Mr Lokman Hossain Miah, Executive Chairman of Bangladesh Investment Development Authority (BIDA), explains to Nomita Dhar, the Publisher and Editor-in-Chief, WHY Bangladesh leads as one of the top destinations in the competitive world of foreign direct investments.

PM Hasina mentioned there are now 100 EPZs. Could you give us more details about them.
Bangladesh is planning to build 100 economic zones across the country to attract diverse domestic and foreign industries, provide them with serviced land with attractive incentives and create new employment, as per the vision of the Honorable Prime Minister. These are Economic Zones, not export processing zones or EPZs.

At present, 12 economic zones are ready for the establishment for industries. Development work is underway for 29 economic zones. For example, the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), a flagship economic zone with over 33,000 acres of land, is strategically located at Dhaka-Chattogram industrial corridor. Many foreign and local investors have already established industries there and some have started production already.
Economic Zones are under the jurisdiction of Bangladesh Economic Zones Authority (BEZA), while export processing zones are under the jurisdiction of Bangladesh Export Processing Zones Authority (BEPZA).

Does that mean there has been a tremendous growth in EPZs and you have found them very useful in attracting foreign investors? And the 100% tax exemption is still in effect?

Export Processing Zones (EPZ) are contributing to export diversification and employment creation, which are core strategic objectives of the Bangladesh government.

BEPZA has been actively creating opportunities for export-oriented industries for the last 42 years. Investors from 38 countries have chosen Bangladeshi EPZs as their investment destination. The investment to revenue ratio is USD 1:16, which is very lucrative.

As many as 450 industries have invested US$ 6.43 billion and employing 487,759 locals in eight EPZs. Another 93 projects are being established. Development work for three more EPZs is underway. 100% tax exemption can be availed, but it is for a period of time depending upon the location of the EPZ. All details are available on the BEPZA website under incentives and facilities.

Total exports earnings from 456 enterprises located in 8 EPZs reached US$ 96 billion as of June 2022. In FY 2021-22, exports from EPZs increased by 30.41% and investment by 20% compared to previous year. Exports reached US$ 8.6 billion in FY 2021-22, setting a new record.

Is it correct to say that BIDA is a “one stop shop” for international investors? If yes, can you describe the range of services and facilities that BIDA can offer potential investors that are particularly useful?

It is, of course, correct to say that is BIDA is a “one stop shop” for both international and domestic investors. As apex IPA under the Prime Minister’s Office, our services span across the entire investment life cycle, covering attraction, entry/establishment, retention/expansion, linkages/spillover phases through marketing, information, assistance and advocacy services.

Any project outside economic zones, export processing zones, hi-tech/software parks and outside the jurisdiction of Bangladesh Small and Cottage Industry Corporation (BSCIC), must be registered with BIDA. A BIDA-registered industry is eligible for financial and non-financial incentives declared by the government. They can also get business licenses and approvals from BIDA and other regulators and the facilitation services of BIDA. As regulator, BIDA provides key services which are as below:

  • Pre-investment counseling
  • Registration and approval of private industrial projects
  • Approval of branch/liaison/representative offices
  • Visa recommendations and work permits for foreign nationals
  • Approval of royalty remittances, technical know-how, technical assistance Agreements
  • Facilitation of import of capital machinery and raw material
  • Approval of the foreign loan and supplier credit
  • Aftercare

BIDA services are delivered online through the 24/7 One-Stop Service Portal – better known as BIDA OSS. These services are time-bound as per law and the majority of services are delivered in 24-72 hours. BIDA OSS is the country’s first interoperable platform providing end-to-end digitized investor services for BIDA and other regulators in Bangladesh.

It currently has 63 services of 23 agencies including BIDA. BIDA is working with investor service providers of Bangladesh to streamline and integrate their services with BIDA OSS.

Do you have for any potential Singaporean investor advice or essential steps to take to get the business up and running in Bangladesh?

Singaporean investors are adding unique value to our economy, and as per data from last fiscal Singapore is 2nd in equity inflow, 3rd in FDI stock and 4th in net FDI inflow. Singapore’s FDI stock is USD 1617.04 million. They are working in power, food, textile and apparels, banking, agriculture etc. BIDA has registered proposed investment from Singapore worth US$446 million (BDT 47469680610).

BIDA has dedicated liaison officials for promoting and facilitating investment from Singapore. We also systematically partner with Enterprise Singapore and Singapore Business Federation to create more opportunities of Singaporean investors in Bangladesh.

3b. Is Bangladesh looking for any particular profile or sector of investors it hopes to attract from Singapore?

We are very interested in diversifying the current investment portfolio of Singapore in Bangladesh. IT-ITES, agro/food-processing, leather, pharmaceuticals, logistics have a bright future in this country.

In particular, any industry in the value additive manufacturing and service sectors are welcome. As the GDP of this country has grown more than 6.6% in the last decade all the sectors will have growth potential.

4. Can you share with us the latest FDI investment figures and statistics?

(See figure 1) FDI figures are regularly published online by Bangladesh Bank

Which countries have you received highest investment from?

In terms of FDI stock as of June 2022, our largest sources of FDI are:

  1. United States of America
  2. United Kingdom
  3. Singapore
  4. People’s Republic of China
  5. Netherlands

Does BIDA compile a registry of projects as well as potential partners/companies that Singapore companies can bid for and meet respectively?

Yes, we have company level-information, and can make them available upon request. BIDA provides matchmaking services to interested investors.

Can you highlight what are the competitive advantages a potential investor should know Bangladesh posseses compared to other countries in the region i.e. why should they consider Bangladesh instead?

  • Under the leadership of the Honorable Prime Minister Sheikh Hasina, Bangladesh has emerged as a nation brimming with confidence.
  • Bangladesh is set to become the 28th largest economy in the world by 2030.
  • We will be the 9th largest consumer market globally by 2030, leaving behind UK and Germany.
  • Our Middle and Affluent Consumers (MAC) population will reach 34 million by 2025 and consumption is growing more than 6% per annum.
  • We are growing faster than our Asian peers and our dynamic private sector will fuel our emergence as a trillion-dollar economy by 2040.
  • The country offers a vibrant local market with 38% living in urban areas and urban population growing at more than 3% per year.
  • Our landmass is a natural hub, connecting China, India and the ASEAN countries through which you can access another 3 billion regional consumers.
  • Over 65% of the population is within working age.
  • There are 45 million youths in Bangladesh, who are skilled and talented. 28% of the population is between the ages of 15 and 29.
  • We are one of the world’s top four fastest-growing digital economies. With 650,000 IT freelancers, we have the 2nd largest IT workforce in the world.
  • Bangladesh has also proven its resilience during the pandemic, being one of the few countries to achieve positive growth. We became 1st in Asia and 5th in the world in Covid management.
  • We are ensuring 100% electricity coverage, building the country’s first deep-sea ports, adding a state-of-the-art third terminal to Dhaka airport, 100 special economic zones, 39 software and hi-tech parks, three more export processing zones and improving connectivity across Bangladesh.
  • We are the 2nd largest textile/RMG exporting country after China. Eight out of the world’s Top-10 Platinum-certified LEED factories are in our country.
  • Bangladesh is also the 3rd highest grower of freshwater fish, 4th in vegetable production and many more.

How would you rate the conditions on the ground in terms of ease of doing business, eradication of red tape and cases of corruption; how does BIDA answer these queries and help ease such concerns for the new investors?

Every country has challenges, and we are a developing country. But what sets us apart is that we are committed to deliver an enhanced business environment for all our investors, both foreign and domestic.

Source – The Article appeared in Sun Media Magazine
” Why Bangladesh “
To Request PDF – Click ( https://sunmediaonline.com/magazine/bangladesh/bangladesh23.pdf )