Nazmul Islam. Ambassador of Bangladesh

Transcription

1 Nazmul Islam Ambassador of Bangladesh

2 Bangladesh: A Land Of Immense Potentials Bangladesh Embassy, Stockholm

3 Bangladesh at a glance Area Population Father of the Nation Independence Day 147,570 sq km 160 million Bangabandhu Sheikh Mujibur Rahman 26 March Language State language is Bangla English is used as second language Population Density 1077 per sq km (2015) Life Expectancy 70.9

4 Bangladesh at a glance Literacy Rate 74% Key Industries Major Exports Major Imports Natural Resources Ready-made Garments, Pharmaceuticals, Cements, Chemicals, Jute, Ship- Building, Leather & Leather Goods Ready-made Garments, Frozen Foods, Leather & Leather Goods, Jute & Jute Products, Tea, Ceramic Products, Light Engineering Crude Oil & Petroleum Products, Cement Clinker, Fertilizer, Edible Oil, Iron, Steel, Cotton Natural gas, Coal, Lime, White Clay, Granite, Glass & Sand

5 Dream of Sonar Bangla

6 Vision 2021 Digital Bangladesh Vision 2041

7 Growth Story of Bangladesh Parameters What We Were What We Are Per capita (USD ) ( ) 1610 ( ) GDP growth 4.62% (1976) 7.28% ( ) Export (USD ) 0.4bn (1976) bn ( ) FDI (USD ) 7 million (1977) 2.33 billion (2016) Forex Reserve (US$) 0.27 bn (1972) bn (2018) Electricity Gen. Capacity 3362 MW (2009) MW (2017)

8 Progress in Development Goals Poverty Reduction

9 Progress in Development Goals Healthy Living and Well-being

10 Progress in Development Goals Access to water and sanitation

11 Bangladesh: An Emerging Economy 11 Source: PricewaterhouseCoopers

12 Bangladesh: An Emerging Economy Bangladesh among the next eleven countries likely to emerge as economic successes. (Goldman Sachs) Bangladesh is listed in the Emerging Five by JP Morgan

13 Bangladesh towards Sustainability Inclusive Social Development: Leaving no one behind Poverty rate has come down significantly Bangladesh has topped the South Asian countries in gender equality for the third consecutive year, ranking 47th among 144 nations Ranked 34 th in the WEF s Inclusive Development Index's list of emerging economies (2018) being way ahead of her peers

14 Bangladesh towards Sustainability Bangladesh Economy: Transformative and sustained growth The economy grew at an average rate of 6.20% over the last one decade; last year it was 7.28% Per capita income of in Bangladesh has almost tripled over the last ten years and stands now at US$ 1610 Foreign currency reserve has also for the first time crossed US$ 33 billions- the 2 nd highest in South Asia 08 fully operational Export Processing Zones (EPZs) exclusively for 100% export oriented industries Establishment of 100 Economic Zones (EZs) is ongoing to promote more industrialization and economic growth Developing a number of Hi-tech Parks, that offers competitive incentive packages for the investors

15 Bangladesh towards Sustainability Human Resource Development: A Priority Area An estimated 12.9 million additional jobs will be created by 2020 Around 1.3 million ICT professionals, along with, 10,000 ICT entrepreneurs The total size of the ICT market in Bangladesh was merely $26 million in 2008 which now has reached to $600 million

16 Bangladesh and Sweden Bilateral Relations Extended support during our war of liberation in Recognized Bangladesh on 04 Feb Helped Bangladesh s war ravaged economy through Sida. Visit of Hon ble Prime Minister of Bangladesh to Sweden in June Exchange of high level visits in recent years. Graduation of BD-Sweden relations where trade & investment has taken a front seat. Political and financial commitment for the ongoing Rohingya crisis.

17 Bangladesh and Sweden Development partner Sweden has been a development partner of Bangladesh since Swedish International Development Cooperation Agency (Sida) has remained invested in socio-economic developments of Bangladesh since then. Development cooperation is also set to enter a new phase as Sweden is going to take up a project interlinking Trade and Development Cooperation.

18 Bangladesh and Sweden Trade and Investment partner At present, Bangladesh and Sweden enjoy excellent trade relationship although it is yet to realize full potentials. The bilateral trade in was 557 million US dollar. FDI net inflows from Sweden in 2015 was million US dollar.

19 Investment Prospects & Facilities Geo-Strategic Location Low Cost & Competitive Workforce Low Cost of Energy Proven Export Competitiveness Positive Investment Climate Export & Economic Zones

20 Bangladesh a Success Story Bangladesh is going ahead

21 Big name in Business World already in Bangladesh

22 Vibrant Economy

23 Access to Market of 3 Billion People 23

24 Macro Economic Stability GDP Growth Trend (5 years moving average) Poverty headcount rate (%) 14,5 9,5 GDP Growth of South Asian Countries India Pakistan Bangladesh 4,5-0,5 24

25 12 Inflation rate of Bangladesh 10 10, ,78 8,94 9,07 8,15 8,27 8 7,54 7,62 7 6,77 7,03 6,19 6,31 6 5,43 5,59 5,19 4 3,37 Per Capita income 2 & Inflation 1,93 2,39 2,

26 Growth Has Followed an Upward Trend since Liberation

27 COMPARATIVE STATEMENT ON EXPORT OF RMG OF BANGLADESH YEAR EXPORT OF RMG (IN MILLION US$) Data Source Export Promotion Bureau Electronics Sector Profile A large and Increasing domestic market contributing to the steady reduction of Poverty Employment Direct 0.1 mil- lion & Indirect 0.4 million Approx. USD 1.9 bn market demand Local Production approx. USD 1 bn Level of Technology-low to intermediate Included in Priority Sector in the Industrial policy Investment Opportunity for assembling plant is high. Only few local brands are operating widely. Massive expansion would required is investment and competition Sectors with global Growth brands and major Advertisement/ brands globally Bangladesh Pharmaceutical Market Total market size >$3.00 billion (IMS 2015) Nearly self sufficient; 98% demand met by local production Historically good growth maintained (>10%; last 3 yrs ~15%) Declared as the thrust sector owing to huge export potential Largest white collar labor intensive employment sector Registered pharmaceutical companies: 257 Kay Facts Shipbuilding No. of shipyards: 100+ International standard shipyards: 10+ Standard approval: IACS (i.e. LR, GL, BV, NKK, RINA) Capacity: 10,000-15,000 DWT ships Employment: 100,000 skilled workers / 150,000 semi-skill Most cost-effective human resources in comparison with other shipbuilding nations Simple importation & green channel facility of raw materials Govt. declared thrust sector for provision of maximum benefits

28 Agro Processing Industry Sectors Growth Leather & Leather Goods Sectoral heads of leather and Leather goods Employment Present scenario 1m Local :Import(source of leather products) 80:20 shoe making units the domestic market Export oriented production Unit 110+ Market size(local +Overseas) $ 1.5Bn (.5+1) Finished Leather production Unit(Tannery) 250+ Export Volume $.93 Bn Export growth of leather sector 37% Hide and leather Quality ranking 2 nd (After France) Export Growth 37% finished leather production m SQF Value Addition Possibility 90% Investment Opportunity(Indigenous raw material source ) $ 3-5 Bn

29 Pro Business Government with commitment and support at all levels of political leadership

30 Institutional Development for Transparency, Accountability and Improvement of Investment and Business Climate RTI (Right to Information) ACC (Anti Corruption Commission) NIS (National Integrity Strategy) Building strong institutions to ensure accountability & transparency APA (Annual Performance Agreement) HRC (Human Rights Commission) IC (Information Commission) 16

31 Development of Infrastructure Bridge

32 Development of Infrastructure Roads

33 Development of Infrastructure Ports

34 Development of Infrastructure Power

35 Development of Infrastructure Zones

36 Development of Infrastructure Corridor

37 The Future of Bangladesh is Exciting!"

38 Investment Promotion Agencies in Bangladesh Key Services Investment promotion Investment facilitation Policy Advocacy Match-making Sector briefings Project Structuring Transaction Advisory Prime Minister s Office BIDA Key Services Counseling/ Advisory Regulatory Approvals Visas & Work Permits Foreign borrowing Investors aftercare Promote, Protect and Facilitate FDI Offer extensive Investors Support Ensures Investors Services (Single window One-stop Service) Developed investors ECO Services and Link gases and Improve Investment and Business Climate 24

39 Major Achievement in 2017 on Ease of Doing Business Index Getting Electricity Commercial/ Industrial Power connection are obtained by 28 days Company Act Ministry of Commerce proposed amendments to the Company Act 1994 for a better business and investment friendly regime in Bangladesh. Construction Permit Construction permits are issued within 60 days

40 Investment Promotion and Protection Foreign investment in Bangladesh is secured by law against nationalization and expropriation. Local and Foreign investment is given equal treatment 100% foreign equity is allowed along with unrestricted exit. All industrial sectors are open for foreign investors for investment except 4 reserve sectors for the government Risk factors for FDI are the minimum in Bangladesh Bangladesh never posted negative economic growth during the past 30 years Bangladesh is a signatory to ICSID, UNCITRAL, OPIC, MIGA, WAIPA, WIPO and WTO. Bilateral and multilateral investment agreements ensures protection of investment. Bilateral Investment treaties (BITs) signed with 31 countries: Austria, DPR Korea, Thailand, Belgium, Republic of Korea, UK, Canada, Malaysia, USA, China. Pakistan Uzbekistan, France, Poland, Vietnam, Germany, Romania, Singapore, Indonesia, Switzerland, Denmark, Iran, The Netherlands, India, Italy, The Philippines, UAE, Japan, Turkey, Belarus) Double taxation treaties (DTTs) with 28 countries: Canada, Poland, Norway, China, Romania, Turkey, Denmark, Singapore, Vietnam, France, Republic of Korea, Philippines, Germany, Sri Lanka, Indonesia, India, Sweden, Switzerland, Italy, Thailand, Oman, Japan, The Netherlands, Malaysia, UK 40

41 Opportunities Unbounded In this growing economy of Bangladesh, investment opportunities are diverse across all sectors Enabling Infrastructure Communication, Energy, Power, Ports, Economic Zones Efficient Services IT & ITES, BPOs Logistics, Health Competitive Manufacturing Competitive Manufacturing supporting global value chains Appropriate Skills Education, Training, HR development All Modes of Investments 100% FDI Joint Ventures Partnerships PPPs Non-equity modes (Technology transfer, licensing Franchising, Contracting etc) Foreign borrowing 27

42 Opportunities Unbounded Almost all the sectors are open to FDI Energy & Infrastructure ICT & Electronics Textile & Clothing Agribusiness & Food processing Power Ports and Logistics Economic Zones Oil and gas Tourism Transport Infrastructure Pharma & Chemicals Pharmaceuticals Herbal medicines Plastics Ceramics Leather & leather goods Textile Dye & chemicals Basic chemicals ICT and ITES Computer software & ICT goods Electronics Light engineering incl. automobiles Healthcare & Others Health care Footwear Cosmetics and toiletries Jewelry and diamond cutting polishing Home Textiles Textiles industry Readymade garments industry High value added RMG Reserved Sectors 1. Arms & ammunitions 2. Nuclear Power 3. Security printing and minting 4. Afforestation and Mechanize Extraction within the boundary of reserved forest. Agro-based & agroprocessing Jute & Jute goods Flower cultivation Commercial plantation Horticulture Silkworm &Silk Industry Furniture Handicrafts Integrated shrimp cultivation Frozen Food 28

43 Cost of Wages and Salaries in Dhaka Relative to Peer Cities: Karachi Mumbai (US Dollar) 1593 Vietnam Bangladesh NewDelhi Hanoi Bangkok Manila Kulalampur Beijing Myanmar Population Dhaka Legal minimumwage Manager'ssalary Workers wages 27th Investment cost survey JETRO m 29

44 We have educated, dynamic and young workforce with more than 50% of the population below 25 years of age 30

45 Most Competitive and Attractive Incentive Bangladesh offers most competitive investment incentives across sectors and locations Fiscal & Tax Incentives Tax holiday Up to 10 yrs for selected sectors Up to 10 yrs for infrastructure Up to 12 years for Economic Zones & IT Park Accelerated depreciation in lieu of tax holiday Double tax avoidance under DTTs Tariff concessions capital machinery import of raw materials Bonded warehousing Investmen t Incentives Others Fast Track Approvals Citizenship Permanent Residency Quick Immigration Skilled Work Permits NRB Preferences Financial Incentives Cash incentives Exporting selected products Export Development Fund Equity Entrepreneurship Fund Access to infrastructure fund facilities (IPFF) and many more 31

46 FDI of Bangladesh (In million USD) Year Total Equity capital Reinveste d earnings Intracompan y loans , ,39 911,38 393, ,74 696,67 282,17 988,81 280,3 1551,28 360,99 697,11 541, ,16 207,4 587,54 497, , , ,39 Intra-company loans Reinvested earnings Equity capital Total ,9 489,63 431, ,

47 Global Competitiveness Rankings- Bangladesh Enters Club of Top 100 Countries

48 Bangladesh Will be Amongst Top 3 Fastest Growing Economies Globally Through 2050; PwC

49 Bangladesh a winning combination Bangladesh is a country with a winning combination for any investor. A business friendly government, competitive skilled workforce, ever expanding infrastructure and improving business climate and friendly and welcoming people. This is the place to be in, invest and develop your business and proudly create and happily share the prosperity of Bangladesh Invest in Bangladesh and also with Bangladesh Be a partner in Bangladesh s exceptional progress bangladesh.gov.bd bida.gov.bd pppo.gov.bd beza.gov.bd

50 Thank You