing Agency Name of the Project
Project
Size
Estimated
Cost (US$m)
1 Road BD Bridge Authority Dhaka‐Elevated Expressway Large $1,088
2 ICT BD Hi‐tech Park Auth Hi‐tech Park at Kaliakoir Large $125
3 Health DGHS 40 beds Hemodialysis Centre at CMCH Small $2
4 Health DGHS Hemodialysis Centre at NIKDU Small $1
5 Bridge BD Bridge Auth Dhaka‐Ashulia Elevated  Expressway Large $1,471
6 Road RAJUK Flyover ‐ Santinagar to Mawa over Buriganga  River Large $313
7 Port MPA 2 Jetties at Mongla Port through PPP Large $50
8 Social Care DSS Oboshor: Senior Citizen Health Care Complex Medium $6
9 Road Roads & Highways
D t
Dhaka‐Chittagong Access Controlled Highway Large $1,585
10 Rail Bridge Bangladesh Railway Fulchhari Bahadurabad MG Railway Bridge Large $1,400
11 Rail Bridge Bangladesh Railway Dual gauge Double line Bangabandhu Bridge Large $1,000
D t
Dhaka Bypass  4 Lane (Joydevpur‐Madanpur) Large $114
13 Tourism BD Parjatan Corp 5 Star Beach Hotel with 18‐Hole Golf Course Large $125
14 Housing Nat Housing Assoc NHA Housing Satellite Project at Mirpur Large $57
15 Port CTG Port Authority Construction of Laldia Bulk Terminal Large $60
16 Bridge BD Bridge Authority 2nd Padma Multipurpose Bridge Paturia‐Goalundo Large $1,902
17 Port CTG Port Authority 3rd Sea Port Large $1,200
D t
Jatrabari‐Sultana Kamal Brdg‐Tarabo PPP Rd Large $44
D t
Hemayetpur‐Singair‐Manikganj PPP Road Large $84
20 Housing RAJUK High–Rise Apartment Complex Purbachal Phase 1 Large $1,199
21 Airport CAAB Multi Mode Surveillance System (Radar) HSIA Medium $23
22 Health Bangladesh Railway Med College/Hospital Upgrade‐Kamlapur Large $97
23 Health Bangladesh Railway Medical College/Hospital Upgrade‐ CRB Chittagong Large $73
24 Health Bangladesh Railway Med College/Hospital Upgrade‐ Saidpur Nilphamary Large $73
25 Health Bangladesh Railway Med College/Hospital Upgrade‐Paksey Pabna Large $73
26 Health Bangladesh Railway New Medical College & Hospital ‐ Khulna Large $97
27 Rail Depot Bangladesh Railway New Inland Container Depot ‐ Dhirasram Rail
St ti
Large $150
28 Port BIWTA Inland Container Terminal PPP-Khanpur Large $40
29 Tourism Bangladesh Railway 5 Star Hotel at Zakir Hossen Road, Chittagong Large $36
30 Hospitality Bangladesh Railway Shoping Mall with Hotel‐cum‐Guest House in Khulna Medium $29
31 Hospitality Bangladesh Railway Shoping Mall with Hotelin Chittagong Medium $11
32 LPG /
E
BD Petroleum Corp LPG Bottling Plant (Jetty, Pipelines) Kumira Medium $31
33 Hospitality MPA Mongla Port Tower Medium $10
34 Fisheries Dep of Livestock Serv 16 X Fisheries and Livestock Projects Small $4
PPP Projects Pipeline
(Note: Project names have been shortened)
SL. Sectors Implementing Agency Name of the Project
Project
Size
Estimated
Cost (US$m)
1 Road BD Bridge Authority Dhaka‐Elevated Expressway Large $1,088
2 ICT BD Hi‐tech Park Auth Hi‐tech Park at Kaliakoir Large $125
3 Health DGHS 40 beds Hemodialysis Centre at CMCH Small $2
4 Health DGHS Hemodialysis Centre at NIKDU Small $1
5 Bridge BD Bridge Auth Dhaka‐Ashulia Elevated  Expressway Large $1,471
6 Road RAJUK Flyover ‐ Santinagar to Mawa over Buriganga  River Large $313
7 Port MPA 2 Jetties at Mongla Port through PPP Large $50
8 Social Care DSS Oboshor: Senior Citizen Health Care Complex Medium $6
D t
Dhaka‐Chittagong Access Controlled Highway Large $1,585
10 Rail Bridge Bangladesh Railway Fulchhari Bahadurabad MG Railway Bridge Large $1,400
11 Rail Bridge Bangladesh Railway Dual gauge Double line Bangabandhu Bridge Large $1,000
D t
Dhaka Bypass  4 Lane (Joydevpur‐Madanpur) Large $114
13 Tourism BD Parjatan Corp 5 Star Beach Hotel with 18‐Hole Golf Course Large $125
14 Housing Nat Housing Assoc NHA Housing Satellite Project at Mirpur Large $57
15 Port CTG Port Authority Construction of Laldia Bulk Terminal Large $60
16 Bridge BD Bridge Authority 2nd Padma Multipurpose Bridge Paturia‐Goalundo Large $1,902
17 Port CTG Port Authority 3rd Sea Port Large $1,200
D t
Jatrabari‐Sultana Kamal Brdg‐Tarabo PPP Rd Large $44
D t
Hemayetpur‐Singair‐Manikganj PPP Road Large $84
20 Housing RAJUK High–Rise Apartment Complex Purbachal Phase 1 Large $1,199
21 Airport CAAB Multi Mode Surveillance System (Radar) HSIA Medium $23
22 Health Bangladesh Railway Med College/Hospital Upgrade‐Kamlapur Large $97
23 Health Bangladesh Railway Medical College/Hospital Upgrade‐ CRB Chittagong Large $73
24 Health Bangladesh Railway Med College/Hospital Upgrade‐ Saidpur Nilphamary Large $73
25 Health Bangladesh Railway Med College/Hospital Upgrade‐Paksey Pabna Large $73
26 Health Bangladesh Railway New Medical College & Hospital ‐ Khulna Large $97
27 Rail Depot Bangladesh Railway New Inland Container Depot ‐ Dhirasram Rail
St ti
Large $150
28 Port BIWTA Inland Container Terminal PPP-Khanpur Large $40
29 Tourism Bangladesh Railway 5 Star Hotel at Zakir Hossen Road, Chittagong Large $36
30 Hospitality Bangladesh Railway Shoping Mall with Hotel‐cum‐Guest House in Khulna Medium $29
31 Hospitality Bangladesh Railway Shoping Mall with Hotelin Chittagong Medium $11
32 LPG /
E
BD Petroleum Corp LPG Bottling Plant (Jetty, Pipelines) Kumira Medium $31
33 Hospitality MPA Mongla Port Tower Medium $10
34 Fisheries Dep of Livestock Serv 16 X Fisheries and Livestock Projects Small $4
PPP Projects Pipeline
(Note: Project names have been shortened)
Note: (1) All figures are initial estimates and will be updated in project development &
procurement phase.
(2) Figures have been converted to US$ @ BDT80=US$1
Growing PPP portfolio…
PPP Bangladesh Context
Source: PPP Office, Bangladesh

Arrival in Bangladesh
Help Desk of Board of
Investment at Airport
Opening a Bank Account
(As per “GFET 1996, Vol-1,
Bangladesh bank)
http://www.bangladesh-bank.org
Trade License
from Local Govt.
Bodies
Tin Certificate
from Income
Tax Office
Company Formation
& RJSCF registration
http://www.roc.gov.bd
Application for BOI
Registration
• BOI Prescribed Form
• Project Profile
• Memorandum of Articles
of Association
• Certificate of
Incorporation
• Land Information &
Document
• Machinery Details
• Tax Identification
Number
• VAT Registration
• Trade License
• Pay Order
Import of Machinery Open
Letter of Credit (LC) or as
Equity Investment
Clearing of Capital
Machinery paying
VAT
Fire License
Industrial ad-hoc IRC from
CCI&E being Recommended
by BOI
http://www.ccie.gov.bd
VAT Registration from NBR
http://www.nbr-bd.org
DOE Clearance
Private Limited Company
(Capital if exceeds Tk. 10
crore, SEC permission
needed)
Public Limited Company
(Minimum paid-up capital
shall be Tk. 400 million)
Roadmap to Invest in Bangladesh

BOI and its Responsibility
Board of Investment (BOI) was created under
Investment Board Act 1989 to:
“encourage investment in the industry in
private sector and to promote necessary
facilities and assistance in the establishment
of industries”.
The act mandated BOI as an organization for
promoting and facilitating private sector
investment.
BOI Functions are broadly categorized into three areas:
1. Investment promotion;
2. Investment Facilitation (approval, recommendations and aftercare)
3. Policy Advocacy

Board of Investment: Services to Investors
Registration of New Industries Approve to start up as an industry
Facilitation of Utility Services Facilitate with relevant agencies getting gas, water,
electricity etc. connections
Visa Recommendation For the foreign workers and investors to enter into
Bangladesh with proper authority both for industries
and commercial offices
Work Permit Issue Issued to expatriates to work and stay in Bangladesh for
definite period
Recommendation for IRC To facilities industries to import capital machineries and
raw materials for industry use.
Recommendation of Foreign
Borrowing
Recommend for bringing foreign loan for industrial
enterprises as per guidelines to Bangladesh
Approval of Royalty and
Technical Assistance Fees
Support foreign companies to remit royalty, technical
assistance and technical know fees to their parent
company
Facilitation of Setting up
Liaison/Branch Office
Approve for opening of Branch, Liaison and representative
offices f the foreign companies
Regulatory services:

Responding to investment-
related queries
Responds in person or in communication to
investors various queries related to various
elements of investment decisions.
Guidance on doing business in
Bangladesh
On a daily basis guidance is given to
prospective investors to help their investment
decisions
Support in forming statutes
policies and regulations
Expert opinion is given while forming policies
related with investment such as Sector-specific
legislations/regulations, policies, custom and
excise duties, taxation, investment and trade
agreements, etc.
Investment guidance and
advice in specific sectors
Undertake promotional measures to promote
specific sector having potentials and advise
accordingly related stakeholders
Facilitation services :

Helping identify and connect
with potential joint venture
partners/technical
collaborations
Supporting potential foreign investors to
match with local investors interested to
form any convenient collaboration in the
form of Joint venture, technical assistance,
technology transfer etc.
Matchmaking support for investors :
Coordinating meetings with
relevant authorities
Organize visit, meetings with various govt.
and private agencies to facilitate investors
for their investment decisions
Addressing concerns faced by
individual companies
Issues relating to individual companies on
their smooth operation are raised with
government departments
Handholding support for investments :

Online Registration Services
(ORS)
This online service enable investors to register
their investment project online reducing time to
one day.
BOI Online Service Tracking
(BOST)
BOST is used to track services applied by
clients. This ensures transparency and
efficiency.
Online Processing of Visa
and Work Permits
This services helps expatriates to avail visa and
work permit facility convenient for the investors.
Online Processing of Foreign
Borrowings
Companies that are willing to avail foreign loan
will be supported by this services reducing the
time and processes.
BOI has introduced many online services as a part of Digital Bangladesh
initiatives:

35
35
Board of Investment:
• FDI inflow was 701 million USD 2009 reached 2058 million
USD in 2014 cumulative figure stands at 7,692 million USD
• Foreign borrowing from 2009 to 2015 June accumulates to
7,593 million USD complementing FDI
• Local investment registered since 2009 to June, 2015 stands at
43,224 million USD and employment opportunities stands at
18,60,657 person in 9,734 projects
• Foreign Investment registered since 2009 to June, 2015 stands
at 16,730 million USD and employment opportunities stands
at 3,37,621 person in 1,102 projects.
Achievements:

36
36
Bangladesh FDI Statistics
FDI Inflow since 2001: South Asian Comparison
Source: Enterprise Survey, Bangladesh Bank
Country 2010 2011 2012 2013 2014
Afganistan 211 83 94 69 54
Bangladesh 913 1 136 1 293 1 599 2047*
Bhutan 31 26 22 21 6
India 27 431 36 190 24 196 28 199 34417
Pakistan 2 022 1 326 859 1307 1747
Sri Lanka 478 981 941 916 944
Maldives 216 256 284 325 363
Nepal 87 95 92 74 30
Iran 3 649 4 277 4662 3050 2105
(Million US $)

0
100
200
300
400
500
600
700
800
2013 (Mn US $)
2014 (Mn US $)
Based on the two
years sector-wise FDI
flow shows highest
investment is
concentrated in the
manufacturing sector,
followed by trade and
commerce and
transport.
37
Comparative Sector wise FDI Flow in 2013 & 2014

Top Investors in Bangladesh: CY 2014
United States
of America
(USA)
22%
United
Kingdom (UK)
9%
Singapore
7%
South Korea
7%
Pakistan
6%Hong Kong
6%
Norway
5%
Japan
5%
Netherlands
4%
Other
29%
Country Wise FDI for the Year 2014
Total FDI countries: 56
71% of the FDI comes
from 9 countries as
shown in the chart.
29% of the FDI comes
from 47 countries.
38

Distribution by Components
2009 2010 2011 2012 2013 2014 Growth
(YoY)
Equity 219 520 432 498 541 280 9%
Reinvested
earnings
365 365 490 588 697 989 19%
Intra-company
loans
117 29 215 207 361 258 74%
Total 701 914 1137 1293 1599 1527 24%
(Million US$)
A survey by BB and BOI shows that gross inflow this year shows
2047 million USD…

40
Distribution by Sectors
Sectors 2010 2011 2012 2013 2014
Telecommunication 360 181 375 324 227
Textiles & Wearing 145 272 307 422 391
Banking 163 249 136 327 312
Power, Gas & Petroleum 92 238 127 99 50
Food Products 13 23 75 40 53
Agriculture & Fishing 14 6 61 31 32
Others 127 167 212 356 462
Total FDI 914 1137 1293 1599 1527

Source Country 2014 (US$ Mill)
UK 180.98
South Korea 134.70
Pakistan 130.74
Singapore 117.13
Hong Kong 111.41
Norway 103.58
Japan 95.71
Netherlands 78.70
India 67.82
Sri Lanka 61.35
Others 444.58
Total FDI 1526.70
41
Distribution by Major Sources/Countries

Sl Particulars Existing
Rate
1. Royalty Fee 6%
2. Technical Know How
Fee
6%
3. Technical
Assistance Fee
6%
The rates of remittances are:
Particulars Existing Guideline
for ongoing concerns (a) for ongoing concerns,
not exceeding 6% of the
previous years’ sales as
declared in the income
tax returns
for new projects under
implementation
(b) for new projects under
implementation, not
exceeding 6% of the cost
of imported machineries;
For projects going to
be implemented
(subject to specific
need of the project )
Not available
Regulations and prescribed rate regarding the remittances
regarding royalties and technical assistance
The outward remittances of 99
million USD during the year
2014 comprises 6.48% of 1527
million USD FDI inflow of that
year apart from dividend,
management fees, sent by
companies abroad…

43
Foreign borrowings trends:
43
Private Sector Foreign Borrowing
Complementing FDI
[Source: Board of Investment]
Period
Amount USD in
million
Number of
Proposals
2009 478.09 18
2010 302.77 20
2011 909.27 24
2012 1466.71 62
2013 1182.29 102
2014 1835.17 126
2015 (up
to June)
1419.38 80
Total 7593.68 432
Foreign borrowings for
project financing has
increased manifold recently
mostly from multilaterals and
investment banks in home
and from abroad and
complementing the FDI
inflow…

Board of Investment, Prime Minister’s Office
Government of the People's Republic of Bangladesh,
Jiban Bima Tower (19th Floor), 10 Dilkusha C/A, Dhaka-1000, Bangladesh
Phone: (880-2) 957 7271 Fax: (880-2) 956 2312 Email: service@boi.gov.bd Web: www.boi.gov.bd
Thank you

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