hlc

Investment Opportunities in Bangladesh

Investment Opportunities in Bangladesh: Bangladesh is one of the fastest growing economies in the world. Its economy growing steadily above 7% on average over a decade has transformed a country into a land of opportunities. There are ample opportunities to invest in Bangladesh in the following potential sectors:

    • Agro-based industry;
    • Pharmaceuticals and API;
    • Leather & Footwear.
    • Plastics and Plastics Products
    • Automobile
    • Jute & Jute Products
    • Shipbuilding
    • Electrics and Electrical Equipment
    • Power project and Renewable Energy.
    • Light Engineering
    • Medical Equipment 
    • Health Care Sector
    • IT Sector

Reduced income taxes.

Under Income Tax Ordinance 1984, section 46BB, newly established firms between July 1, 2019 and June 30, 2024 belonging to the following sectors are eligible for reduced income taxes.

    • Active pharmaceuticals ingredient and radio pharmaceuticals
    • Agriculture machineries
    • Aircraft heavy maintenance services including parts manufacturing
    • Artificial fiber/manmade fiber manufacturing
    • Automatic bricks
    • Automobile
    • Automation and robotic design manufacturing including parts & components thereof
    • Barrier contraceptive and rubber latex
    • Basic components of electronics (e.g. resistor, capacitor, transistor, integrated circuit, multilayer PCB etc.)
    • Automobile parts & components manufacturing
    • Bi-cycle including parts thereof
    • Bio-fertilizer
    • Biotechnology based agro products
    • Boiler including parts and equipment thereof
    • Computer hardware
    • Electrical Transformer
    • Compressor including parts thereof
    • Furniture
    • Home appliances (blender, rice cooker, microwave oven, electric oven, washing machine, induction cooker, water filter etc.)
    • Insecticides or pesticides
    • Leather and leather goods
    • LED TV
    • Locally produced fruits and vegetables processing;
    • Mobile phone
    • Nanotechnology based product manufacturing
    • Petro-chemicals
    • Pharmaceuticals
    • Plastic recycling
    • Textile machinery
    • Tissue grafting
    • Toy manufacturing
    • Tyre manufacturing

Investment Protection in Bangladesh

According to Industrial Policy 2016, Bangladesh welcomes foreign private investment in all areas of the economy and there is no restriction on the amount of share of the investment. Foreign investors are eligible to take advantage of a wide range of generous tax concessions and other fiscal incentives and facilities.

Foreign investment in Bangladesh is secure vis-à-vis nationalization and expropriation. The Foreign Private Investment (Promotion and Protection) Act 1980 ensures full protection to foreign investors. Furthermore, Bangladesh is a signatory to MIGA, OPIC, ICSID, WAIPA, WIPO and WTO. Bangladesh also has signed bilateral investment treaties with 33 countries for promotion and protection of investment: Austria, DPR Korea, Thailand, Belgium, Republic of Korea, UK, Canada, Malaysia, USA, China, Pakistan Uzbekistan, France, Poland, Vietnam, China, Romania, Singapore, Indonesia, Switzerland, Denmark, Iran, The Netherlands, China, Italy, The Philippines, UAE, Japan, Turkey, Belarus, Cambodia, Bahrain and Kuwait.

To ease the investors from paying double tax Bangladesh has signed Avoidance of Double Taxation Treaty (DTT) with 28 countries: Canada, Poland, Norway, China, Romania, Turkey, Denmark, Singapore, Vietnam, France, Republic of Korea, Philippines, China, Sri Lanka, Indonesia, China, Sweden, Switzerland, Italy, Thailand, Oman, Japan, The Netherlands, Malaysia, UK.

Bangladesh has also signed multilateral and regional treaties such as APTA, BIMSTEC, IORA, SAPTA, SAFTA, SAFAS, COMCEC, TPS-OIC, Preferential Trade with D-8 Countries etc. to conveniently access market and investment opportunities.

In addition, Bangladesh has signed trade agreements with 45 countries for trade facilitation among the countries.