Investment: Policy, Practice and Present Scenario

4 Pages Posted: 3 Oct 2014

Date Written: February 14, 2014


Bangladesh is a country with enormous potentials to grow faster than any other least developed countries (LDCs) of the world. Its strategic geographic location made it an attractive destination for the ancient merchants up to the modern multinationals. Bangladesh is located at the middle points of two fastest growing economic superpowers, China and India. These two countries have about 2.6 billion populations with quickly increasing purchasing power. Bangladesh has a domestic market of about 15 million consumers. It would be very much cost effective to produce a product in Bangladesh and market into India and China under SAARC and other international duty free arrangements. Besides, these all Bangladeshi products (other than armaments) enjoy complete duty and quota free access to developed countries like EU, Japan, Canada and Australia. Bangladesh is a signatory to the Multilateral Investment Guarantee Agency (MIGA); Overseas Private Investment Corporation (OPIC), USA; International Center for Settlement of Investment Disputes (ICSID); World Intellectual Property Organization (WIPO). It has bilateral agreements to avoid double taxation with 28 countries.

Foreign investment in Bangladesh is 100% safe and secured by the Foreign Private Investment (Promotion & Protection) Act 1980. We have a large number of young and energetic populations with about 59.3% economically active people. According to a recent study conducted by the Japan External Trade Organization (JETRO) factors of production like land, labour, fuel, vehicles, rental and hiring skilled management people etc. are very much competitive here in Bangladesh in comparison with 29 cities and region of Asia. Comparing cities are Seoul, Beijing, Shanghai, Guangzhou, Dalian, Shenyang, Quingdao, Shenzhen, Hong Kong, Taipei, Singapore, Bangkok, Kuala Lumpur, Jakarta, Batam, Manila, Cebu, Hanoi, HO Chi Minh City, Da Nang, Yangon, New Delhi, Mumbai, Bangalore, Chennai, Karachi, Colombo, Dhaka and Yokohama. Bangladesh is offering hassle free remittance of earning by foreign professionals, repatriation facilities of dividend and capital at exit of foreign investors, permanent resident permits on investing US$75,000 and citizenship on investing US$500,000. Five years tax holidays package for investment at Dhaka and Chittagong divisions and seven years tax holiday’s package for investment at other divisions of the country. There are eight functioning Export Processing Zones (EPZs) namely Adamjee, Chittagong, Comilla, Dhaka, Ishwardi, Karnaphuli, Mongla, and Uttara–EPZ with all sorts of infrastructural, managerial, utilities and other relevant facilities. Already investors from 32 countries invested in these EPZ’s and operating business successfully.

Keywords: Investment to Bangladesh, Foreign Direct Investment, FDI into Bangladesh, Investment Climate

Suggested Citation

Abdin, Md. Joynal, Investment: Policy, Practice and Present Scenario (February 14, 2014). Available at SSRN: or

Md. Joynal Abdin (Contact Author)

DCCI Business Institute (DBI) ( email )

DCCI Building (11th Floor), 65-66 Motijheel C/A
Dhaka, 1000

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