Bangladesh Investment Handbook - A Guide For Investors PDF

Father of the Nation
Bangabandhu Sheikh Mujibur Rahman

This publication has been prepared under the guidance of the Executive
Chairman of Bangladesh Investment Development Authority, Prime Minister’s
Of�ice. References to and citations from this report are allowed but must be
properly acknowledged.
Published in year 2020
For queries please contact:
Bangladesh Investment Development Authority

Prime Minister’s Of�ice
Government of the People’s Republic of Bangladesh
E-6/B, Sher-e-Bangla Nagar, Dhaka-1207

Phone-+88-02-55007241-45, Fax: +880255007238,
E-mail: info@bida.gov.bd
www.bida.gov.bd
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Bangladesh
Investment
Handbook
A guide for investors
PRIME MINISTER
GOVERNMENT OF THE PEOPLE’S
REPUBLIC OF BANGLADESH
13 Sraban 1427
Message 28 July 2020
I am happy to know that Bangladesh Investment Development Authority (BIDA) is publishing its
flagship publica�on �tled ‘Bangladesh Investment Handbook – A Guide for Investors’.
Investment is the lifeline of our economy and investment promo�on has been designated as one
of the ten special ini�a�ves of the Awami League government. Bangladesh offers its large domes�c
markets, strategic loca�on, high profitability, demographic dividend and conducive policy incen�ves
that rendered the country as one of the most preferred investment des�na�ons in the world. These
have fostered increased private investments and yielded significant rise in both local and Foreign
Direct Investment (FDI) in the recent years. Moving up of 8 notches, from 176 to 168 in World Bank’s
Ease of Doing Business index 2020, demonstrated feats of asser�ve regulatory reforms, we adopted to
accelerate investment in the country. Establishment of interoperable One Stop Service (OSS) in BIDA is
another approach of facilita�ng services required to improve business climate. These reinforce our
efforts to capitalize the global investments more successfully which is spearheaded by our prime
Investment Promo�on Agency (IPA), BIDA.
We are celebra�ng ‘Mujib Year’ marking the birth centenary of the Greatest Bangalee of the all
�mes, Father of the Na�on Bangabandhu Sheikh Mujibur Rahman. Being imbued with his vision of
building Sonar Bangladesh, we have achieved outstanding socio-economic progress in the last 11 and
a half years. To encourage investment especially from SMEs, we have declared Light Engineering
products as ‘Product of the Year 2020’.
Together with keeping steady economic Growth Rate of over 8.0 percent in the last few years, our
government has relentlessly been working to implement Vision-2021, Vision-2041 and Delta
Plan-2100 along with SDGs. However, the pace is temporarily halted by the pandemic of COVID-19 in
the country. Despite the turmoil, we have allocated special fiscal incen�ve packages from our own
exchequer to con�nue, and even improve the businesses in the country.
Such publica�on is the best way to inform the available policies, incen�ves and procedures to the
poten�al investors.
I believe the BIDA Handbook will be helpful in mobilizing private investments and also be useful for
investors in making decision and doing business easily in the country.
I wish publica�on of ‘Bangladesh Investment Handbook – A Guide for Investors’ a grand success.
Joi Bangla, Joi Bangabandhu

May Bangladesh Live Forever.
Sheikh Hasina
ADVISER TO THE HON’BLE PRIME MINISTER
PRIVATE SECTOR INDUSTRY & INVESTMENT
Government of Bangladesh
Message
I am pleased to know that Bangladesh Investment Development Authority (BIDA) is going to
publish an important and most needed document the ‘Bangladesh Investment Handbook: A
Guide for Investors’. This landmark publica�on will deliver all the informa�on required to start
and operate a business in Bangladesh.
Bangladesh is o�en described as the land of untapped opportuni�es. The country enjoys
stunning economic record, highly adap�ve & compe��ve workforce and several poten�al
industrial sectors that have been discussed in this handbook.
Inspired by the vision of the Father of the Na�on Bangabandhu Sheikh Mujibur Rahman, the
government led by the Honourable Prime Minister Sheikh Hasina has built a solid founda�on
to support the growth of economic ac�vi�es in Bangladesh. Investment, both foreign and local,
is given the highest priority by her government. When the COVID-19 pandemic struck us, she
foresightedly unveiled significant s�mulus package worth over BDT 1 trillion, which is about
3.6% of the GDP. Under her strong leadership, Bangladesh is poised to diversify its economy
and emerge as a developed country by 2041.
As the country’s apex investment promo�on agency, BIDA employs an open-door policy for
investors from all corners of the globe. It is the first stop for poten�al investors who arrive in
our country with their valuable proposals. BIDA facilitates the star�ng of business, the opera-
�on of established businesses, a�er care of the investments and advocates for the right invest-
ment policies. During the period of the pandemic, BIDA proac�vely reached out to businesses
and drove the implementa�on of policy recommenda�ons that provided ease to investors.
Using its online One Stop Service portal, BIDA processed over a thousand investor applica�ons
and ensured round-the-clock delivery of services.
I believe, with the help of this publica�on, BIDA’s key effort to promote Bangladesh as the ideal
investment des�na�on will be further strengthened. I would like to congratulate BIDA not just
for bringing out this publica�on but also for its sincere endeavors in improving Bangladesh’s
investment prospects.
Joi Bangla, Joi Bangabandhu. May Bangladesh Live Forever.
Salman Fazlur Rahman MP

EXECUTIVE CHAIRMAN
BANGLADESH INVESTMENT
DEVELOPMENT AUTHORITY (BIDA)
Prime Minister’s Office
Message
Bangladesh Investment Development Authority (BIDA) is the apex Investment Promo�on
Agency (IPA) of the country. It deals with the private-sector investment of home and
abroad. By a�rac�ng investment and crea�ng investment-friendly environment, it is
mandated to serve as a world class IPA fostering growth and development of the country.
Bridging between the public and private sectors, BIDA is working to simplify the processes
and procedures related to investment. We assist investors through proac�ve policy
supports and facilita�ng business environment which are the precondi�ons for successful
investment.
In the global arena of investment, informa�on is crucial for decision making. It is
impera�ve for the investors to have prior understanding on the incen�ves and procedures
for investment in Bangladesh. A compila�on of such informa�on is of paramount
importance to the poten�al investors which are logically described in this publica�on of
BIDA.
Bangladesh Investment Handbook – A Guide for the Investors delivers up-to-date
informa�on on business climate, processes required to start and operate a business,
necessary costs, tax/policy regimes, incen�ves and compara�ve advantages, visa rules
and above all, the poten�al of businesses in the country. It is expected to ameliorate
investment scenario of the country that would, in turn, flourish our economy and
implement na�onal development goals and visions including SDG.
I hope this endeavour would be beneficial to investors and all our key stakeholders.
Md. Sirazul Islam

RANGPUR
SYLHET
MYMENSINGH
RAJSHAHI
DHAKA
BARISHAL
KHULNA
CHATTOGRAM
Contents
Message of the Honourable Prime Minister 07
Message of the Private Sector Industry and Investment Adviser 08
Message of the Execu�ve Chairman 09
Bangladesh facts 15-19
Chapter 1: Business climate and opportuni�es

Why Bangladesh 22
General incen�ves 34
Sector-specific incen�ves 37
Trea�es and instruments 45
Focus infrastructure 48
BIDA and other IPAs 55
Chapter 2: Star�ng a business

Selec�ng a structure 63
Types of companies 64
Se�ng up a business
• Blocked account 65
• One Stop Service 65
• Name clearance 66
• Company registra�on 66
• Corporate TIN 66
• Commercial office 66
Post-incorpora�on compliances
• Fire licence 67
• Trade licence 68
• Registering with BIDA 69
• VAT registra�on cer�ficate 72
Opera�onal setup
• Industrial plot 73
• U�lity 73
• Import & export 75
• Registering with Chief Inspector of Factories and Establishment 77
• Bonded warehouse licence 78
• Environment clearance cer�ficate 79
• Work permit 79
• VISA recommenda�on 80
11 | BIDA
Banking & capital transfer
• Bringing in cash 82
• Transfer of capital, capital gain 82
• Transfer of shares and repatria�on of sales proceeds 82
• Remi�ance of royalty and technical assistance fees 84
• Transfer of profit and dividend 85
Winding up of business
• Repatria�on of residual money 86
• Borrowing 86
Chapter 3: Cost of doing business

Costs in major ci�es and regions in Asia 90
Fees for cer�ficates, permits, licences 94
Port tariffs 110
Chapter 4: Paying taxes

Tax year 114
Corporate tax rate 114
Income tax return submission Tax exemp�on 115
• Exemp�on period and loca�on
Tax benefits for investment in Special Economic Zones 117
Tax benefits for developing units in Special Economic Zones 117
Tax benefit for inves�ng unit of Hi-tech park zone 117
Tax benefits for developing units in Hi-tech park zone 118
Tax benefit for Public Private Partnership Project 118
Export Processing Zones 118
Double Taxa�on Trea�es 118
Chapter 5: Applying for visa

Type, dura�on and condi�ons for visa 121
Mandatory visa condi�ons 124
Visa on Arrival 124
Chapter 6: Sector overviews

Readymade garments 129
Informa�on technology 135
Pharmaceu�cals 142
12 | BIDA
Ac�ve Pharmaceu�cal Ingredients 147
Healthcare services 150
Medical equipment 153
Agro processing 156
Jute and jute products 165
Leather & leather footwear 170
Light engineering 176
Electronics and electrical equipment 181
Plas�cs 186
Automobile 190
Motorcycle & parts 195
Shipbuilding 199
Construc�on material 203
Ceramics 207
Annexures 211-225
13 | BIDA
Bangladesh
facts
15 | BIDA
Official Name : The People’s Republic of Bangladesh
Area : 147,570 square kilometers
Territorial Sea : 118,813 Sq. km
Capital city : Dhaka
Na�onality : Bangladeshi
State Language : Bangla; English is widely spoken
Standard �me : GMT + 6 hours
Currency : Taka (Tk, BDT)
Boundary : North : India
West : India
South : Bay of Bengal
East : India and Myanmar
Bangladesh is bordered on the west, north and east by the Indian states of West Bengal,
Assam, Meghalaya and Tripura. Myanmar forms the southern part of the eastern fron�er.
On the southwest, Bangladesh is fringed by the world’s largest mangrove forest known as The
Sundarbans, the home of the Royal Bengal Tiger and a world heritage site.
Located on the world’s largest delta, the Ganges Delta, Bangladesh has 310 rivers that flow
south to the Bay of Bengal, making it one of the world’s most fer�le regions.
Overview of economic indicators

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
-
Per capita GDP 78009 86266 96004 108378 122152 137518 153197*
at current price
GDP growth (%) 6.01 6.06 6.55 7.11 7.28 7.86 8.19
Consump�on 9347.3 10468.6 11799.3 13000.3 14753.6 17365.9 19293.8*
(billion BDT)
Forex reserve 15315 21508 25020 30176 33493 32943 32716
(million USD)
Infla�on (%) 6.78 7.35 6.41 5.92 5.44 5.78 5.44
Popula�on 153.7 155.8 157.9 159.9 161.75 163.65 165.55
(million)
FDI net 1731 1480 1834 2004 2455 2580 3889
(million USD)
FDI (% of GDP) 1.15 0.86 0.94 0.9 0.98 0.94 1.29
*provisional data by the Bureau of Sta�s�cs (BBS)
16 | BIDA
Dhaka’s Ha�rjheel area at night.
Demographics
Popula�on : 165.5 million1 Growth rate : 1.37 per annum3
Male & Female2 : 82.4 million, 81.2 Popula�on density : 1103 per sq. km
million
Percentage of the popula�on living in4 :

Urban areas : 22.1 Rural areas : 77.9
Divisions
Barishal : 5.7 Mymensingh : 7.4
Cha�ogram : 17.5 Rajshahi : 14.3
Dhaka : 25.3 Rangpur : 11.8
Khulna : 11.9 Sylhet : 6.0
The total employed popula�on Labour Force Survey, 2016-17
(15+): 63.5 million

Male : 43.5 million
Female : 20.0 million
Age group 15 to 64 accounts for more than
60% of the popula�on
1
Provisional BBS data revised on Jan 1, 2019. 3
Bangladesh Sta�s�cal Yearbook 2019
2
Bangladesh Sample Vital Sta�s�cs 2018 4
Mul�ple Indicator Cluster Survey 2019
17 | BIDA
Bangladesh is divided into 8 administra�ve
units known as Bibhag or Divisions:
Barishal, Cha�ogram, Dhaka, Khulna,
Mymensingh, Rajshahi, Sylhet and Rangpur.
Each division is named a�er its major city,
which also serves as an administra�ve seat.
Sixty-four districts make up the Divisions,
which are further subdivided into 492
Upazila or sub-districts.
Each division is placed under a Divisional
Jatiya Sangsad is the parliament house of Bangladesh
Commissioner, while each district is headed
by a Deputy Commissioner (DC). Each Zila is
further divided into a number of Upazilas or Judiciary
sub-district headed by Upazila Nirbahi The Supreme Court of Bangladesh, headed
Officer (UNO). by the Chief Jus�ce, is the highest judicial
organ and comprises of the Appellate
Administra�ve Unit No. Division and the High Court Division.
Division 8
The Supreme Court serves as the guardian
District 64 of the Cons�tu�on and enforces the
City Corpora�on 11 fundamental rights of the ci�zens. The
Upazila/sub-district 492 Appellate Division hears and determines
appeals from judgments, decrees, orders or
Police Sta�on 644
sentences of the High Court Division.
Union 4,571
At the district level, the district court is
Source: Bangladesh Bureau of Sta�s�cs headed by a District Judge who is assisted
by Addi�onal District Judge, Joint District
Government judges, Senior Assistant Judges and Judicial
Bangladesh is governed by a unitary Magistrates.
parliamentary form of government. The
President is the head of the State while the Local Government
Prime Minister is the head of the The �ers of Local Government are (i) Union
Government. The Prime Minister is assisted Parishad, (ii) Upazila Parishad, and (iii) Zila
by a Cabinet of ministers in discharging Parishad. In the urban areas, there are two
his/her du�es. types of Local Government System – (i)
Pourashava (Municipality) and (ii) City
Legislature Corpora�on. The Local Government bodies
Ja�ya Sangsad is the parliament house of are cons�tuted by the representa�ves
Bangladesh in which legisla�ve power of directly elected by the people.
the Republic is vested. It consists of 300
members directly elected by the adult
franchise. The Members of the House elect
another 50 female members in reserved
seats. Thus, the total number of members
of the House is 350.
18 | BIDA
Climate and the seasons
Climate: Subtropical Monsoon
The Bangla calendar year is tradi�onally divided into six seasons: Grishmo (summer), Borsha
(rainy), Shorot (autumn), Hemanta (late autumn), Sheeth (winter) and Bosonto (spring).
Summer Late autumn
mid-April to mid-June mid-October to mid-December
The Bengali year begins with summer, with It is a transi�onal phase between autumn
Pahela Baishakh being the Bangla New Year. and winter. By mid-November the evenings
Summer in Bangladesh is also characterised grow cool. The contrast between the
by storms popularly known as Kalbaishakhi day�me and night �me temperatures
or nor’wester. April is the ho�est month results in heavy dew. In this season farmers
when the mean temperature ranges from are busy harves�ng paddy and celebra�ng
27oC in the east and south to 31oC in the the new crop.
west-central part of the country. A�er April, Winter
increasing cloud-cover dampens
mid-December to mid-February
temperature.
November through February is prac�cally
Rainy season the winter season in Bangladesh. Northern
mid-June to mid-August Bangladesh is cooler than southern
The southwest monsoon winds bring plenty Bangladesh. Average temperatures in
of rainfall -- around 70 to 85 percent of the January vary from about 11oC in the
annual total. The season is important for northwestern and northeastern parts of the
farmers and fishing communi�es. The country to 20oC to 21oC in the coastal areas.
inundated floodplains become a large The winter season is very dry, which
habitat for a wide variety of aqua�c flora accounts for less than 4 percent of the total
and fauna. annual rainfall.
Autumn Spring
mid-August to mid-October mid-February to mid-April
The spring season is very brief in
The bright day is o�en punctuated by
Bangladesh and prac�cally prevails during
sudden showers. At the beginning of this
March only. Weather is pleasant, with 20 to
season, the days can be hot and sultry, but
25 percent cloud-cover, comfortable
the nights and mornings are cool. The
temperature and moderate rela�ve humidity.
gradual decrease of humidity also makes
Average temperature in March varies from
the weather comfortable.
22oC to 25oC all over the country.
Source: Banglapedia
19 | BIDA
Chapter 1
Business
Climate
& Opportunities
21 | BIDA
Chapter 1: Business Climate & Opportunities
Why invest in Bangladesh?
Bangladesh is one of the fastest growing economies in the

world. There is poli�cal stability under a democra�c
system. Infla�on is steady because of good monetary and
fiscal management. Bangladesh has never defaulted, not
even for a dollar.
Building a knowledge-based economy is a key priority. In
addi�on to that, the country is highly focused on
investment. Bangladesh sees the crea�on of an open,
predictable and compe��ve climate for private investment
as an obvious step towards achieving its development goals.
A business operates within an environment decided by the
economic, poli�cal, technological, social and legal
condi�ons that exist in a country. So Bangladesh has been
working to create a modern business climate through
reforms in all spheres, diagnosing and correc�ng every
procedure that has an impact on business.
22 | BIDA
Bangladesh Investment Handbook
One of the world’s

fastest-growing
economies
Bangladesh, growing rapidly for more than a decade, is called the next Asian Tiger. GDP
growth is steadily on the rise and crossed 8 percent in FY 2018-19. Infla�on is reined in amid
long-term stability. Double-digit growth is well within reach as Bangladesh aspires to
become a developed na�on by 2041.
Fastest growing economy in the Asia-Pacific region

Source: Asian Development Outlook 2019, ADB
Bangladesh among world’s five fastest-growing economies
Source: Bangladesh Development Update 2019: Towards Regulatory Predictability, WB
Bangladesh among the Next 11
Source: Goldman Sachs
FDI in Bangladesh jumps 68 percent in 2018
Source: World Investment Report 2019, UNCTAD
Govt expected to transform Bangladesh into upper-middle-income economy by 2021
Source: Economist Intelligence Unit, 2019
Bangladesh has achieved a remarkable GDP growth rate of 8.19 percent in the 2018-19 fiscal,
one of the highest in South Asia. GDP growth is forecast to con�nue above 7 percent due to
growth in public spending in infrastructure and private investment supported by business
climate reforms, according to the World Bank1. It is poised to increase by 7% on an average �ll
2
2033, according to the Centre for Economics and Business Research (CEBR) .
ANNUAL GDP GROWTH RATE (%)

Bangladesh Pakistan Afghanistan India Bhutan Sri Lanka
9
8
7
6
5
4
3
1
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Source: Bangladesh Economic Review 2019 & World Bank data
1
Bangladesh Development Update: Ter�ary Educa�on and Job Skills 2019
2
World Economic League Table 2020
23 | BIDA
FDI is expected to rise further, supported by regulatory reforms, infrastructure development

and stable poli�cal condi�ons, which have resulted from increased government investment in
various ini�a�ves.
In 2018-19, FDI rose by 67.94% as re-investment rose, equity investment doubled and
inter-company loans quadrupled, showing a peak in investor confidence. Infla�on remained
within the 5.5 percent target set for the fiscal.
FOREIGN DIRECT INVESTMENT (FDI) TRENDS
1.4 4500
3889
4000
1.2
3500
1.0
3000
2455 2580
0.8 2500
2004
1731 1834 2000
0.6
1480
1500
0.4
1000
0.2
500
0 0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
FDI net (million USD) FDI (%of GDP)
Source: Bangladesh Bank
Remi�ance also con�nues to be on the rise, growing by 9.8 percent to reach a record USD 16.4
billion in the 2018-19 fiscal, while private consump�on grew by 5.4 percent. Increased
domes�c consump�on provides a certain insula�on from global downturns, according to
experts.
Exports are expected to con�nue rising due to the strength of the RMG sector, the world’s
second largest only a�er China, and a number of emerging sectors like Agriculture and
Pharmaceu�cals, which led non-RMG exports in 2018-19.
24 | BIDA
FOREIGN EXCHANGE RESERVE

(MILLION USD)
40000
33493 32943 32716 32987
35000
30176
30000
25020
25000 21508
20000
15315
15000
10000
5000
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20*
Source: Bangladesh Bank (*un�l February)
Sovereign ra�ngs for Bangladesh has been steady and posi�ve, according to both Moody’s and
S&P, who have labelled the country as a mobile economy rising to the next level with
performance much stronger than sovereigns at similar income levels. Goldman Sachs lists
Bangladesh among its "Next 11" countries for its poten�al in becoming a major economy.
INFLATION RATE (%)
8
7.35
7 6.41 5.92
6.78 5.78
6
5.44
5 5.44
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Source: Bangladesh Bank
Consistent and inclusive growth over a decade has put Bangladesh on a path to prosperity.
Bangladesh has been focused on achieving double-digit growth to emerge as a developed
country by 2041. Already established as a lower-middle income country, Bangladesh is ready
to emerge as a middle income country by 2024.
25 | BIDA
Strong domes�c market

A country of over 165.55 million people, Bangladesh emerged as a developing country a�er
raising tens of millions to middle class and affluent status. Bangladesh is one of the world’s
most densely populated countries, so distribu�on cost here is among the lowest because
markets are simply easier to access.
Resilient domes�c demand behind growth in manufacturing and construc�on industries
Source: Bangladesh Development Update 2019: Towards Regulatory Predictability, World Bank
Private consump�on to drive real GDP growth of 7.7% un�l 2022-23 fiscal
Source: Economist Intelligence Unit, 2019
70 percent firms want 'expansion' in Bangladesh, the highest figure in Asia and Oceania
Source: 2019 JETRO Survey on Business Condi�ons of Japanese Companies in Asia and Oceania
Bangladesh’s consumer class is experiencing a dynamic change. The current trend and future
es�mates suggest that consump�on demand will be a strong driver of growth.
The number of middle-class and affluent Bangladeshis is growing by an average 10.5 percent
annually, which is faster than Indonesia, Myanmar and Thailand3.
Consumer wealth is also dispersing outside major ci�es. As the growth trend con�nues, the
number of middle-class and affluent consumers is expected to nearly triple to about 34 million
by 2025, with at least 100,000 in 63 ci�es, according to the Boston Consul�ng Group.
Bangladeshi consumers are also among the most op�mis�c in the world, according to the
group’s survey. Around 60 percent of the total consumers expect to earn more. The sen�ment
is strongest among the middle-class and affluent Bangladeshis. Since the popula�on is among
the densest in the world, consumers here live in close proximity. Over 165.55 million people
inhabit a land mass roughly one-quarter the size of Thailand.
CONSUMPTION (IN BILLION TK)
25000
20000
15000
10000
5000
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*
Private Public Total
Source: Bangladesh Economic Review 2019, *provisional BBS data
3
Bangladesh: The Surging Consumer Market Nobody Saw Coming, Boston Consul�ng Group 2015
26 | BIDA
Bangladesh has witnessed a boom in ICT due to strong na�onal policies and low costs.
Consumers as a result are very reliant on technology. Over 99.984 million are connected to the
internet, with 94.236 million using the mobile internet, as of February 2020 4. The number of
mobile phone subscribers was 166.114 million. Bangladesh is the fi�h largest mobile market in
Asia Pacific region and the ninth largest in the world5.
There are around 34 million ac�ve social media users, growing annually by 13 percent6. The
government plans to roll out the fi�h-genera�on cellular network technology by 2021,
ensuring faster and more reliable internet coverage across the country.
A key component of the government’s digital inclusion strategy is to promote the uptake of
mobile money and other digital payment pla�orms. Mobile money transfers were the most
popular digital use case in Bangladesh and uptake of mobile money transfers was three �mes
greater than bank transfers7.
PER CAPITA GDP (BDT) AT CURRENT PRICE

180000
153197
160000
137518
140000
122152
120000 108378
96004
100000 86266
78009
80000
60000
40000
20000
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*
Source: Bangladesh Economic Review 2019, *provisional BBS data
Over the last decade, the final consump�on expenditure has been growing posi�vely8,
accoun�ng for private consump�on and general government consump�on. GDP per capita
and consump�on expenditure both show upward trends, which resultantly reflects higher
living standard for Bangladeshis9.
4
Bangladesh Telecommunica�on Regulatory Commission
5
GSMA Intelligence
6
Digital 2019 by We are social & Hootsuite
7
Minister of State for Informa�on and Communica�on Technology, Ministry of Post, Telecommunica�ons and Informa�on
Technology, Bangladesh
8
The World Bank
9
Des�na�on Bangladesh, PricewaterhouseCoopers
27 | BIDA
Nation of Competitive Youths

Bangladesh has a demographic dividend with over 60 percent of the popula�on within the
working age. Each year, 2.3 million young, tech savvy and adap�ve youths join an
ever-growing workforce.
Bangladesh literacy rate reaches all-�me high of 72.76%
Source: UNESCO Ins�tute for Sta�s�cs
Remarkable rise in female literacy over the period 2005–2017
Source: Bangladesh Bureau of Sta�s�cs
Young Bangladeshis are fuelling a sharp rise in the working age popula�on, providing a strong
base for rising consump�on in the coming decades. Over 60 percent of the popula�on is
between the ages of 15 and 64. The median age of the popula�on is 27. In 2025, median age
will increase to 29.5. In 2030, it will be 31.6, according to United Na�ons forecast10.
Much of the Bangladeshi popula�on is university educated. The country’s pool of resources
comprising of a young working force, who are highly adap�ve to technology, has made
Bangladesh an emerging hub for outsourcing services. The current number of IT freelancers is
around 600,000, the second highest in the world a�er India11. The government is focusing
resources and amending regula�ons for crea�on of addi�onal 50,000 jobs by 202112.
Bangladesh exports nearly $1 billion of technology products every year – a figure that the
government expects to increase to $5 billion by 2021.
POPULATION (MILLION)
168
165.55
166
163.65
164
161.75
162 159.9
160 157.9
158
155.8
156
153.7
154
152
150
148
146
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Source: Bangladesh Economic Review 2019
Bangladesh has made great strides towards making men and women equal in many areas,
par�cularly in health and educa�on. Women are an integral part of the Bangladeshi
workplace and the government is con�nually implemen�ng ini�a�ves for increased female
par�cipa�on in the labour force, which is currently at 35.6 percent13.
10
World Popula�on Ageing - the United Na�ons
11
Oxford Internet Ins�tute
12
h�ps://bposummit.org.bd/summit-objec�ves/
13
Labor Force Survey – 2016
28 | BIDA
Competitive Cost of Labour

The Bangladesh wage is less than half compared to India, and less than one-third of the cost
in China or Indonesia.
Low cost and high return manufacturing des�na�on in Asia

Source: Japan External Trade Organiza�on (JETRO)
Bangladesh among top three countries in opera�ng profit forecasts
Source: 2018 JETRO Survey on Business Condi�ons of Japanese Companies in Asia and Oceania
Bangladesh offers another advantage through flexible cost of labour, as its compe�tors are
becoming expensive places in which to do business. With its labour-intensive manufactured
exports growing at double-digit rates per year, Bangladesh can become the “next China”14.
Besides the apparel industry, the high availability of low cost workforce is propelling speedy
growth in exports of footwear, pharmaceu�cals and IT services.
MONTHLY WORKER SALARY/USD
2500
2,208
2000
1500
1000
662
413 413
500 308 265
139 217 187 234 162
109
0
Dhaka
Bangkok
Hanoi
Karachi
Jakarta
Colombo
Kuala Lumpur
Manila
New Delhi
Seoul
Shanghai
Yangon
Source: JETRO survey 2019
The minimum monthly wage for workers in the apparel manufacturing sector in Bangladesh is
75% and 60% less than the minimum wages in China and India respec�vely. This provides a
substan�al manufacturing cost advantage as compared to the regional aforemen�oned peers.
In Bangladesh, the raw gender wage gap has also decreased drama�cally, making it the
country with the smallest gender wage gap in the region15.
The Bangladesh government is inves�ng in human development and improvement in service
delivery. The aim is to enhance quality of labour and ensure technology adop�on in
manufacturing and formal services. Improvement of educa�on and training as part of long
term effort have been crucial in upgrading the skills of the people making up the informal
labour force.
14
Bangladesh: The Next China? – World Bank Blogs
15
Voices to Choices: Bangladesh's Journey in Women's Economic Empowerment – The World Bank 2019
29 | BIDA
Ready with Infrastructure

Bangladesh is li�ing itself up with solid structures, comple�ng one mega project a�er
another to improve business connec�vity through land, water and air. A boom is being
witnessed in power genera�on capacity and by 2041, Bangladesh looks to generate
60,000MW electricity.
Power capacity up at 20,000MW in 2018 from 4,942MW in 2009
Source: Ministry of Power, Energy and Mineral Resources
Infrastructure investment of GDP ra�o to increase from 3.61% to 5.0%
Source: Government of Bangladesh
26.3% of 20.6 billion govt alloca�on for development set aside for transport infrastructure
Source: Asian Infrastructure Finance 2019
By 2040, half of Bangladesh’s popula�on will be living in urban areas
Source: UN Popula�on Division, World Urbaniza�on Prospects: The 2018 Revision
The approach to infrastructure in Bangladesh has been groundbreaking. The government’s

�mely investment in building mega infrastructure for uninterrupted power supply to seamless
networks of roads and bridges have raised produc�vity to an unprecedented level.
The Padma Bridge, Metro-rail and other mega-projects including deep sea ports and power
sta�ons are part of the government’s fast-track ini�a�ves16. At the same �me, the na�onal
policy ‘Digital Bangladesh’ is guiding efforts to increase digital literacy, ensure e-governance
and encourage e-commerce. In 2018, Bangladesh launched its first satellite - ‘Bangabondhu
Sa�elite-1’ – into space.
In 2009, power genera�on capacity was just 4,942MW. In March of 2019, Bangladesh was
genera�ng 22,787MW including cap�ve and renewable energy and covering 96 percent of the
popula�on. Bangladesh’s Power System Master Plan (PSMP) expects to increase power
genera�on capacity to 24,000 MW by 2021, 40,000 MW by 2030 and 60,000 MW by 2041.
Natural gas met almost 71 percent of the country's total commercial use of energy.
Bangladesh has about 13.27 lakh metric tonnes reserve fuel oil.
The quality of different important road segments have been significantly improved through
development works. At present there is 500 km of 4-lane na�onal highways, 20.60 kilometres
of 6-lane highways and 17.50 kilometres of 8-lane highways as efforts con�nue to further
expand and improve the quality of these vital roads. By 2020, Bangladesh intends to upgrade
nearly 80% of its rural infrastructure by construc�ng 1,700 kilometres of durable rural roads in
34 districts17.
In March 2020, Bangladesh’s first ever elevated expressway on Jatrabari-Mawa-Bhanga route
was opened to traffic. The 55-km expressway reduces �me and enhances quality of travel for
people headed to 22 southwestern districts.
16
Read the full list in ‘Focus Infrastructure’ later in this chapter.
17
Des�na�on Bangladesh – PricewaterhouseCoopers
30 | BIDA
Categories Number Total length

Na�onal Highways 99 3,906 km
Regional Highways 139 4766 km
Zilla Highways 701 13423 km

Total 939 22,096 km
Source: Roads and Highways Department, 2018-19 Annual Report
Bangladesh Railway has around 2,955.53 kilometer of network which connects 44 districts and
nearly all vital des�na�ons. The government has been building new railway tracks and
renova�ng old ones while adding new locomo�ves, wagons and coaches.
Bangladesh is also focused on hassle free travel and cargo transport through its three
interna�onal airports. A third terminal is being constructed at Dhaka’s Hazrat Shahjalal
Interna�onal Airport, which will increase annual handling capacity from the current eight
million to 20 million passengers. The airport’s cargo capacity will be up from 200,000 tonnes to
500,000 tonnes. The new terminal is set to be completed by 2023.
The government is se�ng up a fourth interna�onal airport by developing the features of the
Cox’s Bazar Airport. The interna�onal airports in Cha�ogram and Sylhet are also being
developed to enhance runway and cargo handling capacity. Bangladesh also has seven
domes�c airports and 2 Short Take-Off and Landing (STOL) ports.
Cargo (MT)
Sea ports No. of Turnaround Total
in FY 2018-19 ships �me (days) containers
Import Export Total (TeU)
Cha�ogram 3699 82939731 6846406 89786137 2.86 2808499

Mongla 2563* 11179878 135131 11315009 4.44 57732
Source: CPA and Mongla Port authori�es; *including IND-BD protocol vessels and others.
As Bangladesh’s principal sea port, Cha�ogram Port handles nearly 92 percent of interna�onal
trade of the country. Cha�ogram Port’s container handling growth at present is 14 percent
and it has significantly reduced turn-around �me. The port is construc�ng a mul�-purpose
terminal and two container terminals as part of the Bay Terminal project18 worth 2 billion USD,
which would result in lower cost and �me for shipment. The Mongla Port is also gearing up for
more ac�vi�es with a planned special economic zone on its premises, while the country’s third
sea port Payra has become opera�onal.
18
Project Profile by PPPA (as of 9 February, 2020)
31 | BIDA
The construc�on of Bangladesh’s first deep sea port at Matarbari in Cha�ogram’s Cox’s Bazar
district will radically transform the export and import scenario. The project worth BDT 177.77
billion includes two separate terminals and a 350 meter-long naviga�on channel with
16-meter draught, which will allow 8,000 TEU container ships to anchor.
To ease travel between the capital and the port city, the Dhaka-Cha�ogram Highway has been
renovated into four lanes. A new expressway between Dhaka and Cha�ogram is being
designed to boost trade and ease conges�on19. Addi�onally, Inland Container Terminals (ICT)
are also being constructed as an addi�onal route for cargo delivery through inland waterways.
Focus on Investment
Bangladesh has the most liberal investment regime in all of South Asia, characterised by a
growing number of facili�es, a�rac�ve incen�ve policies and consistent reforms for a be�er
business climate.
Bangladesh is intensely focused on promo�ng private investment because of its poten�al to
drive diversifica�on and the transi�on towards a future based in knowledge and technology.
Private investment in Bangladesh has grown substan�ally owing to improvements in the
economic and social environment.
Investment development is one of the 10 Special Ini�a�ves of Bangladesh’s Honourable Prime
Minister, whose office directly supervises the ac�vi�es of the investment promo�on agencies,
which have been vested with specialised mandates.
Bangladesh Investment Development Authority (BIDA) is the country’s apex investment
promo�on agency under the Prime Minister’s Office, in charge of investment promo�on,
facilita�on and policy advocacy. BIDA also works to facilitate the u�lisa�on of unused lands
owned by state-owned enterprises in more beneficial economic purposes.
BIDA REGISTERED PROJECTS (MILLION USD)

2467
2008-09 2123
3931
2009-10 890
2010-11 7748
5104
2011-12 6679
4470
2012-13 5599
2733
2013-14 2383.212
6392.3
2014-15 11683.191
1032.43
2015-16 12008.288
1961.571
2016-17 12494.269
10756.055
2017-18 15333.745
10316.245
2018-19 8409.3
5025.441
0 2000 4000 6000 8000 10000 12000 14000 16000 18000
Local Foreign
19
h�ps://www.adb.org/projects/45174-001/main
32 | BIDA
The government’s lead agency for ini�a�ng reforms for improving Bangladesh’s ranking on
Ease of Doing Business index, BIDA is working with 37 government bodies for the
implementa�on of 84 reform ini�a�ves. As part of the ongoing effort to reduce �me and cost
for investors, BIDA has launched the online One Stop Service (OSS) portal in 2019, which is the
country’s first inter-operable pla�orm. Licenses, permits, registra�ons and approvals are
obtained through the OSS, which would eventually provide 154 services from 35 agencies.
Feedback
Loop Applicant
Processes
Feedback
Name Clearance Loop
Issuance
Company Registra�on
Agencies
Satellite
OSS
Tax Cer�ficate and TIN RJSC
BEPZA
VAT Registra�on
OSS
NBR
Visa Recommenda�on BEZA
La�er Issuance
BIDA Na�onal
Work Permit Issuance BHTPA Investor Portal
Foreign Borrowing DoE
Request Approval
BIDA
Environment Clarence Other Agencies
Other Relevant
Processes
BIDA’s OSS portal
The other investment promo�on agencies are Bangladesh Economic Zones Authority (BEZA),
Bangladesh Export Processing Zones Authority (BEPZA), Public Private Partnership Authority
(PPPA) and Bangladesh Hi-tech Park Authority (BHTPA).
BEPZA has been playing a significant role in investment promo�on through new
industrialisa�on. At present, there are 8 export processing zones in Bangladesh. As of
December 2019, there were 475 opera�onal enterprises20 in the EPZ, with investment worth
5.09 billion USD and the export from the eight EPZs had reached 7.52 billion USD.
BEZA is working to achieve the target of establishing 100 special economic zones, USD 40
billion worth of produc�on or export andthrough that the employment of 10 million peopleby
2030. The government has already approved 88 economic zones where 61 are public
economic zones and 27 are private economic zones. BEZA is also working to develop
country-specific economic zones, private economic zones, PPP economic zones and tourism
parks.
Public Private Partnership Authority is a key ini�a�ve bridging the gap between investment
needs and available government resources. For implementa�on through the PPP, 56 projects
worth USD 23.8 billion in 13 sectors have so far been approved.
BHTPA promotes IT/ITES-based industry, crea�on of tech-based employment. The authority is
working to implement 6 projects that will lead to the establishment of 28 hi-tech park or
so�ware technology parks across the country.
20
BEPZA bulle�n October-December 2019
33 | BIDA
General Incentives
Incen�ves are subject to revision upon annually enacted Finance Act and individual
Statutory Regulatory Orders (SROs). Companies located in EZs/EPZs are en�tled21 for
different sets of incen�ves. The following have been updated as per Finance Act 2020.
Tax exemp�on
• A business in Bangladesh can enjoy tax exemp�on on a varied rate and reduced taxa�on
for various periods depending on the loca�on of the opera�on.
Five-year tax exemp�on is offered to businesses located in Dhaka Division and
Cha�ogram Division, but excluding the districts of Dhaka, Narayanganj, Gazipur,
Cha�ogram, Rangama�, Bandarban and Khagrachari districts.
Ten-year tax exemp�on is offered to businesses located in Rajshahi Division, Khulna
Division, Sylhet Division and Barishal Division, but excluding areas under the city
corpora�ons. Businesses that set up in the districts of Rangama�, Bandarban and
Khagrachari also enjoy this tax exemp�on period.
• For certain projects under Public Private Partnership (PPP), 100 percent tax exemp�on on
income and capital gain and 100 percent tax exemp�on is offered for 10 years.
• For services involving so�ware development, na�onwide telecommunica�on
transmission network and Informa�on technology, 100 percent tax exemp�on is offered.
• Fi�y percent of income derived from export is exempted from tax.
• Tax exemp�on for interest paid on foreign loan.
These ‘industrial undertakings’ are eligible for tax exemp�on under

Income Tax Ordinance 1984, sec�on 46BB:
• Ac�ve pharmaceu�cals ingredient and • Barrier contracep�ve and rubber latex
radio pharmaceu�cals • Basic components of electronics (e.g.
• Agriculture machineries resistor, capacitor, transistor,
• Aircra� heavy maintenance services integrated circuit, mul�layer PCB etc.)
including parts manufacturing • Bi-cycle including parts thereof
• Ar�ficial fiber/manmade fiber • Bio-fer�lizer
manufacturing • Biotechnology-based agro products
• Automa�c bricks • Boiler including parts and equipment
• Automobile thereof
• Automobile parts & components • Compressor including parts thereof
manufacturing • Computer hardware
• Automa�on and robo�c design • Electrical Transformer
manufacturing including parts &
• Furniture
components thereof
21
Check Annexures for BEZA, BEPZA incen�ves. Visit BHTPA website for extensive incen�ves offered in Bangladeshi hi-tech parks
34 | BIDA
• Home appliances (blender, rice cooker, • Nanotechnology based product

microwave oven, electric oven, washing manufacturing
machine, induc�on cooker, water filter • Petro-chemicals
etc.)
• Pharmaceu�cals
• Insec�cides or pes�cides
• Plas�c recycling
• Leather and leather goods
• Tex�le machinery
• LED TV
• Tissue gra�ing
• Locally produced fruits and vegetables
• Toy manufacturing
processing
• Tyre manufacturing
• Mobile phone
To enjoy tax exemp�on or benefits, i) register investments with BIDA, ii) submit an applica�on
to Na�onal Board of Revenue (NBR), and iii) receive a cer�ficate from NBR within 45 days of
the applica�on.
List of physical infrastructure facili�es eligible for Tax exemp�on under

Sec�on 46CC of Income Tax Ordinance (10 years):
(i) deep sea port; (ii) elevated expressway; (iii) export processing zone; (iv) flyover; (v) gas
pipe line; (vi) Hi-tech park; (vii) Informa�on and Communica�on Technology [ICT] village or
so�ware technology zone; (viii) Informa�on Technology [IT] park; (ix) large water treatment
plant and supply through pipe line; (x) Liquefied Natural Gas [LNG] terminal and
transmission line; (xi) mobile phone tower or tower sharing infrastructure; (xii) mono-rail;
(xiii) rapid transit; (xiv) renewable energy [e.g solar energy plant, windmill]; (xv) sea or river
port; (xvi) toll road or bridge; (xvii) underground rail; (xviii) waste treatment plant.
Incen�ves for export oriented industry

• 50% of Income derived from export is exempted from tax
• No export duty except on tobacco products
• Bonded warehousing facili�es for export goods manufacturing
• Duty drawback facili�es
• Export subsidy and cash incen�ves for specific product exports
Accelerated deprecia�on
• The accelerated deprecia�on method for accoun�ng income taxes can be availed for
machinery and plants used by an en�ty that does not enjoy tax exemp�on.
Exemp�on on import du�es
• Capital machineries are subject to reduced rate from customs du�es.
• Raw materials to be used for producing export goods are exempt from import du�es.
• Approval from the Chief Controller of Import & Export is required for import duty
exemp�on. (Exemp�ons are provided as per revenue laws and SRO issued under those
laws. Bonded warehouse facili�es or duty drawback facili�es may be availed.)
35 | BIDA
Tariff Refund
• Tariff (if paid) refund on import of raw materials for export
Double Taxa�on Preven�on
• Bangladesh has Double Taxa�on Trea�es or DTTs with 34 countries.
Bonded warehousing facili�es
• For export oriented industries
• For large import for local selling in certain items
Ownership
• 100% foreign ownership is allowed
Repatria�on of invested capital, dividend
• Full repatria�on is allowed for capital invested from foreign sources. Similarly, profits and
dividend accruing to foreign investment can be transferred in full. Facili�es are provided
for repatria�on of invested capital, profits and dividends.
Also, when foreign investors reinvest their dividends or retained earnings, those are
treated as new investments.
Other incen�ves
• There are no restric�ons on issuing of work permits for foreign na�onals and employees
related to projects;
• Provision of transfer of shares held by foreign shareholders to local investors;
• Royalty, technical know-how and technical assistance fees can be remi�ed;
• The Foreign Private Investment (Promo�on & Protec�on) Act 1980 protects foreign
investment from na�onalisa�on and expropria�on;
• Equal treatment of both local and foreign investment;
• Bilateral and mul�lateral investment agreements ensure protec�on of investment. See full
list of contrac�ng par�es and mul�lateral agreements later in this chapter.
• 100% FDI, Joint Ventures, Partnerships, PPPs, Non-equity mode (technology transfer,
licensing franchising, contrac�ng etc.) and foreign lending are allowed;
• 100% FDI or Joint Venture FDIs are allowed to par�cipate in the primary and secondary
stock markets;
• Foreign Investors are allowed to have access to local banks for working capital
requirements;
• Intellectual Property Right is protected by law.
Read more on Chapter 4: Paying taxes
36 | BIDA
Sector-speci�ic incentives
Explore the special incen�ves Bangladesh offers, in addi�on to general incen�ves, to each
flourishing sector that serves to diversify its economy.
Agro Products & Jute Products

Fiscal incen�ves
• Industries engaged in the processing of locally produced fruits and vegetables,
bio-technology based agro products, bio fer�liser, �ssue gra�ing, agricultural
machineriesare en�tled to reduced-tax benefits up to 5 to 10 years.
• 50% of income derived from the produc�on of corn/maize or sugar beet is exempted
from tax.
• Maximum 10 percent tax rate for income generated from poultry and hatchery works.
• Maximum 15 percent tax rate for income generated from produc�on of poultry and fish
feeds, ca�le farming, seed produc�on, frog farming, bee farming, sericulture,
mushroom produc�on and floriculture.
• Reduced tax on income of industrial undertaking engaged in rice bran oil produc�on up
to 10 years
• 50% of income derived from export is exempted from tax
• Tax exemp�on on royal�es, technical knowhow and technical assistance fees and
facili�es for their repatria�on;
• Avoidance of double taxa�on for foreign investors on the basis of bilateral agreements;
• Tariff Concessions on import of capital machinery
Cash or export incen�ves, fund transfer-related incen�ves
• 20% export subsidies/cash incen�ves on vegetable and fruit export, and on processed
agricultural product export
• 20% export subsidies/cash incen�ves on agar and a�ar export
• 10% export subsidies/cash incen�ves on potato export
• 20% export subsidies/cash incen�ves on crop and vegetable seeds export
• 20% export subsidies/cash incen�ves on 100% halal meat export
• 10% export subsidies/cash incen�ves on residuals of cow and buffalo (except bone) export
• 20% export subsidies/cash incen�ves on crab and eel export
• 2% to 10% export subsidies/cash incen�ves on shrimp and other fish export
• 5% to 20% export subsidies/cash incen�ves on jute products export
• 20% export subsidies/cash incen�ves on export of jute s�ck carbon
37 | BIDA
Seed
Fiscal incen�ves
• Max 15% tax rate for income generated from produc�on of seeds

• Export subsidy of 20 percent on export of vegetable and crop seeds
Readymade Garments
Fiscal incen�ves
• Reduced tax rate on export income
• Bonded Warehousing facili�es
• Reduced corporate tax rate of 12% for knitwear and woven garments manufacturer and
exporter (�me extended �ll June 2022)
• Reduced corporate tax rate of 10% for knitwear and woven garments manufacturer and
exporter with interna�onally recognized factory with green building cer�fica�on (�me
extended �ll June 2022)

• Documentary Credit/LC facili�es provided by bank using export Documentary
Credit/LC as collateral
Leather & Manufacturing of Leather Goods

Fiscal incen�ves
• Bonded Warehousing facili�es

• Cash incen�ve of 15% on leather product export
Non-leather Footwear
• Cash incen�ve of 15% on export of footwear made of synthe�cs and fabrics
Plas�c Products
• Export subsidy of 10% on plas�c product export
• Export subsidy of 10% on PET bo�le export
38 | BIDA
ICT, Robo�cs and related industry

Fiscal incen�ves
• Industries engaged in the produc�on of basic components of electronics (e.g. resistor,
capacitor, transistor, integrated circuit, mul�-layer PCB etc.), computer hardware,
Automa�on and Robo�cs design, manufacturing including parts and components
thereof, Ar�ficial Intelligence based system design and/or manufacturing,
Nanotechnology-based products manufacturing are en�tled to reduced-tax benefits
for 5 or 10 years depending on loca�ons.
• 100% tax exemp�on for income derived from so�ware development, Na�onwide
Telecommunica�on Transmission Network or Informa�on Technology Enabled
Services (ITES).
• Avoidance of double taxa�on for foreign investors on the basis of bilateral agreements
• 2% duty on ICT related hardware imports
facili�es for their repatria�on
• 10% export subsidies/cash incen�ves on so�ware, ITES, computer hardware export
Shipbuilding
Fiscal incen�ves
• Reduced tax rate on export income: 5% for publicly traded company and 10% for
non-publicly traded company.
• Tax exemp�ons on capital gains from transfer of shares by the inves�ng company
• Import du�es of 5 percent on raw materials used for selling ships in local market

• Export subsidy of 10% on export of ships
Automobiles
Fiscal incen�ves
• Industries engaged in the produc�on of automobile manufacturing industry and tyre
manufacturing industry are en�tled to reduced-tax benefits up to 5 to 10 years.
39 | BIDA
Manufacturing, Machinery, Light Engineering, Electrical goods

Fiscal incen�ves
• Industries engaged in the produc�on of agriculture machinery, electrical transformer,

nanotechnology-based products manufacturing, tex�le machinery, automobiles,
automobile parts, tyres, boilers, boiler parts, compressors, compressor parts, bi-cycles
and parts manufacturing, basic components of electronics, Automa�on and Robo�cs
design and manufacturing including parts and components, toy manufacturing are
en�tled to reduced-tax benefits for 5 or 10 years depending on loca�ons.
• 50% of income derived from export is exempted from tax.
• Complete/par�al import duty exemp�on on some raw materials imported by
manufacturers of certain products (elevator, compressor, generator, refrigerator,
air-condi�oner, motorcycle, etc.
facili�es for their repatria�on.
• Avoidance of double taxa�on for foreign investors on the basis of bilateral agreements.
• Tariff concessions on import of capital machinery and duty drawback facility.
• Bonded warehousing facility for large imports of ingredients to be used for produc�on.
• No VAT on export goods.

• 15% export subsidies/cash incen�ves on furniture export.
• 10% export subsidies/cash incen�ves on motorcycle export.
• 15% export subsidies/cash incen�ves on light engineering products export.
• 15% export subsidies/cash incen�ves on light engineering item export.
• 15% export subsidies/cash incen�ves on accumulator ba�ery.
• 10% export subsidies/cash incen�ves on razor and razor blades export.
• 10% export subsidies/cash incen�ves on photovoltaic module export.
• 10% export subsidies/cash incen�ves on galvanised sheet/coil (coated with zinc, or
with aluminum and zinc, or with colour) export.
• 10% export subsidies/cash incen�ves on ceramic items export.
40 | BIDA
Chemicals & Pharmaceu�cals

Fiscal incen�ves
• Industries engaged in the produc�on of petro-chemicals, ac�ve pharmaceu�cals
ingredient industry (API) and radio pharmaceu�cals industry, pharmaceu�cals, barrier
contracep�ve and rubber latex, tyre manufacturing are en�tled to reduced-tax benefits
for 5 or 10 years depending on loca�on.
• Complete import duty exemp�on on some raw materials imported by raw materials
producers for medicines.
• 50% of income derived from export is exempted from tax.
• Avoidance of double taxa�on for foreign investors on the basis of bilateral agreements.
• Tariff Concessions on import of capital machinery and duty drawback facility.
• Bonded warehousing facility for large imports of ingredients to be used for produc�on.
• No VAT on export goods.

• 5% export subsidies/cash incen�ves on PET bo�le export.
• 10% export subsidies on export of Polyester staple fiber produced from pet-bo�le flex.
• 20% export subsidies/cash incen�ves ac�ve pharmaceu�cals ingredient export.
• 10% export subsidies/cash incen�ves on pharmaceu�cals products export.
• 10% export subsidies/cash incen�ves on chlorine, sodium hydroxide, hydrochloric acid,
hydrogen peroxide export.
Home Tex�le
Fiscal incen�ves
• Reduced tax rate on export income.
• Bonded Warehousing Facili�es.

• Documentary Credit/LC facili�es provided by bank using export Documentary Credit/LC
as collateral.
41 | BIDA
Renewable Energy
Fiscal incen�ves
• Infrastructure facili�es producing renewable energy (solar energy plant, wind mill
etc.) are en�tled to reduced-tax benefits for 10 years.
• Priority to FDIs in genera�ng electricity from solar and wind.
Handicra�
Fiscal incen�ves
• 100% Tax exemp�on on income derived from the export of handicra�s.

• Cash incen�ves of 20% on export of handicra�s produced from certain items.
Home Appliance
Fiscal incen�ves
• Industries engaged in the produc�on of home appliances (blender, rice cooker,

microwave woven, washing machine, LED television, mobile phone, induc�on
cooker, water filter etc.) are en�tled to reduced-tax benefits for 5 or 10 years
depending on loca�on
• Avoidance of double taxa�on for foreign investors on the basis of bilateral
agreements
• Tariff concessions on import of capital machinery and duty drawback facility
• Bonded warehousing facility for large imports of ingredients to be used for
produc�on.
• No VAT on export goods
Furniture
Fiscal incen�ves
• Industries engaged in the produc�on of furniture are en�tled to reduced-tax
benefits up to 5 to 10 years
• 15% export subsidy on furniture export
42 | BIDA
Power & Energy

Fiscal incen�ves
• Private sector power genera�on companies star�ng commercial opera�on between
Jan 01, 2020 and Dec 31, 2022 will enjoy the following:
- Tax exemp�on on income from power genera�on up to Dec 31, 2034.
- Personal income tax exemp�on for 3 years for foreign na�onals working in such
company.
- Tax exemp�on on interest paid on foreign loan.
- Tax exemp�on on royal�es, technical knowhow and technical assistance fees.
- Exemp�on of capital gain tax arising from transfer of shares.
• Tax exemp�on of income of private power genera�on units for 15 years from the
date of commercial opera�ons.
• Reduced tax benefits for 10 years for gas pipeline, LNG terminal and transmission
line, solar energy plant and wind mill.
• Import duty exemp�on on imports of machineries for electricity genera�on.
• Import duty exemp�on on imports of machineries used for natural gas explora�on.
• No VAT on genera�on of electricity.

• Priority to FDIs in genera�ng electricity from solar, windmill, bio-mass, household
and industrial wastage.
Infrastructure
Fiscal incen�ves
• 10 years of tax benefits for infrastructure like deep sea port, elevated expressway,
export processing zone, flyover, high-tech park, ICT village or so�ware technology
zone, IT park, large water treatment plant and supply through pipeline, rapid
transport, sea or river port, toll road or bridge, underground rail, mobile phone
tower or tower sharing infrastructure, elevated expressway, waste treatment plants.
• For PPP (Public-Private Partnership) projects like Na�onal Highways or Expressways
and related Service, Roads, Flyovers, Elevated and At-Grade Expressways, River
Bridges, Tunnels, River port, Sea port, Airport Subway, Monorail, Railway, Bus
Terminals, Bus Depots, and Elderly care home will have the following benefits.
o 100% tax exemp�on on income for 10 years from commercial opera�on.
o 100% tax exemp�on on capital gain arises from transfer of raised share capital
within 10 years from commercial opera�on.
o 100% tax exemp�on on paid royalty and technical knowhow fees within 10
years from commercial opera�on.
• Tax exemp�ons on capital gains from transfer of shares by the inves�ng company.
• Tax exemp�on on interest paid on foreign loan.
43 | BIDA
Construc�on
Fiscal incen�ves
• Industries engaged in the produc�on of brick made of automa�c Hybrid Hoffmann
Kiln or Tunnel Kiln technology are en�tled to reduced-tax benefits up to 5 to 7 years.
• For contracts fixed tax deducted at source will be considered as the total tax
payment for that contract. Generally, no addi�onal tax. Similar tax treatment for real
estate developers.
Logis�cs
Fiscal incen�ves
Logis�cs
• For contracts fixed tax deducted at source will be considered as the total tax
payment for that contract. Generally, no addi�onal tax.
• Fixed income tax facility on each vehicles opera�ng on hire used for carrying
passengers/goods.
• Fixed income tax facility on each inland water vassals opera�ng on hire or used for
carrying passengers.
agreements.
• Tariff concessions on import of capital machinery.
Financial
Fiscal incen�ves
• 10% tax on capital gain from trading of shares and bonds enlisted with any stock
exchange in Bangladesh
44 | BIDA
Treaties and Instruments

Bilateral Investment Trea�se
Bilateral Investment Trea�se or BITs offer a set of guarantees to investors of either
contrac�ng par�es, including fair and equitable treatment, protec�on from expropria�on,
free transfer of means besides full protec�on and security.
So far, Bangladesh has signed BITs with 30 countries.
Countries Signing year Status
Cambodia 2014 Signed

Turkey 2012 Signed
United Arab Emirates 2011 Signed
Denmark 2009 In force
India 2009 In force
Vietnam 2005 Signed
Singapore 2004 In force
Thailand 2002 In force
Iran, Islamic Republic of 2001 In force
Austria 2000 In force
Switzerland 2000 In force
Uzbekistan 2000 In force
Korea, Dem. People's Rep. of 1999 Signed
Japan 1998 In force
Indonesia 1998 In force
Philippines 1997 In force
Poland 1997 In force
China 1996 Signed
Pakistan 1995 In force
Netherlands 1994 In force
Malaysia 1994 In force
Italy 1990 In force
Turkey 1987 In force
Romania 1987 In force
Korea, Republic of 1986 In force
United States of America 1986 In force
France 1985 In force
BLEU (Belgium-Luxembourg Economic Union) 1981 In force
Germany 1981 In force
United Kingdom 1980 In force
45 | BIDA
Trea�es with Investment Provisions (TIPs)

Year of entry
Title Par�es Signing year
into force
Asia-Pacific Trade China, Republic of Korea, 2009 --
Agreement (APTA) Lao People's Democra�c
Republic, Sri Lanka
The South Asian Afghanistan, Bangladesh, 2004 2006
Free Trade Area Bhutan, India, Maldives,
(SAFTA) Nepal, Pakistan and
Sri Lanka
Bangladesh-EC European Union 2000 2001
Coopera�on
Agreement
OIC Investment OIC member states 1981 1988
Agreement
Investment Related Instruments (IRIs)

Bangladesh has signed 20 Investment Related Instruments including intergovernmental
agreements, guidelines and principles both regional and mul�lateral.
Year of
Title Level Type
adop�on
Trade-Related Aspects of 1994 Mul�lateral Intergovernmental
Intellectual Property Rights agreements
(TRIPS)
Agreement on Trade- 1994 Mul�lateral Intergovernmental
Related Investment agreements
Measures (TRIMS)
Islamic Corpora�on for 1992 Regional/ Intergovernmental
the Insurance of Plurilateral agreements
Investment Credit
Mul�lateral Investment 1985 Mul�lateral Intergovernmental
Guarantee Agency agreements
(MIGA) Conven�on
New York Conven�on 1958 Mul�lateral Intergovernmental
agreements
Interna�onal Centre for 1965 Mul�lateral Intergovernmental
Se�lement of Investment agreements
Disputes (ICSID)
Conven�on
46 | BIDA
Year of
Title Level Type
adop�on
Fi�h Protocol to General 1997 Mul�lateral Intergovernmental
Agreement on Trade in agreements
Services (GATS)
Fourth Protocol to GATS 1997 Mul�lateral Intergovernmental
agreements
GATS 1994 Mul�lateral Intergovernmental
agreements
UN Code of Conduct on 1983 Mul�lateral Dra� instruments
Transna�onal
Corpora�ons
Doha Declara�on 2001 Mul�lateral Guidelines, principles,
resolu�ons and
similar
World Bank Investment 1992 Mul�lateral Guidelines, principles,
Guidelines resolu�ons and similar
Interna�onal Labor 2000 Mul�lateral Guidelines, principles,
Organisa�on (ILO) resolu�ons and
Tripar�te Declara�on on similar
Mul�na�onal Enterprises
ILO Tripar�te Declara�on 2006 Mul�lateral Guidelines, principles,
on Mul�na�onal resolu�ons and
Enterprises similar
ILO Tripar�te Declara�on 1977 Mul�lateral Guidelines, principles,
on Mul�na�onal resolu�ons and
Enterprises similar
Singapore Ministerial 1996 Mul�lateral Guidelines, principles,
Declara�on resolu�ons and
similar
UN Guiding Principles on 2011 Mul�lateral Guidelines, principles,
Business and Human resolu�ons and
Rights similar
Permanent Sovereignty 1962 Mul�lateral Guidelines, principles,
UN Resolu�on resolu�ons and
similar
New Interna�onal 1974 Mul�lateral Guidelines, principles,
Economic Order resolu�ons and
UN Resolu�on similar
Charter of Economic 1974 Mul�lateral Guidelines, principles,
Rights and Du�es of resolu�ons and
States similar
Source: UNCTAD Investment Policy Hub
47 | BIDA
The third bridge over the Karnaphuli River at Cha�ogram
Focus
Infrastructure
The government’s fast-track projects22 are key
structures poised to boost produc�vity and reshape
connec�vity within and across Bangladesh’s borders.
22
Latest list of fast-track projects provided by the Economic Rela�ons Divisions of the Ministry of Finance on Jan, 2020.
Subject to revision as per the decision of the Execu�ve Commi�ee of Na�onal Economic Council (ECNEC).
48 | BIDA
Padma Bridge is set to be Bangladesh’s largest bridge. It will link southwest districts to northern and eastern districts.
Padma Mul�purpose Bridge

The Padma Bridge is a mul�purpose road-rail bridge being constructed over the mighty Padma
River. It is set to be Bangladesh’s largest bridge that will link southwest districts to northern and
eastern districts including capital Dhaka. The bridge is also aligned with the Asian Highway to
strategically enhance regional connec�vity.
Main Bridge Length: 6.15 km
Approach Road: 12.117 km
Viaduct: 3.148 km (Road), 532 m (Rail)
River Training Works: 14 km (1.6 Mawa + 12.4 in Janjira)
Land Acquisi�on: About 1471 hector
Cost: USD 3.868 billion

Project dura�on: Jan 2009 - Jun 2021
Rooppur Nuclear Power Plant
Rooppur Nuclear Power Plant is Bangladesh’s first nuclear power plant being constructed on
the banks of the Padma, 87 miles west of Dhaka, in the northwest district of Pabna. Power and
energy genera�on in Bangladesh is overwhelmingly dependent on natural gas, coal and
imported LPG. When completed, nuclear power will make up 10 percent of total power
produc�vity, which will enable new industries like petrochemical produc�on and fer�lisers.
Loca�on: Rooppur, Ishwardi, Pabna

Capacity: 2,160 MW
Units: 2 × 1,200 MW
Power start up: Dec 2022
49 | BIDA
2x660 MW Moitri Super Thermal Power Project (Rampal)

The 1320 megawa� coal-fired power sta�on is being constructed at Rampal Upazila of
Bagerhat District in Khulna. The plant is an effort to establish reliable and cost-effec�ve power
produc�on. The project is using state-of-the-art technology to ac�vely mi�gate environmental
impacts.
Proposed capacity: 1320 MW (2 x 660MW)

Size: 430 Acres
2 x 600MW Ultra Super Cri�cal Coal Fired Power Plant in Matarbari.
Moheshkhali-Matarbari Integrated Development Ini�a�ve (MIDI)

The mega project envisions a hub of value chains across the Dhaka-Cha�ogram Matarbari belt.
Bangladesh will construct its first deep sea port in the area, which along with the Matarbari
power plant and 16 other projects are part of this mega development ini�a�ve.
Loca�on: Matarbari, Maheshkhali Upazila, Cox's Bazar

Deep sea port terminals lengths: 300 metres, 460 metres
Permi�ed vessel draught: 16 metres, 8,000 TeU
Power plant: 2 x 600MW Ultra Super Cri�cal Coal Fired Power Plant
Project dura�on: July 2014 to June 2023
50 | BIDA
Dhaka Mass Rapid Transit Development Project

The Mass Rapid Transit project is set to dras�cally reduce traffic conges�on in capital Dhaka
and surrounding areas. Dhaka’s first Metrorail is being constructed as part of the project which
also includes the country’s first subway. Based on 20 kilometres of elevated electric-powered
track, the Dhaka Metrorail will span between U�ara in the city’s north and Mo�jeel, the
capital’s business hub. The journey which now takes hours due to heavy traffic will be reduced
to just 38 minutes.
Number of Metrorail sta�ons: 16

Metrorail sta�on loca�ons: U�ara North, Central and South, Pallabi, Mirpur-11,
Mirpur-10, Kaziparha, Shewraparha, Agargaon, Bijoy Sarani, Farmgate, Karwan Bazar,
Shahbagh, TSC, Press Club and Mo�jheel.
Maximum speed: 100 km/h
Daily ridership: 483,000
Project dura�on: July 2012 to June 2021
Liquefied Natural Gas (LNG) terminals at Moheshkhali
Liquefied Natural Gas (LNG) terminals

Two Floa�ng Storage and Regasifica�on Units (FSRU) have been set up to establish
Bangladesh’s first LNG terminals at Moheshkhali Island, located in the Bay of Bengal. The
second unit added a send-out capacity of 500 million standard cubic feet per day (MMscf/d) to
the first terminal’s 3,200 MMscf/d capacity. The three pipelines transmi�ng LNG from the
terminals are nearing comple�on. The project u�lises state-of-the-art technology to provide
the cri�cal infrastructure required for the country to access natural gas from global markets.
Pipelines
Moheshkhali-Anwara gas transmission pipeline
Anwara-Fouzdarhat gas transmission pipeline
Cha�ogram-Feni-Bakhrabad transmission pipeline
51 | BIDA
Payra Port
The Payra Port in Patuakhali is Bangladesh’s third sea port a�er Cha�ogram port and Khulna’s
Mongla port. The government plans to develop it into a deep sea port with 14.5 meter draught
and build an airport, cargo terminal, coal-based power plants, LNG terminal and two long
je�es on the 6,500-acre premise. Payra Port is poised to support transit trade as well as
economic development of Bangladesh’s south middle zone.
Loca�on: Rabnabad channel near Bay of Bengal

Current draught: 7.2 m - 8 m
Length overall (LOA): Maximum permissible is 200 m
Tidal Range: 2.0 m - 3.5 m (approx.)
Anchorage: Wide outer and inner anchorage
Commencement: 2013
Opera�onal: 2016
Comple�on: 2021
Padma Bridge Rail Link Project

The project is aimed at construc�ng a new railway track from Dhaka to Jashore via Padma
Mul�purpose Bridge, establishing new Broad Gauge railway connec�vity through the
south-west region. The railway track will greatly speed up inter-district connec�vity and
establish another sub-route of Trans-Asian Railway Network in Bangladesh.
Total track length: 215.22 km

Viaducts: 23.377 km
Major bridges: 66
Minor bridges/culverts/underpass: 244
Road overpass: 1 (at Mawa approach)
Level crossings: 29
BG Passenger Coaches: 100
Project dura�on: Jan 2016 - Jun 2022

Dohazari-Cox's Bazar-Gumdhum Dual-gauge Railway Line

The Single Line Dual Gauge railway track will connect Dohazari to Cox’s Bazar via Ramu. It will
also link Ramu to Gundum near Myanmar border. The railway track aligned with the Trans
Asian Railway route is being constructed under the South Asia Subregional Economic
Coopera�on (SASEC) program.

Project dura�on: July 2010 to Jun 2022
52 | BIDA
Karnaphuli Water Supply Project (phase II)

The project will increase sustainable access to safe water for the people in Cha�ogram by
construc�ng water supply facili�es and strengthening the capacity of Cha�ogram Water
Supply and Sewerage Authority. The project will increase water supply and restore 500 km
distribu�on and service pipeline, ensuring safe water for low-income communi�es.
Project dura�on: Jan 2014 – Dec 2022
Other key projects
Dhaka Elevated Expressway
Dhaka Elevated Expressway
The purpose of Bangladesh’s first elevated expressway is to increase traffic capacity within and
around the capital city by improving connec�vity between the northern and the central, south
and southeastern parts of Dhaka. The four-lane structure will commence at Dhaka’s Hazrat
Shahjalal Interna�onal Airport and end at Kutubkhali via Mohakhali, Tejgaon, Moghbazar,
Kamalapur, Syedabad and Jatrabari.
Mainline Length: 19.73 km

Length with a total 31 ramps: 46.73 km
53 | BIDA
More terminals at Cha�ogram Port
Cha�ogram is the principal sea port of Bangladesh, situated 16 kilometres upstream from the
Bay of Bengal. There has been a significant and sustained increase in cargo handling at the
Cha�ogram Port, with current growth averaging at more than 10% annually. To ensure the
historic port can meet the demands of an ever-growing economy, specialised terminals are
being developed to bolster handling capacity and reduce vessel conges�on which includes the
Bay Container Terminal, Patenga Container Terminal and the Laldia Bulk Terminal.
Expansion of highways
In the last ten years, Bangladesh made unprecedented progress in road development under a
vision of modernising travel, elimina�ng traffic gridlocks and seamless regional connec�vity.
There were 139 ongoing projects under the Roads and Highways Department in the 2018-19
fiscal year.
Mul�-lane Road Tunnel under Karnaphuli River
The four-lane tunnel will establish a new modern road system among port city Cha�ogram,
capital city Dhaka and tourist hotspot Cox’s Bazar and connect to the Asian Highway. Reducing
distance, it will ease the heavy port-city-bound traffic from the capital. It will also expedite the
work to develop industrial areas on the eastern part of the river and link it to Cha�ogram city,
Cha�ogram Port and the Shah Amanat Interna�onal Airport located on the western part.
Loca�on: Patenga and Anwara, Cha�ogram

Entry: Two kilometre downstream of river from Shah Amanat Airport
Exit: Anwara

Commencement: December, 2017
Comple�on: 2022
54 | BIDA
BIDA & other IPAs

Investment promo�on agencies (IPA) speak the language of business while carrying out key
ac�vi�es for achieving the government’s economic goals. IPAs in Bangladesh promote and
facilitate investment while also playing the role of regulators. The following IPAs are under
the direct supervision of the Prime Minister’s Office.
Bangladesh Investment Development Authority (BIDA)

BIDA’s mandate is provided by the Bangladesh Investment Development Authority Act 2016.
The apex investment promo�on agency of Bangladesh, BIDA was formed through the merger
of the erstwhile Board of Investment and the Priva�sa�on Commission in 2016. It is the first
des�na�on for investors exploring opportuni�es in Bangladesh23.
BIDA a�racts investment, facilitates investors with expansion poten�al, advocates for be�er
business ecosystem, provides one-stop service and promotes investment growth outside
major city centres. BIDA also facilitates the u�lisa�on of unused land of state-owned
enterprises.
As regulator, BIDA registers investment projects, which is essen�al for ge�ng incen�ves such
as tax exemp�on, import duty exemp�on and more. Permission for se�ng up commercial
offices are also provided by BIDA. Work permits for foreign workers are issued with an eye on
knowledge and technology transfer. Other services include visa recommenda�on, IRC
recommenda�on, remi�ance approval, foreign borrowing approval, investment a�ercare,
counselling and more24.
BIDA Execu�ve Chairman Md. Sirazul Islam in his office at Dhaka’s Agargaon.
23
All investment ac�vi�es beyond BEZA, BEPZA, BHTPA, PPPA and BSCIC are BIDA’s responsibility.
24
Read more in Chapter 2: Star�ng a Business
55 | BIDA
BIDA hosts the na�onal online One Stop Service (OSS) portal, which is the country’s first
inter-operable pla�orm providing data-sharing and e-payment enabled G2B services. BIDA is
also the government’s lead agency coordina�ng reforms aimed at improving Bangladesh’s Ease
of Doing Business ranking.
BIDA responsibili�es at a glance:

• Investment promo�on
• Investment facilita�on
• Policy advocacy
• Guidance on doing business
• Response to investment-related queries
• Guidance and advice on investment in specific sectors
• Matching support between foreign investors and local industries
• Arrangement of visit to and mee�ng with various government and private organisa�ons
• Addressing the issues of investors for smooth opera�on
• Registra�on of industrial investment and commercial office establishment
• Facilita�on of u�lity service connec�on
• Facilita�on of machinery and raw material import
• Approval for obtaining foreign borrowing
• Approval of overseas remi�ance of royalty/technical assistance-related fees
• Approval of expatriate employment and facilita�on of visa acquisi�on
• Assistance for the government in framing policies for private sector development
Bangladesh Economic Zones Authority (BEZA)

BEZA’s mandate to establish, license, operate, manage and control economic zones25 is
provided by the Bangladesh Economic Zones Act, 2010. A special economic zone is an area in
which the business and trade laws are different from the rest of the country.
Ins�tuted in 2010, BEZA is working to establish 100 economic zones
in all poten�al areas in Bangladesh including backward and under
developed regions. The goal is to encourage rapid economic
development through diversifica�on of industry, employment,
produc�on and export.
Un�l now, BEZA has got the approval to establish 88 economic zones
countrywide comprising 59 Government and 29 Private EZs, for
which feasibility studies, land acquisi�on and iden�fying area specific social and
environmental ini�a�ves are underway. BEZA has also been working to establish government
to government EZs, public private partnership EZs and special tourism parks.
BEZA provides many incen�ves both to manufacturing unit investors and the developers of the
Economic Zones.
25
See Annexures for list of Economic Zones sites
56 | BIDA
Administra�on Building at Bangabandhu Sheikh Mujib Industrial City.
Incen�ves for developer:

• Income Tax exemp�on for 12 years
• VAT exemp�on on electricity
• VAT exemp�on on local purchase excluding petroleum products
• Exemp�on from custom/excise du�es
• Exemp�on of stamp duty and registra�on fees for land registra�on
• Exemp�on of stamp duty for registra�on off loan/credit document
• Exemp�on from dividend tax
Incen�ves for unit investors:

• Income Tax exemp�on for 10 years
• Duty free import of raw materials etc.
• Economic Zone declared as custom bonded area
• Exemp�on from dividend tax
• Full repatria�on of capital and dividend
• No ceiling of FDI
• 100% backward linkage of raw-materials and accessories to sell for EOI in DTA
• 20% sale of finished product to DTA
• Sub-contrac�ng with DTA allowed
• 50% exemp�on of stamp duty and registra�on fees for registra�on of leaseholder
land/factory space
• Exemp�on of VAT on all u�lity services
• Duty exemp�on on export
57 | BIDA
• Exemp�on of CD for import of vehicles

• Exemp�on of double taxa�on subject to the existence of double taxa�on agreement
• Exemp�on of salary income from IT for expatriates
• Foreign loan is allowed in compliance with exis�ng laws
• FC Account for non-residents
• FC Account for both local and joint venture industry
• Foreign investors to be free to enter into JV
• Tax exemp�on on royal�es, technical fees etc.
• Tax exemp�on on capital gains from transfer of shares
• Provision of transfer of shares by foreign shareholders to local shareholders and investors
• Issuance of work permit to foreigners is allowed up to 5% of total officers/employees of an
industrial unit
• Re-investment of remi�able dividend to be treated as new foreign investment
• Resident visa for investment of US$ 75,000 or more
• Ci�zenship for investment of US$ 10,00,000 or more incen�ve
Public Private Partnership Authority Bangladesh (PPPAB)

The Public-Private Partnership Authority Bangladesh is guided by the ‘Policy and Strategy for
Public Private Partnership (PPP)’ issued in 2010. The authority plays the role of a catalyst for
proac�ve realisa�on of PPP projects.
The PPPAB supports line ministries to iden�fy, develop, tender and

finance PPP projects. For interested investors and lenders, it provides a
centralised portal for high quality PPP projects. Staffed with both
private sector and civil service professionals, the authority augments
the project development efforts of the government’s line ministries to
enhance quality, a�rac�veness and sustainability while realising these
in an efficient and cost-effec�ve manner.
PPPAB roles in brief:

• Promo�on and marke�ng
• Project facilita�on
• Stakeholder engagement
• Appointment of transac�on advisers
• Policy development and enforcement
• Screening and project approval
• Monitoring and repor�ng
• Capacity building
• Donor agency engagement
58 | BIDA
Bangladesh Export Processing Zones Authority (BEPZA)

The ac�vi�es of BEPZA are guided by the Bangladesh Export Processing Zones Authority Act,
1980. Export processing zones (EPZ) are territorial or economic enclave in which goods may be
imported and manufactured and reshipped with a reduc�on in du�es/and/or minimal
interven�on by customs officials.
BEPZA is the official organ of the government for promo�on,

a�rac�on and facilita�on of foreign investment in the EPZs.
BEPZA also supervises compliance with social, environmental
and workplace standards with the aim of ensuring harmonious
labour and industrial rela�ons in EPZs.
EPZ provides: EPZ's across Bangladesh:

• Plots/factory buildings in customs bonded area • Cha�ogram EPZ
• Infrastructural facili�es • Dhaka EPZ
• Administra�ve facili�es • Mongla EPZ
• Fiscal & non-fiscal incen�ves26 • Ishwardi EPZ
• EPZ a�racts: foreign & local investment • Cumilla EPZ
• U�ara EPZ
• Adamjee EPZ
• Karnaphuli EPZ
Bangladesh Hi-Tech Park Authority (BHTPA)

The mandate of the BHTPA is provided by the Bangladesh Hi-tech Park Authority Act, 2010.
A hi-tech park is a sophis�cated concentra�on of technological facili�es, equipment and
tech-savvy professionals. BHTPA promotes and facilitates27 IT and ITES-based industries by
developing hi-tech and so�ware technology parks across Bangladesh. The authority is
currently engaged in 6 projects that will lead to the establishment of 28 hi-tech and so�ware
technology parks.
Opera�onal projects:
• Sheikh Hasina So�ware Technology Park Jashore
• Janata Tower So�ware Technology Park
• Sheikh Kamal IT Training & Incuba�on Centre in Natore
Ongoing projects:
• Bangabandhu Hi-tech city
• Bangabandhu Sheikh Mujib Hi-Tech Park, Sylhet
• Bangabandhu Sheikh Mujib Hi-Tech Park, Rajshahi
• Sheikh Kamal IT Training & Incuba�on Centre
• 12 IT Park project
• Basic Infrastructure for Bangabandhu Hi-Tech City-2
26
Check Annexures for BEPZA incen�ves
27
Check out BHTPA incen�ves: h�ps://bhtpa.portal.gov.bd/
59 | BIDA
Chapter 2
Starting
a Business
This chapter provides informa�on on Se�ng Up a Business, Post-incorpora�on Compliances, Opera�onal Setup, Banking &
Capital Transfer and Winding Up of Business. To learn about related costs, read Chapter 3: Cost of Doing Business.
61 | BIDA
Chapter 2: Starting a Business
Investment Roadmap
PROPRIETORSHIP & PARTNERSHIP LIMITED COMPANY
FORMATION FORMATION
Apply to RJSC&F for name

clearance (NC)
Open bank account with copy of

applica�on submi�ed for NC
Apply to RJSC&F for company

forma�on
Obtain TIN cer�ficate from Obtain trade licence Rent or purchase space for
NBR se�ng up industry
a. Obtain BIDA’s registra�on if industry located outside BEZA, BEPZA, BHTPA, BSCIC
b. Follow BEZA, BEPZA, BHTPA, BSCIC procedures if industry located inside these areas
Obtain fire licence from Obtain environmental Obtain approval of lay out
FSCD (mandatory) clearance from DOE plan from DIFE
Obtain membership of Obtain NOC Follow RAJUK/CUK/RUK

business/trade body (mandatory) from ministry/division to set up processes for building/plant
controlled industries construc�on approval
Apply for BIDA’s recommenda�on to get ad hoc IRC approval from CCI&E
for impor�ng capital machinery and/or raw material
Obtain ad hoc IRC approval from CCI&E
Obtain industrial VAT registra�on with recommenda�on of BIDA, approval of

IRC from CCI&E
START OPERATION
62 | BIDA
Selecting a structure
In Bangladesh, foreign investors can choose a business structure from the following op�ons.
New company/ Liaison/Representa�ve

Branch Office
subsidiary Office
• Incorporate a 100% • Allowed to conduct • No basic difference
Foreign-owned company, business ac�vi�es as between Liaison and
a Joint Venture with permi�ed by the Representa�ve Office.
local/foreign partner or a government. • Maintain liaison with
Bangladeshi company. • Income generated is parent company and
• Allowed to generate subject to approval by local en��es/suppliers/
income, incur expenses BIDA. contractors/factories/
out of income. • Expenses can be met customers/importers etc.
• Board mee�ngs, annual through inward • Not permi�ed to
general mee�ngs, remi�ance from parent generate income.
submission of returns to company or from income • All expenses should be
the Registrar of Joint generated from met through inward
Stock Companies and approved field of remi�ance from parent
Firms (RJSC&F) are business. company.
required. • Allowed direct • No outward remi�ance
• Repatriate all post-tax involvement and earning permi�ed except the
profits and capitals. of commission through amount brought in from
• No restric�on on import and export abroad and remains
minimum or maximum ac�vi�es. unspent.
capital that must be • Repatriate all post-tax
inducted at the �me of profits to parent
company registra�on. company following
• The majority of sectors approval of BIDA and
allow 100% foreign Bangladesh Bank.
ownership. • Open, operate bank
account with Bangladesh
Bank’s permission.
Incorporate Branch office
with RJSC&F a�er BIDA
approval.
63 | BIDA
Types of companies
A company incorporated locally or incorporated abroad but registered locally can do
business in Bangladesh. A foreign company incorporated abroad can set up its subsidiary in
the form of private or public limited company. Below are the different types of business
establishments in Bangladesh.
PARTICULARS PRIVATE PUBLIC
Min Members 2 7
Max Member 50 Unlimited
Min Directors 2 3
Ownership can Ownership can be

Transfer of ownership
be transferred transferred
Public subscrip�on Public subscrip�on

Subscrip�on of shares
not allowed allowed
En�tled to commence Declara�on to be

Commencement of
from date of filed prior to
Business/Opera�ons
incorpora�on commencement
The Directors are The Directors are liable

Legal Status liable for defaults made for defaults made
under the act under the act
Governing Act Companies Act Companies Act
64 | BIDA
Setting up a business
Blocked Account
Before incorpora�ng a company, an investor must open a Blocked Account in the name of the
proposed company with any scheduled bank to remit capital from outside the country. The
opening of this account does not require prior approval of the Bangladesh Bank, which is the
central bank of Bangladesh.
The Blocked Account will be regularised once the company is registered with the Registrar of
Joint Stock Companies and Firms (RJSC&F). Once the registra�on is completed, the bank will
collect all necessary papers.
If the proposed company is declined registra�on by the RJSC&F, the account will be closed
a�er the en�re balance is transferred through a pay order issued in favour of the account’s
nominee. Such accounts are not required for commercial offices (branch, representa�ve/
liaison) as they can open a regular bank account and receive ini�al suspense payment from
their head office.
One-Stop Service
The government of Bangladesh is dedicated to providing a single-window solu�on to investors
dealing with the regulatory requirements for establishing and opera�ng a business.
BIDA hosts the country’s main online One Stop Service (OSS) portal, which delivers e-payment
and data-sharing enabled G2B services to investors.
To begin the process for registering a company, visit www.bida.gov.bd and create an OSS
account, update profile informa�on and fill up a basic informa�on form. The basic informa�on
form is approved within an hour, following which an investor can start using the OSS.
The following services must be requested individually on the OSS.
• Name clearance
• Company registra�on
• BIDA Registra�on (New)
• Outward Remi�ance Approval
• Corporate Taxpayer Iden�fica�on Number (TIN)
• Permission for branch/liaison/representa�ve office (establishment,
extension, cancella�on & amendment)
• Visa recommenda�on for categories PI, E2, E3 (new, amendment)
• Work permit (new, extension, cancella�on & amendment)
65 | BIDA
Name clearance
Name clearance (NC) from the Registrar of Joint Stock Companies and Firms (RJSC&F) is a
pre-requisite for registra�on of a new en�ty. The procedure does not apply to foreign
companies and partnership firms, who can directly register with the RJSC&F.
• Click on the search op�on to check if a name is available.
• The RJSC&F will send an instant no�fica�on on whether or not the name is available.
• Submit name clearance form if the name is available.
• Submit the required fee online.
• The clearance is valid for 180 days from the date of issue.
Company registra�on
A company must be registered with the RJSC&F to commence business as per the Companies
Act 1994. The OSS system will use informa�on provided in the previous forms to automa�cally
fill-up the majority of the fields. The registra�on fee will be calculated automa�cally. Complete
the payment process and submit the applica�on.
Documents required:
• Form IX
• Memorandum of Associa�on
• Ar�cles of Associa�on
• Joint Venture agreement
• Others documents if required
Corporate TIN
A�er receiving approval for company registra�on, the applicant can apply for a Taxpayer
Iden�fica�on Number or TIN from the Na�onal Board of Revenue (NBR).
No fee is required.
Commercial office
Following are the documents required for filing an online applica�on on BIDA’s OSS for
reques�ng permissions related to the establishment and opera�on of branch, liaison or
representa�ve offices in Bangladesh.
Permission for a new branch/liaison/representa�ve office:

An applica�on for establishing a new branch/liaison/representa�ve office is subject to
approval by an inter-ministerial commi�ee. Along with an online applica�on, an applicant
must submit the original copies of all documents to BIDA’s Director of Registra�on &
Incen�ves-Commercial.
If the office changes address, BIDA must be no�fied before the change is carried out. If an
approved branch/liaison office wants to set up more offices, separate applica�ons will have
to be filed with BIDA.
66 | BIDA
Documents required:
The documents below must be cer�fied by the Bangladesh Embassy/High Commission/mission/
apex business chamber/local business chambers.
• Audited Accounts of last financial year of the principal company.
• Company's board of director’s resolu�on regarding opening of office in Bangladesh (copies
must be duly a�ested by authorised person).
• Proposed organogram of the office showing the posts to be occupied by both expatriates and
local personnel.
• Details of ac�vi�es of the principal company and details of the ac�vi�es to be performed
through the proposed branch office in Bangladesh.
• Name and na�onality of the directors/promoters of the principal company.
• Memorandum and Ar�cles of Associa�on of the principal company.
• Cer�ficate of Incorpora�on.
Useful links
• h�ps://bidaquickserv.org/#list_4
Post-incorporation compliances
Fire Licence
Fire licence is another obligatory permit required by all factories, according to the Fire
Preven�on and Fire Figh�ng Act, 2003. The permit is issued by the Department of Fire Service
& Civil Defense (FSCD), under the Ministry of Home Affairs. A fire license must be renewed
every year. Es�mated processing �me for ge�ng a fire license is usually 90-120 working days.
Procedure
1. Submit online form at h�p://efirelicense.gov.bd/
2. An inspector then visits the establishment and issues a demand note.
3. Pay the amount in the demand note to the bank.
4. Submit the bank receipt to the Department of Fire Service & Civil Defense
5. The inspector will re-inspect the establishment
6. If the standard requirement is met, a fire licence will be issued.
67 | BIDA
Documents required:
• Yearly Valua�on Cer�ficate from the City Corpora�on or Municipality’s zonal office.
• Descrip�on of establishment’s fire-figh�ng and safety plan
• Cer�ficate of Incorpora�on and Memorandum of Associa�on
• Clearance cer�ficate from the FSCD office (it can be under process)
Trade Licence
Trade licence is issued to companies, proprietors and partnership firms by concerned city
corpora�on, municipality or a union council and is a requirement for every business opera�ng
in Bangladesh.
If a business has more than one place of opera�on, it is required to obtain trade licences from
each local government. A trade licence is issued for a year and must be renewed every year.
Online applica�on forms are available on local government websites.
Documents required:
• Copy of Incorpora�on Cer�ficate/Permission for Branch or Liaison office
• Cer�fied copy of the Memorandum of Associa�on
• Address of the business in a valid document.(eg. rental deed, land ownership.)
• Applicant’s photo (3 a�ested copies)
• Copy of the Na�onal ID card or copy of passport
To obtain a factory trade licence, some addi�onal documents are required.
• NOC declara�on from locality

• Holding tax receipts (for renewal)
• Sketch map of factory and surrounding area
• Descrip�on of machineries to be used in the factory
• Loca�on map
• Fire license/environment clearance cer�ficate
Useful links:
• h�p://www.etradelicense.gov.bd/ • h�p://www.dhakasouthcity.gov.bd/
• h�p://dncc.portal.gov.bd/ • h�p://efirelicense.gov.bd/
Renewal of trade licence

A trade licence has to be renewed every financial year, which begins in the month of July and
ends in June of the following year. Fee for renewal is same as for a new licence.
68 | BIDA
Registra�on with Bangladesh Investment Development Authority

In order to get the facili�es and the ins�tu�onal support offered by the government, a private
industrial project must be registered with the Bangladesh Investment Development Authority
(BIDA), as per the Bangladesh Investment Development Authority Act 2016.
Industrial enterprises are provided essen�al licenses and permits following registra�on.
However, projects to be registered with BIDA must be located outside the jurisdic�on of BEZA,
BEPZA, BHTPA, BSCIC, as these investment promo�on agencies provide their own set of
incen�ves and privileges to investors. BIDA registra�on is not a requirement for commercial
and trading ac�vi�es, buying houses and service-oriented ins�tu�ons. Investment projects are
registered in all offices of BIDA, regardless of project status.
Three types of investment registra�on:
1) Local investment
2) Foreign investment
3) Joint-venture between foreign and local investors
Commercial office registra�on

Foreign companies interested in establishing branch, liaison or representa�ve offices can
apply for commercial office registra�on.
Services and facilita�on for BIDA-registered investors

The following general investment incen�ves are made available to newly established
investments and not applicable in case of re-investments or extensions:
• Tax exemp�on (details available in Chapter 4)
• Tax rebate (i.e. reduced corporate income tax)
• Import duty exemp�on on capital machinery/spare parts
• Accelerated deprecia�on allowance (for machinery/plants)
The following licences and permits can only be availed following registra�on with BIDA:
• VISA recommenda�on
• Expatriate work permit
• Remi�ance approval of royalty and technical assistance-related fees
• Foreign borrowing approval
• Recommenda�on for Import Registra�on Cer�ficate (IRC) for impor�ng capital machinery
and materials for industrial use
• Customs clearance cer�ficate for imported machinery and equipment
• U�lity connec�ons etc.
69 | BIDA
The following are among the major privileges and facili�es provided to BIDA-registered
investors:
• Double taxa�on preven�on
• Repatria�on of invested capital, profit and dividend
• Remi�ance of royalty, franchise fee, technical license/know-how/assistance fees
• Reinvestment of remi�able dividends (treated as new investment), etc.
Industries that export more than 80 percent of their goods and services can benefit from
the following privileges and facili�es, regardless of their loca�ons, which can be within or
outside an Economic Zone or Export Processing Zone.
• Bonded warehouse and duty drawback facili�es
• Openback-to-back le�er of credit (L/C) and loans up to 90 percent of the value against
irrevocable or confirmed L/C sales contract
• Export Reten�on Quota (ERQ) that can be u�lised for marke�ng, overseas office
establishment, trade fair par�cipa�on, etc.
• Export Credit Guarantee Scheme to facilitate access to foreign exchange finance for
material and input procurement
• Advance income tax rebate on export earnings and exempt taxes on a specified quan�ty
of samples for manufacturing export goods
• Import of banned and restricted goods if deemed essen�al material and input for
manufacturing export goods
• Sell up to 20% of their goods domes�cally, as far as such trading is se�led by L/C in foreign
currency and related taxes are duly paid
• Exporters in certain sectors receive addi�onal benefits such as subsidy or cash incen�ve
upon condi�ons
BIDA registra�on process

Investors can register their projects by simply logging into BIDA’s One Stop Service (OSS) portal.
Once all required documents are provided, it takes one day to register a local or foreign
investment project. However, it takes 15 days to register commercial offices since the process
involves the approval of an inter-ministerial commi�ee, which convenes twice in every month.
Below are the lists of required documents.
Local investment project:
• A�achment of company's comments as per BIDA’s requirement
• NOC from concerned Ministry/Directorate/Department in case of applica�on concerning
controlled sectors as per the Industrial Policy, 2016
• Project profile if project cost is 100 million or above
• List of directors with informa�on on na�onality & address
• Land purchase/Rental deed agreement of project.
• Updated TIN Cer�ficate
• Trade Licence
• Memorandum and Ar�cle of Associa�on (requires a�esta�on by authorised person)
• Cer�ficate of Incorpora�on
• Other necessary documents (if any)
70 | BIDA
For foreign investment/ joint venture project:

• A�achment of company's comments as per BIDA’s requirement
• NOC from concerned Ministry/ Directorate/Department in case of applica�on concerning
controlled sectors as per the Industrial Policy, 2016
• Encashment cer�ficate
• List of machineries local & imported to be submi�ed in company’s official pad
• Project profile if project cost is 100 million or above
• List of directors with informa�on on na�onality & address
• Land purchase/Rental deed agreement of project
• Updated TIN Cer�ficate
• Trade Licence
• Memorandum & Ar�cle of Associa�on (requires a�esta�on by authorised person)
• Cer�ficate of Incorpora�on
• Other necessary documents (if any)
Useful links:
• www.bida.gov.bd
• www.bidaquickserv.org
VAT registra�on cer�ficate

All businesses are required to have a VAT Registra�on Cer�ficate, following which the next
requirement – Business Iden�fica�on Number (BIN) -- can be obtained. The VAT paid by
businesses are calculated on the basis of their annual turnover. VAT is imposed on goods and
services at each stage of import, manufacturing, supply and trading.
VAT registra�on cer�ficate is a requirement for carrying out business opera�ons such as
par�cipa�on in tender, banking ac�vi�es besides export and import. The registra�on
threshold under the new VAT procedure is BDT 8 million and enlistment threshold is BDT 3
million.
Annual turnover (BDT) Turnover tax (%)

Less or equal to 300,00,00 None
Over 300,00,00 to 800,00,00 3%
Over 800,00,00 15%
Source: Na�onal Board of Revenue
71 | BIDA
VAT registra�on process

VAT registra�on is free and the process does not require a�achment of documents. The registra�on
form is called VAT 2.1 or Mushak 2.1, which can be downloaded from the website of the Na�onal
Board of Revenue or NBR. An applicant can contact NBR’s helpdesk at 16555 for any assistance.
The applica�on will have to be submi�ed to the concerned VAT commissioner or deputy
commissioner. A�er proper scru�ny and examina�on, a registra�on cer�ficate/turnover tax
enlistment cer�ficate in VAT 2.3 form will be issued from the VAT system within three working days
and will contain a Business Iden�fica�on Number (BIN).
The advantages of Business Iden�fica�on Number (BIN):
• All import and export ac�vi�es except baggage import
• Registra�on of land or building
• Obtaining import/export registra�on cer�ficate
• Supplying to any withholding en�ty
• Par�cipa�on in any tender process
• Enlis�ng with any organisa�on
• Obtaining bond licence
• Sanc�on of a bank loan in favour of the registered individual
Useful links
• h�p://nbr.gov.bd/faq/vat-faq/eng
• h�ps://www.vat.gov.bd/
• h�p://nbr.gov.bd/form/vat/vat-2012
72 | BIDA
Operational set-up
Industrial plot
An investor may seek the help of BIDA for securing an industrial plot. But if the investor wants
to se�le down in a plot within the jurisdic�on of BEPZA, BEZA or BSCIC, the facilita�on needed
will be provide by these respec�ve authori�es.
• An investor must file an applica�on in which informa�on on the size of the plot required is
provided along with copies of the sanc�on/registra�on le�er and industrial layout plan.
• BIDA provides recommenda�ons for the alloca�on of land to the city development
authority.
• BIDA also provides recommenda�on for acquisi�on of private land for industrial use to the
deputy commissioner of a district.
Most of the industrial areas/estates are owned/controlled by city development authori�es in
three divisional headquarters, which are:
In Dhaka, RAJUK (Capital Development Authority)
In Cha�ogram, Cha�ogram Development Authority (CDA)
In Khulna, Khulna Development Authority
Besides the above authori�es, the Public Works Department and the Na�onal Housing
Authority also owns several industrial estates.
U�li�es
Gas connec�on
Following are the companies transmi�ng and distribu�ng natural gas in designated franchise
areas of Bangladesh.
• Titas Gas Transmission and Distribu�on Company Limited
• Bakhrabad Gas Distribu�on Company Limited
• Jalalabad Gas Transmission and Distribu�on System Limited
• Pashchimanchal Gas Company Limited
• Karnaphuli Gas Transmission Limited
• Sundarban Gas Transmission Limited
The applica�on for an industrial gas connec�on can be filed online. The copy of a form can also
be collected from a specific bank or from the company’s offices. The applica�on fee is BDT 300,
which is subject to periodic revisions. The fee has to be submi�ed to a zone office or to the
head of a regional office in the form of a crossed check or a pay order.
73 | BIDA
Documents required (industrial):
• Two (2) a�ested passport-size photographs

• Updated trade licence
• Solvency cer�ficate
• Proof of land ownership (deed, receipt, holding number)
• If the place of business is a rented property, the applicant will have to submit rental
agreement. In this case, a security deposit worth the bill value of six months is required.
• Design of the proposed internal line (4 copies)
• Technical catalogue (for boiler, dryer, oven etc.)
o If the catalogues are unavailable because the machineries are locally
manufactured/assembled or old, then detailed drawings of the machineries in
ques�on will have to be submi�ed.
o The prior commissioned load will have to be readjusted based on the load imposed
by the machineries.
Due to an order of the Ministry of Power, Energy and Mineral Resources, new gas connec�ons
to commercial en��es are not being provided. However, applica�ons for new connec�ons
are being processed through a commi�ee.
Useful links:
• h�ps://www.�tasgas.org.bd/
• h�p://www.bgdcl.org.bd/
Electricity connec�on
A commercial consumer can get access to electricity by filing an online applica�on.
Depending on the consumer’s loca�on, Dhaka Electricity Supply Company Limited (DESCO),
West Zone Power Distribu�on Company Limited (WZPCL), Northern Electricity Company
Limited (NESCO) or the Rural Electrifica�on Board (REB) is authorised to provide a new
connec�on. The same set of documents are required for ge�ng electricity in any part of
Bangladesh.
74 | BIDA
Documents required:
Commercial and industrial customers:

• Signed copy of the applica�on form.
• Two a�ested passport size photographs.
• Na�onal ID/copy of passport.
• A�ested copy of registered deed of ownership/occupancy.
• In the absence of the land’s owner, a succession cer�ficate will be required.
• If the applicant already has a connec�on for a loca�on, and is seeking another connec�on
for that same loca�on, a bill copy and no other documents will be required.
• Fire cer�ficate if the building exceeds 10 stories.
• A�ested copy of the building plan approved by RAJUK (Capital Development
Authority)/City corpora�on.
• A�ested copy of document regarding holding no. issued by City Corpora�on/competent
authority (if necessary).
• In case of an HT connec�on, cer�ficate from the Electric Licence Board and layout plan of
the meter room.
Water supply/sewerage
Dhaka Water Supply and Sewerage Authority (WASA), under the Ministry of Local
Government and Rural Development & Coopera�ves is responsible for supplying water in
major ci�es.
Documents required:
• Filled in applica�on form
• Building plan, site plan and ownership document of land
• Land clearance or muta�on cer�ficate
• Exis�ng or proposed plumbing system
Useful links
• h�p://dwasa.org.bd/
• h�p://ctg-wasa.org.bd/
Import and export

An investor who wants to export and import permissible items without restric�ons on value
and quan�ty needs the following documents:
• Import Registra�on Cer�ficate (IRC)
• Export Registra�on Cer�ficate (ERC)
The Chief Controller of Import and Export (CCIE) is the issuer of these documents.
For industrial undertakings, BIDA issues recommenda�ons to the CCIE so that an Import Permit
may be issued for an investor for impor�ng capital machinery and availing tax rebate.
75 | BIDA
Import Registra�on Cer�ficate (IRC)/Import Permit (IP) – Industrial

For industrial purpose, BIDA issues recommenda�ons to the CCIE in favour of the investor. An
investor has to reach out to BIDA for a recommenda�on a�er the installment of capital
machinery.
Documents required:
• Trade Licence
• Membership Cer�ficate from recognised Chamber/Trade Associa�on
• Tax Iden�fica�on Number
• Bank Cer�ficate
• Memorandum and Ar�cles of Associa�on
• Cer�ficate of Incorpora�on (in case of Limited Company)
Import Registra�on Cer�ficate (IRC) – Commercial

Documents required:
• Trade Licence
• Membership Cer�ficate from recognised Chamber/Trade Associa�on
• Memorandum and Ar�cles of Associa�on
• Cer�ficate of Incorpora�on (in case of Limited Company).
Export Registra�on Cer�ficate (ERC)

Documents required:
• Trade Licence
• Membership Cer�ficate from recognised Chamber/Trade Associa�on;
• Memorandum and Ar�cles of Associa�on and Cer�ficate of Incorpora�on
Useful links
• h�ps://olm.ccie.gov.bd/
• www.ccie.gov.bd
Registra�on with Export Promo�on Bureau (EPB)

Export from Bangladesh is liberal and does not require many formali�es. Registra�on with the
EPB is required for availing facili�es related to Generalised System of Preferences (GSP) and
for obtaining Cer�ficate of Origin (CO) concerning SAARC Preferen�al Trading Arrangement
(SAPTA), South Asia Free Trade Agreement (SAFTA) and Asia-Pacific Trade Agreement (APTA).
76 | BIDA
Documents required:
• Two a�ested copies of the applicant’s passport size photograph
• Trade Licence
• Export Registra�on Cer�ficate (ERC)
• Trade associa�on membership cer�ficate
• Bonded warehouse licence
• Pay Order
• Membership of concerned trade associa�on
• Fire service licence
• Fire policy
• TIN cer�ficate
• VAT cer�ficate
• Memorandum of Ar�cle of Associa�on (if necessary)
• BIDA registra�on le�er (only for industrial purposes)
• Approved building layout plan and structural design from the concerned authority
• Group of insurance of the workers employed in the factory
Registering with Chief Inspector of Factories and Establishment (CIFE)

In order to regulate working condi�ons and ensure safety in the factory, any manufacturing or
commercial establishment employing ten or more workers is to be registered under the Factories
Act 1965 with the CIFE. Approval of Factory Plan and Cer�ficate of Registra�on of Factories and
Establishment are done concurrently. Renewal applica�on must be filed within the prevailing year
by Dec 31.
Documents Required:
• Land document (rent receipt/agreement if rental, tax receipt if owned)
• Site plan/layout plan or master plan
• Detailed construc�on plan
• Machine layout and flow chart of manufacturing process
• Trade Licence
• Electricity demand note
• Fee payment slip for factory registra�on
• Incorpora�on Cer�ficate and Memorandum & Ar�cles of Associa�on
77 | BIDA
Bonded warehouse licence

Bonded Warehousing facility allows export-oriented industries to import inputs/raw materials
and packaging materials without paying any duty or tax. Depending on the types of inputs/raw
materials used, the purpose of their use, and the type of exports, bonded warehouses are
basically of two categories: Special bonded warehouse and general bonded warehouse.
• Special bonded warehouse applies to 100% export-oriented readymade garments
industries, which include woven garments, knitwear and sweater manufacturing
industries.
• General bonded warehouse applies to other 100% export-oriented industries.
As per the Customs Act, 1969, the Na�onal Board of Revenue (NBR) provides Bonded
Warehousing benefits to a wide range of industries. There are a considerable number of
Statutory Regulatory Orders (SROs)/standing orders and office orders issued by the NBR and
the Customs Bond Commissionerates on this ma�er.
Documents required:
• Applica�on with appropriate revenue stamp
• BIDA/BSCIC registra�on cer�ficate
• Company TIN and Cer�fied copy of wealth statement issued by Income Tax Department
(IT-10B) for all directors/owner
• Trade Licence
• Fire Licence
• Value added tax (VAT) Registra�on cer�ficate (Business Iden�fica�on Number-BIN)
• Recommenda�on by concern business associa�on (if applicable). If applicant is not member
of associa�on, he can apply without recommenda�on for Bond Licence.
• Name, designa�on, present and permanent address, signature and photo a�ached/put on
non-judicial stamp of value BDT 300/-of owner/directors. It should be duly notarised by
competent authority and be a�ested by the lien bank(s).
• Boiler cer�ficate (if applicable)
• Original copy of Memorandum and Ar�cle of Associa�on and Cer�ficate of Incorpora�on
issued by RJSC&F (if applicant is a company)
• Purchase document for machinery. Invoice and Bills of Entry for import and VAT invoice for
local purchase
• Two copies of layout plan of factory. It could be ammonia printed and duly signed by
registered engineer
• Deed of land/space ownership or duly notarised rental deed (in case of rental space)
• Affidavit to follow the law, rules and procedures on non-judicial stamp of value BDT 300/-by
Managing Director/Proprietor/Sole Partner. It could be duly notarised by competent
authority
• Cer�ficate from lien bank(s) that the applicant has financial strength to submit General
Bond of appropriate amount of money
• Treasury receipt for deposited license fee (BDT 10,000/)
Useful links
• h�p://www.bangladeshcustoms.gov.bd/trade_info/bonded_warehouse_�
78 | BIDA
Environmental clearance cer�ficate

Before se�ng up a factory in Bangladesh, an investor must secure an environment clearance
cer�ficate from the Department of Environment (DOE). Industrial units and projects are
classified into four categories considering their loca�on and the environmental impact.
• Green
• Orange-A
• Orange-B
• Red
Read the DOE’s procedure to see the industries listed under the above categories or visit
h�ps://doe.portal.gov.bd/.
Useful link
• Applica�on form:h�ps://ecc.doe.gov.bd/
Work permit
Foreign na�onals working in Bangladesh must have work permit. Companies must apply for a
foreign employee’s work permit within 15 days of his or her arrival. The applica�on process is
available online on BIDA’s One Stop Service portal.
BIDA issues two categories of work permit:
o Work permit for industrial project
o Work permit for commercial enterprise including branch/ liaison/representa�ve office
For industrial undertakings, the ra�o of local and foreign employee should not be less than
20:1 respec�vely. For commercial offices, the ra�o of local to foreign employee is 5:1.
While issuing work permit, BIDA adheres to the following guidelines:
• Only na�onals of countries recognised by Bangladesh are considered for employment.
• Employment of expatriate personnel will be considered only in industrial/commercial
establishments which are sanc�oned/registered by the appropriate authority.
• Employment of foreign na�onals is normally considered for the job for which local experts/
technicians are not available.
• Persons below 18 years of age are not eligible for employment.
• A decision of the board of directors of the concerned company for new
employment/employment extension is to be furnished in each case.
• The number of foreign employees should not exceed 5 percent in the industrial sector and
20 percent in commercial sector of the total employees, including top management
personnel.
• Ini�ally, employment of any foreign na�onal is considered for a term of two years, which
may be extended up to 5 years generally on the basis of merit of the case.
• Ministry of Home Affairs will issue necessary security clearance cer�ficate.
• Paper clippings/vacancy announcement in a daily newspaper or print copy of online
adver�sement as a document of trying to explore local personnel prior to appointment of
expatriate staff.
• Specific ac�vi�es to be performed by the expatriate.
79 | BIDA
• Statement of manpower showing local and expatriate workers (name, na�onality, gross
monthly salary and date of joining).
• Encashment cer�ficate of inward remi�ance of minimum US $50,000.00 as ini�al
establishment cost for branch/liaison/representa�ve office and locally incorporated/joint
venture and 100% foreign ownership companies (A�ach if any).
Visa recommenda�on
Before applying for a work permit, a VISA recommenda�on from BIDA is required. ‘PI’ visa is
for private foreign investors and ‘E’ visa is for the employees of private and public organisa�on
for both foreign and local en��es. Read more about visa types and processes in Chapter 5.
Documents required:
PI visa recommenda�on:
• An applica�on under the company’s le�erhead
• Copy of BIDA registra�on for industrial undertaking
• Copy of Memorandum & Ar�cles of Associa�on of the company
• Copy of Incorpora�on Cer�ficate of the company
• Copy of Trade Licence
• Copy of income tax cer�ficate
• Passport-sized photo of the expatriate
• Photocopy of the expatriate’s full passport
• Board resolu�on for engaging the expatriate men�oning honorarium and other financial
benefits
• Encashment cer�ficate of inward remi�ance of minimum US $50,000.00 as ini�al
establishment cost for branch/liaison/representa�ve office and locally incorporated/joint
venture and 100% foreign ownership companies (a�ach if any).
(Documents to be attested by the Managing Director/Partner/Proprietor of the company)
E-category visa recommenda�on:

• Copy of Memorandum & Ar�cles of Associa�on of the company
• Copy of Incorpora�on Cer�ficate of the company
• Copy of Trade Licence
• Copy of tax clearance of company/branch office
• Passport-sized photo of the expatriate
• Photocopy of the expatriate’s full passport
• Board resolu�on for employment of the expatriate, men�oning salary and other financial
benefits and intended period of employment
• Copy of offer le�er/service contract/appointment le�er/transfer order of the expatriate
• Copy of all academic/professional/experience cer�ficates of the expatriate
80 | BIDA
Documents required for a new work permit:

For industrial/commercial en��es:
• Permission le�er of Branch/Liaison/Representa�ve office or Memorandum & Ar�cles of
Associa�on and cer�ficate of incorpora�on in case of locally incorporated company.
• Board Resolu�on for employment of foreign na�on(s) men�oning Expatriate’s Name,
Na�onality & Passport Number.
• Visa Recommenda�on Le�er of the Expatriate/Investors issued by BIDA.
• Copies of all academic qualifica�on & professional experience cer�ficate for the employee.
• Service contract/agreement and appointment le�er/transfer order in case of employee.
• Passport of the Employee/Expatriate/Investor/(Whole of the used part).
• Statement of the manpower showing list of local & expatriate personnel employed with
designa�on, salary break-up, na�onality and date of first appointment.
• Encashment cer�ficate of inward remi�ance of minimum US$ 50,000.00 as ini�al
establishment cost for branch/ liaison/representa�ve office and locally incorporated/joint
venture and 100% foreign ownership companies (a�ach if any).
• Up-to-date Income tax clearance cer�ficate of the organisa�on.
Security clearance
Once work permit is issued by BIDA, a copy of it will be sent to the Security Services Division
(SSD) at the Ministry of Home Affairs. A�er verifica�on, the Division will issue security
clearance.
Renewal, extension and cancella�on

The requirements for the renewal, extension and cancella�on of work permits are listed in
BIDA’s online One Stop Service portal.
Useful links
h�ps://bidaquickserv.org/
81 | BIDA
Banking and capital transfer

A non-resident can open a Foreign Currency Account (FCA) and Non-resident Foreign Currency
Deposit (NFCD) account with any authorised dealer branch of a bank with the foreign currency
brought from abroad. The balance of this account is freely transferable.
A foreign investor can also open and operate Taka account with any bank while he or she is a
resident.
A non-resident can open a Non-resident Investor’s Taka Account (NITA) with any authorised
dealer with foreign currency remi�ed from outside the country through banking channel by
transfer of funds from the NFCD account for por�olio investment in Bangladesh.
Bringing in cash
Any amount of foreign currency may be brought in by an incoming passenger with declara�on
to the customs authori�es in Form FMJ. No declara�on is required for amounts up to USD
5,000 or equivalent. Amounts brought in can also be taken out freely.
Transfer of capital and capital gain

Repatria�on of sales proceeds, including capital gain, of shares of companies listed in a stock
exchange in Bangladesh may be made through an Authorised Dealer, if such an investment
takes place through Non-resident Investor’s Taka Account (NITA) opera�on.
Remi�ance of sales proceeds of shares of companies not listed in a stock exchange requires
prior permission from the Bangladesh Bank, which is accorded for amounts not exceeding the
net asset value of shares.
Transfer of shares and securi�es from one non-resident to another non-resident requires no
prior approval from Bangladesh Bank.
Transfer of shares and repatria�on of sales proceeds of shares in favour of non-resident
in public/private limited companies not listed with the stock exchanges:
The sales proceeds of non-resident equity investment in public limited companies not listed
with the stock exchanges and private limited companies are repatriable without any approval
from the central bank under cases 1 & 2. No prior approval is required in case of 3, however
the authorised dealer bank execu�ng the transac�on is required to take post facto approval
from the central bank. FEID Circular No. 01, dated June 18, 2020 has been issued with the
detailed procedure.
1. In cases where the valua�on of the target company is determined through the net asset
value approach based on the latest audited financial statements, there is no restric�on on the
amount of remi�ance from sales proceed.
The proposal shall be submi�ed to Authorised Dealer Bank along with the tax returns and an
undertaking by the target company which should be countersigned by the auditor a�es�ng
that the audited financial statements do not contain any revalued assets, intangible assets, or
expenses/losses shown as asset. The cer�ficate should also specify that the impairment of
assets have been adjusted. The Authorised Dealer bank should be sa�sfied that there was no
unusual growth in total assets in any of last three years, par�cularly during the last year.
82 | BIDA
2. In cases where the remi�ance amount from sales proceed does not exceed BDT 10 million
or equivalent foreign currency, professional valua�on report issued by a merchant banker
licensed by Bangladesh Securi�es and Exchange Commission (BSEC) or a chartered accountant
listed by Bangladesh Bank is not required.
3. In cases where the remi�ance amount from sales proceeds is above BDT 10 million but less
than or equal to BDT 100 million or equivalent foreign currency and the fair value of which is
determined in terms of valua�on methods prescribed in FEID Circular No. 1 dated May 06,
2018. Professional valua�on report issued by a merchant banker licensed by Bangladesh
Securi�es and Exchange Commission (BSEC) or a chartered accountant listed by Bangladesh
Bank is required. AD banks are also required to submit post facto reports detailing the
transac�ons to Foreign Exchange Investment Department at Bangladesh Bank Head Office
within 30 days of remi�ances. A summary is provided below:
Remi�ance amount from sales proceed
Valua�on Method Up to BDT 10 BDT 10-100 million Above BDT 100

million or or equivalent million or
equivalent foreign foreign currency equivalent foreign
currency currency
Net Asset Value No approval from No approval from No approval from

BB BB BB
No valua�on report Auditors Auditors

required from cer�fica�on cer�fica�on
auditor/merchant required required
bank
Weighted Average No prior approval Prior Approval

No approval from required from BB
Method/or on any BB required from BB
of the suitable but post facto
approaches approval required
depending on the
nature of the Valua�on report Valua�on report
No valua�on report
company, having required from required from
required
jus�fied ground merchant bank/CA merchant bank/CA
firm firm
It is to be noted that paragraph 2(A) and 2(B), Chapter-9 of the Guidelines for Foreign Exchange
Transac�ons-2018 (GFET), Vol-1 set out the requirement to no�fy the Foreign Exchange
Investment Department of Bangladesh Bank within 14 days of share issuance/transfer in
favour and/or by nonresident investors along with relevant documents.
83 | BIDA
Target companies are required to comply with the provision of Chapter-9 of GFET paragraph
2(A) and 2(B) and submit the men�oned documents to the AD bank when proposal for
repatria�on from sales proceeds of shares in favor of non-resident in public/private limited
companies not listed with the stock exchanges are made.
Useful link:
h�ps://www.bb.org.bd/aboutus/regula�onguideline/foreignexchange/fegv1cont.php
Apart from the above men�oned three cases, the sales proceeds of non-resident equity
investment in public limited companies not listed with the stock exchanges and private limited
companies are repatriable with prior approval from the central bank based on the fair value
determined in terms of valua�on methods prescribed in FEID Circular No. 1 dated May 06, 2018.
The authorised dealer shall forward such permission request for repatria�on of sales proceeds
of shares along with required documents to Foreign Exchange Department (FEID) of the
Bangladesh Bank. As per the provisions, inter alia, of the circular:
I. The fair value of shares shall be determined by weighted average calcula�on of all the three
valua�on approaches (viz. net asset value approach, market value approach and discounted
cash flow approach) or on any of the suitable approaches depending on the nature of the
company, having jus�fied ground.
II. The MoU between buyer and seller needs to be concluded on receipt of approval from
Bangladesh bank regarding determina�on of the fair value of shares.
III. Independent professional valua�on report from a merchant banker licensed by Bangladesh
Securi�es and Exchange Commission (BSEC) or a chartered accountant listed by Bangladesh
Bank is not mandatory if the applied value for repatria�on does not exceed BDT 10 million or the
net asset value is higher than the deal value.
IV. In case for share transfer from non-resident to non-resident and resident to non-resident, are
subject to fair value determined by merchant banker licensed by BSEC or a chartered
accountant, for sales/transfers value of shares exceeding BDT 1 million. Resident share holder
receiving payment against sales of shares shall submit valua�on report to the authorised dealer
and MoU for share sale-purchase agreement together with Form-C for encashment for inward
remi�ances on account of sales proceeds of shares.The nonresident investor shall submit
documents to the authorised dealer bank as per Paragraph 2(B), Chapter-9 of GFET. The AD shall
report the share transac�ons to the Foreign Exchange Investment Department of the central
bank with the details of documents within fourteen days of the transfer of shares.
It is to be noted that in cases of the transfer of sales proceeds in favour of non-resident in
public/private limited companies not listed with the stock exchanges will be required to follow
the provisions men�oned in Paragraph 2 (A) & (B) of Chapter-9 from the Guideline of Foreign
Exchange Transac�on and submit relevant documents men�oned to the Authorised dealer
bank.
Useful link:
h�ps://www.bb.org.bd/mediaroom/circulars/circulars.php
84 | BIDA
Remi�ance of royalty and technical assistance fees

Industrial enterprises may enter into agreements with en��es outside the country about
payment of royalty, technical know-how/technical assistance fees if the total fees and other
expenses do not exceed:
a) 6% of the previous year’s sales as declared in the tax return
b) 6% of the cost of imported machinery in case of new projects
These agreements must be registered with BIDA. Agreements that do not conform the above
guidelines will require prior permission of BIDA.
Transfer of profit and dividend

Profits
Branches of foreign firms, companies incorporated in Bangladesh and having foreign
investment including foreign banks, insurance companies and financial ins�tu�ons are free to
remit post-tax profits to their head offices through an authorised dealer. However, branch
offices other than banks and insurance companies need permission from BIDA and the
Bangladesh Bank for remi�ng profit.
Dividend
Remi�ance of dividend income to non-residents in respect of their investments in Bangladesh
can be made through an authorised dealer. The remi�able dividend is permissible to be
credited to foreign currency accounts maintained by non-resident shareholders in Bangladesh
as per FE Circular No. 29 of July 21, 2020. The investors can invest balances in their FC accounts
for purchasing securi�es or can remit it.
Within one month of execu�ng remi�ance of dividend, ADs are required to forward details of
the remi�ances to Foreign Exchange Investment Department at Head Office of Bangladesh
Bank for post facto checking.
Repatria�on of savings, re�rement benefits and salary of foreign employees

Foreigners employed in Bangladesh may remit 75% of monthly salary, savings and admissible
re�rement benefits through an authorised dealer. Net salary of foreign na�onal payable for the
period of leave admissible as per service contract duly approved by the government will be
remi�able.
85 | BIDA
Winding up of business
Remi�ance of proceeds arising out of liquida�on of industrial undertaking requires prior
approval of the Bangladesh Bank.
Repatria�on of residual money payable to foreign shareholders

To remit residual money payable to foreign shareholders by the court or subject to supervision
of the court, the authorised dealer has to submit an applica�on to the Foreign Exchange
Investment Department (FEID) of the Bangladesh Bank. The applica�on must contain a
relevant court order, a cer�ficate issued by liquidator/official receiver or such other eligible
person and other necessary documents confirming that all liabili�es in Bangladesh have been
fully paid.
In case of voluntary winding up of a company, the authorised dealer shall also apply to FEID
with all relevant documents to remit money abroad payable to foreign shareholders.
Procedures in details have been embodied in the FEID circular no-1, dated Feb 5, 2020 of
Bangladesh Bank.
Useful link
• www.bb.org.bd/Mediaroom/circulars/circulars.php
Borrowing
Local sources
Bank may extend working capital loans or term loans in local currency to foreign-controlled or
foreign-owned companies opera�ng in Bangladesh. On the basis of prevailing credit norms
and normal banker-customer rela�onship, the term loans in Taka can also be obtained
provided that the following requirements are met:
a) The term loan in Taka does not exceed the amount of equity of the company held by
Bangladesh na�onals.
b) Total debt of the company does not exceed the equity of the company. Banks are free to
grant local currency loans to Joint Venture industries in Export Processing Zones (EPZ) up to
the amount of short term foreign currency loans obtained from abroad.
Foreign sources
Borrowing from abroad requires prior permission from BIDA and Bangladesh Bank. For
approval of foreign loan, applica�on in prescribed form has to be submi�ed to BIDA. The
applica�on is then raised for approval in the Scru�ny Commi�ee Mee�ng headed by the
Governor of the Bangladesh Bank.
Repayment of principal and interest on approved foreign currency loan can be conducted
through an authorised dealer. Projects that are 100% foreign-owned and located in the EPZ
may however obtain foreign currency loans from overseas banks and financial ins�tu�ons
without prior approval of BIDA or Bangladesh Bank.
86 | BIDA
Documents required
• Copy of BIDA registra�on le�er
• Loan/supply agreements between the par�es
• Board resolu�on of the company
• Repayment period along with detailed schedule
• Grace period of the proposal
• Calcula�on of the effec�ve rate of interest
• Feasibility report of the project
• Detailed financial analyses
• Internal rate of return (IRR), break-even analysis, payback period, sensi�vity analysis, debt
service coverage ra�o analysis
• Cer�fied copy of the Memorandum and Ar�cles of Associa�on
• Copy of incorpora�on cer�ficate
• Relevant equity forms (CIB-1A, CIB-2A, CIB-3A) and undertaking from the sponsor directors
duly filled in for collec�on of CIB report from Bangladesh
• Proforma invoice/price quota�on through interna�onal tender for impor�ng capital
machinery
• Bank cer�ficate as to indebtedness and credit worthiness of the borrowing company and its
sponsors based in the latest CIB report
• Cer�ficate from BRTC or BUET in terms of quality, price and economic life or capital
machinery to be imported (in case of suppliers credit only)
• Encashment cer�ficate, C-form and Bangladesh Bank report to be collected from the
authorised dealer bank
-
• U�lisa�on of the said loan with proper banking documents
• Equity encashment cer�ficate of the project with proper banking documents
• Creden�al of the sponsors
• Track record of FDI including foreign borrowing
87 | BIDA
Chapter 3
Cost
of Doing
Business
89 | BIDA
Chapter 3: Cost of Doing Business
Bangladesh is recognised as the land of high corporate profitability, where the inten�on to
expand business opera�ons is felt strongly among investors. In a survey1 of 33 ci�es in Asia
and Oceania, Dhaka was among the least costly in nearly all elements.
Costs in major ci�es and regions in Asia

MONTHLY SALARY IN USD
4000
3,562
3500
3000
2,702
2500
2,208
2000
1,742
1,576
1,531
1,559
Manager (department cheif level)/month USD

1500
1,235
971
1,016
1,003
1,031
957
1000
840
662
728
793
Engineer/month USD
Worker/month USD
610
413
526
413
457
492
436
500
373
349
287
265
291
308
187
217
234
162
109
139
0
Yangon
Shanghai
Seoul
New Delhi
Manila
Jakarta
Kuala Lumpur
Karachi
Hanoi
Bangkok
Colombo
Dhaka
JETRO 2018 Survey

1
90 | BIDA
Wages/Rates Dhaka Bangkok Colombo Hanoi Karachi Jakarta Kuala Lumpur Manila New Delhi Seoul Shanghai Yangon
Worker/
month 109 413 139 217 187 308 413 234 265 2,208 662 162
USD
Engineer/
month 287 728 291 436 492 457 840 373 610 2,702 1,003 349
USD
Manager
(department
chief level) 793 1,559 526 957 1,235 1,031 1,576 971 1,531 3,562 1,742 1,016
/month
USD
1.78 2.84 1.77 1.56 2.90 1.97 2.10 1.64 1.08 2.93 2.00 1.16
Bonus months of months of months of months of months of months of months of months of months of months of months of months of
basic salary basic salary basic salary basic salary basic salary basic salary basic salary basic salary basic salary basic salary basic salary basic salary
Unskilled:
Legal min. 54 / 116.59
9.64-10.3 12.35 /day 9.62- 201 /month
wage/ 95 / month 183 / /month 279/ 1,558 353/
2 /day 1.29 /hour 10.33/day Semi- skilled: 3.13 /day
month month 2.17 /day month 4.50/ day month /month month
268 /month 222/ month
Skilled: 244/
month
2015/16: Manager 2016:

2013 /14: 8.6%
Nominal 6.52%% 2015: 7.3% 5.55% 2017: 5.55% 2015:10.2% 2015: 3.31%
2015: 7.3% 2014 /15: 13.8% 2017:8.3% 2016: 2.08-2.25% 2015: 8.9%
wage 2016/2017: 2016: 7.9% 2018: 4.88% 2016:10.0% 2018: 4.52%
2016: 7.9% N.A. 2017 /18: 7.8% 2019:8.0% 2018: 4.88-5.26% 2016: 9.5% N.A.
increase 6.50% 2017: 9.5% Non-Manager 2016: 2017:9.0% 2016: 3.82 %
2017: 9.5% *No survey in 2018:8.7% 2017: 4.28-4.63% 2017: 9.7%
rate 2017/2018: 5.51% 2017: 5.44% 2017: 2.32%
2015- 2017
6.46% 2018: 4.88%
Foreigners Foreigners Foreigners Foreigners

Industrial and foreign and foreign and foreign and foreign
Land companies companies companies companies
purchase 62-340 215 are not are not 62 150- 170 100 are not 65-104 343 175 are not
price/m2 permi�ed permi�ed permi�ed permi�ed
to purchase to purchase to purchase to purchase
land. land. land. land.
91 | BIDA
(1)0.10-0.18
Industrial land lease
estate in EPZ (2)1.
92 | BIDA
rent/m2 7.20- 7.82 0.1 0.16-0.25 0.01 4.96- 3.54 3.12 4.42- 4.81 4.14- 14 0.18 5.25 0.13- 0.14
60-2.75
/month Factory lease
in EPZ
Office rent
/m2/ month 13-28 19-27 38 24-42.4 22 19-25 24 26 21 57 28-32 40
Housing
rent for 1,064
953- 3,574 1,789 1,300- 4,000 3,167 3,300-3,332 1,489 1,250 1,439 2,232 2,014 2,300
foreigner/ -3,754
USD month
Basic Basic monthly Basic

Basic Basic
Basic monthly charge monthly Basic Basic monthly Basic monthly
monthly Basic monthly Basic monthly
Electricity monthly charge:9.7 Indus- charge: Nil monthly charge: charge:
Rate: charge: Nil monthly charge: Nil charge: Nil
charge: 6 try:3.25-16 Rate:Man- charge:146 3.6/kVA Office 5.50
rate for 0.09-0.13 Rate: 0.07 charge: Nil Rate: Rate:
0.19- 1.00 Peak Office:1.3-16 ufacturing Peak Rate: Rate:0.10 Industry 4.96
business Rate: 0.21 0.11-0.12 0.05-0.10
Rate: 0.05- Rate:0.08 Rate: 0.04-0.12 0.09 Semi- skilled: 222/ Rate:
use/kwh Off-Peak Iindus- Distribu- Off-Peak month Office
0.17
Rate: 0.16 try:0.06-0.07 �on & Rate: 0.05 Skilled: 244/ 0.06-0.09
Of- Service month Industry
fice:0.01-0.12 0.06-0.19 0.05-0.07
Basic Basic monthly Basic

Electricity Basic monthly Basic monthly Basic monthly
monthly charge: Nil Basic monthly Basic monthly monthly Basic monthly
charge: 0.31- charge:1.19 Basic monthly charge: Basic monthly
rate for charge:0.16- Rate : charge: 0.73 charge: Nil charge charge: Nil
0.63 Rate:0.10-0.1 charge: Nil 0.81-6.52 charge: Nil
general 2.93 0.07-0.13 Rate: Rate: 0.05 Rate: 0.10 :1.80-3.60/k- Rate:
Rate: 0.04- 4 Rate:0.10/ Rate: Rate:0.05-0.14
Rate : 0.01-0.13 -0.14 VA 0.02-0.03
use/kwh 0.13 0.08-0.25
0.01-0.24 Rate:0.04-0.1
1/kVA
Basic Basic monthly Basic Basic Basic monthly

Water for Basic Basic Basic Basic monthly
monthly Basic monthly Rate: 0.4 charge: Nil monthly monthly charge:
business monthly monthly monthly charge: Nil
charge: Nil charge: Service Rate: charge: charge:17 0.51-73.8
Rate: 0.38 charge: charge:19 charge: Nil Rate: 0.57
use/m3 Rate: 0.49 2.82 Charge: Manufactur- 8.76 Rate per: Industry 0.81
4.91 Rate:2.53 Rate:
Rate: depend on ing 0.53 Rate: 1.68 Rate:
Rate: 0.89 0.72-0.73
0.30-0.49 usage Distribu�on & 0.50-0.55 Office
Service 1.01 0.99-1.59
Basic monthly
Basic Basic Basic Basic
Water rate Basic monthly Rate:0.07 Basic monthly monthly monthly Basic Basic Basic Basic
charge:1.41 Service monthly
for general charge: Nil monthly charge:16 charge:1.37 charge: monthly monthly charge: monthly monthly
Rate: Charge: charge: Nil Rate: charge:2.76 charge: Nil charge: Nil
use/m3 Rate: 0.15 Rate: 0.69 1.46 charge:4.21 0.51-9.93
0.27-0.45 depend on Rate: depend on Rate : 1.00 Rate: Rate: 0.29
Rate: Rate:0.63 Rate:
usage 0.24-0.73 living space 0.14-0.49 0.50-0.85
0.65-1.25
floor
Basic monthly Basic 6.57/mmb- Basic Basic Basic monthly
charge: Nil Basic Basic Basic charge: Nil Basic
monthly monthly tu monthly Basic month- Rate : monthly Basic
Gas rate for (1) Natural Gas monthly Rate: monthly charge: Nil ly
charge: Nil charge: Nil charge: Nil monthly Office charge: monthly
business Rate: Rate: charge: Nil depends on Rate: charge:
Rate: Rate: charge: Nil 0.0143/MJ Nil charge: Nil
0.03-0.20/m3 0.66/kg Rate: usage 7.44-8.14 Nil Shop Rate:
(2) LPG Gas 0.75/kg 1.12/kg 9.2/mmbtu Rate: Rate:
/mmbtu 1.13-1.14/kg Rate: 0.0138/MJ 0.80/kg
Rate: 1.11/kg (0.34/m3) Industry 0.47-0.56
(0.26-0.29/m3) 0.92/kg /m3
0.0126/MJ
Basic
monthly Basic Basic
Gas rate for Basic monthly Basic monthly Basic
charge: Nil monthly Basic Basic Basic
general charge: monthly 1-12/mmb- monthly charge: Nil Basic Basic monthly monthly monthly
(1)Natural charge: Nil charge:0.76
use/m3 Gas Rate: Nil charge: Nil tu charge: Nil Rate: 5.77/ monthly monthly charge: Nil charge: Nil
Rate: Rate: Rate: Rate: mmbtu charge: charge: Nil /MJ
0.13/m3 0.66/kg Rate:0.82/k Rate: Rate:
0.75-0.8 1.12/kg depends on g (0.20/m3) Nil Rate: 0.44-0.61/m 0.92/kg
(2)LPG Gas 0.014/MJ
Rate: 2/kg usage 3
1.09/kg
(1) Listed Na�onal

Corporate Company: Tax: 10-25%
Tax % 25% 20% 28% 20% 29% 25% 17-24% 30 30% Local tax： 25% 25%
(2)Unlisted 1-2.5%
Company:
32.5%
Personal
income tax Resident:
rate 30% 35% 24% 35% 25% 30% 28% 35% 30% 42% 45% 25%
Non-Resident:
(highest) % 20%
VAT rate Sales tax:

(Standard) 5-15% 7% 15% 10% 17% 10% 10% 12% 5-28% 10% 0-16% 5%
Service tax:
% 6%
93 | BIDA
Name clearance and company registra�on fees

The following are fees for availing the services of the Registrar of Joint Stock Companies and
Firms (RJSC&F).
Name clearance fee (for each of the proposed name)

a) Company: BDT 200.00
b) Partnership firm: BDT 200.00
c) Society: BDT 1000.00
d) Trade organisa�on: BDT 200.00
Fees for registra�on

Private company
For the Memorandum of Associa�on: BDT 1000.00
For the Ar�cles of Associa�on:
For Authorised Capital (BDT)

Up to 20,00,000.00 3,000.00
Over 20,00,000.00 to 6,00,00,000.00 8,000.00
Over 6,00,00,000.00 20,000.00
Registra�on fee
For filing 6 documents (5 filled in forms plus 1 (one) Memorandum & Ar�cles of
Associa�on, BDT 400.00 per document): BDT 2,400.00
Authorised Capital (BDT) Fee (BDT)

Up to 20,000.00 00.00
Addi�onal for every 10,000.00 or part

a�er first 20,000.00 up to 50,000.00 00.00
Addi�onal for every 10,000.00 or part

a�er first 50,000.00 up to 10,00,000.00 00.00
Addi�onal for every 1,00,000.00 or part

a�er first 10,00,000.00 up to 50,00,000.00 50.00
94 | BIDA
Addi�onal for every 1,00,000.00 or part

a�er first 50,00,000.00 80.00
No fee for required for issuing digital cer�ficate.
Public company
For the Memorandum of Associa�on: BDT 500.00
For the Ar�cles of Associa�on:
Up to 20,00,000.00 4,000.00
Over 20,00,000.00 up to 6,00,00,000.00 8,000.00
Over 6,00,00,000.00 20,000.00
Registra�on fee
For filing 8 or 9 documents (7 or 8 filled in forms plus 1 memorandum & ar�cles of associa�on,
BDT 400.00 per document): BDT 3,2000 or BDT 3,600.00
Up to 20,000.00 00.00
Addi�onal for every 10,000.00 or part a�er

first 20,000.00 up to 50,000.00 00.00
Addi�onal for every 10,000.00 or part a�er

first 50,000.00 up to 10,00,000.00 00.00
Addi�onal for every 1,00,000.00 or part a�er

first 10,00,000.00 up to 50,00,000.00 50.00
95 | BIDA
Addi�onal for every 1,00,000.00 or part a�er 80.00

first 50,00,000.00
No fee required for issuing digital cer�ficate.
Foreign company
For filing 6 documents (1 memorandum and ar�cles of associa�on BDT 400.00 and 5 other
documents BDT 400.00 per document): BDT 2,400.00
For Memorandum of Associa�on & Ar�cle of Associa�on: BDT 2,000.00
Trade organisa�on
For the Memorandum of Associa�on: BDT 1,000.00
For the Ar�cles of Associa�on: BDT 2,000.00
Registra�on Fee:
For filing 6 documents (5 filled in forms for BDT 200.00 per document plus 1 memorandum &
ar�cles of associa�on for BDT 600.00): BDT 1,600.00
No. of members of associa�on Fee (BDT)
Up to 20: 1,000.00
Over 20 to 100: 2,500.00
For every 100 or part above

the first 100 (limited member): 300.00
For unlimited members: 7,500.00
Society (Socie�es Registra�on Act, 1860)

Registra�on Fee: BDT 1000.00
Registra�on Filing Fee: BDT 400
No fee required for issuing of digital cer�ficate.
Partnership firm (Partnership Act, 1932)

Registra�on fee: BDT. 1000.00
Registra�on Filing Fee: BDT 400.00
No fee required for issuing of digital cer�ficate.
96 | BIDA
Filing returns
Companies (Private and Public)
Returns filing
For filing any document within the schedule time: BDT 200.00 per document
In case of delay of 3 (three) years, for every year or part thereof: BDT 500.00
In case of more than 3(three) years: BDT 700.00 per year
Registration of Mortgage, Debentures and Charges
Secured Amount (BDT) Fee (BDT)

Up to 5,00,000.00 250.00
Additional for every 5,00,000.00 or 200.00
part after the first 5,00,000.00 up to 50,00,000.00
Additional for every 5,00,000.00 or part 100.00

after the first 50,00,000.00
Mortgage, Debentures and charges register inspection fee 200.00
Receiver enrollment register fee 400.00
Foreign company
Returns Filing
Any document within schedule time: BDT 400.00 per document

Any document beyond schedule time: BDT 2.00/day
(not exceeding BDT 1,000/document)
97 | BIDA

Up to 5,00,000.00 300.00
Additional for every 5,00,000.00 or part after
200.00
the first 5,00,000.00 up to 50,00,000.00
100.00
the first 50,00,000.00
Mortgage, Debentures and charges register inspection fee 200.00
Receiver enrollment register fee 400.00
Trade organisation
Returns Filing
For filing any document within the schedule time: BDT 200.00 per document
In case of delay of 3 years BDT 500.00 for every year or part there of
In case of more than 3(three) years: BDT 700.00 per year

Up to 5,00,000.00 300.00
the first 5,00,000.00 up to 50,00,000.00 200.00

the first 50,00,000.00 100.00
Societies
For filing any document: BDT 400.00 per document
Partnership firm
For filing form 2, 5 or 6: BDT 400.00 each.
98 | BIDA
Issuance of Certified Copies

Private Company, Public Company, Trade Organisation and Foreign Company, Society and
partnership firm
a. Non-judicial stamp fee

i. For Memorandum of Association or part there of: BDT 50.00
ii. For Articles of Association or part thereof: BDT 50.00
iii. For other documents: BDT 50.00 per document
b. Court fee (stamp) - per application per company: BDT 20.00
c. Fees
i. For inspection of records: BDT 200.00
ii. Registration fee for copies of certificate: BDT 200
iii. For copy of certificate of commencement of business: BDT 200.00
iv. Copying of documents for each 100 words or part: BDT 10.00 subject to a
minimum of BDT 200.00
v. Comparison of document each 100 words or part: BDT 10.00 subject to a
minimum of BDT 200.00 of each document
Winding Up
For any required or permitted document for winding up: BDT 400 per document
Source: Registrar of Joint Stock Companies and Firms
Office permission
Fee following approval of new branch/liaison/representative office BDT 25,000
The following payment methods can be used: BIDA One Stop Service online payment gateway
(credit card: VISA/MasterCard), mobile banking app Bkash or counter payment at Sonali
Bank.
Source: One-Stop Service, Bangladesh Investment Development Authority
99 | BIDA
Fire licence
Fee varies according to the type of factory and as per the assessment of the inspector. The
range is between BDT 1,000 and BDT 8,000 plus 15 percent VAT. A fire licence must be
renewed every year.
Source: Bangladesh Fire Service and Civil Defense
Trade licence fees

Limited company Paid up capital (BDT) Fee
Up to 100,000 Tk 1,000
Over 100,000 to 500,000 Tk 1500
Over 500,000 to 10,00,000 Tk 2000
Over 10,00,000 to 25,00,000 Tk 2,500
Over 25,00,000 to 50,00,000 Tk 3000
Over 50,00,000 to 100,00,000 Tk 4000
Over 100,00,000 to 500,00,000 Tk 5000
Over 500,00,000 Tk 10,000
Bank, insurance and financial institutes Fee

Scheduled bank Tk 3,000
Insurance Tk 3,000
Lending body Tk 3,000
Money exchange Tk 1,500
Share buying & selling Tk 2,000
Factories (if not a limited company) Fee

Tannery Tk 3,000
Garments Tk 3,000
Pharmaceuticals Tk 2,000
Bread and biscuit Tk 500
Cold storage Tk 1,500
Beverage Tk 2,000
Mineral water Tk 1,000
Ceramics Tk 1,000
i) Signboard fee is 30 percent of the trade license fee.
ii) VAT on licence fee and signboard fee is 15 percent.
iii) Fee for annual renewal of trade licence is same as a new one.
Source: Local Government Division, gazette issued on Nov 4, 2002
100 | BIDA
Registration of industrial projects with BIDA

Based on the invested capital, the fee for BIDA registration should be submitted using the
following payment methods: OSS online payment gateway (credit card: VISA/MasterCard),
mobile banking app Bkash or counter payment at Sonali Bank.
Invested capital (BDT) Fee (BDT)

1 to 100,000,000 5000
100,000,001 to 250,000,000 10,000
250,000,001 to 500,000,000 25,000
500,000,001 to 1,000,000,000 50,000
1,000,000,001 to 1,000,000,000,000,000 100,000
The fee for making changes to the registration letter is BDT 1000.
Source: One Stop Service, Bangladesh Investment Development Authority
VAT registration certificate

Value added tax can be paid online at https://vat.gov.bd/
Annual turnover (BDT) Turnover tax (%)

Less or equal to 300,00,00 None
Over 300,00,00 to 800,00,00 3%
Over 800,00,00 15%
Source: National Board of Revenue
Industrial plots and factories

Price of land in most of the industrial estates/areas is relatively lower than the market rate.
These estates are furnished with necessary infrastructure and utility facilities such as
electricity, gas, water, sewerage etc. Industrial plots are allotted by BEPZA, BEZA and BSCIC 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 on the recommendation of BIDA. Quality construction materials
including civil, structural and architectural design and labour force are locally available in every
part of the country. Moreover, international construction firms are also present.
101 | BIDA
Fully serviced industrial plots and standard factory buildings are offered by BEPZA as per
the rates stated below:
Unit
Cost heads (1 sq.m= 10.76 sq.ft) USD
Land in EPZs (30 years renewable lease) (average size 2000 sqm)
Dhaka, Chattogram, Cumilla, Adamjee &
Karnaphuli Sq.m/year 2.20
Mongla, Ishwardi, Uttara Sq.m/year 1.25
Standard Factory Building Rental
EPZs: Dhaka, Chattogram, Cumilla, Adamjee
& Karnphuli Sq.m/month 2.75
EPZs: Mongla, Ishwardi, Uttara Sq.m/month 1.60
Source: Bangladesh Export Processing Zones Authority (BEPZA)
Cost of utilities
Electricity
The authorities concerning electricity are the Bangladesh Power Development Board (BPDB)
and the Rural Electrification Board (REB). Depending on the consumer’s location, Dhaka
Electricity Supply Company Limited (DESCO), West Zone Power Distribution Company Limited
(WZPCL), Northern Electricity Company Limited (NESCO) or the Rural Electrification Board
(REB) is authorised to provide a new connection.
• For all clients, 11:00pm to 5:00pm (next day) are the off-peak hours and 5:00pm to 11:00
pm are the peak hours.
BPDB & DESCO
Temporary Connection Fee (BDT)

Application Fee BDT 250 -1000
Permanent Connection Fee (BDT)

Application Fee BDT 100-2000
Security Deposit /KW load 220-440 BDT 400-1000
Instruments, Transformers, Service Line Drawing, Bay Extension, Installation as per
rate (at consumer end)
102 | BIDA
Tariff per unit (excluding VAT, SD)
BDT/Kilowatts per hour BDT/KW/month

Pump used in irrigation/agriculture 4.00 15
Residential Rate BDT/Kilowatts per hour BDT/KW/month

00 to 50 units 3.75 30
50 to 75 units 4.19
76 to 200 units 5.72
201 to 300 units 6.00
301 to 400 units 6.34
401
401 to 600
to 600 units
units 9.98
Above 600 units 11.46
Small industries BDT/Kilowatts per hour BDT/KW/month

Flat Rate 8.53 30
Off-Peak Time 7.68
Peak Time 10.24
Non-Residential (LT) Commercial/Office BDT/Kilowatts per hour BDT/KW/month

Flat Rate 10.30 60
Off-Peak Time 9.27
Peak Time 12.36
BDT/Kilowatts per hour BDT/KW/month

Construction 12 100
Non-Residential (MT) (11 KV)
Commercial/ Office BDT/Kilowatts per hour BDT/KW/month

Flat Rate 9.12 60
Off-Peak Time 8.21
Peak Time 11.40
Industrial BDT/Kilowatts per hour BDT/KW/month

Flat Rate 8.55 60
Off-Peak Time 7.70
Peak Time 10.69
103 | BIDA
Construction BDT/Kilowatts per hour BDT/KW/month

Flat Rate 11.46 100
Off-Peak Time 10.31
Peak Time 14.33
Pump used in irrigation/agriculture BDT/Kilowatts per hour BDT/KW/month

Flat Rate 11.46 60
Off-Peak Time 10.31
Peak Time 14.33
Non-Residential (HT) (33 KV)
Commercial/Office BDT/Kilowatts per hour BDT/KW/month

Flat Rate 9.12 60
Off-Peak Time 8.21
Peak Time 11.28
Industrial BDT/Kilowatts per hour BDT/KW/month

Flat Rate 8.45 60
Off-Peak Time 7.61
Peak Time 10.56
Source: Bangladesh Energy Regulatory Commission’s Circular no. 28.01.0000.012.04.003.20.652 issued on Feb 27, 2020
[Tariffs may change periodically]
Gas connection
Following are the companies transmitting and distributing natural gas in designated franchise
areas of Bangladesh.
- Titas Gas Transmission and Distribution Company Limited
- Bakhrabad Gas Distribution Company Limited
- Jalalabad Gas Transmission and Distribution System Limited
- Pashchimanchal Gas Company Limited
- Karnaphuli Gas Transmission Limited
- Sundarban Gas Transmission Limited
104 | BIDA
The applica�on fee for a new gas connec�on is BDT 300, which is subject to periodic revisions.
The applica�on can be submi�ed online.
Category BDT/cubic meter

Commercial 17.04
Industrial 7.76
Household
1) Meter based 11.20
2) One burner (fixed) 900
3) Double burner (fixed) 950
Source: Bangladesh Energy Regulatory Commission; Public Order issued on Feb 23, 2017
Water and sewage

Water Supply and Sewerage Authority (WASA) is responsible for Water Supply and Sewage
disposal in metropolitan areas of Dhaka, Cha�ogram, Khulna and Rajshahi. In other municipal
areas, local municipali�es provide the services. Applica�on for a new connec�on can
submi�ed online.
Dhaka WASA supplies potable water to the city consumers at the following rate:
User Type BDT/1000 liter

Residen�al/Domes�c 14.46
Commercial/Industrial 40
Source: No�ce by Dhaka WASA, issued April 2020
Cha�ogram WASA supplies potable water to the city consumers at the following rate:
User Type BDT/1000 gallon

Residen�al/Domes�c 56.56
Commercial/Industrial 137.72
New Connec�on Charge – Dhaka

Dhaka WASA fees and charges (considering 10m distance from street supply line)
Water and sewer supply (size) Charge/fee (BDT)
37mm (1.5 inches) 41,196
25mm (1.0 inch) 14,836
20mm (3/4 inch) 10,616
Source: Dhaka WASA
105 | BIDA
New Connec�on Charge – Cha�ogram
Connec�on size (fixed fee in BDT)

Cost heads
¾” 1” 2” 4” 6”
Connec�on fee 1,500 4,000 40,000 60,000 60,000
Meter price 3,500 6,000 20,000 30,000 1,00,000
Meter fi�ng charge 300 500 3,000 6,000 10,000
Security deposit 5,000 10,000 20,000 30,000 50,000
Deposit for non-residen�al
connec�ons 40,000 80,000 2,00,000 8,00,000 10,00,000
Service charge 3,000 5,000 20,000 50,000 50,000

Connec�on reloca�on fee 6,000 12,000 15,000 20,000 25,000
Source: Cha�ogram WASA Office Order issued on Dec 22, 2016
Import and export

Import Registra�on Cer�ficate/Import Permit – Industrial & commercial
Importers are classified into 6 (six) categories by the Office of the Controller of Imports and
Exports (CCIE) on the basis of their value ceiling of overall annual import. The ini�al
category-wise registra�on fees and annual renewal fees are as below:
Value ceiling of
Category Registra�on fee (BDT) Renewal fee
annual import (BDT)
First 5,00,000 5,000 3,000
Second 25,00,000 10,000 6,000
Third 50,00,000 18,000 10,000
Fourth 1,00,00,000 30,000 15,000
Fi�h 5,00,00,000 45,000 22,000
Sixth Over 5,00,00,000 60,000 30,000
(Passbook fee is BDT 1,000 + 15% VAT is applicable for all types of fees)
Export Registra�on cer�ficate

Ini�al registra�on fees (BDT) Renewal fees (BDT)
Exporter 7,000.00 5,000.00
Indentor 40,000.00 20,000.00
(Passbook fee is BDT 1,000 + 15% VAT is applicable for all types of fees)
106 | BIDA
BIDA’s recommenda�on for Industrial IRC (Import Registra�on Cer�ficate)

Cost of Project (BDT) Fee (BDT)
1,00,000 500
5,00,000 2500
15,00,000 4000
50,00,000 8000
1,00,00,000 15000
1,00,00,001 and above 20000
Source: One Stop Service, Bangladesh Investment Development Authority
Bonded warehouse licence

Bonded warehouse facili�es are subject to yearly en�tlement. Yearly en�tlement is allowed
based on produc�on capacity of capital machinery and previous year’s performance (i.e.
export and usage of raw materials) of the bonder. However, direct exporters in the RMG sector
are not required to have annual en�tlement.
Requirement of General Bond: Bonded warehouse licence holders are needed to submit
general bond of differing values to Customs in order to clear their consignments.
Commissioner of Customs may increase the value of General Bond. At present, value of
general bond for different types of bond licence holders are as follows:
(a) Deemed Exporter: BDT. 10,000,000
(b) Direct exporters (Knit, Woven, Sweater): BDT 30,000,000
(c) Both Deemed and Direct Exporter: BDT 20,000,000
(d) Diploma�c, Duty Free and Duty paid Bond: BDT 30,000,000
Bond licence fee: BDT 10,000

Source: Bangladesh Customs
107 | BIDA
Environment clearance cer�ficate

Fees in BDT
Project Cost in BDT
Clearance Renewal
1,00,000 - 5,00,000 1,500 375
5,00,000 - 10,00,000 3,000 750
10,00,000 - 1,00,00,000 5,000 1,250
1,00,00,000 - 5,00,00,000 20,000 5,000
5,00,00,000 - 20,00,00,000 40,000 10,000
20,00,00,000 - 50,00,00,000 80,000 20,000
50,00,00,000 - 100,00,00,000 1,20,000 30,000
100,00,00,000 - 200,00,00,000 2,00,000 50,000
200,00,00,000 - 500,00,00,000 3,00,000 75,000
500,00,00,000 - 1000,00,00,000 4,00,000 1,00,000
Above 1000,00,00,000 5,00,000 1,25,000
Work permit
Related Services on BIDA’s One-Stop Service BDT
Work Permit Fee per person (new industry) 5000
Work Permit extension 5000
Work Permit Fee per person (commercial enterprises) 3000
Extension Fee per person per year (commercial enterprises) 1000
Source: Bangladesh Investment Development Authority
Remi�ance
Technical Assistance/Technical know-how/Royalty
Amount of Remi�ance (BDT) Fee (BDT)
Up to 10,00,000 5,000
From 10,00,001 to 50,00,000 10,000
From 50,00,001 to 1,00,00,000 50,000
From 1,00,00,001 to 5,00,00,000 1,00,000
From 5,00,00,001 to 10,00,00,000 2,00,000
10,00,00,001 and above 5,00,000
108 | BIDA
Foreign Borrowing
Amount of Loan Borrowed (BDT) Fee (BDT)
Up to 1,00,00,000 5,000
From 1,00,00,001 to 5,00,00,000 10,000
From 5,00,00,001 to 10,00,00,000 20,000
From 10,00,00,001 to 25,00,00,000 50,000
From 25,00,00,001 and above 1,00,000
Licence of Establishment
The Department of Inspec�on for Factories and Establishments (DIFE) is a department under
the Ministry of Labour and Employment. This department is responsible for ensuring welfare,
safety and health of valuable human resources working in various sectors.
Applica�on for License of Establishment is placed through the Labour Inspec�on Management
Applica�on (LIMA).
Maximum number of workers to be

License Fee (BDT) Renewal (BDT)
employed on any day during the year
5-30 500 300
31-50 1000 700
51-100 1500 51000
101-200 2500 1800
201-300 3000 2200
301-500 5000 3500
501-750 6000 4800
751-1000 8000 5000
1001-2000 10000 7000
2001-3000 12000 8400
3001-5000 15000 10000
Above 5001 18000 12000
Source: Department of Inspec�on for Factories and Establishments (DIFE)
109 | BIDA
Port tariffs
Cha�ogram Port Authority (CPA)
The CPA imposes and collects various fees and charges for services and facili�es offered to
shipping companies, importers, exporters and other stakeholders at the Cha�ogram sea port.
Such fees and charges include - landing charge, port handling charge (for port func�ons), port
demurrage charge (in case of non-clearance a�er a certain period), river dues/anchorage
charge, pilotage charge etc.
Landing fees
Par�culars of goods Basis of charge Rates (BDT)
(per 1000kg or part there
46-250
Import cargo of to over 20,000kg)
(per 1000kg or part ther

Export cargo 36-250
of to over 20,000kg)
Charges to the account of the shipper/consignee/shipping agent
River dues (conven�onal cargo)

Par�culars of goods Basis of charge Rates (BDT)
Import per 1000kg or part thereof 34
Export per 1000kg or part thereof 15
Domes�c per 1000kg or part thereof 10
River dues (containerised)

Rates (BDT)
Not exceeding 21 Exceeding 21 feet
Par�culars of charges Basis of charges feet length length
1. FCL container and contents
a) Import Per container 408 816
b) Export Per container 184 368
2. FCL container and contents
a) Import per 1000kg or part thereof 34.10 -
b) Export per 1000kg or part thereof - 15.30
3. Empty container
a) Import Per container 102 102
b) Export Per container 102 102
110 | BIDA
Stuffing/unstuffing
Par�culars of charge Basis of charge Rates (BDT)
Stuffing per 1000kg or part thereof of contents 300
Unstuffing per 1000kg or part thereof of contents 300
Pilotage fee
At the rate of USD 35.75 per 1000 GRT or part thereof, subject to a minimum of USD 357.50
for inward or outward pilotage or for movement in a dry dock.
An addi�onal fee of 50 percent of the pilotage fee specified above shall be charged in respect
of vessels breaking journey in Gupta Khal in order to take delivery of bunkers at the Tanker
mooring.
Dues and charges to the account of the owner/agent/charterer of the vessel
• All CPA tariff informa�on at: h�p://www.cpa.gov.bd/site/page/bd7e38f1-2442-401d-8999-d7bc0e11f834/-

• Mongla Port Tariff: h�p://www.dpp.gov.bd/upload_file/gaze�es/18092_21562.pdf
Benapole Land Port

Handling charges
Par�culars of charges Basis of charges Rate of Charges 2020 (BDT)
Off-loading from any kind of
Per tonne or
1. transport & stacking/re-stacking part thereof 41.61
inside shed/yard by manual labour
Loading from shed/yard into road Per tonne or 41.61
2. transport by manual labour
part thereof
3. Loading/off-loading by equipment Per tonne or 99.81

part thereof
Other charges
Rate of Charges
Par�culars of charges Basis of charges
2020 (BDT)
1. Entrance fee
Truck/bus & lorry Per unit per entry 137.81
Motor car, jeep, pick-up & three-wheeler Per unit per entry 82.69
2. Carpenter charge
For opening and closing of packaged Per package/case 8.36
cases for appraisement/inspec�on
111 | BIDA
Rate of Charges
Par�culars of charges Basis of charges
2020 (BDT)
Weight/measurement charge (if applicable) Per truck/lorry 66.15

Documenta�on charge(for prepara�on of
addi�onal documents viz, Warehouse
charges, Challan/Release order etc. when Per document 145.56
delivery of consignment is not carried out
by the party within due date)
Haltage charge (if transport remains in Per transport per night 83.13
warehouse area)
For tariff schedule of other land ports, visit

h�p://www.bsbk.gov.bd/site/page/1dc�e94-cab7-470a-bb72-bf35f4e08b4a/-
Source: Bangladesh Land Port Authority
Biman Bangladesh Airlines

Importers and exporters pay charges for using airport warehouse facili�es. In addi�on, Biman
charges forkli� fee for goods weighing more than 100 kilograms. For storing dangerous goods,
there is an addi�onal fee of USD 100.
Dhaka’s Hazrat Shahjalal Interna�onal Airport has two cargo terminal buildings for import and
export facili�es:
• Import Terminal
• Cargo Village (export)
For informa�on on fees/charges imposed for imported goods, contact Import Sec�on, Biman
Cargo Complex, Hazrat Shahjalal Interna�onal Airport, Dhaka.
Call +880 2 8901500-19, Ext.-25

For charges/fees on export goods, contact Cargo village (export),Hazrat Shahjalal
Interna�onal Airport, Dhaka
Call +880 2 8901500-19, Ext.-2507
112 | BIDA
Chapter 4
Paying
Taxes
113 | BIDA
Chapter 4: Paying Taxes
The Na�onal Board of Revenue (NBR) is the authority for administering taxes in Bangladesh.
NBR is responsible for tax formula�on, appraisal, tax laws and tax trea�es with foreign
countries. NBR’s main responsibility is to collect revenue such as import/export related
du�es and taxes, Excise Du�es, Travel Tax, Supplementary Duty, VAT and income taxes.
Tax year and returns submission

Taxpayers must maintain accoun�ng year (income year) from July 1 to June 30 for tax
repor�ng.
However, banks and financial ins�tu�ons including insurance bodies can maintain different
accoun�ng year. Branch offices of foreign en��es, foreign companies and companies with
significant foreign equi�es are allowed to have different accoun�ng year for tax repor�ng.
Companies have to submit tax return before next January 15 (for accoun�ng year ending June
30) or July 15 (for accoun�ng year ending December 31). Companies which are allowed other
accoun�ng year have to submit tax return within six months a�er comple�ng the accoun�ng
year.
Taxpayers other than companies need to submit tax return by November 30.
Corporate Tax Rate

Category Tax Rate
1 Publicly traded companies 25%

2 Non-publicly traded companies 32.5%
3 Banks, Insurance and other Financial Ins�tu�ons
excluding Merchant Banks
a) Publicly traded companies 37.5%
b) Non-publicly traded companies 40%
4 Merchant banks 40%
5 Companies involved in produc�on of Tobacco and
Tobacco products 45%
6 Mobile phone operators 45%
(If the company offers at least 10% of equity to
public and becomes a publicly traded company then
the tax rate will be 40%)
7 On received dividend 20%
8 Capital gain tax rate 15%
9 Turnover tax (This is not an addi�onal tax but a
minimum tax if regular tax on business income is less
than turnover tax) a. 0.6% of gross receipts
b. 1% of gross receipts for
companies involved in
tobacco
c. 2% of gross receipts for
companies involved in
mobile operator business
114 | BIDA
Tax Exemp�on
Tax exemp�on is allowed for priority sectors set by the government, details of which are
included in tax laws, Rules, Statutory Regulatory Orders (SRO) and orders made by NBR.
Newly set up, eligible industrial undertakings are allowed tax exemp�on either for 5 years or
10 years depending on their loca�on within the country.
Industrial undertakings
Below is a list of industrial undertakings eligible for Tax exemp�on under Sec�on 46BB of the
Income Tax Ordinance. The government may include new categories of industrial undertaking
through gaze�e no�fica�on.
i) ac�ve pharmaceu�cals ingredient and radio pharmaceu�cals; (ii) agriculture machineries;
(iii) automa�c bricks; (iv) automobile; (v) barrier contracep�ve and rubber latex; (vi) basic
components of electronics (e.g. resistor, capacitor, transistor, integrated circuit, mul�layer PCB
etc.); (vii) bi-cycle including parts thereof; (viii) bio-fer�lizer; (ix) biotechnology based agro
products; (x) boiler including parts and equipment thereof; (xi) compressor including parts
thereof; (xii) computer hardware; (xiii) furniture; (xiv) home appliances (blender, rice cooker,
microwave oven, electric oven, washing machine, induc�on cooker, water filter etc.); (xv)
insec�cides or pes�cides; (xvi) leather and leather goods; (xvii) LED TV; (xviii) locally produced
fruits and vegetables processing; (xix) mobile phone; (xx) petro-chemicals; (xxi)
pharmaceu�cals; (xxii) plas�c recycling; (xxiii) tex�le machinery; (xxiv) �ssue gra�ing; (xxv) toy
manufacturing; (xxvi) tyre manufacturing; (xxvii) Electrical transformer; (xxviii) Ar�ficial fiber
or manmade fiber manufacturing; (xxix) Automobile parts and components manufacturing;
(xxx) Automa�on and Robo�cs design, manufacturing including parts and components
thereof; (xxxi) Ar�ficial Intelligence based system design and/or manufacturing; (xxxii)
Nanotechnology based products manufacturing; (xxxiii) Aircra� heavy maintenance services
including parts manufacturing.
Five year
If the project is located in the divisions of Dhaka and Cha�ogram, excluding the districts of
Dhaka, Narayanganj, Gazipur, Cha�ogram and the hill districts of Rangama�, Bandarban and
Khagrachari districts, the period of tax exemp�on is for five years, which will begin in the
month of commencement of commercial produc�on at the following rate.
Period of Exemp�on Rate of Exemp�on
For the first year 90% of income

For the second year 80% of income
For the third year 60% of income
For the fourth year 40% of income
For the fi�h year 20% of income
115 | BIDA
Ten year
If the project is located in the divisions of Rajshahi, Khulna, Sylhet, Barishal Divisions (excluding
city corpora�on areas) or in the districts of Rangama�, Khagrachari and Bandarban, the period
of tax exemp�on period will be for 10 years, which will begin in the month of commencement
of commercial produc�on at the following rate.
Period of Exemp�on Rate of Exemp�on
For the first and second year 90% of income

For the third year 80% of income
For the fourth year 70% of income
For the fi�h year 60% of income
For the sixth year 50% of income
For the seventh year 40% of income
For the eighth year 30% of income
For the ninth year 20% of income
For the tenth year 10% of income
Tax benefits for investment in Economic Zones (EZ)

Except income generated from produc�on of edible oil, sugar, flours, cement, iron and iron
related products, all other business income is exempted from income tax for the next 10 years
from the date of commercial opera�on in the following manner:
Year Exemp�on % of Income
1st, 2nd and 3rd 100%

4th year 80%
5th year 70%
6th year 60%
7th year 50%
8th year 40%
9th year 30%
10th year 20%
• Tax exemp�on for 10 years on dividend declared by en��es opera�ng in SEZ.

• Tax exemp�on on capital gains derived from share transfer of the companies in SEZ
for 10 years.
• Foreign workers will get 50% of tax exemp�on for 3 years from the date of
employment.
116 | BIDA
Tax benefits for developers of EZ

Business income is exempted from Income tax for the next 12 years from the date of
commercial opera�on in the following manner:
1st to 10th year 100%

11th year 70%
12th year 30%
Tax benefits for inves�ng unit of Hi-Tech Park Zone

Business income is exempted from Income tax for the next 10 years from the date of
1st, 2nd and 3rd 100%

4th year 80%
5th year 70%
6th year 60%
7th year 50%
8th year 40%
9th year 30%
10th year 20%
• 50% Tax exemp�on for 10 years on dividend declared by en��es opera�ng in Hi-Tech
Park.
• 50% Tax exemp�on on capital gains derived from share transfer of the companies in
Hi-Tech Park for 10 years.
employment.
Tax benefits for developing units in Hi-Tech Park

Business income is exempted from income tax for the next 12 years from the date of
1st to 10th year 100%

11th year 70%
12th year 30%
117 | BIDA
Tax exemp�on for Public Private Partnership (PPP) project

The government has introduced tax exemp�on for Public Private Partnership (PPP) works
carried out by Project Companies involved in the following types of projects:
1. Na�onal highways or expressways 8. Airport
and related service roads 9. Subway
2. Flyovers 10. Monorail
3. Elevated and At-Grade Expressways 11. Railway
4. River bridges 12. Bus terminals
5. Tunnels 13. Bus depots
6. River port 14. Elderly Care Home
7. Sea port
• 100% Income tax exemp�on of the business income of PPP Project for 10 years.
• Income tax exemp�on of capital gains arising from the transfer of share capital of PPP
Project Company for 10 years.
employment.
Export Processing Zones

At present following exemp�ons are available on tax payable:
• For a period of 5 years if the industry is set up in Export Processing Zones (EPZ) Dhaka and
Cha�ogram divisions excluding Rangama�, Bandarban and Khagrachari districts;
• For a period of 7 years if the said EPZ is set up in Rajshahi, Khulna, Sylhet and Barishal
divisions and Rangama�, Bandarban and Khagrachari districts
Area Year Exemp�on % of Income
Dhaka, Mymensingh and Cha�ogram 1st and 2nd year 100%

divisions excluding Rangama�, 3rd and 4th year 50%
Bandarban and Khagrachari districts 5th year 25%
Rajshahi, Khulna, Sylhet and Barisal 1st, 2nd and 3rd year 100%
divisions and Rangama�, Bandarban 4th, 5th and 6th year 50%
and Khagrachari districts 7th year 25%
[The informa�on above is in accordance with the Finance Act 2020]
Double Taxa�on trea�es

Double Taxa�on Trea�es (DTTs) are bilateral agreements that protect the income of foreign
investors from being taxed in two different countries. Bangladesh has DTTs with 34 countries.
Belgium Malaysia The Netherlands Oman
Canada Pakistan UK Saudi Arabia
China Poland USA Mauri�us
Denmark Romania Norway UAE
France Singapore Turkey Myanmar
Germany Republic of Korea Vietnam Belarus
India Sri Lanka Philippines Kuwait
Italy Sweden Indonesia
Japan Thailand Switzerland
118 | BIDA
Chapter 5
Applying for
Visa
119 | BIDA
Chapter 5: Applying for Visa
Types of Visa
Before applying for work permit, an expatriate must get a visa.
BIDA or any other applicable authority will provide recommenda�ons required for obtaining
‘PI’, ‘E2’, ‘E3’ and ‘B’ visas as per the Visa Policy 2019 and other exis�ng rules and regula�ons.
A Bangladesh mission then issues visa following examina�on of the applica�on and
documents. Recommenda�on from local sponsor/partner may be considered while issuing ‘B’
visas.
BIDA issues recommenda�ons for PI, E2, E3 visas in favour of foreign na�onals.
Please visit www.visa.gov.bd to apply. A complete list of visa fees applicable to na�onals of
different countries is available on this website.
Below are the types of visa related to business in Bangladesh:

• ‘PI’ visa is for foreign private investors for both industrial and commercial enterprises.
• ‘FPI’ visa is for the spouse and dependent family members of ‘PI’ visa holders.
• ‘E2’ visa is for the employees of private or public organiza�ons both foreign and local
companies.
• ‘FE2’ visa is for the spouse and dependent family members of ‘E2’ visa holders.
• ‘E3’ visa is for the technicians arriving in Bangladesh for the purpose of
supply/installa�on/maintenance/supervision of equipment and inspec�on of project or
similar assignments who need to stay for short periods and do not require work permits.
• ‘FE3’ is for the spouse and dependent family members of ‘E3’ visa holders
• ‘B’ visa is for businessmen and their representa�ves who explore and monitor
businesses, usually for a short period.
120 | BIDA
Type, dura�on and condi�ons for visa

Purpose and Dura�on/fees Required
Type documents
eligibility /condi�ons
PI Foreign investor - Up to one year with mul�ple First visa:

(Private inves�ng in entry - Filled up applica�on form;
investor) industrial/commercial - Visa maybe extended up to 5 - Copy of passport;
establishment under years - Recommenda�on from BIDA/
100% foreign ownership - Passport should have validity BEZA/Hi-tech Park/concerned
or on joint venture in of minimum 180 days. Ministry/ PPPAB and other
non-government sector applicable authori�es that the
- ‘No visa required’ facility for investor is a bonafide investor;
investment of at least $5
- Detailed business plan with
million upon cer�fica�on from proposed business ac�vi�es,
BIDA/ BEZA/Hi-tech amount of investment,
Park/PPPAB and other genera�on of local
applicable authori�es in employment and local
Bangladesh. establishment etc.
Extension:
- As above;
- Visa and arrival stamp pages
of passport;
- Recommenda�on from BIDA/
BEZA/Hi-tech Park/concerned
Ministry/ PPPAB and other
applicable authori�es about
the con�nuity of investment in
Bangladesh;
- Business registra�on
par�culars (cer�ficate of
incorpora�on and tax payment
cer�ficate) of the company
receiving investment;
- Work permit of
BIDA/BEZA/BEPZA/Hi-tech
Park/PPPAB and other
applicable authority if investor
works in his own company.
FPI Purpose: - Coterminous with principal - Filled up applica�on form;

(Dependent Staying with family visa holder. - Copy of passport;
family Eligibility: Spouse and - Extension of visa is - Copy of passport of principal
members of dependent coterminous with principal visa visa holder;
persons of children/legal guardian holder. - Request le�er from the
category PI) of children/legal family - Employment in Bangladesh concerned organisa�on;
member of persons of prohibited, excep�on of which - Registered marriage
Category PI may lead to cancella�on of visa cer�ficate for spouse and birth
and adop�on of legal cer�ficate for dependent
measures. children.
- Passport should have validity Extension
of minimum 180 (one hundred - As above;
eighty) days - Visa and arrival stamped
pages of passport;
- Police report
121 | BIDA

Type documents
B Purpose: - Up to one year with mul�ple First visa:

- Analysing investment entry facility, 30 (thirty) days - Filled up applica�on form
(Business) poten�al per entry - Copy of applicant’s passport
- Par�cipa�ng in
business related board - Visa may be extended up to - Invita�on le�er from business
mee�ng, general two years, 30 days stay per organisa�on registered in
mee�ng, technical entry Bangladesh
mee�ng etc. - Employment in Bangladesh - Cer�ficate of incorpora�on,
- Recrui�ng manpower
from Bangladesh prohibited, excep�on of which trade license of the
- Par�cipa�ng in trade may lead to cancella�on of visa invi�ng/concerned organisa�on
fair, exhibi�ons and for and adop�on of legal measures - Tax payment cer�ficate of the
discussion on these - Passport should have validity invi�ng organisa�on
ac�vi�es
of minimum 180 days - Recommenda�on le�er from
- Quality verifica�on of
Bangladeshi products concerned chamber of
- Nego�a�on with commerce of applicant’s
suppliers for placing country
orders
Extension:
- Ac�ng as tour
conductor - As above
- Enhancing academic - Recommenda�on le�er from
network concerned Chamber of
- Foreign partners of the Commerce or associa�on in
business or func�oning
as directors in the Bangladesh
company. - Police report
Eligibility: - Passport pages containing visa
Business visitors visi�ng and arrival stamp
for the abovemen�oned
purposes
E2 Purpose: - Up to (6) six months with First visa

mul�ple entry facility - Filled up applica�on form
(Employment) Employment in - Copy of applicant’s passport
Bangladesh - Visa maybe extended as - Recommenda�on le�er from
Eligibility: follows: the concerned organisa�on
- Work permit from
1. Expatriates working in a) Dura�on of work permit BIDA/BEZA/Hi-Tech Park/PPPAB
Na�onal/Interna�onal/ with addi�onal 15 (fi�een) and other applicable
Govt/Semi-government/ days authori�es.
Extension
autonomous/private b) 30 (thirty) days if work - Filled up applica�on form
industrial/commercial permit/police clearance is -Copy of applicants passport
organisa�ons/branch under process with visa and arrival stamped
offices/liaison offices pages
c) Further extension as per - Recommenda�on le�er from
2. Expatriates working renewed work permit [with concerned organisa�on
under contractor addi�onal 15 (fi�een) days] - Work permit from
including EPC BIDA/BEZA/Hi-Tech Park/PPPAB
- Passport should have validity and other applicable
contractor/sub-contract of minimum 180 (one hundred authori�es.
or in projects of the eighty) days - Police report except for
government/semi-gover expatriates working in projects of
nment/autonomous government/semi-government/
bodies of Bangladesh autonomous bodies of
Bangladesh
- TIN cer�ficate (1st extension)
- Income tax clearance
cer�ficate (2nd extension and
onwards)
122 | BIDA

Type documents
FE2 Purpose: Staying with - Coterminous with principal - Filled up applica�on form;
family visa holder. - Copy of passport;
(Dependent - Copy of passport of principal
Eligibility: Spouse and - Extension of visa is
family coterminous with principal visa visa holder;
members of dependent - Recommenda�on le�er from
holder.
persons of children/legal guardian the concerned organisa�on;
of children/legal family - Employment in Bangladesh
category E2) - Registered marriage
prohibited, excep�on of which cer�ficate for spouse and birth
members of persons in
may lead to cancella�on of visa cer�ficate for dependent
category E2 and adop�on of legal children.
measures. Extension
- Passport should have validity - As above;
of minimum 180 (one hundred - Visa and arrival stamped
eighty) days pages of passport;
- Police report.
E3 Purpose: Employment - Up to 6 (six) months with First visa

in Bangladesh mul�ple entry with staying - Filled up applica�on
(Employment)
Eligibility: Arriving for condi�on of 90 (ninety) days - Bio page of the passport
the purpose of per stay - Recommenda�on le�er from
machinery and so�ware - Visa may be extended as concerned
supply follows: Ministry/BIDA/BEZA/BEPZA/Hi-
installa�on/maintenance tech park/PPPAB and other
a) Dura�on of work permit applicable authori�es
supervision/project with addi�onal 15 (fi�een)
inspec�on Extension
days
- Filled up applica�on form
b) 30 (thirty) days if work - Copy of passport
permit/police clearance is
- Visa and arrival stamped
under process pages of passport
c) Further extension as per - Work permit
renewed work permit [with - Police report
addi�onal 15 (fi�een) days] - TIN cer�ficate (1st extension)
- Passport should have validity - Income tax clearance
of minimum 180 (one hundred cer�ficate (2nd extension and
eighty) days onwards)
FE3 Purpose: Staying with - Coterminous with principal - Filled up applica�on form;
family visa holder. - Copy of passport;
(Dependent
Eligibility: Spouse and - Copy of passport of principal
family - Extension of visa is
dependent visa holder;
members of coterminous with principal visa
children/legal guardian - Recommenda�on le�er from
persons of holder.
of children/legal family the concerned organisa�on;
category E3) - Employment in Bangladesh
members of persons in - Registered marriage
category E3 prohibited, excep�on of which cer�ficate for spouse and birth
may lead to cancella�on of visa cer�ficate for dependent
and adop�on of legal children.
measures. Extension
- Passport should have validity - As above;
of minimum 180 (one hundred - Visa and arrival stamped
eighty) days pages of passport;
- Police report.
Source: Security Services Division, Ministry of Home Affairs, (Excerpt from Circular No. 58.00.0000.041.06.005.18-1655);
Note: FE2, FE3 and FPI visas are provided by relevant visa approving authori�es.
123 | BIDA
Mandatory visa condi�ons

- Bangladesh mission is generally the visa issuing authority for the first visa including ‘No
Visa Required (NVR)’. The Security Services Division, Ministry of Home Affairs is in
charge of approving an applica�on for the conversion of VoA to another visa category.
- Applica�on for an extension of visa has to be made 1 (one) month before the expiry of
the visa. If applica�on is lodged a�er the expiry date, penalty shall be applicable on the
ground of overstay. Extension of visa in the same category and allowing exit permit will
be executed by the Security Services Division, Department of Immigra�on and Passports
(DIP).
- Visa will be granted on the basis of relevant visa no�fica�ons. In case of bilateral
agreements and arrangements with other countries, visa will be issued in line with the
agreements/arrangements. Principal of reciprocity is to be followed.
- PI, E2, E3 visas are among those categories that may be issued with maximum dura�on
for the respec�ve category.
- Valid visa on an old passport can be transferred to a new passport upon applica�on
with payment of fees equivalent to US $50.00.
- In case a report is required for issuance or extension of visa, the concerned agency shall
provide the report within 15 working days of receiving the request from the visa
authority. If no report is received during the specified period, visa issuing authority will
take decision taking into considera�on that the agency has no objec�on on the gran�ng
or extension of the visa.
Source: Security Services Division, Ministry of Home Affairs, (Excerpt from Circular
No. 58.00.0000.041.06.005.18-1655);
Visa on Arrival
Visa on arrival (VoA) facility will be provided to foreign na�onals with the objec�ve of
promo�ng tourism, facilita�ng foreign investment, trade and business.
VoA may be issued up to 30 days with single entry upon arrival by the immigra�on authority
at the designated entry points of Bangladesh.
a) VoA may be issued to the ci�zens of those countries where there is no diploma�c
representa�on of Bangladesh and the purposes of the arrival being government du�es,
business, investment and tourism.
b) VoA may be issued to businesspersons of any country on the basis of
invita�on/recommenda�on from BIDA, BEPZA, BEZA, Hi-tech Park, PPPAB and other
applicable authori�es and any other reputed organisa�on of Bangladesh. Invi�ng
organisa�on has to inform immigra�on authori�es at the designated entry before arrival.
c) For the purpose of government du�es, tourism, business, investment, VoA may be issued
by the immigra�on authori�es at the designated entry points to visitors from Nepal,
Singapore, Malaysia, Indonesia, China, Japan, South Korea, Brunei, Saudi Arabia, UAE,
Qatar, Kuwait, Oman, Bahrain, Egypt, USA, Canada, Brazil, Australia, New Zealand, Russia,
Turkey, UK and EU countries upon sa�sfactory verifica�on of all necessary documents.
124 | BIDA
VoA procedures
a) Visa fee should be paid in prescribed foreign currency.
b) An arriving na�onal must have at least US $500/equivalent foreign currency in
cash/credit card except when arriving for government duty.
c) VoA fee will not be charged for ci�zens of those countries where visa fee is not
applicable.
d) VoA fee is applicable to the ci�zens of the countries except those for which VoA is
allowed on the basis of reciprocity or agreement/arrangement.
Changing visa category

a) VoA can be converted to E2, E3, PI categories upon submission of all relevant documents
as per visa circular. Addi�onal visa fee equivalent to US$100 per person will be applicable
per visa.
b) Applica�on for the change of category should be submi�ed to the Security Services
Division, Ministry of Home Affairs, within 15 (fi�een) days of arrival.
c) In case of conversion, the newly converted visa in Bangladesh shall be considered as the
first visa of that par�cular category.
d) VoA facility shall be extended to foreign na�onal arriving in Bangladesh for not more
than twice in a calendar year.
Source: Security Services Division, Ministry of Home Affairs

(Excerpt from Circular No. 58.00.0000.041.06.005.18-1656)
125| BIDA
Chapter 6
Sector
Overviews
The sectors that poses the greatest poten�al to drive the
diversifica�on of Bangladesh’s economy are described in the
Na�onal Industrial Policy-2016. The policy has categorised 7 sectors as
high-priority and 24 sectors as priority. Besides, the policy also lists key service
industries and industrial undertakings. Trade Policy in Bangladesh is operated under
the jurisdic�on of Export Policy 2018-2021 and Import Policy 2018-21. Under the Export
Policy 2018-21, 13 sectors have been iden�fied as Highest priority sector, while 19 have
been categorised as Special development sector.
* Photo Courtesy: Western Marine Shipyard, Cha�ogram

127 | BIDA
Chapter 6: Sector Overviews
This chapter discusses all the high-priority sectors and a selec�on of priority sectors. Incen�ve
men�oned here are subject to revision upon annually enacted finance act and individual
statutory regulatory orders (SROs). Companies located in EZs/EPZs are en�tled for different
sets of incen�ve package of tax exemp�on.
Overview Na�onal Industrial Policy 2016 Export Policy 2018-21

Sector Status Sector Status
Highest priority
Readymade Garments High-priority (high value added RMG, denim & accessories)
Highest priority
Informa�on Technology High priority (so�ware, ITeS & ICT products)
Pharmaceu�cals High-priority Highest priority
Ac�ve Pharmaceu�cal Ingredients High-priority Highest priority
Healthcare Services Priority
Medical Equipment Priority
Agro Processing Priority Highest priority
Jute & Jute Products High-priority Highest priority
Leather & Footwear High-priority Highest priority
Light Engineering High-priority Special Development

(auto parts, bicycle, motorcycle, ba�ery)
Electronics & Electrical Equipment Priority Special Development
Plas�c Priority Highest priority
Automobile Priority
Motorcycle & Parts Priority
Shipbuilding Priority Highest priority

(ship & ocean going, fishing trawlers)
Construc�on Material Priority
Ceramics Priority Special Development
128 | BIDA
Readymade Garments (RMG)
2nd largest
apparel
exporter in
the world in
2018.
Over the last decade, Bangladesh economy has grown at an average rate of around
7%, achieving 7.9% and 8.2% in FY2018 & FY2019 respec�vely,1 which is the highest in
Asia Pacific and one of the highest growth rates in the world. One of the major driving forces
behind this outstanding growth and economic success of the country has been the readymade
garments industry. Accoun�ng for 84%2 of overall exports and 16% of GDP in 2018,3 the sector
consistently contributes to earning foreign exchange and provides employment to more than
4 million workers.
1
ADB
2
EPB data
3
BBS
129 | BIDA
Leading Clothing Exporters, 2018 Bangladesh Garment Export in Value & Global Share
35% 31.30%
30% $40 6.5% 6.4% 8%
5.9% 6.4%
25% $30 4.8% 4.7% 5.1% 5.1% 6%
Billions
20% $20 4%
15% $10 2%
10% 6.4% 6.2% $0 0%
5% 3.3%
2011 2012 2013 2014 2015 2016 2017 2018
0%
Garments Export Share of Global Export
China Bangladesh Vietnam India
World Trade Statistical Review, 2019 Source: BGMEA, WTO
Growing at an annual rate of 9.8%, RMG export from Bangladesh

more than tripled between 2008 and 2018.4 As of December 2018,
total export stood at USD 32.45 billion5, capturing a market share
of 6.4%6 out of the global apparel export market of $505 billion. At
present, the industry consists of over 4,621 factories. RMG export
includes knitwear & woven garments products such as shirts,
trousers, T Shirt, denim, jackets, sweaters.
Growth Poten�al
With the increase in global popula�on along with an increase in fashion awareness, global
apparel industry is projected to grow at a compound annual rate of 4% with major growth
projected in emerging economies such as
China and India7. Although Bangladesh’s major Export des�na�on of RMG products
export markets are concentrated in the EU 3% 3% 3%
4%
4%
followed by USA & Japan, it has a great 29%
6%
opportunity to increase exports to other 6%
emerging markets. India & China, in par�cular 10%
17%
are close to Bangladesh geographically and are 15%
Poland Netherlands Canada Japan
also among the 52 countries that Bangladesh Italy France Spain UK
has quota free and duty free access to, Germany USA Other
providing opportunity to further increase its Source: BGMEA

overall exports.
4
World Trade Organiza�on
5
World Trade Sta�s�cal Review, 2019
6
World Trade Organiza�on
7
h�ps://www.fashiona�ngworld.com/new1-2/global-a pparel-consump�on-to-grow-at-cagr-of-4-per-cent
130 | BIDA
China’s gradual shi� from apparel produc�on to high tech and heavy manufacturing
industry: As China, the world’s largest exporter of garment products is shi�ing from labor
intensive industry to manufacturing hi tech products, it provides Bangladesh with an
opportunity to increase its market share further. Given its capacity and exper�se in
manufacturing readymade garments, it is expected that Bangladesh will con�nue to gain
further share of the global export market as manufacturers diversify from China and relocate
to more cost efficient loca�ons.
Global demand for eco-friendly, sustainable produc�on method: Bangladesh has upgraded
its produc�on facili�es to become one of the
most eco-friendly and compliant driven Bangladesh leads the world
garment industries in the world. With 91 LEED in number of green RMG
cer�fied green garment factories, Bangladesh is factories
home to the highest number of green garment
factories in the world.8 At present, six out
of the top 10 eco-friendly pla�num LEED
(Leadership in Energy and Environmental
Design) cer�fied factories worldwide are
located in Bangladesh9. In addi�on to
having the highest number of
LEED-cer�fied factories, Bangladesh is
also home to the highest-rated LEED
Pla�num denim factory, kni�ng factory,
washing plant, and tex�le mill in the
world.
Investment Poten�al
Diversified garment product: At present, around 73% RMG exports from Bangladesh
comprises basic products such as shirts, trousers, T shirt, jacket & sweaters.10 Although there
are some companies producing higher value addi�on products such as ac�ve wear, blazers,
lingerie, denim, beachwear, they make a smaller propor�on of the total exports. In order to
diversify its products, Bangladesh welcomes investment in manufacturing more diversified
apparel items.
Ar�ficial/Man Made fibre: The readymade apparel industry constantly caters to changing
trends in fashion. Over the years, there has been a no�ceable increase in use of ar�ficial fibres
such as polyester, viscose, tencel in apparels owing to its lower price, func�onality and
durability. It is es�mated that synthe�c materials make up 65% of all fibers u�lized in the
fashion industry.11
8
BGMEA, h�ps://www.thedailystar.net/business/news/bangladesh-leads-world-green-rmg-produc�on-1802119
9
United States Green Building Council (USGBC), h�ps://www.thedailystar.net/business/news/bangladesh-has-highest
-number-green-garment-factories-1749016
10
BGMEA, FY 2018-19
11
Preferred Fiber Material Market Report 2017, Tex�le Exchange
131 | BIDA
Around 98% of future growth in fibre demand is also expected to come from ar�ficial/synthe�c
fibres12. To keep up with the consumer demand, Bangladesh readymade garments
manufacturers
have also started 180,000 Import of Manmade fiber
to increase
160,000
manufacturing
garments made 140,000
of manmade 120,000
fabrics. Although
Tonnes
100,000
currently 74%13
80,000
of RMG products
manufactured in 60,000
Bangladesh are 40,000
made of co�on, 20,000

the increasing
demand for
2015 2016 2017 2018 2019
manmade fibre is
illustrated in the Source: Bangladesh Textile Mills Association
increase in
imports of ar�ficial fibres, which has been increasing at a CAGR of 8% since 2015.
At present there are 52 polyester factories, 45

viscose staple fibre mills and 10 tencel mills in the
country14, which, however is not sufficient to meet
the increasing demand. This increasing demand for
ar�ficial fibres presents a great investment
opportunity for tex�le producers to set up factories
in the country and cater to demand for fabrics made
from ar�ficial manmade fibres.
Compe��ve Advantage of Bangladesh

Established sourcing des�na�on: Most reputed foreign brands have directly sourced from
Bangladesh over the years.
12
Yang Q M (2014) Global Fibers Overview, h�ps://www.orbichem.com/userfiles/APIC%202014/APIC2014_Yang_Qin.pdf
13
h�ps://www.tex�letoday.com.bd/man-made-fiber-a-great-room-to-invest-for-bangladesh-tex�le-and-apparel-millers/
14
h�ps://www.tex�letoday.com.bd/man-made-fiber-a-great-room-to-invest-for-bangladesh-tex�le-and-apparel-miller
132 | BIDA
Presence of support industries: The Bangladesh RMG

industry is ver�cally integrated with the presence of
tex�le and spinning industry as well as packaging
industries. Around 1,430 tex�le mills are present in
Bangladesh which includes 796 woven fabric
manufacturers with a capacity to produce 3,850
million meters of fabric per annum. In addi�on,
Bangladesh has 240 dying, prin�ng and finishing mills,
which manufacturers 3,170 million meters of fabric per
annum15.
Availability of large, young, trainable workforce: Bangladesh has one of the lowest wages in
the apparel industry resul�ng in low cost of produc�on.16 In addi�on to the ready availability
of semi-skilled workers, there are several educa�onal ins�tutes who provide programs
customized for the tex�le and readymade garment industry. At present, there are 37 public
and private universi�es and colleges along with 6 government tex�le ins�tutes producing
tex�le graduates and diploma engineers every year for the industry,17 in addi�on to several
polytechnic ins�tutes and private ins�tutes in the country.
Monthly minimum wages in global garment industry in 2018

$400
340
326
$350
309
280
267
$300
244
$250
207
182
180
$200
133
128
$150
95
95
$100
$50
$0
y
ina
ca
ia
am
tan
d
ia
os
r
me
ke
ny
ysi
an
es
es
od
fri
La
Ch
tn
kis
r
lad
Ke
ala
ail
on
n
Tu
mb
hA
Vie
ya
Pa
Th
ng
Ind
Ca
M
ut
Ba
So
Geographical Advantage: Geographically, Bangladesh is located in a strategic posi�on

between South and Southeast Asia making it an entryway to both these markets. Bangladesh
is also located in an area with easy access to seaports and land ports. The Government is
inves�ng in several infrastructural projects to improve the Dhaka-Cha�agram route, which is
the main route for transport of RMG products. In addi�on, it is building a deep sea port,
inves�ng in improving exis�ng sea and land ports. These ini�a�ves will improve
communica�on by sea and road, facilitate trade further and improve lead �me for transport of
garments products.
15
Tex�lebd.com
16
NYU Center for Business & Human Rights
17
Tex�lebd.com
133 | BIDA
Suppor�ve Government Policy & Incen�ves :
• Reduced corporate tax rate of 12% for knitwear and woven garments
{
manufacturer and exporter (�me extended �ll June 2022)
• Reduced corporate tax rate of 10% for knitwear and woven garments
Fiscal Incen�ves
manufacturer and exporter with interna�onally recognized factory with

green building cer�fica�on (�me extended �ll June 2022.
• Reduced corporate tax rate for newly established industrial undertakings
of ar�ficial fibre set up between the period of July, 2019 and June, 2024,
etc.
• Bonded warehouse facility
• Duty drawback facility
• 1 % cash incen�ve to all RMG exporters on shipment as per the value of
{
FOB.Beyond the 1% cash incen�ve, the following categories are provided
addi�onal cash incen�ves.
Export subsidy
• Addi�onal 4% cash incen�ve to exports to new des�na�ons beyond the

EU, US & Canada
• Addi�onal 4% cash incen�ve for export items produced from local fabrics
• Addi�onal 4% cash incen�ve for SME exporters whose export volume is
less than $5 million.
• Addi�onal 2 % cash incen�ve to exporters to the EU market
Suppor�ve Trade Policy:

Bangladesh enjoys duty free access in 52 countries which includes the EU, Australia, New
Zealand, Norway, Switzerland, Japan, Iceland, Russia, South Korea, Canada, Chile, India, Turkey,
China.
Relevant Associa�on
● Bangladesh Garment Manufacturers and Exporters Associa�on (BGMEA)
● Bangladesh Knitwear Manufacturers & Exporters Associa�on (BKMEA)
134 | BIDA
Information
Technology
One of the fastest growing sectors in the country, the IT industry in Bangladesh
is well represented by so�ware development and IT-enabled service (ITES)
including business process outsourcing (BPO) service and ecommerce. Supported by
the availability of cost-compe��ve, English-proficient young tech savvy workforce
combined with an increasingly reliable communica�on and power infrastructure, bolstered by
strong government support and favorable policies and incen�ves, this sector has been
recognized as one of the most promising industry in the country.
The industry generated an es�mated annual revenue of USD 1.0 billion in 2017, projected to
grow to USD 4.7 billion by 2025.18 Over 4,500 IT /ITES firms are thriving in Bangladesh,
employing over 750,000 ICT professionals.19 43% of the firms cater to both the local and
domes�c market, while 48% serve only the local market and the remaining 8% are dedicated
towards the foreign market only.
18
Everest Group, 2017
19
BASIS Bangladesh
135 | BIDA
Business specializa�on of BASIS Mmebers Types of Freelancers in Bangladesh
System VAR/So�ware Professional Writing &

Integra�on R&D Services Product
Distribu�on
services translation
Consul�ng Clerical &
Product Reseller
Mobile company data entry
Applica�on
Software
Development
Sales &
Marketing
Ecommerce Suport
Customized
So�ware
Development
BPO
Creative &
ITeS Multimedia
Source: BASIS Catalogue, 2014 Source: Oxford Online Institute
The industry’s revenue is generated largely by so�ware & applica�on development products
and services such as AMD, IT help desk, web development with BPO having less focus. Howev-
er, there has been a no�ceable increase in products offerings such as big data analy�cs,
Internet of Things (IoT), 3D imaging, virtual reality/augmented reality (VR/AR), Robo�cs
process automa�on (RPA). Export earnings increased to reach USD 80220 million in 2018,
registering a CAGR of 20% since 2013. The earnings are further enhanced by a large pool of
online workers. In 2017,
Es�mated export revenue
Bangladesh had a total of $ 900
$802
650,000 registered freelanc- $ 800
$700
ers,21 the second largest pool $ 700 $623
$ 600
of online workers in the world,
Millions
$492
$ 500
$406
commanding a market share $ 400 $319
of 16% a�er India with 24% of $ 300
the market. Among them, $ 200
500,000 are ac�vely working $ 100

$-
with an aggregate earnings of 2013 2014 2015 2016 2017 2018
USD 100 million per annum. 22
Source: ICT Ministry
Number of Foreign client Majority of current clients for Bangladeshi IT firms

30,000
belong to the public sector, followed by local educa�on
25,000
25,263
and financial ins�tu�ons. However, so�ware develop-
20,000
ment and ITES/ BPO firms in Bangladesh have experi-
enced a rapid increase of foreign clients since 2015,
15,000
reaching to more than 25,000 clients in 2016.23 This
10,000
3,534
incremental trend of contract with foreign par�es can be
5,000 3,220
a possible founda�on for subsequent foreign investment
0
2014 2015 2016 for offshore development and cap�ve BPO center.
Source: BASIS
20
IT-ITES Sta�s�cs of Bangladesh, ICT Ministry
21
Oxford Online Ins�tute
22
ICT Ministry
23
BASIS
136 | BIDA
Poten�als and advantages

Low cost
of
opera�on
Strong Abundant
government young &
commi�ment trainable
labor
BANGLADESH
A�rac�ve
policies
Abundance of young and trainable workers: So�ware development and ITeS are regarded as
labor-intensive segment of industry and benefits from educated and IT-literate younger
workforce. Bangladesh, where 67.61 % of the popula�on is between 15-65 years and 27.21%
is below 14 years24 is bestowed in this regard, since a large number of talented but compe��ve
youth constantly join the workforce.
With 155 public and private Bangladesh popula�on age distribu�on
universi�es,25 more than 500,000 120
graduates enter the job market every 100
year. Addi�onally, there are 51 public 80
60
polytechnic technique and 269 private
40
polytechnic ins�tutes in the country. 20
Besides, human resource 0
development is one of the key pillars 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
0-14 15-65 65+

of the government’s vision of a Digital
Source: World Bank
Bangladesh. The government has
introduced various fully subsidized training programs with strong focus on training
professionals on emerging technologies – IoT, Block chain, ar�ficial intelligence, Big data and
analy�cs etc. During 2018, over 65,00026 IT/ITES professionals were provided training. In
addi�on, specialized labs were established in 130 universi�es.
24
World Bank data
25
University Grants Commission
26
h�ps://www.weforum.org/agenda/2019/10/bangladesh-ict-development-economic-growth
137 | BIDA
Low cost of opera�on: Bangladesh is one of the lowest-cost loca�ons for IT service opera�on
among the peer countries. A research by the Everest Group shows that total opera�ng costs
(including salary and benefit for workers) in Dhaka is 16-20% lower than Bangalore and 30%
lower than Cebu.27 The difference primarily a�ributes to the lower cost of compensa�on and
living. This would be lowered further if located in regions, other than Dhaka such as Jessore,
Rajsahi, Kaliakor.
Annual Opera�ng Cost per FTE for IT services, 2017
Jessore $10,000-$12,000
Dhaka $13,000-$15,000
Colombo $14,000-$16,000
Nagpur $14,000-$16,000
Vizag $15,000-$17,000
Bangalore $16,000-$18,000
Ho chi Minh $18,000-$20,000
Cebu $20,0000-$22,000
Source: ICT Ministry
Development of infrastructure and environment supported by strong government

commitment: Infrastructures, power and tele-communica�on necessary for growing
Bangladeshi IT industry have been rapidly improving over the last few years so that
uninterrupted internet connec�on with low latency and high bandwidth is increasingly
available, par�cularly for the higher
value-added segments of ITES/ BPO service. 28 IT & software parks have been approved
Digital Bangladesh is an integral part of the as part of Digital Bangladesh with vision to
build IT parks across all 64 districts of the
Bangladesh government’s vision for the country.
country. Some of the notable ini�a�ves
taken include
• Increase of installed power genera�on capacity to 22,603 MW

from 15,000MW in 2015 with 94%28 of the popula�on gaining Comprehensive
access to electricity by 2019. government
commitment strongly
supports the ICT
• To ensure 100% internet connec�vity by 2021, two submarine
industry
cable connec�ons with 1,700 GBPS bandwidth capacity and seven
ITC connec�ons with 400 GBPS were added.
• Bangladesh is the 9th largest mobile market in the world with 93 million internet
subscribers and 160 million mobile subscrip�ons providing base for ITeS enabled products
and services. In addi�on, the first test run of 5G technology in Bangladesh took place in
Dhaka29 and it is expected that 5 G would be available in the country by 2021, and will be
available throughout the en�re country by 2026.
27
Be�ng on the Future-The Bangladesh IT-ITeS Industry is Poised for Growth: Everest Group Research, 2017
28
World Bank data
29
h�ps://www.thedailystar.net/business/telecom/5g-mobile-internet-service-in-bangladesh-by-2021-1814503
138 | BIDA
• To ensure an investment friendly environment, Government has been upda�ng policies to

augment the ease of doing business for prospec�ve investors/partners. Besides the ICT
Policy 2018, updated policies include Digital Security Act 2018, RTI, IPR, Broadband, PPP,
Alterna�ve Investment. Na�onal strategy on Ar�ficial Intelligence has also been dra�ed.
Sector-specific Investment Incen�ve30
Industries engaged in the produc�on of computer hardware, automa�on &

robo�cs design, manufacturing including parts & components, ar�ficial
intelligence based system design and/or manufacturing, nanotechnology based
products manufacturing are en�tled to reduced-tax benefits for 5 or 10 years
depending on loca�ons.
100% tax exemp�on for income derived from so�ware

development & Informa�on technology enabled services
(ITES)
2% duty on ICT related hardware imports
Access to 10% cash incen�ve for exports
Fully subsidized customized training program for technical and managerial skills.
Full repatria�on of capital & dividend: No restric�ons on

foreign equity holding
wWwRUvj evsjv‡`k
Investment incen�ves available at Hi-tech parks
Ten-years Corporate Import duty exemption on

Income Tax (CIT) Access to bonded VAT exemption on capital equipment (2% of
exemption (for IT/ warehousing facility local bills during on ICT-related hardware),
ITES firms) production construction materials
Stamp duty exemption Tax exemption on Three-years personal Tax exemption on

on mortgage deed dividend & share income tax exemption royalty & technical
registration transfer for expatriates assistance fees
Investment Opportunity: Bangladeshi IT industry (so�ware development, and ITES including

BPO), being held with the high growth poten�al both in export and domes�c market, is a
promising des�na�on of investment. This is evidenced by:
30
Incen�ves are stated in the Na�onal Industry Policy but subject to revision upon annually enacted Finance Act and
individual Statutory Regulatory Orders (SROs). Companies located in EZs/ EPZs are en�tled for different sets of incen�ve
package of tax holiday and exemp�on.
139 | BIDA
• Growing market and recent mul�na�onals’ investments for offshore development hub
• Cost-compe��veness of talented young workforce
• Government's strong commitment for the sector promo�on
Offshore Development Hub and Cap�ve BPO Centers: Bangladesh is another a�rac�ve place
for the mul�na�onals and foreign industries for the establishment of their offshore
development hub (for so�ware and applica�on) and cap�ve BPO centers (including call
centers). Such investments are expected to provide not only significant opportuni�es for
employment crea�on, but also cri�cal spillovers to local
IT service providers (business linkage through local
subcontract), as experienced by the Philippines and
India. Experiences from ITES/ BPO value-chain
development in the Philippines and India suggest that
local service providers could gain deeper knowledge of
higher-skilled segments of ITES/ BPO such as basic and
specialized voice services through working closely with
mul�na�onals’ cap�ve BPO centers. Thus, local
providers could move up the ladder of value-pyramid of
ITES/ BPO business.
IT Training, Voca�onal School Business: Opportuni�es for Bangladeshi youth to acquire

advanced and basic IT skills can be extended through private investments to voca�onal and
training ins�tu�ons specialized in IT engineering, and business management and graphic
design. Such investments are deemed valuable, since there could be many poten�al students
interested in working for IT business, and computer engineers intending to equip more
advanced skills.
Standards Accredita�on Business: Smaller BPO firms do not have interna�onal cer�fica�ons
for IT-related standards (on so�ware development process, internal control over contracted
service, informa�on security management). This is because the cer�fica�on is costly, as local
auditors are not readily available for most standards cer�fica�on
Ar�ficial Intelligence based system design and/or manufacturing: Bangladesh is embracing

ar�ficial intelligence (AI) for the digitaliza�on of the na�on. The government has developed a
dra� na�onal strategy for ar�ficial intelligence
and has recently announced corporate tax
exemp�on for developers/manufacturers of
ar�ficial intelligence based system design
(Income tax Ordinance, 1984, 46BB). In
Bangladesh, ar�ficial intelligence based NPL, ride
sharing is already being observed. Bangladesh
has recently exported industrial robots to South
Korea and developed IoT products for Hitachi,
Japan31 paving way for expansion of the
segment.
31
h�ps://bizdatainsight.com/2020/05/17/dataso�-from-bangladesh-develops-the-iot-solu�on-for-hitachi-of-japan/
140 | BIDA
Hi Tech Parks in Bangladesh
Bangladesh Hi-tech Park Authority

(BHTPA) was established in 2010 to
establish and operate high-tech parks
across the country, and accommodate
both local and foreign IT firms to these
parks for promoting IT-hubs. BHTPA has
the approval to establish 28 hi-tech
parks in total with vision to develop IT
parks in all 64 districts of the country.
Parks at Kaliakor, Gazipur, Jessore, and
Janata Tower Software Park, Dhaka have
already been established. These parks
have been developed with world class
world class high tech zones to
accomodate investors. They are
equipped with factory building, admin./
service building, Data Centre, fully
backed power supply, high speed fiber
optic internet connection,and several
other facilities.
Industry Associa�on and Suppor�ng Ins�tu�on

• Associa�on of So�ware and Informa�on Service (BASIS)
• BASIS Ins�tute of Technology and Management (BITM)
• Associa�on of Call Center & Outsourcing (BACCO)
• Ecommerce Associa�on of Bangladesh (e-CAB)
141 | BIDA
Pharmaceuticals
The pharmaceu�cal industry is one of the most technologically advanced as
well as growing sectors in Bangladesh. The progress of the local industry began
in the 1980s with the development of the Na�onal Drug Policy 1982. Since then, the
industry has gradually succeeded in becoming self-sufficient. At present, the industry
meets 98 percent of the domes�c demand34 and $ 3,000 Domes�c Market Size
contributed 1.83% to the GDP in 2018.35 The domes�c
$ 2,000
71%
market size as of June 2019 was USD 2.64 billion36 with GR
16.
CA
the market growing at a compounded annual growth rate $ 2,000
Millions
of 16.7 percent over the last five years. At the end of $ 1,500
2018, there were 271 Allopathic, 205 Ayurvedic, 271 $ 1,000
Unani, 32 Herbal and 79 Homeopathic drug $ 500
manufacturing companies in the country.37 $0

2014-15 2015-16 2016-17 2017-18 2018-19
Source: IMS, 2019
34
Pharmaceutical Industry of Bangladesh, EBL, 3rd Edition
35
BBS, 2018
36
Source: IMS, 2019 (USD 1= BDT 84.70)
37
DGDA, Ministry of Health & Family Welfare
142 | BIDA
A�er focusing on the domes�c market for many years, the pharmaceu�cal companies have
forayed into the global pharmaceu�cal market. Although Pharmaceu�cal Export
$160
s�ll at a nascent stage, Bangladesh is expor�ng drugs to $140
more than 140 countries including the USA, Australia, EU. $120
R 13
.33%
CAG
Since 2014, export has been growing at a compounded
USD Million
$100
$80
annual growth rate of 13.33%.38 Around 1,200 products $60
have received registra�on for export with several $40
$20
companies receiving accredita�on from TGA Australia, $-
MHRA UK, FDA USA and WHO. The industry comprises 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Source: Export Promotion Bureau

established produc�on facili�es for tablets, capsules, liquid
prepara�ons, dry suspension, injec�ons, ointment/cream, nasal spray, granules, etc.
Specialized delivery products like inhalers, pre-filled syringe injec�ons, lyophilized injec�ons,
dry-powder inhaler and sustained-release formula�ons are also produced in the country.
Branded generics dominate the market comprising 80% of the drugs produced in Bangladesh
while patented drugs make up the remaining 20%. In May 2020, Bangladesh launched the first
generic version of the drug Remdesivir, an an�viral drug, which was recently granted
Emergency Use Authoriza�on by the Directorate General of Drug Administra�on (DGDA), the
regulatory authority in Bangladesh, as well as the US Food and Drug Administra�on for the
treatment of Covid-19. Besides,
Remdesivir, Bangladesh produced several In response to the covid19, the first generic
version of Remdesivir was launched by
other generic drugs used for the poten�al Bangladeshi pharmaceutical company in
treatment of Covid1939. The swi� response May 2020.
to the needs of the coronavirus pandemic
reflected the strength and capacity of the formula�on industry of Bangladesh.
Although the formula�on industry is the most advanced and developed segment in the
country, the industry has been diversifying by developing facili�es for producing advanced
medicine like ac�ve pharmaceu�cal ingredients. Biosimilar, vaccines, hormones, and oncology
products alongside medical devices, natural products and animal health products are also
produced, albeit at a smaller scale. The capability and
capacity of the Bangladesh pharmaceu�cal industry can
be noted during the outbreak of the covid19 as the
industry not only responded through the produc�on of
several generic drugs but also launched facili�es for PPE
gowns, masks, coveralls, masks, etc. to cater to the
domes�c and worldwide wide need for personal
protec�ve equipment.40
38
Data Source: Export Promotion Bureau
39
https://tbsnews.net/coronavirus-chronicle/covid-19-bangladesh/beximco-pharma-introduces-worlds-first-generic-remdesivir
40
https://tbsnews.net/economy/beximco-exports-65-million-ppe-gowns-usa-85300
143 | BIDA
Growth Poten�al
Large domes�c market with growing income: Driven by the rising purchasing power of a
popula�on of 165.6 million,41 increasing health awareness, combined with addi�onal
investment by pharmaceu�cal companies, the Bangladesh pharmaceu�cal market is expected
to reach a size of USD 5.11 billion by 2023.42 According to an es�mate by Boston Consul�ng
Group, by 2025, 30 to 40 million people are expected to graduate from poverty to the entry
level of the middle class,43 another 30 million are expected to move up the income ladder and
reach the aspirant and emerging middle class.44 This increase in affordability of people of
every income level, combined with a current low per capita spending on healthcare indicates
future opportunity for growth of the sector. Per capita spending on healthcare in Bangladesh
was USD 3645 in 2017, which is low compared to other regional peers. In addi�on, the changing
disease profile to non-communicable disease such as cardiovascular disease, diabetes, cancer
is expected to increase further as the popula�on gradually ages, driving the domes�c demand
for pharmaceu�cal products further into the future.
Growing global generic market: The global pharmaceu�cal market is expected to grow at 5%
per annum to reach USD 1,556 billion by 202346 driven by growth in China, BRI & emerging
na�ons. The generic segment is expected to contribute to 55% of the growth in the pharma
market between 2017-2023. Increasing expenses of healthcare is expected to drive the
demand for the cheaper generic
medicines. The global generics Global pharmaceu�cal growth by segment*
segment is expected to grow at a
rate of 8% per annum and reach OTC $161
$135
from USD 359 billion in 2017 to
47
$578
USD 578 billion by 2023. Although Generics $359
generic drugs are increasingly $307
Boi tech $214
accepted by developed countries,
the growth is expected to be Non bio tech $510
$453
driven by emerging markets,
where demand for generics is $ $453 $1,000
forecasted to grow at a rate of 9% USD Billions

per annum.48
2023 F 2017
Source: Smart Pharma Consulting
41
https://www.ceicdata.com/en/indicator/bangladesh/population, as of June 2019
42
Pharmaceuticals: the next multi-billion dollar opportunity for Bangladesh, EBL report: Pharmaceuticals, 2019
43
Surging Consumer Market, No one saw coming, BCG, 2015
44
BCG report Aspirant class are people with monthly income between $151-$250 and emerging middle are people with monthly
income between $251-$400.
45
World Bank
46
Global Pharma Market Perspec�ve (2017-20123), Smart Pharma Consul�ng
47
48
144 | BIDA
Branded generic: Given Bangladesh’s exper�se in producing branded generics, the upcoming
patent cliff provides a huge opportunity for branded generic producers in the country to
expand their market. Around $150 billion worth of drugs are coming off patent by 202049 and
a further $251 billion worth of drugs will come off patent by 2023. This will boost the demand
for generic drugs further and provide Bangladesh added opportunity to expand its export
market.
Opportunity to produce any patented drugs: World Trade Organiza�on (WTO) Council
extended patent waivers for pharmaceu�cal products for its members in the least developed
countries category to January 2033. As the only country among the 48 LDCs to have a
produc�on base in formula�ons, Bangladesh is in a unique posi�on with the opportunity to
produce as well as export patented medicines to other LDC countries or non WTO members
and increase its export markets.
Opportunity for import subs�tu�on drugs: Although Bangladesh does have a few facili�es for
producing drugs such as an�-cancer,
vaccines and insulin, they are s�ll Causes of Mortality in Bangladesh, 2016
primarily imported, giving opportunity Injuries
Cardiovascular
for import subs�tu�on by increasing disease
local produc�on. Notably, the increase Communicable
disease
in non-communicable disease50 among 67% of deaths
the popula�on means the demand for were caused
by NCDs
such drugs used for the treatment of
NCDs will increase in the future. Cancer
Other NCDs
Chronic
Diabetes respiratory
In 2016, the total number of annual
51
disease
NCD deaths in the country was over
Source: Bangladesh Health Bulletin, 2018
500,000. Among them about 22% were
premature deaths. It was found that
about 6.4% of the adult popula�on was diabe�c and 25% was hypertensive indica�ng demand
for insulin and diabe�c medica�on, oncology, cardiovascular drugs.
In addi�on to the domes�c market, globally oncology is the fastest growing segment, with a
forecasted CAGR of 12% from 2017 to 2024 with the market size expected to reach USD 233
billion by 2024.52 This is followed by demand for an�-diabetes drugs and vaccines, etc. These
therapy classes are s�ll imported into Bangladesh, providing opportunity to manufacture them
locally and serve both the domes�c as well as global market.
49
https://www.businesswire.com/news/home/20160616006037/en/Global-Generic-Drugs-Market-2016-2020---Patent
50
Non communicable disease includes cancer, diabetes, Cardiovascular disease, kidney,
51
Bangladesh Health Bulletin, 2018
52
Evaluate Pharma 2018
145 | BIDA
Top prescrip�on drugs & OTC therapy categories by worldwide sales
Rronchodilators
An�-virals
Vaccines
An�-rheuma�cs
An�-diaberes
Oncology
0 50 100 150 200 250
USD Billion
2024E 2017
Source: Evaluate Pharma 2018
Compe��ve Advantage
• Large and well developed manufacturing base for formula�on and the only country
among LDCs to have a produc�on base in formula�ons.
• High quality low cost generic medicine: Cost of manufacturing formula�ons is 10-15% lower
than India & China with the difference expected to widen further as cost in China goes up.53
• Availability of large, young, low cost trainable workforce required for the industry e.g. chemist,
biochemist, chemical engineers, pharmacist, biologist, technicians are widely available.
• Increasing success rate of companies in ge�ng Abbreviated New Drug Applica�on (ANDA)
approvals.
Suppor�ve Government Policies & Incen�ves54:
• Industries engaged in the produc�on of pharmaceu�cals, barrier contracep�ve

and rubber latex, are en�tled to reduced-tax benefits for 5 or 10 years
{
depending on loca�on.
• Complete import duty exemp�on on some raw materials imported by raw
materials producers for medicines.
Fiscal Incetive

• Tax exemp�on on royal�es, technical knowhow and technical assistance fees
and facili�es for their repatria�on
agreements Tariff Concessions on import of capital machinery and duty
drawback facility
• Bonded warehousing facility for large imports of ingredients to be used for produc�on
Export
Subsidy { • 10% export subsidies/cash incen�ves on pharmaceu�cals products export
Bangladesh Associa�on of Pharmaceu�cals (BAPI)
53
Development study towards Quality Industrial Growth & Economic Development, JICA discussion document, 2018
54
Incen�ves are stated in the Na�onal Industry Policy but subject to revision upon annually enacted Finance Act and individual
Statutory Regulatory Orders (SROs). Companies located in EZs/ EPZs are en�tled for different sets of incen�ve package of tax
holiday and exemp�on.
146 | BIDA
Active
Pharmaceutical
Ingredients
One of the most important raw material for the pharmaceutical formulation industry, API is
any substance or combination of substances used in a finished pharmaceutical product,
intended to furnish pharmacological activity or to otherwise have direct effect in the
diagnosis, cure, mitigation, treatment or prevention of disease, or to have direct effect in
restoring, correcting or modifying physiological functions in human beings.55 While
Bangladesh has an established formulation industry, the API manufacturing industry is at a
nascent stage. At present there are 26 API producers in the country producing 41 API
molecule.56 The estimated market size of the APIs is around USD 730 million of which
Bangladesh imports around USD 584 million.57 Bangladesh has also exported API worth USD 5
million between 2015 and 2018.
55
World Health Organiza�on
56
Bangladesh Associa�on of pharmaceu�cals Industries (BAPI)
57
MRC Bangladesh Ltd, November 2017
147 | BIDA
Growth Poten�al
Large and growing formula�on market: The API market is driven by the pharmaceu�cal
formula�on industry. With the presence of a well-established and growing pharmaceu�cal
formula�on industry, there is a huge demand for API in the country. Since 2015, the
Bangladesh formula�on market grew at a rate of 16.7% driving demand for API. It is es�mated
that demand for APIs will reach around USD 1,409 million by 202558 giving API producers a
poten�al market to explore.
Major producer shi�ing produc�on base: China, one of the major producers of API is shi�ing
produc�on base due to cost concerns & sustainability.59 As labor cost rises in China, many firms
are reloca�ng to more cost efficient loca�ons. With many firms facing supply chain disrup�on
during the coronavirus pandemic, reloca�on of API firms is expected to accelerate with many
firms considering diversifica�on of their supply chain. Bangladesh, with an established and
reputed formula�on industry, cost efficient produc�on facili�es, access to WTO patent waivers
and generous government incen�ves and policies for API produc�on is an ideal des�na�on for
API producers.
Growing export market: Global ac�ve pharmaceu�cal ingredient/ API market is expected to
reach USD 319.07 billion by 2025 from USD 238 billion in 2018, growing at a CAGR of 7.70%.60
The growth of the generic API market will be driven by patent expiry of blockbuster drugs,
rising healthcare expenses and shi� towards generic medicines led by the government
ini�a�ves. In addi�on, rising aging popula�on in developing countries, increasing healthcare
expenditure, increasing prevalence of chronic diseases such as cancer, neurological diseases,
and cardiovascular diseases are expected to further boost the demand for API.61
The huge gap between demand and domes�c supply of API provides opportunity for import
subs�tu�on by local API manufacturers. In addi�on, as an LDC, Bangladesh’s pharmaceu�cal
products are waived off patent �ll 2032 giving it the opportunity to produce and export
patented drugs to other LDC countries.
Furthermore, the government has Bangladesh government developed API
developed a Na�onal Ac�ve Pharmaceu�cal policy with a goal to attract investment
Ingredients (API) and Laboratory Reagents worth $1billion in the sector and reduce
Produc�on and Export Policy in order to import dependence. It also plans to raise
r e d u c e API export income to $900,000 in 2032 from
dependency $150,000 in 2016 and create 500,000 jobs
on import of by 2032.
API, increase
local produc�on, diversify export and a�ract addi�onal $1
billion foreign direct investment in the sector.
58
59
Development study towards Quality Industrial Growth & Economic Development, JICA discussion document, 2018
60
Ac�ve Pharmaceu�cal Ingredients (API) Global Market - Forecast to 2025" report , Research & Markets,
61
h�ps://www.globenewswire.com/news-release/2019/05/07/1818109/0/en/Worldwide-Ac�ve-Pharmaceu�cal-Ingredient
-API-Market-Analysis-Outlook-Opportuni�es-2019-to-2025.html
148 | BIDA
A�rac�ve fiscal and non-fiscal incen�ves from the API Policy62:
• Ac�ve pharmaceu�cal ingredients (API) and laboratory reagents

manufacturers, including joint venture companies, will get
uncondi�onal tax holiday or 100% corporate tax exemp�on, �ll fiscal
CIT year 2021-2022
exemptions • Tax holiday will be extended �ll 2032 for companies which will
produce at least five API molecules every year.
• If a producer can manufacture at least three API molecules every year,
it will get 75% tax exemp�on �ll 2032
• Manufacturers will also get VAT waiver on import of raw materials by

adding 20% value addi�on and producing at least two molecules �ll 2027
Other • Local manufacturers of API will be exempted from paying AIT on
import of more than 400 chemical compounds required to produce
Fiscal/ Cash API �ll 2024.
Incentive • Manufacturers will also get duty-free facility in import, priority in
ge�ng land alloca�on at the government’s special economic zones
and export processing zones
• Cash incen�ve of 20% on Ac�ve Pharmaceu�cal Ingredients (API) export
• Back-to-back le�ers of credit facility

• The tenure of term loans for factories and equipment could be 12
Bank years instead of the previous six years.
Facilities • Raw material manufacturers will be allowed to retain 40 percent of
their export earnings.
• The single borrower cap will not be applicable for API and
reagents producers.
Suppor�ve Trade Policy:

Patent waiver extension to the least developed countries up to 2032 providing Bangladesh
with the opportunity to expand its markets.
Bangladesh API & Intermediaries Manufacturers Associa�on (BAIMA)
62
Incen�ves are stated in the Na�onal Industry Policy but subject to revision upon annually enacted Finance Act and individual
Statutory Regulatory Orders (SROs). Companies located in EZs/ EPZs are en�tled for different sets of incen�ve package of tax
holiday and exemp�on.
149 | BIDA
Healthcare
services
One of the most important sectors in the country, the healthcare service
delivery comprises hospitals,
clinics, diagnos�c centers, Health Care Expenditure
$7,000 2.60%
telemedicine. Growing at 5% per $6,000
2.55%
2.50%
annum since 2013, the size of the $5,000 2.45%
Millions
healthcare sector stood at USD $4,000 2.40%

2.35%
5.975 billion at the end of 2017,
63 $3,000 2.30%
$2,000 2.25%
which represented 2.27% of GDP.64 2.20%
$1,000
2.15%
The sector provides employment $- 2.10%
to around 170,000 health 2012 2013 2014 2015 2016 2017
Current health expenditure by revenues of health care financing schemes
professionals.65 Healthcare expenditure as a % of GDP
Source: WHO
63
WHO
64
WHO
65
BBS, 2018
150 | BIDA
Bangladesh healthcare delivery system is categorized into two major components - public and
private. The private sector provides the majority of ter�ary care ins�tu�ons with a major
concentra�on in the urban areas. The public healthcare system comprises limited secondary
and ter�ary care ins�tu�ons in key ci�es and focuses on providing basic healthcare facili�es in
the form of primary healthcare centers in rural areas. At the end of 2018, there were 607
government hospitals, 5054
Types of Healthcare delivery Channel
private hospitals and clinics
and 9,529 diagnos�c centers 20000
under Directorate General of 18000
16000 Diagnos�c Center
Health Service (DGHS) 14000
registra�on. The number of 12000 9,529 Private Registered hospital & clonic
hospital beds available in 10000
government hospitals is 8000 Government secondary & ter�ary
level facili�es
52,807 whereas the number 6000 5,122 5,054
4000 Government Primary care
of hospital beds in the 2000 607
2,501
private-sector is 90,587 0 137
2,004
bringing the total number of 2011 2018 Source: DGDA

available beds to 143,394.66
Growth Poten�al
Demand
, for healthcare delivery channels outpaces supply: Rising income, combined with
increase in non-communicable disease as well as greater awareness regarding health among
the general popula�on is expected to contribute to increasing the demand for health care
delivery channels. The per capita spending on healthcare was only USD 36.28 in 2017, which is
lower than the $61 per capita recommended by WHO to a�ain a fully func�oning health
system that ensures a basic package of services, including interven�ons targe�ng non
communicable diseases (NCDs) (WHO 2010).
The current low per capita Per capita healthcare spending at Current Prices, 2017
spending indicates huge
$140
poten�al to increase $130
$120
healthcare spending as
$100
income increases. Moreover,
$80
government ini�a�ves to
$60 $69
expand access to medical
$40 $45 $48
services is expected to drive $36
the sector growth at a higher $20
rate. The government of $
Bangladesh India Vietnam Pakistan Nepal
Bangladesh aims to achieve
universal health coverage by Source: World Bank
2032 that will pay 70% of the
medical expenses instead of the 26% paid currently. In addi�on, the steady increase in
popula�on at a rate 1.3% per year,68 is expected to sustain the demand for healthcare in the
long term.
66
DGDA
67
World Bank Data
68
BBS Data
151 | BIDA
The healthcare sector is full of opportuni�es in every segment which includes providers,
payers and medical technology.
Healthcare delivery channel: In spite of the increase in healthcare facili�es over the years, the
bed density per 1,000 popula�ons is low indica�ng a gap in demand and supply. Around
700,000 Bangladeshi travel abroad every year to India, Malaysia, Thailand & Singapore for
medical treatment spending around USD 3.5 billion.69 Bangladesh is the major donor to Indian
medical tourism sector every year. According to the Export of Health Services survey
conducted by the Directorate-General of Commercial Intelligence and Sta�s�cs of India,
Bangladesh was the largest
foreign user of India's health
Hospital bed per 1,000 popula�on
services exports in 2015-16
with 165,000 pa�ents
Global 2.7
contribu�ng about $343
million in 2015-16. The Lower middle income 1
shortage of quality medical Sri Lanka 3.6

treatment in the country drives Pakistan 0.6
people to seek treatment Indonesia 1.2
abroad. This situa�on points India 0.7
towards a demand for quality Bangladesh 0.8
healthcare providers crea�ng
an opportunity for reputed 0 0.5 1 1.5 2 2.5 3 3.5 4
healthcare groups to set up

healthcare facili�es in the Source: World Bank
country.
Digital Healthcare Services: Rapidly growing segment, currently there are over 50 startups in
the healthcare space providing various services such as providing online doctors directory and
appointment system, healthcare-related content for general awareness crea�on, pharmacy
delivery system, health-related data and medical history system, electronic health monitoring
devices, telemedicine, etc. Telemedicine services began in 2010 with 8 centers and have
reached 94 centers in 2018. The number of pa�ent consulta�ons grew from 8 in 2010 to
18,030 in 2017. With 63% 70 of the popula�on residing in rural areas, telemedicine services
have the poten�al to alleviate to some extent the lack of access to healthcare and the shortage
of healthcare professionals in rural and remote areas. With a rapidly growing internet
penetra�on, demand for telemedicine services is expected to accelerate, especially due to the
coronavirus pandemic.
Health Insurance: Bangladesh has one of the highest out of pocket expenditure rates in the
world with 71.89% of total health expenditure met by private households71. With Bangladeshis
becoming more aware of the benefits of health and insurance, this sector offers tremendous
poten�al.
69
h�p://theapparelnews.com/ar�cle/1731/index.html
70
World Bank Data
71
WHO
152 | BIDA
Medical
Equipment
Medical equipment sector comprises consumables, diagnos�c imaging,
pa�ent’s aids, medical & surgical sterilizers, hospital furniture, orthopedic &
prosthe�cs, UV apparatus, other instruments & appliances. The sector is import
dependent with immense poten�al for manufacturing. At present, Bangladesh
manufactures disposable syringes, precision safety syringes, needles, bags, PPE, etc.
These products are also being exported to various countries such as Brazil, India, EU, USA,
Turkey, etc.
153 | BIDA
Growth Poten�al
Growing number of healthcare delivery channels: Driven by growth in healthcare delivery
channels, the medical equipment sector is experiencing rapid growth in the country. Between
2016-19, the Bangladesh
medical equipment sector
experienced a per annum Import & Export of Medical Devices
growth of 14.6%, the fastest $450
growth in the world and it is $400
expected to sustain the $350
growth �ll 2022.72 Increasing $300
Millions
accessibility to healthcare, $250

$200
growing lifestyle diseases
$150
requiring surgery and long $100
term treatments such as $50
cardiovascular disease, $0
cancer along with greater 2017-18 2018-19
awareness regarding health Export Import

is expected to drive the
demand for healthcare Source: Bangladesh Bank, Export Promotion Bureau
services driving the demand

for medical equipment.
Growing global market for medical equipment: The global medical equipment market stood
at USD 425.5 billion in 2018 and is expected to grow at 5.5% per annum to reach USD 612.7
billion by 2025 providing a large market to explore more business poten�als.73 With the
outbreak of the coronavirus pandemic, there is a surge in demand for respirators, protec�ve
clothing, masks, gloves, face shields, googles causing demand supply gap for the items.
Untapped domes�c market: As only a few companies produce medical equipment in the
country, the sector is dominated by imports. During 2018-19, medical equipment worth USD
Investment
416 million were imported, a year Poten�al:
on year increase of 26% while exports contributed to about
USD 2174 million. The dominance of imports provides poten�al for manufacturers in this
segment. With the number of hospitals and diagnos�cs centers growing every year, the
demand for medical equipment is increasing rapidly. According to Fitch Solu�ons, the
Bangladeshi medical device market will achieve one of the fastest growth rates in the world
over the 2019-2024 period driven by strong GDP growth.
74
BMI
75
Fortune business insights
76
Bangladesh Bank data
154 | BIDA
PPE Produc�on: The outbreak of COVID-19 has increased the demand for PPE products
including protec�ve masks, respirators, protec�ve clothing, hospital gowns, and gloves across
the globe. Owing to the increasing demand-supply gap, current manufacturers are working at
100% capacity to supply PPE across the regions. Bangladesh with its produc�on capacity and
exper�se in readymade garments and pharmaceu�cal manufacturing swi�ly responded to fill
the supply shortages by rapidly mobilizing and expanding its facili�es to accommodate
produc�on of PPE. Till May, 2020 Bangladesh has exported 6.5 million PPE to the USA with
great poten�al to export many more.
Due to the rising occurrence of respiratory disease along with increasing pollu�on levels, the
global demand for facial/surgical mask market has skyrocketed and is expected to grow at a
CAGR of 20.0% during 2020-2025.75 The global hand sani�zer market is also expected to
experience huge growth
of 17% per annum and
reach a size of USD 5.5
billion by 2025 from
USD 2.2 billion in
2019.76 The increased
awareness of
maintaining hand
hygiene is expected to
propel the demand for
sani�zers. The global
disposable gloves
market was valued at
USD 7.6 billion in 2019 and is expected to reach USD 11.8 billion by 2025, growing at a CAGR of
7.7% during 2020-2025. Given the circumstances and Bangladesh’s proficiency in
manufacturing readymade garments and pharmaceu�cals, there is great poten�al to
manufacture various types of PPE in the country and contribute to mee�ng the demand supply
gap prevailing not only within the country but also globally.
Government Incen�ves
• Waiver of duty import for all raw materials required for PPE and face mask produc�on
• Waiver of all import duty for all raw materials required for hand sani�zers
Bangladesh Medical Associa�on (BMA)
75
Vinz Research
76
Vinz Research
155 | BIDA
Agro & Food

Processing
Bangladesh is an agrarian country with a tropical climate perfectly suitable for the produc�on
of a variety of crops, fruits & vegetables, livestock, fisheries and forestry. A major component
of Bangladesh economy, the agriculture sector employs around 40.6% of the labor force and
contributes 14.23%77 to GDP. The agro & food processing industry now contributes about 1.7
percent78 to GDP and employs about 250,00079 people. Its share of total exports now stands at
around 3.5 percent.
77
BBS, 2018
78
h�ps://www.thefinancialexpress.com.bd/views/agro-food-processing-industry-in-bangladesh-an-overview-1572707863
79
BAPA
156 | BIDA
Bangladesh exports more than 700 items including 63 basic agro processed products most of
which are cereal grains, frozen fish, processed meat, tea, vegetables, tobacco, cut flower,
fruits, spices, dry food and other processed agricultural products including livestock, poultry &
fish feed to more than 140 countries. At present, there are 486 agro processing manufacturers
in the country among which 241 are exporters and 235 cater to the domes�c market. In FY
2018-19, the agro sector realized export earnings worth $ 1.41 billion. The main exports items
are frozen fish, shrimp and other frozen food products, tea, spices, fruits including dry fruits
and some other processed agricultural products. The major export des�na�ons include the
European Union (EU), the US, the Middle East and the Gulf.
Growth Poten�al
Growing Domes�c Demand: Bangladesh’s domes�c agro-processed product market stood at
USD 2.8 billion80 in 2019. The market has been es�mated to be growing at an average rate of
7.7% between 2005 �ll 2017.81 Growing purchasing power of the large and young domes�c
market with a median age of 27 combined with rapid urbaniza�on, increase in women in the
workforce and a resul�ng increase in nuclear families and busy lifestyle are expected to propel
the expansion of en�re market for processed food.
Urban popula�on, Bangladesh Female labor force par�cipa�on
70 36% 37% 40%

34% 34% 35%
31% 32% 33% 35% 40.0%
60 30%
30% 35.0%
50
25% 30.0%
Millions
40 25.0%
20%
30 20.0%
15%
20 15.0%
10%
10.0%
10 5% 5.0%
- 0% 0.0%
2010
2011
2012
2013
2014
2015
2016
2017
2018
10 11 12 13 14 15 16 17 18 19
Urban Popula�on Urban Popula�on% of total Popula�on
20 20 20 20 20 20 20 20 20 20
Source: World Bank Source: World Bank
Increasing export poten�al: The food and beverage industry is one of the largest industries in
the world. Global demand for agricultural products is projected to grow by 15% between
2019-2028.82 This provides a great opportunity to the Bangladesh processed food industry to
expand its exports further. It is notable that agricultural export from Bangladesh have been
growing at a CAGR of 18% for the last five years, in par�cular the export of processed snacks
has grown significantly. There is a huge demand for Bangladeshi processed food among the
immigrant community in the UK, USA, the Middle East giving an opportunity to the
manufacturers to develop new products and maintain and expand their market posi�on.
80
Bangladesh Agro Processors Associa�on
81
Katalyst, Bashar 2017
82
OECD-FAO Agricultural outlook 2019-2028
157 | BIDA
$1,600
Agro Processing Export of Bangladesh
$1,400
$1,200
Millions
$1,000
$800
$600
$400
$200
$-
2015-16 2016-17 2017-18 2018-19
Fish Meat & Diary Vegetables & Fruits Tea & Spice
Other Agro items Tobacco Processed Snacks Beverage
Compe��ve advantage of the sector in Bangladesh
Availability of plen�ful raw material: Bangladesh's

World’s
climate is favourable to the produc�on of variety of  2nd largest producer of jackfruit
crops such as rice, wheat, sugarcane; fruits and  9th largest mango producer
vegetables such as mango, jackfruit, potatoes,  8th largest producer of guava
 8th largest potato producer
tomatoes; spices as well as livestock & fisheries. As the  10th largest chili producer
raw materials are abundantly available, value addi�on  3rd largest producer of tomato in South Asia
of agro processing is very high in the country.
Low Labour Cost: Bangladesh is one of the most cost efficient loca�ons in the world with low
wages and produc�on cost.
158 | BIDA
Favourable Policy
• Industries engaged in the produc�on of bio-fer�lizer, biotechnology based
{
agro products, processing of locally produced fruits and vegetables, �ssue
gra�ing, insec�cide or pes�cide are en�tled to reduced-tax benefits for 5
or 10 years depending on loca�on
• 50% of income derived from the produc�on of corn/maize or sugar beet
is exempted from tax.
• Max 10% tax rate for income generated from poultry and hatchery.
• Max 15% tax rate for income generated from produc�on of poultry and
Fiscal Ince�ve
fish feeds, ca�le farming, seed produc�on, frog farming, bee farming,
sericulture, mushroom produc�on, floriculture
• Complete tax exemp�on on income of industrial undertaking from rice
bran oil produc�on up to 10 years (6th schedule Para 45 of Income Tax
ordinance)
• Tax exemp�on on royal�es, technical knowhow and technical assistance
fees and facili�es for their repatria�on
• 20% export subsidies/cash incen�ves on vegetable and fruit export, and
{
on processed agricultural product export
• 20% export subsidies/cash incen�ves on crop and vegetable seeds export
• 2% to 10% export subsidies/cash incen�ves on shrimp and other fish
Export subsidy
export 20% export subsidies/cash incen�ves on crab and eel export

• 10% export subsidies/cash incen�ves on potato export
• 20% export subsidies/cash incen�ves on agar and a�ar export
• 20% export subsidies/cash incen�ves on 100% halal meat export
• 10% export subsidies/cash incen�ves on residuals of cow and buffalo
(except bone) export
Other incen�ves offered by Bangladesh Government:

• Food-processing declared as thrust sector with preferen�al treatment
• No FDI cap – 100% foreign equity allowed
• Concessionary duty on imported capital machinery
• Accelerated deprecia�on allowance on cost of plant & machinery
• No import duty for 100% export-oriented companies
159 | BIDA
• Foreign technicians- Income tax exemp�on for 3 years

• Working loans are available to foreign investors from local bank
• Entrepreneurs Equipment Fund (EEF) is allowed in agro-sector
• Local and foreign investment is given equal treatment
• Suppor�ve Agricultural & Rural Credit Policy requiring private banks to disburse at least
2.5% of total loan to the agriculture and rural sector.
• 20% special rebate on electricity consump�on to agro-processing sector including poultry
Favourable Trade Policy

• Bilateral Investment Trea�es (BITs) signed with 31 countries
• Double Taxa�on Trea�es (DTTs) with 28 countries
• Duty free access to 52 countries including the European Union, Canada, Australia,Japan (GSP)
Packaged Food Industry: In Bangladesh, private consump�on accounts for 77.17% of the
GDP.83 With a young demography, rising per capita income, urbaniza�on and dual-income
family, demand for packaged food is increasing at above GDP growth rate. Besides, an
expanding middle income popula�on, es�mated to be growing at a rate of 10.5% per annum,84
and an increasing focus on health benefits is driving the demand for healthy food, while the
demand for convenience food is being propelled by the busy lifestyles. According to Euro
monitor, the market size of packaged food was valued at US$9.8 billion in 2013 a�er
registering a CAGR of 20% from 2009. Overall packaged food sales were projected to grow at a
CAGR of 17% over 2013-2018, reaching a value of US$21.2 billion in 2018.
CAGR of selected food products (2015-2019)
18%
16%
17%
14%
15% 15%
12%
10% 12% 12%
8%
6%
4%
2%
0%
Ice cream Dairy Frozen snacks & Confec�onary & Candy & chocolates
Processed Chicken Bakery
83
Bureau of Sta�s�c, 2018
84
Boston Consul�ng Group, Bangladesh Surging consumer market, 2015
160 | BIDA
Milk & Milk powder: With the growth in purchasing capacity, urbaniza�on
and increasing health awareness, consump�on of milk and dairy products Bangladesh
had expanded at a healthy CAGR of 17% between 2009 �ll 2018.85 Despite had the 12th
the increase in produc�on capacity over the years, demand has largest cattle
inventory in the
persistently outpaced the supply crea�ng a gap between the demand and
world in 2018
supply of milk.
Total Demand for milk Import of diary products

$400
$350
$300
$250
$200
Millions
$150
9.92 5.28 5.28 $100
$50
$-
9
5
-1
-1
-1
-1
-1
18
14
15
16
17
20
20
20
20
20
Produc�on Supply Gap Powder milk & cream Other diary products
Source: Department of Livestock & fisheries Source: Bangladesh Bank
Currently, the country is producing only 65.27% of total milk demand of 15.20 million metric
tons.86 The addi�onal demand for milk is met primarily through imports. During fiscal year
2018-2019, Bangladesh imported powdered milk worth USD 335 million. In addi�on, although
the demand for milk has been increasing consistently, per capita consump�on of milk in the
country is s�ll below the op�mum level recommended by WHO & the na�onal health strategy.
The op�mum quan�ty of milk to be consumed on a daily basis is 250ml of milk per day,
whereas the availability is only about 165.7 ml/h/d.87 With increasing economic prosperity,
demand for milk and dairy products such as cheese, yoghurt, ice-cream, sweets are expected
to increase further providing ample poten�al investment opportuni�es not only in milk
produc�on but also in the processing segment including the produc�on of powdered milk and
other dairy products. The Ice-cream sector was valued at USD 144 million in 2018,88 growing
steadily at a CAGR of 12%89 for the last several years. With rise in access to electricity in rural
areas, the sector is expected to penetrate the rela�vely untapped rural areas of the country
and grow at a further 15% �ll 2020.
Processed fruits & vegetables: Given Bangladesh’s produc�on capacity of

mangoes, jackfruit, tomatoes, potatoes and the demand for items such Top 10 fruit
as juices, sauces, jam, jellies, producer in
potatoes chips, noodles, fruit
the world
and vegetable processing
provides great poten�al for
investment.
85
Department of Livestock& fisheries
86
Department of Livestock & fisheries
87
Department of Livestock & fisheries
88
Lanka Bangla Investment study
89
Interview, Golden Harvest, h�ps://www.dhakatribune.com/business/2018/11/28/ice-cream-industry
-expanding-on-rural-demand
161 | BIDA
As an increasing number of
people around the world focus
on health and nutri�on benefits,
while at the same �me also
looking for convenience, foods
derived from fruits and
vegetables are highly sought
a�er in the global marketplace.
This gives agro processors the
opportunity to use the natural
resources of Bangladesh and
produce products geared
towards the needs and demand of the increasing health conscious market.
Biscuit & Confec�onery: Over 100 manufacturers and 4,500 tradi�onal factories produce
bread and cookies in Bangladesh. A projected market size of the branded biscuit industry is
es�mated to be around BDT 30.79 billion, excluding tradi�onal bakery products. The market is
expected to grow at 10 to 15% over the next ten years.90 The organized sector accounts for
200,000 tons of biscuits a year and the unorganized biscuit makers such as bakery account for
another 200,000 tons. Bangladesh
has started expor�ng biscuits and
confec�onery items with an export of
USD 38 million in FY 2018-19. Another
growth segment has been the candy
market. With an es�mated market
size of USD 238 million,91 the candy
market was projected to be growing
at a CAGR of 12-15% over the last
decade and is expected to con�nue
growing at 10.21% between
2020-2025.92
Beverage: Increasing urbaniza�on, growing number of young people, rising temperatures, and
product innova�on are driving the sales of drinks and juices across the country. Euro monitor
valued the so� drinks market at $235 million
in 2013, registering a compound annual
growth rate of 18 percent between 2009 and
2013. Another report by Mordor Intelligence
es�mated the market for so� drinks at USD
611 million in 2018. The market is es�mated
to grow at a CAGR of 12.50% between
2018-2025.93
90
EBL, Valua�on report on Olympic Industries
91
h�ps://tbsnews.net/economy/foreign-brands-dominate-bangladeshi-candy-chocolate-market
92
h�ps://www.mordorintelligence.com/industry-reports/bangladesh-candy-market
93
Mordor Intelligence, h�ps://www.mordorintelligence.com/industry-reports/bangladesh-energy-drinks-market
162 | BIDA
Frozen snacks & Processed Chicken: The frozen ready to cook snacks and processed chicken
market in Bangladesh was valued at BDT USD 31 million in 2018. It was growing at a CAGR of
15% for the last five years.94 The segment consists of ready to cook snacks & ready to cook
meat. With an increasing middle class
popula�on with busy lifestyles, Per capita meat consump�on in Bangladesh
demand for these convenience food 50 44.44 44.57 45.62
products are expected to accelerate in 40
37.46 38.77
the future. Demand of processed Kg 30

chicken has been increasing globally 20
as well as locally. Food consumers are
10
becoming more health and quality
0
conscious; with growing inclina�on 2014-15 2015-16 2016-17 2017-18 2018-19
towards protein intake. Source: Department of Livestock & fisheries
Meat consump�on in Bangladesh is steadily increasing with the poultry farming growing at
15% a year.95 Consumers now prefer the convenience offered by pre-cooked/marinated food.
In addi�on, the growing number of restaurants and hotels are also driving the growth of
processed meat in the country. At the same �me, the global market for frozen food is also
expanding rapidly with an�cipated to reach USD 380.5 billion by 2027, expanding at a CAGR of
3.4%96 providing opportunity to increase the growing exports further.
Fisheries & Seafood: With incomes and urbaniza�on set to increase in

developing countries and the global trend towards healthier diets con�nuing, Top
it is expected that the consump�on of fish as a healthy food will increase. 10 global
World fish consump�on in 2030 is projected to be 20 percent or 30 million exporter of
MT (live weight equivalent) higher frozen seawater
than it was in 2016 and 50% higher
97 shrimp
World’s
than 2010. Given Bangladesh’s 720 km
 3rd largest Inland fish producer long coast and total marine water of 166,000 km and
 5th largest aquaculture producer abundance of rivers, combined with its capacity and
 11 marine fish producer
th
exper�se in fish produc�on & cul�va�on, there is great
poten�al to increase its fish exports through further
investment. At present, Bangladesh is one of the leading
producers and exporters of fish with total produc�on of 4.28 million MT in FY 2017-18.98 Fish
is also the major export
item among agro
products, comprising
35% of total agro
product exports in FY
2018-19. With further
investment in the field,
fish exports can be
increased further.
94
Industry Interview, h�ps://futurestartup.com/2019/01/16/seizing-the-frozen-food-opportunity-tanvir-haider-chaudhury/
95
USDA Report
96
Grandview research
97
FAO
98
Fisheries Sta�s�cal Yearbook 2017-18
163| BIDA
Halal food: The global halal food industry is a large

and growing industry represen�ng 17% of the global The poultry sector is gearing up to export eggs and
poultry meat by 2024, especially to the Middle
food industry’s revenues. On account of a growing East, a big market for halal meat---
and prosperous Muslim popula�on, the industry is
expected to United States Department of Agriculture, March
2019
grow from
USD 1.6
trillion in
2018 to US$ 2.9 trillion by 2024, expanding at a
CAGR of nearly 11% during 2019-2024.99 The total
Islamic popula�on is expected to increase from 23%
in the present situa�on to around 30% of the total
world popula�on by 2030100 providing Bangladesh a
market to explore further. In addi�on, non-Muslim
consumers have also shown preference for Halal food for the assurance of food safety and
hygiene.
Cold Storage: At present, there are around 360

cold storage facili�es with capacity of 2.78
metric tons which are primarily used to store
potatoes, spices. There is a huge demand for
cold storage facili�es in the country and
investment in this sector is desired.
Trade Associa�on
• Bangladesh Agro Processing Associa�on (BAPA)
• Bangladesh Frozen Food Exporters Associa�on (BFFEA)
• Bangladesh Auto Biscuit Bread Manufacturers Associa�on (BABBMA)
• Bangladesh Fruits, Vegetables and allied products exporters associa�on (BFVAPEA)
• Bangladesh Dairy Farmers’ Associa�on (BDFA)
• Bangladesh Organic Products Manufacturers Associa�on (BOPMA)
• Bangladesh Cold Storage Associa�on
• Bangladesh Lozenge Manufacturing Associa�on
99
IMARC, Halal Food Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024
100
Grandview Research
164 | BIDA
Jute &
Jute products
Jute is natural fiber extracted from the jute plant, which has the nickname of
“golden fiber” in Bangladesh. It is a product of South Asia and specifically a product
of India and Bangladesh. About 95% of world jute is grown in these countries.101
Currently, Bangladesh is the 2nd largest producer with annual produc�on es�mated at
1.6M tons in 2018102 and the top exporter of raw jute in the world. With the recent closure
of public jute mills, there are about 200 private jute mills103 in Bangladesh.
101
h�p://www.fao.org/economic/futurefibres/fibres/jute/en/
102
‘World – Jute and Jute-Like Fibers – Market Analysis, Forecast, Size, Trends and Insights, Index box
103
h�ps://databd.co/stories/bangladeshs-golden-fiber-exports-facing-bo�lenecks
165 | BIDA
Top jute producing countries

2,500
2,000
thousand tonnes
1,500
1,500
500
0
India Bangladesh People’s Republic of China
Source: IndexBox
The global jute market revenue amounted to $2.7 billion in 2018,104 going up by 4.6% against
the previous year. In spite of the slowdown in trade and exports due to the coronavirus
pandemic, the export of jute and jute products from Bangladesh grew by over 8% YOY in FY
2019-20, indica�ng the growing prospects of the environmental friendly jute and jute
products.
$1,200 Export of jute & jute products
$1,000
$800
$600
USD Million
$400
$200
$0
2016-17 2017-18 2018-19 2019-20
Raw Jute Jute Yarn & Jute Sacks Others
Twine & Bags
104
World – Jute and Jute-Like Fibers – Market Analysis, F
166 | BIDA
Jute fibre is 100% bio-degradable and recyclable. When burnt, jute also does not release toxic
gases. The jute plant and stalks can be used to make a wide range of products including
fashion apparel, fabric, yarn, rope, industrial products, handicra�s, agricultural products, and
others. Diversified by-products from jute include its use in cosme�cs, medicine, paints, and
other products. Exporters in Bangladesh supply jute fibers to jute and tex�le mills,
construc�ons industries, automo�ve sector, paper-pulp industries and non-woven industries
worldwide.105 In Bangladesh, there is a poten�al to broaden the scope within the jute sector.
Diversified jute products has a small share when compared to the jute sector as a whole, but
there is a wide range of products within the subsector.
Jute plant Jute stalk

Handicra�s
Fashion accessories
Handicra�s
Fibers
Gi� items and u�li�es
Footwear
Braids Handicra�s
Nonwoven Par�cle board Felt
Jute composite Industrial
Pulp and paper products Filter clot
Nonwoven cloth Domes�c uses
Yam (Jute and jute blends) Bleached, dyed, and woolenized yarm
Handicra�s
Apparel/footwear
Fabrics: Hand loom, power loom, and Fashion handbags
Kni�ed
Sweater/warm cloth
(jute and jute blends, e.g.jutex)
Technical Shopping Bags
tex�les Automo�ve fabrics
Composite matrices
Industrial Fashion accessories
Geo jute
Agriculture Floor coverings and
Nursery tapestries
applica�on and
accessories Home furnishing/
decora�ve
Figure: From jute to diversified products106
Products Usage
Fine cut jute Automo�ve interior, headliner, parcel shelf.
Raw jute Automo�ve interior, packaging, hand bags, wine bo�le bags, sling bags,
rugs and carpets (carpet backing), pulp for making paper (alterna�ve to
wood pulp), felt and webbing, mats, cushion covers, upholstery, jackets,
footwear and fashion accessories.
Hessian cloth Shoe, bags, gunny sacks, rope, packaging, sacking, agriculture bags.
Jute yarn Carpet, weaving, agricultural use
Jute sacking Packaging of construc�on material, carpet backing cloth
105
h�ps://www.g�cl.com/
106
A�rac�ng Investment in Bangladesh; Sectoral Analyses: A Diagnos�c Trade Integra�on Study – The World Bank Group &
Government of Bangladesh
167 | BIDA
Growth Poten�al
Increasing demand for ecofriendly products: Over the last decade, demand for jute products
in interna�onal market has been growing due to increasing preference for eco-friendly
products over synthe�c counterpart. Favorable government policies encouraging eco-friendly
product usage have further increased demand for bio-degradable jute products. The EU has
banned the single use plas�c products this year, further adding to forecasted demand in the
future for jute products.107
Bangladesh being the 2nd largest producer of jute is in a favorable posi�on to venture into the
growing market for Jute Diversified Product (JDP). It is an�cipated that as the demand for
natural fibers blends increases, demand for jute and other alterna�ves will also be on the rise.
At present, export of jute yarn and raw jute make up around 79 percent of overall exports from
Bangladesh, providing ample opportunity for producers of higher value added finished jute
products to manufacture and export environmental friendly jute based products. Bangladesh
has ample opportunity to increase exports in jute products such as carpets and tex�le flooring,
footwear as well jute based packaging items such sacks and bags further.
Investment Opportuni�es
Biodegradable Packaging material: Growing

environmental consciousness is leading to increase in
demand for ecofriendly biodegradable packaging
materials. While the industry is s�ll at nascent stage, the
ban on plas�c packaging materials and bag in EU and many
other countries is expected to boost the demand for the
ecofriendly bags. The benefits offered by jute bags such as their biodegradability, durability,
low cost, high strength, etc. is expected to further support the market growth for jute bags and
packaging material. The global jute bag market was valued at US$ 1.8 billion in 2018,
registering a CAGR of around 11.5% between 2011-2018 and is an�cipated to reach US$ 3.1
Billion by 2024.108
Recently, biodegradable single use bag made from extrac�ng cellulose from jute fibre was
invented in Bangladesh.109 The bag is light and is similar to plas�c bags in appearance and is
called Sonali bag. It is bio degradable, durable, light and recyclable. Growing awareness about
the detrimental effects of plas�c on the environment is expected to increase the usage of bio
degradable jute products further in the future.
107
h�ps://www.europarl.europa.eu/news/en/press-room/20190321IPR32111/parliament-seals-ban-on-throwaway-plas�cs-by-
108
h�ps://www.prnewswire.com/
109
h�ps://www.weforum.org/agenda/2019/07/plas�c-from-burlap-bangladesh-invents-a-green-throw-away-bag
168 | BIDA
The government has also been suppor�ng the usage of jute products by making it compulsory
to use jute bags in the packaging of 19 products including food grains in the domes�c market
crea�ng an annual market of BDT 1,600 million jute bags in the country.110
Automo�ve Jute: With global regula�on suppor�ng

lighter and lower emission vehicles, applica�on of jute in
automo�ve industry is increasing. Given Bangladesh’s
standing as the 2nd largest producer of jute, the
environmental friendly natural fibre has great poten�al to
increase its usage in automo�ve by producing
dashboards, door panels, interior trims. Automobile
brands such as BMW, Mercedes-Benz, Toyota, Renault, Mitsubishi, Volvo, Audi, Daimler
Chrysler and Ford have been using jute fibres from Bangladesh. However, out of the global
demand of around 100,000 tons of jute,111 Bangladesh supplies 10,000 to 12,000 tons,
indica�ng immense poten�al to increase its export by increasing produc�on of automo�ve
jute products. It is es�mated that Bangladesh has the poten�al to capture the global
automo�ve jute industry and earn $5-7 billion per annum112.
Government Incen�ves113
• 5% to 20% cash incen�ves on jute products export
• 20% export incen�ves on export of jute s�ck carbon
Trade Associa�on
• Bangladesh Jute Goods Exporters Associa�on
• Bangladesh Jute Mills Associa�on
• Bangladesh Jute Mills Corpora�on
• Bangladesh Jute Spinners Associa�on
Relevant Government Agency

• Jute Diversifica�on Promo�on Centre (JDPC), whose ac�vi�es are guided, supported and
monitored by The Ministry of Tex�les and Jute. Website: www.jdpc.gov.bd
110
Budget Speech, 2021-21
111
h�ps://bei-bd.org/wp-content/uploads/2020/06/7.Reviving-Exports-of-Jute-Products-from-Bangladesh.pdf
112
h�ps://bei-bd.org/wp-content/uploads/2020/06/7.Reviving-Exports-of-Jute-Products-from-Bangladesh.pdf
113
Incen�ves are stated in the Na�onal Industry Policy but subject to revision upon annually enacted Finance Act
and individual Statutory Regulatory Orders (SROs). Companies located in EZs/ EPZs are en�tled for different sets of
incen�ve package of tax holiday and exemp�on.
169 | BIDA
Leather and
Footwear
One of the oldest industries in Bangladesh, the leather and footwear industry
has been making significant contribu�ons to the economy over the years.
Contribu�ng 0.6% to GDP in 2018 and providing direct and indirect employment to
over 850,000 people,114 the industry caters to two different markets; domes�c and
foreign. A large and growing domes�c market of USD 2 billion, is supplemented by exports
well over USD 1 billion per annum. In FY 2018-19, the leather industry accounted for 3.2% of
Bangladesh’s annual exports, contribu�ng $1.29 billion.
The major products produced in the country include finished leather, footwear, leather
products such as bags, purses, luggage, belts, wallets and leather jackets.
114
Leather goods and Footwear Manufacturers and Exporters Associa�on of Bangladesh (LMFEAB). Investment Prospects
in Bangladesh Leather Sector.
170 | BIDA
Footwear is the major product segment and includes both leather and non-leather footwear.
During 2018, Bangladesh produced 461 million pairs of footwear.115 At present, around 220
tanneries, 3500 small and medium enterprises (SMEs), 90 large firms, and 15 big enterprises
are opera�ng in the country primarily for the export market.116
World Footwear Produc�on, 2018 Leather & footwear export

$1,600
16,000 55.8% 60%
14,000
$1,400
50%
12,000 $1,200
Bangladesh is
the 6th largest 40%
10,000 $1,000
Million pairs
footwear
Millions
8,000
producer 30% $800
6,000 $600
20%
4,000 10.796 $400
5.4% 5.3% 10%
2,000 3.9%
1.9% 1.8% 1.7% 1.1% $200
0.1%
0 0%
$-
2015-16 2016-17 2017-18 2018-19
sh
ly
am
sia
M n
Pa ey
o
a
il
in
di
ic
Ita
az
de
rk
st
ne
n
Ch
In
ex
Br
et
ki
Tu
la
Finished Leather Leather goods

do
Vi
ng
In
Ba
Leather Footwear Non leather footwear
Source: Statista Source: Export Promotion Bureau
Growth Poten�al
Increasing domes�c demand: The domes�c market for footwear is currently valued around
USD 2 billion. Driven by increasing purchasing power of a large and young popula�on, the
footwear industry has been growing at 10-15% per annum.117 The per capita consump�on of
footwear, including leather, is currently 3-pairs, which was 1.7-pairs five years ago. With
increasing economic growth and prosperity, this growth is expected to sustain for several
years. In addi�on, the increasing number of working women is expected to boost the demand
for footwear further. The market in Bangladesh is currently dominated by the informal sector.
However, due to increase in urbaniza�on, rise in working popula�on, and compe��ve pricing,
this is expected to change in the future with the sector being dominated by retail chains
providing opportunity for branded outlets to increase their share.
Increasing global demand provides poten�al to increase exports: With the increase in
worldwide disposable income and fashion awareness, the global leather goods market is
forecasted to grow at a compound annual rate of over 5.54 % between 2018-2025,118 and reach
a market size of USD 629.65 billion by 2025. Major growth is forecasted in emerging economies
such as China and India.119 Although Bangladesh’s major exports markets are concentrated in
the EU followed by USA & Japan, it has a great opportunity to diversify its markets and increase
exports to other emerging markets. Despite being one of the largest footwear producers in the
world, Bangladesh captures less than 1% of the global export market providing ample scope to
increase its share of the global export market further by diversifying its markets.
115
Sta�sta
116
Leather goods and Footwear Manufacturers and Exporters Associa�on of Bangladesh
117
Leather & footwear associa�on
118
Grandview research
119
Development Study towards Quality Industrial Growth and Economic Development, JICA Discussion Document, February 2018
171 | BIDA
China’s gradual shi� from labor intensive produc�on to high tech and heavy manufacturing
industry: As China, the world’s largest manufacturer is shi�ing from labor intensive industry to
manufacturing hi tech products, it is expected that its share of the global leather goods and
footwear export market will decrease in the near future as companies relocate to more
advantageous produc�on loca�on. In addi�on, labor cost in China has been increasing causing
significant increase in produc�on cost in a labor intensive industry like leather and footwear
manufacturing. This phenomenon is expected to accelerate further as companies move to
diversify their supply chain a�er the outbreak of the coronavirus pandemic. As an alterna�ve
loca�on, Bangladesh provides very favorable condi�ons for produc�on of leather goods and
footwear manufacturing. This is manifested by the recent increase in FDI into the sector.
Compe��ve Advantage
Availability of raw material and presence of leather processing infrastructure:
Bangladesh produces 310 million sq. feet of raw hides annually. With a share of 2.4 % of global
The raw hides are sourced from the vast ca�le popula�on livestock, Bangladesh has the 12th
largest cattle stock in the world.
reared in the country. In 2017, Bangladesh had the 12th highest
ca�le popula�on in the world with 1.8% ca�le & 3.7% goat of global livestock.120 More than 11
million ca�le were sold during the annual fes�val of Eid ul Adha, 2019 alone providing plen�ful
raw hides for the leather industry. By volume, Bangladesh occupies about 3.0% of the world’s
leather and leather products market.
Bangladesh produces superior quality leather from local livestock, which are sorted and
processed in tanneries around Dhaka; the tanneries are being located in a newly built 200-acre
Leather Industrial park in Savar. The industrial park has a central water and effluent treatment
plant (WTP & ETP) which will ensure processing of high quality leather with minimum impact
to the environment and also keeping up with interna�onal buyers’ compliance requirements.
Increased Linkage Industries: Apart from the abundant source of local leather, there are an
increased number of linkage industries such as packaging, las�ng, adhesive, outsoles factories
which are able to meet the growing demand for raw materials for the footwear industry.
Availability of large, young, trainable workforce: Bangladesh has one of the most compe��ve
wages in the industry which results in lower cost of produc�on in the leather & footwear
industry.121 In addi�on, the Bangladesh government and industry target to train at least 15,000
skilled workers by 2020 under the implementa�on of Skills for Employment Investment
Program (SEIP) through the Ministry of Finance in coopera�on with Asian Development Bank
(ADB).
120
Z. Rahman. 2017. Comprehensive Report 2017 on Bangladesh Leather goods and Footwear Industry. Dhaka: LFMEAB /
Confedera�on of Interna�onal Footwear. Associa�on. h�p://www.hkfootwear.org/content/upload/1511230567.pdf
121
h�ps://www.worldfootwear.com/news/cambodia-minimum-wage-for-garment-and-footwear-rises/4148.html
h�ps://asia.nikkei.com/Economy/Hungry-leaders-push-Southeast-Asia-s-minimum-wages-higher
h�ps://www.newagebd.net/ar�cle/94551/tk-7100-proposed-as-minimum-wage
172 | BIDA
Moreover, East West University is successfully conduc�ng the Graduate Diploma Program in
Leather and Footwear Management under the Skills for Employment Investment (SEIP)
Program, with a goal to train 300 trainees as a mid-level manager by 2020.
Minimum Monthly Wages in Selected countries
Bangladesh
Cambodia
Indonesia
Vietnam
China
$0 $50 $100 $150 $200 $250 $300 $350 $400
Established sourcing des�na�on: Most reputed foreign brands that source leather & footwear
products have directly sourced ready-made garments from Bangladesh over the years. These
buyers already have experience with Bangladesh as a sourcing des�na�on.
Suppor�ve Trade Policy: Bangladesh enjoys duty free access in 52 countries including EU,
Australia, New Zealand, Norway, Switzerland, Japan, Iceland, Russia, South Korea, Canada,
Chile, India, Turkey, China.
Favorable Government Policy & Incen�ves:
• Support in the form of tax holidays depending on the loca�on of the factory
{
• Reduced tax rate on export income
Fiscal & Other incentive
• Bond warehousing facili�es for 100% export oriented leather industries

• Duty draw-back facility
• Duty free import of all types raw materials and machineries.
• 100% foreign ownership permissible
• Footwear companies using following raw materials such as tubes, pipes,
plas�cs, PVC screen, tex�le fabrics laminated with PVC and plas�cs, kni�ed
fabrics will be exempted from regulatory duty and supplementary duty
• Low cost loan for set up of green technology
• Export credit guarantee scheme. 90% loans against le�ers of credit and funds
for export promo�on.
• 15 percent cash incen�ve on the export of shoes and bags made by synthe�c
Incentive
{ and fabrics /Customs bond and duty draw back facility

Cash
• 4% cash incen�ve on the export of shoes and bags made by synthe�c and
fabrics to the Euro region
173 | BIDA
Leather goods manufacturing: Considering
Bangladesh has developed ‘Leather and Leather Goods
Bangladesh’s abundance of raw materials, large Development Policy 2019” incorporating 17 types of
pool of labor, trade benefits, manufacturing of incentives to boost the sector’s export earnings to $5 billion
by 2024.
leather products in the country is very cost
efficient. The value addi�on in producing final Besides, in order to facilitate the growth of footwear &
leather goods industry, three industrial parks are being set
products such as leather footwear, leather bags, up in Rajshahi, Savar & Chattagram area.
wallets, belts, leather jacket, luggage, etc. can be
as high as 85%.122 Considered as a premium product, leather goods such as footwear,
handbags, wallets, belts also command higher margins and occupy a significant share of the
market. As indicated by the value of the global footwear
market in 2019, leather footwear consisted of 33% percent
of total value while commanding 18% of total volume. The
composi�on of Bangladesh leather and footwear sector
has been gradually shi�ing from processed leather to
leather footwear and non-leather footwear.
$250,000 Global Footwear Market Value 120%
100%
$200,000
80%
Millions
$150,000
60%
$100,000
40%
$50,000 20%
$- 0%
2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
Sneakers Athle�c Leather Tex�le

Source : Statista
Non-leather footwear manufacturing: Although leather is one of the prominent materials

used for making footwear, there are several other materials such as plas�c, rubber, tex�le
which are used to produce shoes. Being a luxury material, leather shoes are more expensive
compared to non-leather shoes. Due to their lower cost, non-leather footwear made of plas�c,
tex�le is used more frequently. This is reflected by the total volume of footwear sold globally.
Around 82% of footwear sold in 2019 were accounted for by non-leather material. 68%
footwear were made of tex�le, while 18% were leather based. Sneakers and athle�cs footwear
made up the remaining 14% of footwear sold.
122
Leather & Footwear Associa�on
174 | BIDA
14,000
Global Footwear Market Volume
12,000
10,000
Million pair
8,000
6,000
4,000
2,000
-
2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2024F
Sneakers Athle�c Leather Tex�le
Source : Statista
According to a projec�on made by Sta�sta, the sneakers and athle�c footwear segment is
projected to have the fastest growth between 2020-2025, registering a CAGR of 7.7% and 6.3%
respec�vely. Increasing health consciousness is driving people into sports and exercise which
is expanding the demand for athle�c shoes made of ar�ficial
Forcasted CAGR (revenue) for
and synthe�c material for men and women of all age groups. footwear segments 2020-2025
This is followed by tex�le footwear with 6.2% and leather
Tex�le 6.2%
footwear with 3.1%. In 2018-19, Bangladesh exported
Leather 3.1%
$271.53 million worth of non-leather footwear achieving a
6.3%
YOY growth rate of 11.24%. As Bangladesh has the exper�se in Athle�c
producing shoes, there is an opportunity to u�lize the Sneakers 7.7%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Source:Statista
knowledge and experience and

capture a larger share of global
market in the non-leather
footwear segment.
Designing & Branding: The global luxury leather goods market size was valued at USD 48.0
billion in 2018 and is expected to expand at a healthy CAGR �ll 2025. Rising demand for
a�rac�ve leather products as a symbol for status as well as inclina�on of luxury consumers
towards various interna�onal brands are driving the demand for luxury leather products. To
capture the luxury market, branding and designing plays a significant role and investment in
this segment would be desirable.
Industry Associa�on
• Leathergoods and Footwear Manufacturers & Exporters' Associa�on of Bangladesh
• Bangladesh Tanners Associa�on
175 | BIDA
Light
Engineering
Known as the mother of all industries, the light engineering sector
makes an important contribu�on to the industrial, agricultural, automobile
and construc�on sectors of the country by providing machinery and equipment,
spare parts, cas�ng, molds, as well as repair & maintenance services to keep the
industry func�oning in Bangladesh. At present, there are around 50,000 micro and 10,000
small and medium light engineering companies opera�ng in the country123 providing
employment to more than six hundred thousand people and producing more than 10,000
products. These include industrial and workshop machinery, automobile component and spare
parts, bicycle and bicycle parts and component, ferrous & non-ferrous cas�ng products, mold
& die, agricultural machinery, construc�on machinery, prin�ng and packaging machinery,
spare parts for almost all category of machine and equipment. In 2018, the total market was
es�mated to be USD 12 billion in 2018.124
123
Study by Interna�onal Finance Corpora�on (IFC), in partnership with the UK Department for Interna�onal Development
and the Norwegian government
124
Roadmap for light engineering export, PWC
176 | BIDA
Growth & Investment Poten�al
Motorcycle and spare parts industry: The motorcycle market has been experiencing
tremendous growth during the last several
years. Rising affordability is driving the demand
for motorcycles. In addi�on, limited parking
spaces and growing traffic conges�on in major
ci�es like Dhaka are promp�ng people to
consider
motorcycles as a primary commute op�on. The number Demand for motorcycle has been
of domes�c motorcycles registered grew from below growing at a CAGR of 35% since
100,000 in 2014 to over 400,000 in 2019.125 2014
Over 95 % of the motorcycles are either assembled/manufactured in the country.126 Currently

many foreign and local manufacturers such as Honda, Suzuki, TVS, Runner, are assembling
motorcycles in the country leading to a growing untapped market for automobile parts and
components. At present, the automo�ve spare parts market is around US$ 600 million127 and
comprises primarily imports, providing a poten�al market for motorcycle parts and
components manufacturers
Import of parts,accessories, of
Import of CBU/CKD Motorcycles
motorcycle/bicycles
in units $200
450,000 $166
$150
400,000
USD Million
$150
350,000 CAGR 24%
300,000
250,000 $100 $81
200,000 $70 $64
150,000
$50
100,000
50,000
- $-
2014-15 2015-16 2016-17 2017-18 2018-19 5 6 7 8 9
-1 -1 -1 -1 -1
14 15 16 17 18
20 20 20 20 20
Import of CKD Motorcycle Import of CBU Motorcycle
Source: NBR Source: Bangladesh Bank
Bicycle and bicycle spare part manufacturing: The bicycle export industry is the largest export
product in Bangladesh’s engineering sector,
contribu�ng about USD 84 million in 2018-19128 and
USD 67 million in 2019-2020 (July-March). This industry
caters to two different markets; domes�c and foreign.
Bangladesh manufactures around 2 million bicycles
every year of which 1.2 million are exported.129
125
Bangladesh Road Transport Authority
126
Based on import data by NBR Data
127
Engineers Associa�on
128
Export Promo�on Bureau
129
h�p://www.theindependentbd.com/post/213652
177 | BIDA
In 2018, Bangladesh was the 3rd largest non-EU exporter of bicycles to the EU and the 18th
largest exporter overall.130 There is immense poten�al to increase exports of bicycles as the
global bicycle market size is expected to grow at a CAGR of 6.1 % and reach USD 75.47 billion
by 2025131 from current market size of around USD 62 billion. Increasing awareness of health
benefits associated with cycling are expected to augment market growth. Moreover, rising
emphasis on the use of non-pollu�ng vehicles for short distance commutes by the
governments across the developed world is expected to increase the market growth. In
addi�on, the need to maintain social distancing in public transporta�on is expected to increase
the demand for bicycles during the post lockdown pandemic period in Europe and elsewhere.
As several European governments have declared special subsidies to encourage cycling,132 it
can be expected that the demand for bicycles will grow further and as Bangladesh is a major
supplier of bicycles to Europe, it provides Bangladeshi exporters with the opportunity to
increase their exports.
The domes�c market for bicycles is also growing at 30-35% per annum.133 Currently there are
4 OEMs in Bangladesh producing and expor�ng bicycles in addi�on to around 40 small &
medium companies manufacturing bicycle parts and components.134 Recently German bicycle
manufacturer Cube also announced plans to set up a bicycle manufacturing plant in
Bangladesh. However, as a major por�on of the parts and components of bicycles are
imported, there is ample opportunity to invest in both bicycle manufacturing as well bicycle
parts manufacturing. During FY 2018-19, Bangladesh exported bicycles spare parts worth USD
4 million.135 Bicycle �res and inner tubes worth USD over 1 million were exported as well.136
Toy Manufacturing: Export of toys from Bangladesh has grown from USD 3 million in FY
2014-15 to USD 33 million in FY 2019-20, growing at a compound annual rate of 61%. The
primary export des�na�on is the EU followed by the USA. Global export of toys accounts for
USD 38 trillion providing ample
opportunity to Bangladesh to increase $40 Toy Export
its exports. $35
$30
$25
Millions
$20
$15
$10
$5
$0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
130
h�p://www.worldstopexports.com/bicycles-exports-country/
131
Grandview Research
132
h�ps://tbsnews.net/feature/panorama/bicycling-be�er-post-pandemic-alterna�ve-88099
133
Mizanur Rahman, former president of the Bangladesh Bicycle Merchants' Assembling and Importers' Associa�on
134
World Bank Diagnos�c Study
135
136
178 | BIDA
Industrial Machineries and spare parts and components: The contribu�on of the
manufacturing sector to GDP has been increasing over the years. As the manufacturing sector
expands, it will drive up the demand for machineries and parts. Increasing industrializa�on and
growth of assembling industries such as automobile, shipbuilding, electronics, mobile phone,
etc. is expected to increase the demand for parts and components which are mostly imported
into the country. In addi�on, expansion of industries such as RMG, pharmaceu�cals, plas�c, is
an�cipated to expand the growth
of the capital machineries and Manufacturing, value added (as a % of GDP)
spare parts further. Besides, 18.5
implementa�on of 100 Special 18.0 18.0

17.5
Economic Zones (SEZs) are 17.0
17.3
17.0
16.8
underway which is expected to 16.5 16.4
16.6
drive the demand for light 16.0 15.9

15.5
engineering products like capital
15.0
machinery and spare parts in those 14.5
industries. Thus there remains 2012 2013 2014 2015 2016 2017 2018
immense opportunity for import Source: World Bank
subs�tu�on by local produc�on.
Sector Advantage
• Bangladesh is one of the most cost efficient produc�on hubs in the world with abundant
labor. Currently, the majority of the popula�on is below 27 years and approximately 1
million people are joining the workforce each year. Besides, increasing wages in countries
such as China makes Bangladesh even more cost efficient.
• Bangladesh has a well-developed steel industry. In addi�on, the strategic loca�on of
Bangladesh makes it easy to import raw material such as alloy, iron, copper from China
and India. This loca�on advantage also provides huge poten�al to export to India and
China.
Suppor�ve Trade Policy :

• Duty free access to 52 countries including EU under GSP
• Bangladesh avails trade preference and concession under GSP, SAFTA, APTA, BIMSTEC
trade frameworks.
• Quota free duty free access to 8,256 products to China
179 | BIDA
Government Policy & Incen�ve :
• Industries engaged in the produc�on of agriculture machinery, electrical

transformer, nanotechnology based products manufacturing, tex�le machinery,
{
automobiles, automobile parts, �res, boilers, boiler parts, compressors,
compressor parts, bi-cycles and parts manufacturing, basic components of
electronics, Automa�on and Robo�cs design and manufacturing including parts
and components, toy manufacturing are en�tled to reduced-tax benefits for 5
or 10 years depending on loca�on.
Fiscal Incentive

• Bonded warehousing facility for large imports of ingredients for produc�on
manufacturers of certain products (compressor, generator)
• Reduced customs duty on brass wire & copper plate (inputs for mold manufacturing)
• Tax exemp�on on royal�es, technical knowhow and technical assistance fees
and facili�es for their repatria�on.
• Supply of investment credit at reduced rate of interest on a high priority basis
{ • Moratorium on income tax

Facilities
• Export credit on easy terms and reduced rate of interest

Other
• Subsidized rate for air transporta�on, Duty drawback and bond facili�es
• Special Economic Zone for Light Engineering sector will be established
• 15% cash incen�ve against light engineering product export
• Bangladesh Motorcycle Assemblers & Manufacturers Associa�on(BMAMA)

• Bangladesh Engineering Industry Owners Associa�on (BEIOA)
• Automobile Component and Accessories Manufacturers Associa�on (ACAMA)
• Bangladesh Bicycle and Parts Manufacturers and Exporters Associa�on (BBPMEA)
• Na�onal Associa�on of Small and Co�age Industries of Bangladesh (NASCIB)
180 | BIDA
Electronics &
Electrical Equipment
The electronic and electrical equipment industry consists of a wide range of consumer and
industrial electronic products. There are around 3,000 organiza�ons involved in the sector
employing around 1 million people.137 The electronics industry in Bangladesh mostly produces
consumer items such as mobile phones, home appliances like refrigerators, air condi�oners,
televisions, electronic fans, radios, DVDs and CD players, ovens, blenders etc. Electrical
equipment such as accumulators, transformers, diodes are also manufactured for the local
market as well as export market.
137
181 | BIDA
The market size of the electronics industry comprising both industrial and consumer
electronics was es�mated to be around USD 5.29 billion at the end of 2019. The industry is
expected to grow at a rate of 15% per annum and reach around USD 12 billion by 2025.138 The
size of the consumer electronics market was es�mated to be around USD 2.38 billion in 2019
and it is expected to reach around USD 6.3 billion by 2025. The most popular consumer
electronics product is mobile phone followed by refrigerator, television and air condi�oner.
Growth Poten�al
Increasing income with a rising middle class: Sustained economic growth over the last decade
has increased consumer purchasing power and affordability. Consumer expenditure has been
growing at 10% per annum since 2014
and stood at BDT 190,062,661 million at
the end 2019.139 HSBC Global projected
Bangladesh GDP to grow by 7.1 % per
annum �ll 2030 (the fastest in the world)
and become the 26th largest economy by
2030.140 Besides, the rising middle and
affluent segment of the country is
expected to drive growth of consumer
durables further. According to Boston
Consul�ng Group141, consumer spending on convenience durables such as refrigerator, smart
phone, laptop is likely to increase rapidly once monthly income crosses USD 150 (aspirant
class), while spending on comfort durable goods such as flat panel TV, cars, microwave, air
condi�oner) accelerates once monthly income crosses USD 250 (emerging middle class).
According to the report, the middle & affluent class (income over $400 per month) in
Bangladesh is growing at a rate of 10.5% annually and is expected to reach 34 million by 2025,
while the aspirant class (income per month between $151-$250) is expected to increase to 92
million and established middle (income between $251-$400 per month) will increase to 27
million by 2025. As the overall popula�on moves up the income ladder, the popula�on at the
bo�om of the Forecasted Income Distribu�on
pyramid (income 100
per month below 90
92
80
$150) is expected 70
to decrease to 48 60 64
50
million during the
Millions
40
same period. This 30
44
rapid rise in income 20

10 19
34
21
27
17
of every segment 0
12
will provide a major Middle & Affluent (above $400

per month)
Emerging Middle ($251-400) Aspiring ($151-250 per month)
boost to consumer
products. 2015 2020F 2025F
Source: Boston Consul�ng Group
138
139
h�ps://www.ceicdata.com/en/bangladesh/sna08-gdp-by-expenditure-current-price/gdp-consump�on-expenditure,
data retrieved on July 25, 2020
140
HSBC Global report the World in 2030
141
Middle & Affluent Class=Monthly income over $400, Bangladesh: The Surging Consumer Market Nobody Saw Coming,
Boston Consul�ng Group
182 | BIDA
Mobile phone: The 5th largest market in the Asia Pacific and the 9th largest market 142 in the
world by unique mobile phone subscribers, Bangladesh is experiencing rapid growth in
demand of mobile phones. At the end of 2019, unique mobile phone subscribers stood at
90.18 million, represen�ng a penetra�on rate of 54% while total mobile phone connec�ons
stood at 165.57 million.143 With increasing internet penetra�on, demand for internet enabled
devices such as smartphones Investment
have been Poten�al:
growing rapidly. The gradual improvement in
smartphone affordability, as well as the rapid expansion in the availability of mobile
broadband services, has driven the growth of smartphones in Bangladesh over the last few
years. Smartphones now account for an installed base of 59.8 million, represen�ng 36% of
total connec�ons. This is expected to reach 75% by the end of 2025.144 The annual demand for
handsets is around 35 million. During 2019, a total of 29.6 million146 handsets were imported
of which 6.95 million were smart phones while the remaining were feature phones.
With the government encouraging manufacturing and assembly through substan�al fiscal
incen�ves, there has been a no�ceable shi� towards local assembly of mobile phones. At
present, there is 57% customs duty on smartphone import while the duty on components of
locally assembled smartphones is around 17%. Locally manufactured handsets are taxed at 5
percent. During FY 2018-19, around 8 million units of mobile phones
were assembled in the country.147 During the last quarter of 2019, 75
percent of smartphones that were imported were locally assembled.
This was only 25% during the first quarter of 2019.148 Currently, several
local and foreign brands such as Walton, Samsung, Transsion, Symphony
are being manufactured/ assembled in the country. Samsung is
currently assembling majority of its smartphones locally, while VIVO
and OPPO have also started to produce locally.149 Nokia has also
announced plans to start local produc�on soon. Apart from serving the
local market, export of mobile phones has also started on a small scale.
Consumer Appliances also provides vast opportunity for growth due to very low penetra�on
levels for various products. Rising urbaniza�on, increasing electrifica�on in rural areas, easy
access to credit, growing women par�cipa�on in the workforce, increasing globaliza�on with
growing internet usage and smartphone penetra�on is expected to drive the demand for
consumer appliances at a rate of 15% per annum. Besides, washing machine, air condi�oner
and refrigerator penetra�on levels in Bangladesh are at 2%, 3% and 20% respec�vely – much
lower than levels seen in regional peers or globally.150 At present Samsung, LG Electronics,
Walton, Singer Bangladesh are assembling television and refrigerator locally. The demand for
air condi�oner, refrigerator and smart TV has been registering a rise in the urban areas while
television, refrigerator, and fans are also seeing an increase in the rural areas. Bangladesh
imported electronic products worth around USD 3 billion in 2018-19151 among which mobile
phones, air condi�oner and refrigerator made up the greater share.
143
GSMA Intelligence, Bangladesh Country Overview
144
Bangladesh Telecom Regulatory Authority
145
GSMA Intelligence, Bangladesh Country Overview
146
Counterpoint Research, h�ps://www.counterpointresearch.com/impact-rising-import-du�es-bangladeshs-handset-market/
147
IDC India, h�ps://www.idc.com/getdoc.jsp?containerId=prAP46077520
148
BTRC data
149
IDC India, Bangladesh Mobile Phone Market Registers a Modest 4.1% Growth in 2019; Vendors Shi� Gears to the Local
150
Assembly, IDC India Reports
151
Asia Fron�er Capital
183 | BIDA
Penetra�on Rate of Selected Consumer Appliance

70%
60%
60%
52%
50% 47%
40%
30%
30%
20% 19% 20%
20% 14%
10% 10%
10% 3% 2%
0%
Refrigerator Air Condi�oner Washing Machine
Bangladesh Pakistan India Sri Lanka
Source: Asia Frontier Capital
Electrical equipment and components: Apart from consumer electronics, Bangladesh

produces as well as exports electrical equipment such as accumulators, diodes, transformers
to Japan, India, Singapore, Hong Kong, etc. Electric accumulators were the largest contributor
of export income from the electronics and electrical equipment sector. The export trend of
electric accumulators grew at a CAGR of 12% between
2015 to 2019. Diodes, transistors and similar
semiconductor devices are also being exported from
Bangladesh primarily to Japan and China. Although
Bangladesh has shown a strong growth in increasing
the exports of diodes from USD 0.72 million in 2011 to
USD 5.26 million USD in 2019, it is s�ll a very small
frac�on of the $372.7 billion global market,152 indica�ng poten�al opportunity to improve
share of the global market.
$80
Export of Electrical Equipment
$70
Electric accumulators
$60
$50
Electrical transformers,
Millions
$40 sta�c converters and

inductors
$30
Diodes & transistors
$20
$10
Others
$0
2016-17 2017-18 2018-19
152
UN Comtrade data, 2019
184 | BIDA
Suppor�ve Government Policies & Incen�ves :
• Industries engaged in the produc�on of home appliances (blender, rice cooker,

microwave woven, washing machine, LED television, mobile phone, induc�on
cooker, water filter etc.), compressor including parts thereof, basic components of
electronics, electrical transformer, nanotechnology based products, automa�on &
robo�cs design including parts, are en�tled to reduced tax benefits up to 5 to 10
depending on loca�on.
• Manufacturers of air condi�oners, refrigerators are en�tled to reduced corporate
taxes of 5% from July 2009 �ll June 2021 and manufacturers of compressors,
refrigerator, air condi�oner are en�tled to a corporate income tax rate 10% from July
2021 �ll June 2032.
• Bonded warehousing facility for large imports of ingredients for produc�on
manufacturers of certain products (compressor, generator, refrigerators, air
condi�oners)
agreements

• Duty free access to 52 countries including EU under GSP
trade frameworks.
Relevant Associa�on :
• Bangladesh Electrical Merchandise Manufacturers’ Associa�on (BEMMA)
• Bangladesh Engineering Industry Owner's Associa�on (BEIOA)
185 | BIDA
Plastics
Plas�c is one of the key industrial sectors in
Bangladesh making significant contribu�on to the
country’s economy. There are around 5,000 plas�c
enterprises in Bangladesh, employing about 1.2 million153
people and producing a variety of products for the domes�c as well
as the export market. Plas�c is a key component of many products in
other sectors of the economy like tex�le, healthcare, construc�on,
electronics, energy genera�on, automo�ve, etc. Bangladesh primarily produces
household goods, packaging products for food processing, pharmaceu�cal & FMCG
industry, garments bags & accessories, toys, sanitary items and construc�on products
including PVC pipes. The domes�c market size was over USD 2,500 million in 2017,154 while the
direct export value of plas�c goods was around USD 120 million in FY 2018-19. Besides,
deemed export items comprising accessories and materials for the ready-made garments
sector such as plas�c hangers, bu�ons, clips, collar chips, and packaging materials contributed
USD 900 million in 2018.155
153
JICA Survey, Plas�c Sector, 2017
154
BPMGEA Brochure, 2017, USD=BDT rate used 78.90
155
h�ps://databd.co/stories/prospects-of-plas�cs-sector-a-rarely-told-story
186 | BIDA
Growth Poten�al
Large domes�c market with growing purchasing power: With increasing income and
subsequent increase in consump�on, the plas�c industry has been growing at an annual rate
of 20%.156 Although per capita consump�on of plas�c grew from 5.56kg in 2005 to 17.24 kg in
2017157 it is s�ll below the global average of 80 kg (Recycling Interna�onal, 2012) indica�ng
poten�al for further growth. In addi�on to increasing demand for consumer items such as
plas�c furniture and kitchenware, double digit growth among established industries such as
RMG, pharmaceu�cal, healthcare, motorcycle assembly and electronics industry is expected
to drive the demand for plas�c products in the domes�c market. At present, the majority of
RMG accessories such as hangers and packaging materials are sourced locally.
Growing export market : Plas�c exports from Bangladesh have been growing at a rate of 4.5 %
per annum since 2014. Bangladesh exports a variety of plas�c products among which
packaging and conveyance items make up the largest export item. This is followed by
consumer products such as tableware and kitchenware. Exports of household items have been
par�cularly promising with a growth rate of 25% per year since 2014. PVC pipes, polythene
sheets, plas�c waste, garment accessories items such as bags, plas�c hangers, PET/PE bo�les
are also some of the other significant plas�c products exported by Bangladesh. The primary
export des�na�on includes the USA, Canada, EU, China, India and Nepal. The global market for
plas�c products is expected to grow at an annual rate of 4% and reach USD 721.14 billion by
2025, driven by an increase in applica�on of plas�c in automo�ve, construc�on and packaging
industries providing ample opportunity to raise exports from Bangladesh.158
Direct export of plas�c products

$140
$120
$100
$80
Millions
$60
$40
$20
$0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Others Accessories Plas�c Waste Tableware & Kitchenware Conveyance & Packaging Item
156
BPMGEA
157
Waste Concern & Department of Environment, February 2019
158
Grandview Research
187 | BIDA
Consumer product: Plas�c goods are convenient, light and durable as well as cheaper
compared to materials such as wood, metal, paper or glass, making them a superior
alterna�ve as kitchenware, furniture and home decora�on items. Growing at a rate of 20% per
year, the domes�c plas�c consumer products such as furniture, tableware and kitchenware
market was valued at USD 238 million in 2015.159 With the rapid growth in purchasing power
combined with increasing urbaniza�on,
demand for convenient plas�c furniture is
expected to grow further. In addi�on, exports
of tableware and kitchenware products from
Bangladesh have been growing at a rate of
around 22% since 2014, albeit from a smaller
base. Besides, with the global trade of plas�c
items such as kitchenware & tableware and
household plas�c items accoun�ng for USD
42.7 billion and USD 33.68 billion respec�vely
in 2019,160 Bangladesh has plenty of
opportuni�es to increase its exports of plas�c
household items further.
Untapped market for automo�ve plas�c: At present, the motorcycle assembly and
manufacturing industry in Bangladesh is booming with the presence of many foreign and local
motorcycle manufacturers such as Honda, Suzuki, Bajaj, Hero, TVS, Runner, among many
others. The registra�on of motorcycles has been growing at an annual rate of around 35%
since 2014 with over 400,000 motorcycles sold in 2019.161 This phenomenon has created
demand for automo�ve plas�c in the domes�c market. In addi�on, driven by demand for
more affordable, lightweight, emission
control and fuel-efficient vehicles, automo�ve
plas�c is projected to be the fastest growing
plas�c segment globally. It is expected to grow
at a CAGR of 11.5 % and reach a market size of
USD 68.58 by 2025 from USD 31.69 million in
2018.162
Plas�c for building & construc�on industry: In lieu of their light weight, corrosion resistance
quali�es, applica�on of plas�c products such as PVC pipes in construc�on and infrastructure is
expected to increase. As infrastructure spending is rising in Bangladesh, this is expected to lead
to an increase in demand for construc�on related plas�c
items. Furthermore, Bangladesh has opportuni�es to
increase its export of PVC pipes as increasing construc�on
and infrastructure projects globally, par�cularly in Asia
Pacific, will increase the demand for plas�c based
construc�on products.
159
h�p://emergingra�ng.com/wp-content/uploads/2017/09/Plas�c-Industry-of-Bangladesh-Vol-I.pdf
160
UN Comtrade data
161
BRTA data
162
Grandview Research
188 | BIDA
Packaging industry: Plas�cs industry is now working as a backward linkage industry for many
growing industries, especially the RMG, pharmaceu�cals & FMCG. This has created a lot of
opportuni�es for value addi�on within the country. Moreover, with further development of
industries such as food processing, agriculture, healthcare, the plas�cs packaging sector is
expected to experience robust growth. Furthermore, globally driven by high demand from
consumers in emerging economies, the packaging industry is es�mated to be one of the most
prominent applica�on segment in the plas�cs market between 2020 �ll 2027 accoun�ng for
more than 35.0% of the overall revenue by 2027.163
Plas�c waste recycling: Bangladesh imports 142,000 tons of PET resin a year for producing PET
bo�les and synthe�c yarn.164 On the other hand, it exports more than 50,000 tons of PET bo�le
flakes a year valued at USD 25 million.165 Although around 4 billion PET bo�les are produced
each year, 3.40 billion such bo�les are disposed. Instead of disposing of these bo�les and
causing environmental hazard, there is sufficient poten�al to recycle these PET bo�le flakes
into recycled PET resin (rPET) and Polyester Synthe�c Fiber (PSF). Apart from demand from
the huge Bangladesh tex�le industry, there is ample demand for PSF in the global market.
Driven by growing awareness about environmental protec�on and demand for sustainable
tex�le, the global market size of PSF is expected to grow at a rate of 4% per year and reach USD
34.54 billion by 2025.166
• Designated as Priority Sector by the Na�onal Industrial Policy - 2016
{ • Plas�c recycling industry is en�tled to reduced taxa�on under Income Tax

Incentive
Fiscal
Ordinance 1984, sec�on 46BB

• Reduced import duty on raw materials
• Import duty exemp�on on capital machineries
Subsidy
• Export subsidy of 10 percent on polyester staple fiber plas�c produced from pet
Export
{ bo�le flex.
• Export subsidy of 5 percent on PET bo�le

• Duty free access to 52 countries including EU
trade frameworks.
• Bangladesh Plas�c Goods Manufacturers and Export Associa�on (BPGMEA)
• Bangladesh Plas�c Flakes Manufacturers and Export Associa�on (BPFMEA)
163
Grandview Research
164
h�ps://today.thefinancialexpress.com.bd/trade-market/exports-of-plas�c-bo�le-waste-crash-land-a�er-china-ban
165
Financial express, May 18, 2018, Plas�c bo�le waste export slumps
166
Transparency Market Research
189 | BIDA
Automobile
Over the last decade, the Bangladesh automobile industry
has experienced phenomenon growth on account of consistent
economic growth. The total number of registered vehicle in
Bangladesh for all vehicle category stands at 4.3 million units as of 2019.167
The market is dominated by two wheelers with a share of 67% (2.85 million
units), followed by four wheelers with a share of 26% (1.08 million units) and three
wheelers making up 7% (0.32 million) of the total registered vehicles. The four wheeler
market comprises private passenger vehicles and commercial vehicles with around 535,000
units and 548,000 units respec�vely.
Passenger Vehicles: The demand for passenger vehicles is met primarily by CBU imports
comprising more than 95 % of vehicles sold in the market. During FY 2018-19, 21,501 CBU
passenger vehicles worth USD 327 million was imported into the country. 80% of the
passenger vehicle is accounted by recondi�oned sedan and SUVs while the remaining is
made up of brand new cars. During the last several years, a no�ceable inclina�on towards
the more expensive SUVs has been observed with sales of SUVs increasing at 28% per annum
since 2013.
167
Bangladesh Road Transport Authority
190 | BIDA
* Photo courtesy: Pragati Industries Ltd.
The retail price of passenger vehicles which is the major driving force behind sales of
passenger vehicles, is heavily influenced by import du�es. Bangladesh imposes one of the
highest import tax on CBU vehicles in the world, keeping
Passenger Vehicle Registra�on
the retail prices of brand new imported cars out of the 35,000
purview of average middle class buyers, compelling them 30,000
instead to opt for lower priced imported recondi�oned 25,000
cars subject to deprecia�on rates set for each vehicle age 20,000
(up to five years-old). While interna�onal brands are 15,000
engaged in import-sales of brand-new vehicles through 10,000
local dealerships, some have commenced local assembly 5,000
on a semi knock down (SKD) basis in associa�on with local -
Original Equipment Manufacturers (OEMs) in prepara�on 2014 2015 2016 2017 2018 2019
for the new policy direc�on to promote assembly and the Sedan Microbus SUV
growing purchasing power of the middle/ affluent income Source: BRTA
class (reaching 34 million by 2025.168 ) Currently, passenger vehicle brands that are assembled
in the country are Hyundai, Mitsubishi, Proton.
Energy-efficient Vehicles (EEV): Bangladeshi government in June 2017 announced a

no�ceable shi� in policy direc�on towards eco-friendly vehicles, i.e., energy-efficient vehicles
(EEVs). To encourage the usage of EEVs among popula�on, the government has lowered the
import tariff imposed on hybrid vehicles. Since then, hybrid vehicle import has been increasing
fast, supported also by the growing concerns about rising fuel gas price (led by deple�on of
domes�cally produced gas). During the period between 2017 and 2019, the share of hybrid
vehicles (with 1,600-2,000cc) out of total imported passenger vehicles has largely risen from
around 15% up to 30%.
Commercial Vehicles: Commercial vehicle (bus, truck, van, pick-up, etc.) is another promising
segment in Bangladeshi automobile market. During FY2018-19, over 87,000 CBUs of
commercial vehicles were imported. Logis�c and construc�on industries have been the largest
Commercial Vehicles Registra�on sources of the demand, benefi�ng from the growth of
50,000 export-oriented industries, trading ac�vi�es and many
40,000
on-going infrastructure projects. While the demand for
overall commercial vehicles has grown at the average
30,000 rate of 12% per annum, the demand for pick-up and bus
in par�cular has doubled since 2013. In parallel to CBU
20,000
import of commercial vehicles, several companies have
10,000 imported around 11,000 complete knock down (CKD)
vehicles of Japanese (Hino) and Indian (Mahindra,
-
2014 2015 2016 2017 2018 2019 Ashok Leyland, Tata) brands in FY2018-19 for local
Truck Pick Up (Double/Single Cabin) Bus others
assembly. Some local suppliers are available for painted
body and parts for buses. Among the commercial
Source: BRTA
vehicles, rela�vely higher import du�es are imposed for
pick-up (ranging from 130% to 836% depending on cylinder capacity) and van (from 27.37% to
32.20%). Due to the limited capacity of local assembly, Bangladeshi market s�ll depends on
imported CBU for large por�on of needs for commercial vehicles. Since pick-up type vehicle
has been increasingly popular in Bangladesh, a few foreign brands have started to assembly
locally or are planning to establish assembly plant.
168
BCG Estimate
191 | BIDA
Growth Poten�al
Large domes�c market of 165.6 million169 with growing income provides a perfect opportunity
for investment in the sector. A�er growing at an average of over 6% from 2004 to 2014, the
GDP growth rate surpassed 7% in 2015 and crossed 8% in FY 2018-19.170
Growth in GDP per capita & four wheeler registra�on
140,000 $3,500
120,000 $3,000
100,000 $2,500
80,000 $2,000
60,000 $1,500
%
40,000
CAGR 11
$1,000
20,000 $500
$-
- 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
Four wheelers vehicle registra�on in units GDP Per capita

Data Source: ceicdata.com, BRTA
The demand for motorcycles took off rapidly from 2014 a�er the per capita income had
crossed USD 1,000. This growth is likely to con�nue as every year an addi�onal 2 million
people join the ranks of middle class.171 In addi�on, the rising middle and affluent sec�on172 of
the country is expected to drive growth of passenger vehicles further. According to a Boston
Consul�ng Group report, the middle and affluent class in Bangladesh is growing at a rate of
10.5% annually and is expected to reach 34 million by 2025 which will give further boost to
demand of consumer durables such as automobiles. The IMF forecasts the GDP per capita
income to reach USD 2,846.75 by 2024.173 At this rate, it is expected that the GDP per capita
will cross $3,000 by 2025.
Auto industry will very likely benefit from this
growth as in general it is believed that the
40 35
automobile market expands at a faster pace
30 when the GDP per capita reaches $3,000. At the
23
growth rate of 11%, overall demand for four
17
20 wheelers is expected to cross 100,000 by 2024.
In addi�on, the low vehicle penetra�on rate (6
10 6 per 1,000 people as opposed to 23 in India,174
17 per 1,000 people in Pakistan) indicates
0
enormous poten�al for the motoriza�on rate
am
h
an
es
ia
to increase rapidly with rising income.

n
ist
lad
et
k
In
Vi
Pa
ng
Moreover, rapid rise in automobile financing

Ba
Source: BRTA, Kneoma.com

schemes by financial ins�tu�ons is expected to
spur the growth further.
169
https://www.ceicdata.com/en/indicator/bangladesh/population, as of June 2019
170
Asian Development Bank, World Bank
171
The surging consumer market no one saw coming, Boston Consul�ng Group
172
Middle & Affluent Class=Monthly income over $300, Bangladesh: The Surging Consumer Market Nobody Saw Coming, Boston
173
Consul�ng Group
h�ps://www.ceicdata.com/en/indicator/bangladesh/forecast-nominal-gdp-per-capita
174
h�ps://knoema.com/gfwhcg/the-world-s-top-car-owning-countries?
192 | BIDA
Furthermore, recent government spending on infrastructure also bodes well for the
automobile industry as building of roads and bridges will improve the road communica�on
within the country leading to further growth in demand of commercial vehicles. Many ongoing
infrastructure projects are expected to lead to increase in economic ac�vity and consequently
increased demand for commercial vehicles.
SKD/ CKD Assembly for domes�c market: Automobile assembly in Bangladesh is currently at
a nascent stage, assembling around 1,000 units on average for passenger vehicles and 10,000
units for commercial vehicles during the
last five years. Approximately 15% of Na�onal Automobile Industry Policy 2020
annually marketed commercial vehicles Bangladeshi government has developed the
are assembled (mostly in CKD form) in Na�onal Automobile Industry Policy, which
the country, and less than 5% for aims to ensure a sound environment for
passenger vehicles (mostly in SKD form automobile manufacturers to achieve a
without body-welding and pain�ng modern and compe��ve manufacturing base
processes). As of the end of 2019, with local supply chain of parts/ components
several local companies in associa�on industries. The following are some of the
with global and regional brands have strategies that will be pursued as part of the
established assembly factories both for policy.
passenger (mostly during the last few • Promo�on of local assembly which
years) and commercial vehicles envisions the early shi� from CBU import
(rela�vely for the long period) while to SKD/ CKD assembly, through providing
some are planning or about to adequate incen�ves and import policies,
commence assembly. This pace is • Development of sound domes�c market
expected to accelerate soon with the for brand-new vehicles.
development of a Na�onal automobile • Development of local parts/ components
policy 2020. The assembly industry will produc�on with local contribu�on
receive a boost as the policy aims to guidelines,
promote local assembly and • Promo�on of R&D and development of
manufacturing of automo�ve products design and tes�ng func�ons,
in the country by crea�ng a business • Improvement of investment/ business
friendly environment for the OEMs climate.
through reduced corporate tax and
reduced import du�es at various levels of knockdown. This will provide assemblers
opportunity to produce four wheelers at lower cost and capture the burgeoning domes�c
market. Any globally renowned brands are
welcome to commence vehicle assembly in
either SKD or CKD form, by availing tax and
duty benefits awarded for each type of
assembly opera�on. Bangladeshi market
has been characterized by the increased
popularity for SUV and pick-up vehicles, in
addi�on to conven�onal sedan.
193 | BIDA
Manufacturing Oriented for Local Parts Sourcing: Although the government recognizes that
the assemblers tend to start with simple assembly, i.e., SKD otherwise CKD, Bangladesh
welcomes such manufacturers as
oriented for local parts fabrica�on or
sourcing. As this involves skills transfer/
capacity development to local human
resources or poten�al suppliers, that
are most expected spill-over effects of
investment. In view of comprehensive
development of automobile industry, it
is essen�al to develop suppor�ng
industries for automobile parts supply.
Newly announced automobile industry
policy aims to develop the basis of local
parts produc�on through the a�rac�on
of overseas parts suppliers (first- and
second-�er suppliers in par�cular), referring to the experiences of the neighboring Asian
countries where foreign suppliers have played a cri�cal role in building local suppor�ng
industries and nurturing local poten�al suppliers.
Material Supply and Services Essen�al for Parts Produc�on: Foreign investment can also play
a vital role in establishing the basis of material (for metal-working and plas�c processing) and
service provision essen�al for parts produc�on by the upper-�er suppliers. Experienced
providers for material forming and treatment services (stamping/ pressing, cas�ng/ forging,
machining, surface/ heat treatment, molds/ dies fabrica�on, jig/ fixture, plas�c injec�on,
tes�ng, etc.) are in need for helping automobile industries to locally source more value-added parts.
Suppor�ve Government Regula�ons & Incen�ves :

• Reduced corporate income tax for 5 to 10 years for manufacturing of automobile as well as
manufacturing of automobile parts and components (Income Tax Ordinance 1984, 46BB)
• Exemp�on of import du�es on capital machineries
• Full repatria�on of profits & ini�al investment amount
• Concessionary banking facility
• Statutory Regulatory Order (SRO 176/2019/33) which allows an exemp�on of value-added tax
(VAT) and supplementary duty (SD) imposed on imported parts/ components and materials for
CKD assembly of passenger vehicles below 1,600cc.
• Bangladesh Automobile Assemblers & Manufacturers Associa�on (BAAMA)

• Bangladesh Motorcycle Assemblers & Manufacturers Associa�on (BMAMA)
• Motorcycle Manufacturer and Exporters Associa�on Bangladesh (MMEAB)
194 | BIDA
Motorcycle
& parts
Motorcycle industry has emerged as one of the fastest growing industries in
Bangladesh, witnessing impressive growth for the last several years. Accoun�ng
for 68% of total automobile market in terms of units, motorcycle offers an alterna�ve
and cheaper mode of transporta�on to the
large popula�on of Bangladesh with Registered Vehicles in Bangladesh
Private
increasing purchasing power. As a result, the Passenger Cars
market of motorcycles in Bangladesh has 3 Wheelers
13%
8%
been expanding rapidly. Today more than
Commercial
1,000 units of motorcycle are sold daily. Vehicles
Annual local registra�on of motorcycle 11%
stood over 400,000 units in 2019, growing at
the rate of 35% per annum since 2014.
2 Wheelers
68%
Source: BRTA
195 | BIDA
Number of registered motorcycle in Bangladesh

450,000
400,000
350,000
300,000
250,000 CAGR 35%
200,000 395,603 406,897
150,000
332,057 326,550
240,358
100,000
50,000 114,616 101,588 85,808 90,685
-
2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: BRTA
Growth Poten�al
Growing Domes�c market: Motorcycle market is forecasted to grow con�nuously, owing to a
sizeable popula�on (motorcycle ownership ra�o is s�ll low in comparison with other Asian
countries), their ever-increasing purchasing power backed by steadily growing economy, and
increasing popularity of ride-sharing services. The Na�onal Motorcycle Development policy
has set a target of 1 million motorcycle produc�on by 2027, however industry insiders expect
to reach the target before that.175
Bike ownership ra�o in popula�on
In addi�on, motorcycle is a 100% 87%
83%
�me and cost efficient
80%
mode of transporta�on in 60%
traffic-congested city like 60% 47%
43%
Dhaka. Furthermore, 40%
19%
around 75% of popula�on 20%
is less than 40 years old,
20%
who would prefer to have h n di
a a ia d
es ta in ys an
convenient mobility lg ad a kis In Ch ala ha
il
n P M T
solu�on for their day to Ba
day needs. Annually held
BIKE SHOW a�racts a number of youth from all over the country.
Export Poten�al: Motorcycle is emerging as a new item of country’s export basket. The
industry has huge export prospects to many countries of SAARC, ASEAN, Middle East and
Africa. During FY 2018-19, motorcycles worth over USD 894,000 were exported to Nepal,
Bhutan and Japan. In order to promote exports further, the government is providing a cash
incen�ve of 10% against export.
175
h�ps://www.thedailystar.net/supplements/bikes-ridesharing/news/the-motorcycle-boom-bangladesh-1776466
196 | BIDA
Assembling Industry
Motorcycle assembling industry is flourishing in recent years, supported by untapped but
growing domes�c market, and the government policy. This industry is expected to play a
leading role in development of Bangladeshi suppor�ng industries through the crea�on of local
supply-chain and technology transfer. Currently, around
96% of the motorcycles imported are assembled in the
country . Several brands both interna�onal and local are
currently ac�ve in motorcycle assembling in Bangladesh,
while a few are undertaking opera�ons of import-sales or
Complete Built Unit (CBU). At present, brands such as
Bajaj, Honda, Suzuki, TVS, Mahindra, Hero, Runner,
Roadmaster, Grameen are being assembled or
manufactured in the country. Motorcycles up to 165cc
displacement is currently saleable in domes�c market,
though the 150cc displacement class is most selling.
The exis�ng motorcycle assemblers can be categorized into two groups; “Knock Down (KD)
Operator”, and “Manufacturer” which commences local parts produc�on as s�pulated by the
government regula�on. There are nine KD operators and four manufacturers in Bangladesh
(January 2018). Defini�on of “Manufacturer” is specific to Bangladesh, and is to serve as an
inducing regime for motorcycle assemblers to gradually enhance localiza�on of parts produc�on.
Defini�on of Manufacturer for motorcycles was

To qualify for the manufacturer status,
introduced by the government through a series
motorcycle producers shall locally
of Statutory Regulatory Order in 2016, 2017, manufacture at least one of the designated
2019 respec�vely. Motorcycle manufacturers, key parts (swing-arm, wheel, fuel-tank,
categorized into two groups in Bangladesh, are handle-bar and muffler) as well as
en�tled to duty reduc�on or exemp�on on their manufacture or assemble chassis.
imported parts and materials, if sa�sfying the
required condi�ons set in SROs. Duty benefits can be also availed by the parts suppliers to
those manufacturers on their imported materials
Parts Supply Industry

Local industries belonging to light-engineering and plas�c sectors could be poten�al sources of
motorcycle parts supply, however, these
industries in general face challenges in Backward linkage development of
terms of produc�on/ quality/ delivery Bangladeshi motorcycle industry is a key
management, cost compe��veness, interest expressed in the National Motorcycle
accessibility to Industry Development Policy 2018.
q u a l i t y
materials, molds/ dies and services (such as pain�ng, finishing,
tes�ng, inspec�on), to become reliable suppliers to the
manufacturers. Motorcycle assemblers in Bangladesh rely largely
on import for sourcing the parts for assembling, but they generally
show their willingness to source as many parts as possible from
local suppliers in view of minimizing cost and delivery �me.
Photo courtesy: Runner Automobiles Ltd.

197 | BIDA
Investment Opportunity
Motorcycle manufacturing oriented for local parts sourcing: Needless to say, motorcycle
manufacturers oriented for local parts sourcing is a prime-mover of Bangladeshi industry
development. Bangladesh welcomes such manufactures as contribu�ve to local suppor�ng
industry development through industrial linkage forma�on, that is a key spill-over effects of
investment. In view of comprehensive development of Bangladeshi motorcycle industry, it is
essen�al to enhance the capability of suppor�ng industry such as light-engineering and plas�c
industries. The Na�onal Motorcycle Industry Development Policy 2018 sets its vision to
develop the basis of local parts produc�on and supply, either through a�rac�on of foreign
parts suppliers or capacity development of the exis�ng local suppor�ng industries.
Interna�onally recognized brands such as Honda, Bajaj, TVS (registered as Manufacturer) are
seeking for possibility of local parts sourcing. Referring to the neighboring Asian countries,
foreign parts suppliers play a cri�cal role in leading local suppor�ng industry development.
This can be achieved through establishment of parts produc�on base, partnership with the
exis�ng local industries covering technical guidance.
Plas�c parts: Motorcycle assemblers in Bangladesh in general intend to commence local parts
sourcing with plas�c parts since this is deemed as more accessible by the exis�ng local
industries as long as adequate machines, materials and molds are available. According to a
survey (JICA 2018), poten�al needs for local sourcing exist for parts including head-/ back-light,
cowl, side-/ tail-cover, chain/ ba�ery case, indicator, mad-guard, etc.
Materials & services for parts produc�on: Foreign investment can play a vital role in
strengthening the basis of material (for metal-working and plas�c processing) and service
provision necessary for parts produc�on. Quality service providers of dies/ molds, heat
treatment, pain�ng, and material/ product tes�ng are in need for helping motorcycle
assemblers to locally source more value-added parts.
Regula�ons & incen�ves related to Motorcycle and Parts Industries:
• Statutory Regulatory Order (SRO 155/2016/17) which defines the progressive
manufacturers and allows duty reduc�on on their imported parts/ materials
• SRO (155/2017/41) which defines the local (category-1) manufacturers and allow duty
reduc�on or exemp�on on their imported parts/ materials (also to the parts suppliers)
• SRO (207/2018/810) which allows VAT exemp�on to local manufacturers and parts
suppliers on their imported parts/materials
• SRO (69/2019/05) which redefines the progressive (termed as category-2)
manufacturers and duty exemp�on on their imported parts
• Cash incen�ve of 10% is provided for export of motorcycle.
• Reduced corporate income tax of 5% for local manufactures of motorcycles �ll June
2021 and 10% from July 2021-June 2032.
Relevant Associa�on & Suppor�ng Ins�tu�ons

• Bangladesh Industrial Technical Assistance Center (BITAC)
• Pilot Plant Process Development Center (PP&PDC)
• Training Ins�tute of Engineering Industry Owners Associa�on
198 | BIDA
Shipbuilding
Industry Overview
Bangladeshi shipbuilding is an upcoming player in global market. Benefi�ng
from rela�vely cost compe��ve engineers and workers, it is compe��ve in the
small vessel segment. Although experiences of export building exists for the vessel
types of MPV and passenger ferry, it s�ll remains small in number. Accordingly, the
industry largely works for the orders from domes�c market.
Shipyard and produc�on: Industry associa�on Trend of Global New Shipbuilding Order and
reports around 100 ship builders and over 120 Order-receiving Countries (Number)
4,000
registered shipyards of varying size, located mostly 3,500
on the river banks. With the current limita�ons of 3,000
sites and low river dra� across the country, it is

2,500
2,000
possible to build vessels of size up to 15,000-20,000 1,500
dwt, being rela�vely smaller by the compe�ng 1,000

500
na�ons. Annual gross produc�on reaches 250,000 -
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GT at present, of which 185,000 GT are said for Japan S. Korea China Europe Others
domes�c orders. Source: The Shipbuilders’ Associa�on of Japan
199 | BIDA
Although some shipyards have export capability, those equipped with modern building
facili�es (such as computer-based control machining) and building experiences along with
interna�onal “class” standards remain a few (as represented by Western Marine, Ananda
shipyards). Annual building capacity for export orders is es�mated as more or less 20 vessels
currently. Majority of local shipyard produc�on is directed to domes�c market. Vessels for
inland water usage are largely built in local shipyards. On the other hand, domes�c demand for
ocean-going vessels have been met by overseas shipyards as well.
Vessel types built locally for domes�c usage include MPV, container, bulker, tanker, dredger,
tug as well as passenger ferry, and ranges from 1,000 to 20,000 dwt in size. Smaller vessels for
domes�c usage, inland waters in par�cular, are usually built without applica�on of “class”
standards.
Bangladesh is well known for ship breaking and recycling industries, which are generally
located close to shipbuilding yards, where arc furnace is usually installed to handle scrap
materials. This enables local ship builders to procure steel materials with ease for body
building for inland water vessels in par�cular.
Domes�c Market: In Bangladesh, almost 90% of fuels, 70% of cargos and 35% of passengers
are moved by waterways, bringing about a huge domes�c demand for vessels. Domes�c
demand has been growing constantly over the past decade. Locally registered number of
vessels has increased with average annual growth rate of 5.39% on average, owing to steady
economic and trade developments, and ac�vated infrastructure projects. Annual market value
of local shipbuilding currently reaches about USD 1 billion, and the demand growth is
forecasted to remain steadily.
Domes�c market has two segments. One is for inland waters vessels, and another is for
ocean-going vessels. These segments have
Trend of the Number of Registered Vessels
almost same size, and the number of 15000
registered vessel for each segment 14000
currently amounts to 13,000. Bangladesh 13000
shipbuilding industry has to largely rely on 12000
domes�c demand over the short and 11000
10000
midterm, and leverage the building 9000
experiences of the higher quality domes�c 8000
vessels to deepen capability of building 7000
export-quality vessels, and thus to realize
2011 2012 2013 2014 2015 2016 2017 2018
more interna�onal orders. Source: Ship Builders Associa�on

Inland water Sea going
Interna�onal Market: The world shipbuilding industry currently benefits from the market of
60 million gross tonnage (GT) of annual building in 2017. The value of global orders is
es�mated to grow to about USD 650 billion in 2026 (Business wire). Three Asian shipbuilding
giants, China, Japan, South Korea, have almost 90% of global market share, followed by EU.
Other countries, are compe�ng for the remaining 5% of new building orders. While three
Asians and EU seeks for orders of larger vessels (more than 50,000 deadweight tonnage: dwt)
in general, an opportunity exists for other countries to enter the smaller vessel segment.
200 | BIDA
Poten�als and Advantages

Poten�als and advantages of Bangladeshi capability to build classed vessels needs to be
shipbuilding industry lies in growing diffused widely together with expansion of
domes�c market, compe��veness for the suitable shipyard facili�es.
interna�onal small vessel segment, and
availability of skilled engineers and workers. Availability of skilled engineers and
The World Bank Group es�mates that workers: Bangladesh has
Bangladeshi shipbuilding grows at 10-15% compe��vely-priced skilled engineers and
per annum on average for the next decade. semi-skilled workers. Tailor-made training
opportunity for shipbuilding is also available
Growing domes�c market: Ship builders can under the coopera�on between the
expect growing domes�c demand of various government and industry associa�on, which
types of vessels for usage in inland and generates 6,000 workers every year and
coastal water, and ocean-going vessels for matches over 70% of them with job
regional cargo shipping, owing to steady opportuni�es in the industry.
economic/ popula�on growth, trade
expansion, and ongoing/ scheduled Availability of shipbuilding cluster:
infrastructure projects (that would increase Bangladeshi shipyards are agglomerated
demand for inland water shipment). Vessel along with the banks of major rivers in
types of fuel tankers, bulkers, cargo feeders, Narayanganj and Chi�agong in par�cular,
dredgers, tugs as well as passenger ferries mostly combined with ship breaking and
would be increasingly demanded. The World recycling yards. These areas have rela�ve
Bank es�mates that almost 300 to 400 convenient access to the u�li�es (power and
vessels be addi�onally demanded over the gas) and suppor�ng industries such as
next decade. As the Bangladeshi shipbuilding suppliers of steel materials, components and
industry is not able to deliver classed vessels fixtures.
in sufficient quan�ty, some of demands shall
be met by Chinese industry.
Compe��veness for interna�onal small

vessel segment: Bangladesh has poten�al to
compete for small vessel segment up to
12,000 dwt (MPVs, cargo feeders and
passenger ferries for regional services) in
interna�onal market, since labor cost
ma�ers more as vessel size is smaller.
Bangladeshi shipbuilding can enjoy labor cost
compe��veness of 20 to 30% rela�ve to
other countries, according to a local trade
body. A few local shipyards have already
track record of building export quality vessels
along with the class standards, however,
201 | BIDA
Shipyard development involving technical assistance for “classed” shipbuilding: Bangladesh
is an alterna�ve and prospec�ve place for building small size vessels clustered below 25,000
dwt, or 12,000 dwt realis�cally (given the current limita�on of shipyards and low river dra�
across the country), which can foresee the growing demand either from domes�c or
interna�onal markets. FDI or joint-venture is most expected to enhance both capacity and
capability of local industry to build class ships along with interna�onal standards, through:
• Development of new shipyards, or expansion/ renova�on of the exis�ng ones
• Upgrade of shipyards with modern facili�es such as computer-based machining, bending,
welding, shot blas�ng as well as heavy li�ing required for steelworks and component
assembling for rela�vely larger vessels.
• Technical assistance of more sophis�cated shipbuilding along with interna�onal class
standards and improved produc�vity.
Ship maintenance and repair services: Another area of investment opportunity lies in
maintenance and repair services, which are more labor-intensive than building new ships.
Since many vessels ply Bangladeshi waters, there would be general chances to benefit from
this shipping traffic. This would require further development of dry docks (or renova�on of the
exis�ng breaking/ recycling docks) to accommodate such vessels as required for overhaul with
sufficiently deep river dra�.
Supply of parts, components and fi�ngs: There are another poten�al area for investment,
backward linkage development. FDI or joint-venture by overseas suppliers could contribute
largely to reduce dependence on imported materials and components, and enhance locally
added value for vessels both for domes�c and export markets. Suppliers of steel pipes,
engines, generators, compressors, transformers, metal works (flanges, valves, propellers,
anchors, etc.) could be promoted locally.
Regula�ons related to shipbuilding

• Inland Shipping Ordinance 1976 sets defini�ons of vessels that ply in domes�c inland water.
Na�onal standards for such vessels are s�pulated as Bangladesh’s Domes�c Vessel Code.
• Merchant Shipping Ordinance 1983 sets defini�ons of all Bangladeshi vessels except those
plying in inland water, i.e. ocean-going vessels. Such vessels need to be cer�fied with the
“class” standards by interna�onally recognized accredita�on bodies.
Sector-specific investment incen�ves

• Reduced tax rate on export income: 5% for publicly traded company and 10% for
non-publicly traded company.
• Tax exemp�ons on capital gains from transfer of shares by the inves�ng company
• 5% import du�es on raw materials used for selling ships in local market
• 10% export subsidy on export of ships
Industry Associa�on
• Ship Builders Associa�on (BSA)
• Associa�on for Export Oriented Ship Building Industry (AEOSIB)
202 | BIDA
Construction
Materials
Bangladesh is experiencing rapid urban development. Dhaka, the capital city, has
emerged as one of the world’s fastest growing mega-ci�es, and other ci�es have also
experienced similar rapid growth in the recent years. Dhaka currently needs to
accommodate almost 600,000 people annually, equivalent to 120,000 household units every
year, although the current supply of housing units in the city amounts to 25,000 annually. At
the same �me, a number of mega-infrastructure projects176 are being implemented
con�nually, because infrastructure development is among the most important precondi�ons
for sustainable economic growth in Bangladesh. The World Bank es�mates that Bangladesh
must spend $7.4 billion to $10 billion a year un�l 2020 to bring its power grids, roads and
water supplies to serve its growing popula�on. Transporta�on sector alone would require
$36 ~ 45 billion of investment.
176
Read list of fast-track projects in ‘Focus Infrastructure’ in Chapter-1
203 | BIDA
Infrastructure development (including large-scale

megaprojects) and urbaniza�on drive growth of
both construc�on and real-estate sectors in
Bangladesh, which has been maintaining high and
steady annual growth rate (8% and 4% respec�vely)
of sectoral gross domes�c product during the last
five years (Bangladesh Bureau of Sta�s�cs). Growth
of these sectors thus generate a huge volume of
demand for construc�on materials such as steel and
cement products with the be�er quality.
Supply-Demand Balance:
Demand for construc�on materials in Bangladesh,
steel and cement products in par�cular, has been
rapidly expanding. Domes�c markets for steel and
cement rely local products as well as import. However, domes�c industries of these products
are yet sa�sfying demand sufficiently for diversified and high quality products.
Import of steel products and their raw materials has been increasing at the rate of 17% per
annum on average in recent years. Bangladesh imports them, mainly from China, Japan, India,
the United States, South Korea and Russia. Cements and clinkers (that are main raw material
Import amount of Cement Clinkers
for cement) has been also relying on import largely,
700 although the domes�c cement produc�on has
600
grown steadily. Clinker import in par�cular has
recorded an annual increase of more than 10%.
500
Vietnam, Indonesia and Malaysia are major
400 sources of clinker import to Bangladesh.
300
200
Consumers of these products in Bangladesh can be
largely grouped into two segments, private and
100
Million US$ Source: Bangladesh Bank public ones. Previously home-builders and
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
real-estate developers accounted for the larger
share, but the government’s public works including
megaprojects have propelled public sector to increase the share in recent years. As far as
cement is concerned, individual home-builders and real estate developers currently consume
about 25% and 30% of the total demand, while the public sector consumes almost 45%
(Bangladesh Cement Market Report 2017).
Steel Industry
Bangladesh is one of Asia's emerging steel markets and holds a growing demand for quality
materials and steel-fabrica�on technologies. Capacity of domes�c steel produc�on is growing,
and increment of demand has been propelled by government infrastructure projects which
account for 40% of consump�on.
204| BIDA
The industry consists of a number of steel re-rolling mills fabrica�ng “long products”, rebar and
small shape in par�cular, and limited types of “flat products” such as corrugated iron roof using
imported hot-coils. Most millers are small scale, but the industry can be represented by the
three largest players with their market share of 50%. Steel industry has been in a structural
shi� where large scale re-rollers is integra�ng the process of electric arc furnace (produc�on
of semi-finished product, billet for long products) owing to import tariff cut on scraps.
The industry s�ll needs to import hot-coils (semi-finished product) for fabrica�ng flat products,
since the process of hot-rolling is not established in Bangladesh. Further, par�cular
long-products such as large shape, sheet pile for construc�on largely rely on import.
Steel Consump�on in Bangladesh Steel Consump�on per Capita (2016)
4.5 600
4.0 485.2
500
3.5
400
3.0
328.8
2.5 300 279

236.1
2.0
200
1.5
1.0 100 63.2
48.5 45.5
24.9
0.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 0
kg
Million tons S o u r c e : Wo r l d S t e e l A s s o c i a � o n
S o u r c e : Wo r l d S t e e l A s s o c i a � o n
Steel consump�on has risen steadily over the years and is es�mated more than four million
tons today, that is five �mes of the level in 2008. However, the present level of per capita
consump�on, if compared to the peer countries, implies the further robust growth of demand
in the future.
Cement Industry
Demand for cement has grown at 12% per annum over the last five years, and this growth is
forecasted to persist with increased urbaniza�on and progress of megaprojects. Size of market
is es�mated around 22.5 million tons in 2016. In the same year, cement industry in Bangladesh
imports 14.0 million tons and has not been able to catch up with the growing demand, while
facing excess in installed capacity.
Overall public infrastructure projects account for 35% of the
country’s total cement consump�on, while the remaining is
consumed by private sector including real estate developers
(Bangladesh Cement Market Report 2017). Per capita cement
consump�on, compared to Asian peer countries, s�ll remains
low. This also implies tremendous poten�al for growth in the
cement industry in the long-term.
Today over 100 cement factories including small-scale ones
exists, and around 30 to 35 are in opera�on (Bangladesh
Cement Market Report 2017). The industry has experienced a
consolida�on over the years. Currently top 10 companies own
almost 80% market share but in general face excess in installed
capacity partly due to obsolete machinery.
205 | BIDA
600 570
Cement Produc�on/ Import in Bangladesh Cement Consump�on
25.0 per Capita (2016)
500
Produc�on Import
20.0
400
15.0 310
300 265
10.0 217
200
5.0 105
100
0.0
Million 2012 2013 2014 2015 2016 0
Tons Source: Bangladesh Bureau of Sta�s�cs 2016 kg Source: Bangladesh Bureau of Sta�s�cs 2016
Bangladeshi cement industry is heavily dependent on import of its main material, “clinker”,
and the government maintains low import duty on clinker to decrease import of cement
product. In Bangladesh, Portland composite cement, requiring less clinker compared to
Ordinary Portland cement, is dominant, whereas cements characterized by water-�ghtness
and long-term strength (thus more suitable for long-las�ng and large civil structures) are yet to
penetrate the market.
Substan�al growth of demand for construc�on materials (steel and cement) is promised owing
to enhanced urbaniza�on of Bangladeshi ci�es and progress of the Megaprojects, implying
great opportunity of investment into the industries, the following areas in par�cular.
Produc�on of specific materials: Construc�on of high-rise/ commercial buildings and

large-scale infrastructure projects would inevitably demand some specific materials, for which
foreign investors are expected to contribute to localized produc�on through establishment of
produc�on facility, and partnership with local industries via joint-venture, merger &
acquisi�on, etc.
• Steel: Long products such as large shapes including H-beam, angle, channel, and sheet piles .
• Cement: Hot-coils through hot-roller milling for fabrica�ng various flat products.
Products with long-term strength and water-�ghtness (more suitable for long-las�ng and
large civil structures) such as blast furnace slab cements, and tailored-products with
automated control of raw material mixture for catering to special requirements.
Energy-efficient produc�on: Although both steel and cement industries are energy
(electricity)-consuming, plant facili�es in use at local industries are generally not energy
efficient, thus indica�ng high needs for improving energy efficiency. Foreign manufactures are
expected to contribute to making local produc�on more energy-efficient by introducing
modern plant facili�es and energy-saving technology (for instance, clinker-grinding in case of
cement product), through partnership with local industries via joint-venture, merger &
acquisi�on, etc.
Industry Associa�ons
• Bangladesh Steel Manufactures Associa�on (BSMA)
• Bangladesh Auto Re-rolling and Steel Mills Associa�on (BARSMA)
• Bangladesh Cement Manufacturers Associa�on (BCMA)
206 | BIDA
Ceramics
The ceramics industry is a flourishing manufacturing
sector in Bangladesh, with many untapped poten�al for
global export. The sector enjoys duty free and quota free access
to markets in the EU, Canada, Australia, Norway etc. Besides the
availability of low-cost manpower, Bangladesh offers 10% cash incen�ve
facili�es on export. Around 54 ceramic industries are engaged in produc�on
and more than 29 industries are in the produc�on pipeline. Ceramics has many sub
sectors, which are tableware, �les, sanitary ware, insulator, bricks, roo�op �les, po�ery,
heavy clay, refractory and advanced ceramics. By 2025, the global ceramics market size will
reach USD 407.72 billion, according to a new report.177
Bangladeshi ceramics products are exported to more than 50 countries including USA, Italy,
Spain, France, New Zealand, the Netherlands, Australia and Sweden. In FY 2018-19, ceramics
export earnings were at USD 68.97 million, which made it the seventh most exported item. The
sector has been enjoying consistent growth in exports - about 26% in the last 3 years.178
177
https://www.grandviewresearch.com/press-release/global-ceramics-market
178
https://www.lightcastlebd.com/insights/2020/03/09/bangladesh-ceramic-industry-posing-promising-potential
207 | BIDA
Produc�on growth of the ceramic sector for the last 10 years was 200%, according to
Bangladesh Ceramic Manufacturers & Exporters Associa�on (BCMEA). At present the sector
employs around 5,00,000 people, including 55,000 direct employees and those from the
backward linkage industry.179
Category Types of products

Tableware Porcelain, Bone China, erthenware, stoneware, high alumina porcelain,
ivory china.
Tiles: Porcelain, Glaze Vitrifide Tiles, Printed Glaze Vitrifide Tiles, Ceramic Tiles,
Homogeneous, Soluble Salt, Rus�c Tiles, Mirror Polish, decor Tiles,
glaze polished �les, etc.
Sanitaryware Vitrifide, vitreous China.
Insulators High Voltage insulator, Low Voltage insulator
Heavy clay Earthenware, po�ery, utensils, terraco�a, roof �les, art wares etc.
Refractories High Alumina refractories products, silicon carbide, silicon nitride,

magnesium silicate
Advance Bio Ceramics, Dental Ceramics, Semiconductor Chips, Magne�c ceramics,

Ceramics machine tools, photonic and op�cal applica�ons etc.
Source: Bangladesh Ceramic Manufacturers & Exporters Associa�on (BCMEA)
Average produc�on per year:
Tableware Tiles Sanitary ware
254.50 million pieces 195.30 million Sq. meter 8.35 million pieces
Source: Bangladesh Ceramic Manufacturers & Exporters Associa�on (BCMEA)
Opportuni�es in Advanced Ceramics : Bangladesh is trying to go beyond tradi�onal usage of

ceramics to tap into this promising segment. The value-added features of such products mean
they can be used in energy conserva�on, water purifica�on, electronic and biomedical
applica�ons.180 The global market for these products is expected to reach USD 141.53 billion by
2025, at a compound annual growth rate of 9.91 percent between 2018 and 2025, according
to a recent study.181
179
https://tbsnews.net/economy/industry/ceramics-rising-star-industries
180
https://www.lightcastlebd.com/insights/2020/03/09/bangladesh-ceramic-industry-posing-promising-potential
181
https://www.fiormarkets.com/report/advanced-ceramics-market-by-material-titanate-alumina-zirconium-385911.html
208 | BIDA
Performance ra�o of sub sector-based export are given below:
Sanitary ware
Tiles 1%
1%
Tableware
98%
Source: BCMEA
Market Share:
Domes�c Market share of domes�c/imported ceramic product
120%
100%
80%
60%
40%
20%
0%
Tableware Tiles Sanitaryware
Local Imported
Source: BCMEA
Average domes�c consump�on per year

Domes�c Market Consump�on (Million BDT)
8,110.70 5,146.80
41,261.60
Tableware Tiles Sanitaryware

Source: BCMEA
209 | BIDA
Trade Benefits:
Ceramic industries are enjoying duty free and quota free access to developed countries such
as European Union, Switzerland, Belarus, Norway, Austria, Belgium, Bulgaria, Cyprus,
Denmark, Germany, Greece, Finland, France, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Netherlands, Poland, Portugal, Romania, Spain, Sweden, United Kingdom, Japan,
Turkey, Canada, Russia, Australia, New Zealand. This access to the global markets is further
helped by the fact that the policy regime of Bangladesh for foreign direct investment is the
best in South Asia.
Incen�ves:
• 10% cash incen�ve facili�es on export.
Trade Associa�on
• Bangladesh Ceramic Manufacturers and Exporters Associa�on (BCMEA)
• Bangladesh Ceramic Society (BCS)
210 | BIDA
Annexures
211 | BIDA
BEPZA incentives Non–fiscal Incentives
1. 10 years tax holiday for the Industries 1. 100% foreign ownership permissible
to be established before 1st January, 2. Enjoy MFN (most favoured nation)
2012 and duration and rate of tax status
exemption for Mongla, Ishwardi &
Uttara EPZ for the industries set up 3. No ceiling on foreign and local
after January 01, 2012: investment
Duration of Tax Rate of Tax 4. Full repatriation of capital & dividend
Exemption Exemption 5. Foreign Currency loan from abroad
First 03 years 100% under direct automatic route
(1st, 2nd and 3rd year) 6. Non-resident Foreign Currency Deposit
Next 03 years 50% (NFCD) Account permitted
(4th, 5th and 6th year)
7. Operation of FC account by 'B' and 'C'
Next 01 year 25% type Industries allowed.
(7th year)
Duration and rate of tax exemption for Facilities
Chittagong, Dhaka, Comilla, Adamjee &
1. No UD, IRC, ERC and renewal of Bond
Karnaphuli EPZ for the industries set up
after January 01, 2012: license
2. Work permits issued by BEPZA
Duration of Tax Rate of Tax
Exemption Exemption 3. Secured and protected bonded area
First 02 years 100% 4. Off-Shore banking available
(1st and 2nd year) 5. Import on Documentary Acceptance
Next 02 years 50% (DA) basic allowed
(3rd and 4th year) 6. Back to Back L/C
Next 01 year 25% 7. Import and Export on CM basis allowed
(5th year)
8. Import from DTA (Domestic Tariff Area)
2. Duty free import of construction 9. 10% sale to DTA (Domestic Tariff Area)
materials -
10. Customs clearance at factory site
3. Duty free import of machineries, office
equipment & spare parts etc. 11. Simplified sanction procedure
4. Duty free import and export of raw 12. Sub-contracting with export oriented
materials and finished goods Industries inside and outside EPZ
5. Relief from double taxation allowed
6. Exemption from dividend tax 13. Relocation of foreign industries
allowed
7. GSP facility available
14. Accords Resident-ship and Citizenship
8. Accelerated depreciation on machinery
or plant allowed 15. One Window same day service and
9. Remittance of royalty, technical and simplified procedure.
consultancy fees allowed
10. Duty & quota free access to EU,
Canada, Norway, Australia etc
212 | BIDA
Sea ports
Port name Location Type Authority
Chittagong Port Chittagong Large Sea Port* Chittagong Port
Authority
Mongla Port Mongla, Large Sea Port Mongla Port
Khulna Authority
Payra Port Patuakhali, Small Sea Port Payra Port
Barisal Division Authority
International Airports
Location Name ICAO IATA Role
Dhaka Hazrat Shahjalal VGHS DAC Commercial
International Airport
Chittagong Shah Amanat VGEG CGP Commercial
International Airport
Sylhet Osmani International VGSY ZYL Commercial
Airport
Domestic Airports
Location Name ICAO IATA Role
Barisal Barisal Airport VGBR BZL Commercial
Cox's Bazar Cox's Bazar Airport VGCB CXB Commercial
Jessore Jessore Airport VGJR JSR Commercial
Rajshahi Shah Makhdum Airport VGRJ RJH Commercial
Saidpur Saidpur Airport VGSD SPD Commercial
Cargo Airlines
British Airways World Cargo Martinair Cargo
Cathay Pacific Cargo MASKargo
China Airlines Cargo Midex Airlines
Emirates Sky Cargo Qatar Airways Cargo
Etihad Crystal Cargo Saudia Cargo
FitsAir Silk Way Airlines
Hong Kong Airlines Cargo Singapore Airlines Cargo
Korean Air Cargo TransGlobal Airways
Lufthansa Cargo Turkish Airlines Cargo
213 | BIDA
Land ports
Storage Handling
Location Port name Foreign side capacity capacity Operator
(yearly)
Benapole, Benapole Petrapole, 40,000 2614726.00 Bangladesh
Sharsha, Land Port Bongaon, MT MT Land Port
Jashore 24-Parganas, Authority
West Bengal,
India
Burimari, Burimari Changrabandh, 2,000 6978,979 Bangladesh
Patgram, Land Port Mekhaliganj, MT MT Land Port
Lalmonirhat West Bengal, Authority
India
Akhaura, Akhaura Ramnagar, 200 500,000 Bangladesh
Brahmnbaria Land Port Agartala, MT MT Land Port
Tripura, India Authority
Sadar Bhomra Gojadanga, 1600 2,628,795 Bangladesh
Upazila, Land 24-Parganas, MT MT Land Port
Satkhira Port West Bengal, Authority
India
Nalitabari, Nakugaon Dalu, 400 7065 Bangladesh
Sherpur Land Port Barangapara, MT MT Land Port
Meghalaya, India Authority
Goainghat, Tamabil Dauki, 400 78,1093 Bangladesh
Sylhet Land Shillong, MT MT Land Port
Port Meghalaya, India Authority
Bhurungamari, Sonahat Sonahat, 600 -- Bangladesh
Kurigram Land Port Dhubri, MT Land Port
Assam, India Authority
Shibganj, Sonamasjid Mahadipur, 1,000 2,000,000 Panama
Chapainawabganj Land Port Maldah, MT MT Sonamosjid
West Bengal, India Port Link Ltd.
Hili, Hili Land Hili, 2,000 1,000,000 Panama
Hakimpur, Port South Dinajpur, MT MT Hili Port
Dinajpur West Bengal, India Link Ltd.
Tetulia, Banglabandha Fulbari, 500 0.5 mln Banglabandha
Panchagarh Land Port Jalpaiguri, MT MT Land Port Ltd.
West Bengal,
India
Teknaf, Teknaf Land Mungdu, 1,000 300,000 United Land
Cox’s Bazar Port Myanmar MT MT Port Teknaf
Ltd.
Sadar Upazila, Bibirbazar Srimantapur, 500 0.5 mln Sheffrd Cumilla
Cumilla Land Port Sunamura, MT MT Land Port Ltd.
Agartala,
Tripura, India
* Land ports play a vital role in bridging communities and transporting goods. In Bangladesh, these provide transshipment and
transit facilities. The above list shows ports in operation.
214 | BIDA
BEZA economic zone sites
Government-owned economic zone sites
Name District Upazila
1. Anowara Ezonomic Zone Chattogram Anowara
2. Anowara Ezonomic Zone -2 Chattogram Anowara
3. Bangabandhu Sheikh Mujib Shilpa Chattogram Mirsarai
Nagar (Mirsarai, Feni & Sitakundo)
4. Shreehatta Economic Zone Moulvibazar Moulvibazar Sadar
5. Mongla Economic Zone Bagerhat Mongla
6. Shreepur Economic Zone Gazipur Shreepur
7. Sabrang Tourism Park Cox’s Bazar Teknaf
8. Dhaka SEZ, Keraniganj Dhaka Keraniganj
9. Jamalpur Economic Zone Jamalpur Jamalpur Sadar
10. Narayanganj Economic Zone Narayanganj Bandar and Sonargaon
11. Bhola Economic Zone Bhola Bhola Sadar
12. Ashuganj Economic Zone Brahmanbaria Ashuganj
13. Panchagarh Economic Zone Panchagarh Debiganj
14. Norshingdi Economic Zone Norshingdi Norshingdi Sadar
15. Nilphamari Economic Zone Nilphamari Nilphamari Sadar
16. Kushtia Economic Zone Kushtia Bheramara
17. Agoiljhara Economic Zone Barishal Agoiljhara
18. Manikganj Economic Zone Manikganj Shibaloy
(Unused land beside old Aricha
ferighat BIWTA)
19 Dhaka Economic Zone, Dohar Dhaka Dohar
20. Habiganj Economic Zone Habiganj Chunarughat
21. Shariatpur Economic Zone, Jajira Shariatpur Jajira
22. Shariatpur Economic Zone, Gosairhat Shariatpur Gosairhat
23. Naf Tourism Park Cox’s Bazar Teknaf
24. Cox’s Bazar Special Economic Zone, Cox’s Bazar Moheshkhali
Moheshkhali
25. Moheshkhali Economic Zone – 1, Cox’s Bazar Moheshkhali
Cox’s Bazar
26. Moheshkhali Economic Zone – 2, Cox’s Bazar Moheshkhali
Kalarmarchara, Cox’s Bazar
27. Moheshkhali Economic Zone – 3,
Dhalghata, Cox’s Bazar Cox’s Bazar Moheshkhali
28. Narayanganj Economic Zone, Sonargaon Narayanganj Sonargaon
29. Natore Economic Zone Natore Lalpur
30. Gopalganj Economic Zone Gopalganj Kotalipara
215 | BIDA
31. Araihajazar Economic Zone Narayanganj Araihajazar
32. Moheshkhali Special Economic Zone
Cox’s Bazar Cox’s Bazar Moheshkhali
33. Rajshahi Economic Zone Rajshahi Poba
34. Sherpur Economic Zone Sherpur Sherpur Sadar
35. Feni Economic Zone Feni Sonagazi
36. Mongla Special Economic Zone
(Indian SEZ) Bagerhat Mongla
37. Gopalganj Economic Zone – 2 Gopalganj Gopalganj Sadar
38. Patia Economic Zone Chattogram Patia
39. Moheshkhali Special Economic Zone,
Ghativanga-Sonadia Cox’s Bazar Moheshkhali
40. Sundarban Tourism Park Bagerhat Sharankhola
41. Bogura Economic Zone – 1 Bogura Shahajahanpur
42. Khulna Economic Zone – 1 Khulna Batiaghata
43. Khulna Economic Zone – 2 Khulna Terokhada
44. Sylhet Special Economic Zone Sylhet Goainghat
45. Kurigram Economic Zone – 1 Kurigram Kurigram Sadar
46. Netrakona Economic Zone – 1 Netrakona Netrakona Sadar
47. Moheshkhali Economic Zone,
Kalarmarchara Cox’s Bazar Kalarmarchara
48. Mymensingh Economic Zone,
Ishwarganj Mymensingh Ishwarganj
49. Mymensingh Economic Zone Mymensingh Mymensingh Sadar
50. Alutila Special Tourism Zone Khagrachari Matiranga &
Hill Tracts Khagrachari
51. Araihazar Economic Zone – 2 Narayanganj Araihazar
52. Jamalpur Economic Zone – 2 Jamalpur Jamalpur Sadar
53. Rampal Economic Zone Bagerhat Rampal
54. Gajaria Economic Zone Munshiganj Gajaria
55. Madaripur Economic Zone Madaripur Rajoir
56. Faridpur Economic Zone Faridpur Faridpur Sadar
57. Sitakindo Economic Zone Chattogram Sitakundo
58. Chandpur Economic Zone – 1 Chandpur Matlab Uttar
59. Chandpur Economic Zone – 2 Chandpur Haimchar
216 | BIDA
Private Economic Zone Sites
60. A.K.Khan and Comapny Ltd.
Economic Zone, Narshingdi Palash
61. Abdul Monem Economic Zone Munshiganj Gajaria
62. ‘Garments Industries Park’ proposed by
BGMEA Munshiganj Gajaria
63. Meghna Industrial Economic Zone Narayanganj Sonargaon
64. Meghna Economic Zone Narayanganj Sonargaon
65. Famkam Economic Zone Bagerhat Rampal
66. Cumilla Economic Zone Cumilla Meghna
67. Aman Economic Zone Narayanganj Sonargaon
68. Bay Economic Zone Gazipur Konabari
69. Sirajganj Economic Zone Sirajganj Sirajganj Sadar, Belkuchi
70. Aliance Economic Zone Cumilla Daudkandi
71. Arisha Economic Zone Dhaka Savar, Keraniganj
72. United City IT Park Ltd. Dhaka Vatara & Badda
73. East-Coast Group Economic Zone Habiganj Bahubal
74. Sonargaon Economic Zone Narayanganj Sonargaon
75. Bashundhara Economic Zone Dhaka Keraniganj
76. East-West Special Economic Zone Dhaka Keraniganj
77. City Economic Zone Narayanganj Rupganj
78. City Special Economic Zone Dhaka Demra
79. Akiz Economic Zone Mymensingh Trishal
80. Karnaphuli Dry Dock Special
Economic Zone Chattogram Anowara
81. Abul Khair Economic Zone Munshiganj Gajaria
82. Kishoreganj Economic Zone
(Nitol Motors Ltd.) Kishoreganj Pakundia
83. Hamid Economic Zone Mymensingh Trishal
84. Chatak Economic Zone Sunamganj Chatak
85. Standard Global Economic Zone Munshiganj Gajaria
86. Hoshendi Economic Zone Munshiganj Gajaria
87. Kazi Farms Economic Zone Ltd. Chattogram Chandnaish
88. Anowar Economic Zone Munshiganj Gajaria
217 | BIDA
Bonded warehouse types Bonding period
Special Bonded Warehouse 24 Months; Commissioner reserves the power to
extend the bonding period for a maximum of 6
months
Direct Exporter 24 Months; Commissioner reserves the power to
extend the bonding period for a maximum of 6
months
Home Consump�on Bond (e.g. 6 Months; Commissioner may extend the bonding
Bri�sh American Tobacco, Hayes period for 3 months and NBR may further extend the
and Haier, Meghna, Ci� group, TK) bonding period for 3 months
Deemed Exporter 24 Months; however, Commissioner reserves the

power to extend the bonding period for a maximum
of 6 months
Diploma�c and privileged persons 12 Months; Commissioner may extend the bonding
Bonded warehouse period for 3 months and NBR may further extend the
bonding period for 3 months
Ship Builders Bond 48 Months; bonding period is extendable.
Trade Associa�ons in Bangladesh

Chambers of Commerce
Dhaka Chmber of Commerce and Industry The Federa�on of Bangladesh Chambers of
DCCI Building Commerce & Industry (FBCCI)
65-66 Mo�jheel C/A 60, Mo�jheel C/A., Dhaka, Bangladesh
Dhaka-1000, Bangladesh Tel : 880-2-9560482, 880-2-9560102-3
Phone : 880-2-9552562 Fax: 880-2-9567621
Fax : 880-2-9560830 E-mail: �cci@bol-online.com
E-mail : info@dhakachamber.com URL : www.�cci-bd.org
URL : www.dcci.org.bd
Chi�agong Chamber of Commerce and Industry Interna�onal Business Forum of Bangladesh

WTC Building House # 10, Road # 19/A, Block # E
105, Agrabad C/A Banani, Dhaka-1213
Chi�agong, Bangladesh Bangladesh
Phone: 88-31-713366 Phone: 880-2-9840192-3
Fax: 88-31-710183 Fax: 880-2-9840089
E-mail: info@chi�agongchamber.com E-mail: info@ib�.org
URL: h�p://www.chi�agongchamber.com/ URL: h�p://www.ib�.org/
Metropolitan Chamber of Commerce & Industry Trade Associa�ons

Chamber Building
122-124, Mo�jheel C/A, Dhaka-1000, Bangladesh Associa�on of Air Cargo Agents of Bangladesh (AACAB)
Phone : 880-2- 9565208-10 House 45 (3rd Floor), Road 17, Banani Dhaka
Fax : 880-2-9565211, 9565212 Tel: 9881663, Fax: 9881664
E-mail : sg@citecho.net, info@mccibd.org E-mail: acabhq@intechworld.net
URL : h�p://www.mccibd.org/
218 | BIDA
Associa�on of Travel Agents of Bangladesh (ATAB) Bri�sh Trade Center
Sa�ara Center United Na�on Road, Baridhara, Dhaka-1213,
(15th Floor), 30/A Naya Paltan Bangladesh
VIP Road, Dhaka-1000, Bangladesh Tel : 880-2-8822705-9
Phone : 880-2-9332728, 880-2-9332712 Fax : 880-2-8823437
Mobile : +880-1715-228953
Fax : 88-02-8355595 Foreign Investor's Chamber of Commerce and
E-mail : info@atab.org.bd, atab@citech.net Industry Bangladesh (FICCI)
URL : www.atab.org.bd "Shama Homes", Apt. # C-3
House # 59, Road # 1, Block # I,
Bangladesh Associa�on of Interna�onal Recrui�ng
Banani, Dhaka-1213
Agencies (BAIRA)
Phone: 880-2-9893049, 880-2-9892913
BAIRA Bhaban Fax: 880-2-9893058
130, New Eskaton Road, Dhaka-1000, Bangladesh
Tel : 880-2-8359482, 880-2-9345587,880-2- E-mail: info@ficci.org.bd, ficci@bdcom.net
9331244 URL: h�p://www.ficci.org.bd
Fax : 880-2-9344979
E-mail : baira1984@gmail.com Japan External Trade Organiza�on (JETRO)
URL : h�p://www.baira.org.bd/ Sharif Plaza 3rd Floor
39, Kamal Ataturk Avenue, Banani, Dhaka-1213,
Leather Goods and Footwear Manufacturers and Bangladesh
Exporters Associa�on of Bangladesh Tel: 880-2-8818222, 880-2-8818223
Erectors House Fax : 880-2-8818224
18, Kemal Atartuk avenue (9th Floor) E-mail : bad@jetro.go.jp
Banani C/A h�ps://www.jetro.go.jp/bangladesh/
Dhaka-1213, Bangladesh
Phone: 880-2-9821418-19
Korean Trade Centre, Dhaka
Fax: 880-2-9821420
Navana Tower (10th Floor)
E-mail: info@lfmeab.org
Gulshan-1
URL: h�p://lfmeab.org/
Dhaka-1212, Bangladesh
Bangladesh Garment Manufacturers & Exporters Phone: 880-2-8813153, 8824218, 8822357
Associa�on (BGMEA) Fax: 880-2-8823068
BGMEA Complex E-mail: jmorning@kotra.or.kr
23/1 Pantha Path Link Road, Kawran Bazar, URL: h�p://www.kotra.org.bd/index.jsp
Dhaka-1215
Tel : 880-2-8140310-20 Trade Center of China
Fax : 880-2-8140322, 880-2-8140323 Plot # 2 & 4, Block-1, Road # 3
E-mail: info@bgmea.com Baridhara, Dhaka-1212, Bangladesh
URL : www.bgmea.com.bd Tel : 8824862, 8825272
Fax : 8823004
Foreign Trade Bodies in Bangladesh
American Chamber of Commerce In Bangladesh

Room # 319, Ruphoshi Bangla Hotel, Dhaka,
Bangladesh
Tel : 880-2-8330001, 8358060,
Fax : 880-2-8312975, 9349217,
E-mail: amcham@bangla.net
amcham@amchambd.org
URL : www.amchambd.org
219 | BIDA
Trade Associa�ons
1 Associa�on of Export 03 Mo�jheel C/A, 9567197,
Oriented Ship Building Dhaka-1000. 9551171,
Industries of 9551060
Bangladesh
2 Bangladesh BAPA House # 15 (1st Floor 8144536,

Agro-Processors’ West Side) Road # 16 01730-302198,
Associa�on (New) 27(Old) 01711-647585
Dhanmondi R/A,
Dhaka-1209
3 Bangladesh Associa�on BASIS BDBL Bhaban (5th 8151196-7,

of So�ware & floor-West) 12 8144708-9
Informa�on Services Kawran Bazar,
Dhaka-1215.
4 Bangladesh Aushad House # 41 (Level-1) 8816767,

Shilpa Samity Road # 4, Block-F 9889731,
Banani, Dhaka-1213 8824163
5 Bangladesh Ayurvedic BPL Bhaban (3rd 7445525,

Medicine Floor) 89- 89/1, 01714-171769
Manufacturers Arambagh Mo�jheel
Associa�on C/A, Dhaka-1000
6 Bangladesh Backward House # 15, Road # 8836015-7(O),

Linkage Manufacturers 12, Block # F 8836075,
Niketan, 8113661
7 Bangladesh Backward House # 15, Road # 8836015-7(O),

Linkage Manufacturers 12, Block # F 8836075,
and Exporters Niketan, Gulshan-1, 8113661
Associa�on Dhaka-1212 01713-005125
8 Bangladesh Bi-cycle & 187-188/8 Tejgaon 8817611,

Parts Manufacturers’ I.A, Dhaka. 8817611-4
and Exporters
Associa�on
9 Bangladesh Bu�on House # 180, Road # 01711-521276

Manufacturer & 02, New DOHS,
Exporters Associa�on Mohakhali,
Dhaka-1212
10 Bangladesh C.R. Coil 255, Nasirabad 031-681240-44,

Manufacturers & Industrial Area
Exporters Associa�on Chi�agong. 01817-053811
220 | BIDA
11 Bangladesh Ceramic TMC Building (8th 9340991-3,
Wares Manufacturers floor) 52, New 01913-535149
Associa�on Eskaton Road,
Dhaka-1000.
12 Bangladesh Cha Tea Progressive Tower 716407,

Sangsad Associa�on (4th Floor) 1837, Sk. 502536(O),
of Mujib Road 8827389(R)
Bangladesh Badamtoli, Agrabad
C/A,
Chi�agong-4100
13 Bangladesh Cigare�e KichukhanBhaban 9122895-7(Off)

Manufacturers’ (3rd floor) 43/1,
Associa�on Ullan Road,
Rampura,
Dhaka-1219
14 Bangladesh Cosme�cs Square Centre, 48 +880-2-8817729,

& Toiletries Mohakhali C/A +880-2-8827729
Manufacturers Dhaka-1212,
Associa�on Bangladesh
15 Bangladesh Dyed Yarn Erectors House (9th 9821418-9

Exporters Associa�on floor) 18, Kamal
Ataturk Avenue
Banani C/A,
Dhaka-1213
16 Bangladesh Electronics 94 Malibagh DIT 9552078,

Manufacturers Road, Dhaka-1217 9557967
Associa�on
17 Bangladesh Engineering 38, Tipu Sultan 7173403,

Shilpa Malik Samity Road, Dhaka 01713-047627
18 Bangladesh Finished BFLLFEA House No. 32/A, 8622167-8

Leather, Leather Goods Road No. 2, Flat No.
&Footwear Exporters B-2 Dhanmondi R/A,
Associa�on Dhaka-1209
19 Bangladesh Fish ElishBhaban, Fish 0431-63866,

Exporters & Importers Market, Court Road, 01715-168006
Associa�on Barisal
221 | BIDA
20 Bangladesh Flower BFGEA 625/1, BaitulAman 8120434,
Growers and Exporters Housing Society (4th 9141750,
Associa�on floor), Road No. 4, 9132452
Mohammadpur,
Dhaka
21 Bangladesh Frozen BFFEA Skylark Point (10th 8316882,

Foods Exporters Floor) 24/A Bejoy 8354857,
Associa�on Nagar, North South 8317531
Road, Dhaka
22 Bangladesh Fruits, Rahmania Int’l 9560506 (Ext:
Vegetables & Complex (5th Floor) 101, 102, 103 &
AlliedProducts Room # 11, 28/1/C, 105)
Exporters' Associa�on Toynbee Circular
Road Mo�jheel,
Dhaka-1000.
23 Bangladesh Furniture B-220-224, 9895121,

Exporters Associa�on Shopping Centre 01712-666942,
(3rd floor) 01711-522568
Gulshan-1,
Dhaka-1212
24 Bangladesh Garment BGMEA 23/1, Panthapath 028140310-20,

Manufacturers & Link Road, Karwan 028140310,
Exporters' Associa�on Bazar, Dhaka 1215 01711-520099
25 Bangladesh Garments “Sonatari Tower” 880-2-9666763,

Accessories & (9th Floor) Plot 8621200
Packaging No.12, Biponon C/A
Manufacturers & Sonargaon Link
Exporters Associa�on Road, Dhaka
26 Bangladesh Handicra�s BANGLAC BTMC Bhaban 7-9 9119090,

Manufacturers & RAFT Kawran Bazar (4th 01713-013608
Exporters Associa�on Floor), Dhaka-1215
27 Bangladesh Herbal Atlan�c Wazuddin 9669543,

Products Tower (3rd floor) 01711-529179
Manufacturing 168, Elephant Road,
Associa�on Ha�rpool,
Dhaka-1205
222 | BIDA
28 Bangladesh 32, NayaPaltan (3rd 9358279,
Homeopathic Medicine Floor) DIT Extension 01711-540901
Manufacturers' Road, Dhaka 1000.
Associa�on
29 Bangladesh Jamdani Feroza Tower (1st 01718-259521

Manufacturers & floor) 42/A/2,
Exporters Associa�on Hatkhola Road
Tikatuli, Dhaka-1203
30 Bangladesh Jewelry 88, Anarkali Super 9357539,

Manufacturers, Market (4th floor) 8322314
Exporters & Merchants Mowchak,
Associa�on Siddeshwari, Dhaka.
31 Bangladesh Jute BJA 77, Mo�jheel C/A, 9552916

Associa�on Dhaka. Ext: 111
32 Bangladesh Jute Goods BJGEA 9/G,Mo�jheel C/A, 952910,
Exporters Associa�on Dhaka 1000. 9553428,
7176935
33 Bangladesh Jute Mills BJMA Adamjee Court (4th 9566472,
Associa�on Floor) 115-120 9555798 (O)
Mo�jheel C/A,
Dhaka-1000
34 Bangladesh Jute Mills BJMC
Corpora�on
35 Bangladesh Jute BJSA 55/A, PuranaPaltan 9551317

Spinners Associa�on (3rd Floor), Dhaka.
36 Bangladesh Knitwear BKMEA Press Club Bhaban 7640535,

Manufacturers & (1st& 3rd floor) 7641295,
Exporters Associa�on 233/1, B.B. Road, 7641857,
Narayanganj-1400 8620377
37 Bangladesh Live & House-41 (3/B), +8801677114411

Chilled Food Exporters Sonargaon
Associa�on Janapath, Sector-12,
U�ara, Dhaka-1230.
38 Bangladesh Marine 13/A Centre Point 9120234,

Fisheries Associa�on Concord Suit No. 031-637009
13/A (13th Floor),
Farmgate, Dhaka
223 | BIDA
39 Bangladesh Mudran City Heart (4th Floor) 9351728,
Shilpa Samity 67, NayaPaltan, 8321023
Dhaka.
40 Bangladesh Paper Mills Plot # 335 (1st 8401806,
Associa�on floor), Block-D 01730-018370
Bashundhara R/A,
Dhaka-1229
41 Bangladesh Pet Bo�le BPFMEA City Heart, Suit # 5/8 9348198,
Manufacturers & (4th floor) 67, 01711-530077
Exporters Associa�on NayaPaltan, VIP
Road, Dhaka-1000
42 Bangladesh Plas�c BPGMEA Paltan Tower, Suite 8350192,

Goods Manufacturers & No. 603 & 604 87, 01711-523423,
Exporters Associa�on PuranaPaltan Lane 01819-458250
(6th Floor), Dhaka
43 Bangladesh Potato BPEA 67, PuranaPaltan 9338562,
Exporters Associa�on Line Dhaka-1000 8332698
44 Bangladesh Rubber Brothers Mension 01713-003766,
Bagan Owner (1st floor) 8, 01819-389470
Associa�on Kalabagan, First
Lane, Dhaka-1205.
45 Bangladesh Specialized Suite # 204, Paltan 9360736,

Tex�le Mills & Tower (2nd floor) 8351973,
PowerloomIndustries 87, Purana 9553467,
Associa�on PaltanLane, 9667029,
Dhaka-1000 01911-393750,
01938-162500
46 Bangladesh Terry Towel BTTLMEA Paltan Tower(5th 9351815,
& Linen Manufacturers fl.),Suit#507 87, 9351820,
& Exporters Associa�on PuranaPaltan Line, 8853141
Dhaka-1000
47 Bangladesh Tex�le and House # 15, Road # 8920413,
Garments Waste 7, Sector # 4 U�ara, 01731-317155
Processors & Exporters Dhaka.
Associa�on
48 Bangladesh Tex�le Mills BTMA 8 Panthapath, 9143461,

Associa�on Kawran Bazar 9130969,
Dhaka-1215 8112361 (Off)
224 | BIDA
49 Exporters Associa�on of 406-B, Khilgaon, 7217403,
Bangladesh Chowdhury Para, 7214912,
Dhaka. 01711-525717,
01977-222222
50 Homeopathic Medicine 9/7, Secretariat 9571788,

& Medicinal Plant Road, Fulbaria, 01715-151649
Importer & Exporter Dhaka.
Associa�on of
Bangladesh
51 Leather Goods LFMEAB Erectors House (9th 9880102-5

andFootwear Floor) 18 Kemal
Manufacturers and Ataturk Avenue
Exporters Associa�on of Banani C/A,
Bangladesh Dhaka-1213
52 Packaging Industries 68, Dilkusha 9557275,

Associa�on of C.A.(Ground Floor) 9557271,
Bangladesh GPO Box No.535, 9552591-2,
Dhaka-1000. 01711522258
53 Silk Manufacturers’& Suite No. 2 (4th floor), 8827112

Exporters Associa�on of Highway Homes
Bangladesh Ka-32/6 Prago�Saroni
Shahjadpur, Gulshan,
Dhaka-1212
54 Tour Operators 5/8, Monipuripara 9136554,

Associa�on of Sangshad Avenue, 9862205
Bangladesh Dhaka-1215
Source: Export Promo�on Bureau
225 | BIDA

Bangladesh Investment Handbook - A Guide For Investors PDF

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Father of the Nation

Bangabandhu Sheikh Mujibur Rahman

Published in year 2020

For queries please contact:

Bangladesh Investment Development Authority

E-6/B, Sher-e-Bangla Nagar, Dhaka-1207

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Joi Bangla, Joi Bangabandhu

Salman Fazlur Rahman MP

Md. Sirazul Islam

Bangladesh facts 15-19

Chapter 1: Business climate and opportuni�es

Chapter 2: Star�ng a business

Chapter 3: Cost of doing business

Chapter 4: Paying taxes

Chapter 5: Applying for visa

Chapter 6: Sector overviews

Overview of economic indicators

Percentage of the popula�on living in4 :

The total employed popula�on Labour Force Survey, 2016-17

(15+): 63.5 million

Why invest in Bangladesh?

Bangladesh is one of the fastest growing economies in the

One of the world’s

Fastest growing economy in the Asia-Paciﬁc region

ANNUAL GDP GROWTH RATE (%)

Source: Bangladesh Economic Review 2019 & World Bank data

FDI is expected to rise further, supported by regulatory reforms, infrastructure development

FOREIGN DIRECT INVESTMENT (FDI) TRENDS

FDI net (million USD) FDI (%of GDP)

Source: Bangladesh Bank

FOREIGN EXCHANGE RESERVE

Source: Bangladesh Bank (*un�l February)

INFLATION RATE (%)

Source: Bangladesh Bank

Strong domes�c market

CONSUMPTION (IN BILLION TK)

Source: Bangladesh Economic Review 2019, *provisional BBS data

PER CAPITA GDP (BDT) AT CURRENT PRICE

Source: Bangladesh Economic Review 2019, *provisional BBS data

Nation of Competitive Youths

Source: Bangladesh Economic Review 2019

Competitive Cost of Labour

Low cost and high return manufacturing des�na�on in Asia

MONTHLY WORKER SALARY/USD

Source: JETRO survey 2019

Ready with Infrastructure

The approach to infrastructure in Bangladesh has been groundbreaking. The government’s

Categories Number Total length

Zilla Highways 701 13423 km

Cha�ogram 3699 82939731 6846406 89786137 2.86 2808499

BIDA REGISTERED PROJECTS (MILLION USD)

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

BIDA’s OSS portal

These ‘industrial undertakings’ are eligible for tax exemp�on under

• Home appliances (blender, rice cooker, • Nanotechnology based product

List of physical infrastructure facili�es eligible for Tax exemp�on under

Incen�ves for export oriented industry

Agro Products & Jute Products

Cash or export incen�ves, fund transfer-related incen�ves

Cash or export incen�ves, fund transfer-related incen�ves

Cash or export incen�ves, fund transfer-related incen�ves