Dr. S. M. Saiful Hoque Ambassador of Bangladesh To the Republic of Latvia,

Republic of Lithuania, Republic of Belarus and Russian Federation

20 November, 2019

Bangladesh: An unexplored area for Latvia

Discussion Today

Bilateral Relationship 01

Economic potential of Bangladesh 02

03

04

Foreign Trade &Exportable Items, scope of FDI

Q & A

“Bangladesh is the

Next China”

“28th & 23rd largest economy of

World by 2030 & by 2041”

“Low cost and high return

manufacturing destination in Asia”

“Bangladesh will be

the 12th economic

power of the world

in 2050”

“Bangladesh one of the Frontier 5

economies”

“The Next Eleven” Bangladesh among

the 11 nations, have high economic

potential”

9

Economy of Bangladesh: Overview

Source: Bangladesh Economic Review 2016, Ministry of Finance, World Bank, Digital Year Book 2016, World Development Indicators, World Bank and 7th five year plan, GoB

GDP

USD 275 Billion

Poverty rate

dropped to

12.9% from

44.2%

Each year Bangladesh

creates around 1.2

million jobs

Export climbs to

44 billion in FY18 from

16 billion in FY10

Average GDP

Growth

6% - 7% (Last 10 Years)

FY 2018

GDP Growth

7.86% (All Time High)

GDP

Per Capita

USD 1,827

Share of Investment

to GDP

30.3%

Foreign Trade of Bangladesh

IMPORT- 60 BN EXPORT- 44 BN

Main sources of import China, India, USA, Singapore, Japan, EU etc

01

Major Export Destinations

Germany, USA, UK, Spain, France, Canada etc

02 Goods Petroleum, Food grains, Edible oil, Automobiles, Electronics, Machineries & equipments, Food items Service ICT, Financial etc

Major Import Items

Goods-Ready Made Garments, Leather & Leather goods, Agricultural

goods, Frozen fishes, Jute & Jute goods, Pharmaceuticals, Light engineering, Plastic products

Services- ICT, Travel, goods related

Major Export Items

Our Products Our Pride

RMG Hometextile

Leather goods

Pharma

Agro based

Frozen, Processed

foods

Light engineering

Plastic

Jute

Ready Made Garments Largest cotton t-shirts exporter in the world;

Second largest knitwear exporter of the world;

Third largest apparel exporter in the world;

Bangladesh is the second largest denim exporter to

the world;

6,500 garment factories in Bangladesh;

4 million workers are employed in apparel sector;

90% of the workers are women;

GSP facilities for the apparel sector to EU, Japan,

Australia, New Zealand, Canada;

Leather & Leather Goods • Leather Sector (combining leather, leather products and shoe) is

the 3rd largest exporting sector of Bangladesh;

• US$ 1.90 billion worth export earning comes from this sector;

• More than 220 tanneries, 3500 medium SMEs and 110 large

firms are involved in this sector;

• More than 7 million employments are generated, especially

women are involved in this sector;

• ECO Friendly Leather Technology has been introduced;

• Bangladesh is in the spotlight for shoe due to the fact that

western importers are looking for new sourcing destinations;

• Chrome free leather and Central Effluent Treatment Plant

(CETP) technology implementation is under process;

Pharmaceuticals 246 companies registered with food & drug administration

of Bangladesh;

US$ 69.24 million worth of medicine export from

Bangladesh;

Export to 97 countries in the world;

Quality & Price Competitive products;

Maintain GMP (Good Manufacturing Practice);

Second largest contributor to the National Exchequer;

Only successful LDC in the world to produce generic

medicine, license to produce patent medicine;

Good number of products registered with EU, Latin

America & African countries

200 acres of land allotted for making API

Jute & Jute products

Jute is an environment-friendly product which is the best alternative to synthetic products such as carbon or ceramic fibers which are subject to environmental concerns;

Bangladesh is the largest exporter of Jute and Jute Goods of the world;

Environmental issues, use of present awareness about synthetic fiber, are potential opportunities for Bangladesh to expand business in jute & jute sector.

Developed world is focusing on eco-friendly products and the demand for Jute goods is increasing.

Jute is a natural fiber and biodegradable. Bangladesh has invented biodegradable poly-shopping bag with jute which will hit the world market soon.

ICT ICT Industry at a Glance

• 1000+ IT & ITES Companies

• 300,000+ IT HR Across Industries

• $700+ million ICT Export in 2016

• Bangladeshi diaspora working in Google,

Facebook, IBM, Intel, Microsoft, Apple,

Amazon, eBay etc.

• 50,000 Freelancers earning $100+ m

Potential areas of Investment:

• Computer Software & IT Based Services

• Communication Software & Hardware

• R&D

• Electronic Products

• Manufacturing & Assembling

• HR Development Institute

• Bioinformatics

Hi Tech Park: Incentives

• 12 years tax exemption for Developers

• 10 years tax exemption for IT/ITES Co.

• Duty free import of capital machineries, vehicles etc.

• Bonded Warehouse station facilities in

HTP/STP

• 100% ownership for foreign investors

• 100 % profit repatriation for investors

Major Infrastructure Developments

• Dhaka Metro Rail

• Deep Sea Port

• Bangabandhu Satellite (launch 2017)

• Digital Island Moheshkhali

• Tier-4 Data Center, NEA Implementation & CIRT

• SEAMEWE 5, 1300 Gbps Launch of

4G & LTE

• A Strong Network of HTPs & STPs

Recent Key Investments 2

01

8

Summit Corporation Limited, Mitsubishi and General Electric-

$3 billion, making it the biggest ever private FDI in the power sector

of Bangladesh.

Japan Tobacco Inc-$1.47 billion, the biggest ever single foreign direct

investment in Bangladesh.

Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) has

bought share in the Dhaka Stock Exchange worth $.11 billion

Alipay has bought 20 percent stakes in bKash, Bangladesh's largest mobile financial

service provider

Alibaba has expanded its footprints in Bangladesh after it snapped up online marketplace Daraz

Amazon and Walmart are planning to start operations

in Bangladesh within the next couple of years

USA

UK

GERMANY

DENMARK

UAE

INTERESTED

NATIONS

WHO WANT

TO INVEST

IN BANGLADESH

UK

SAUDI

ARABIA

GERMANY

DENMARK

UAE

CHINA JAPAN

MALAYSIA

SINGAPORE

INTERESTED

NATIONS

WHO WANT

TO INVEST

IN BANGLADESH

7 Reasons for you

to Invest in Bangladesh

Energy & Infrastructure Power Economic Zones

Ports and Logistics

Oil and gas

Transport Infrastructure

ICT & Electronics ICT and IT Enabled Services Computer software & ICT Electronics

Textile & Clothing Home Textiles

Textiles industry

Readymade garments

industry

High value added RMG

Agribusiness & Food

Processing

Agro-based/processing

Flower cultivation

Furniture & Handicrafts

Jute & Jute goods

Commercial plantation

Silkworm & Silk Industry

Integrated shrimp

cultivation

Frozen Food &

Horticulture

Pharma & Chemicals Pharmaceuticals

Herbal medicines Textile Dye & chemicals Basic chemicals

Healthcare Health care Medical Equipment

Others Plastics & Ceramics

Leather & leather goods

Footwear

Light engineering incl.

automobiles

Cosmetics and toiletries

Tourism

Jewelry and diamond

cutting polishing

Reserved Sectors: Arms & ammunitions, Nuclear Power, security printing and minting, afforestation and mechanize extraction within the boundary of reserved forest

01. OPEN TO INWARD INVESTMEN

1 2 3 4 5 6 7

02. Opportunities in Domestic Market

Nationwide a network of 1.3 Million Retail

Outlets

17 Key MAC Cities by year 2020

33 Key MAC Cities by year 2025

Domestic Consumption

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

In Billion

MAC (Middle and Affluent Class) 2 million MAC

POPULATION being added per

annum (BCG 2015)

Plain land delta crisscrossed

with 700+ rivers offering the fastest

‘firm to shelf’ expansion

1 2 3 4 5 6 7

• Median age of Bangladeshi citizen is

26.7 years.

• 118 Million working age population

• 46.83 Million people is less than

15 years old

• Homogenous culture: In South Asia, Bangladesh

has a high degree of linguistic, religious, and

ethnic homogeneity.

1 4 5 6 7

03. DEMOGRAPHIC DIVIDEND

Kunming

Mandalay

Sylhet

Dhaka

Jessore

Kolkata

One Belt One Road Initiative:

Connect China, Myanmar, India and

Bangladesh through Overland and

Sea Route.

04. Bangladesh: South Asia’s Geo-Strategic Gateway

Connecting the Payra seaport with the

Chittagong port through railway, which will

also create a network between the

neighboring countries of India, Nepal,

Bhutan and Myanmar. Access to 2.71

Billion consumers who are spending more

than 8.325 trillion USD

1 2 3 5 6 7

05. Preferential Market Access Bangladesh is getting GSP facilities from 38 countries; 28 countries of European Union and 10 other countries:

Australia, Belarus, Canada, Liechtenstein, Japan, New Zealand, Norway, Russian Federation, Switzerland & Turkey.

DFQF Access in GSP schemes of Developed Members: Australia, Canada, European Union, Iceland, Japan, New Zealand, Norway, Switzerland, Russia, United States DFQF Access of selected Developing Countries: Chile, China, India, Republic of Korea, Chinese Taipei, Turkey

1st in denim export to EU market

2nd largest apparel exporter worldwide after

China

8th largest exporter of the leather

products in the world

8th largest exporters of bicycle

1st in Jute (natural Fibre) production

and export

1 2 3 6 7

06. Infrastructure Support

66 Economic Zones selected

100 Economic Zones in the next 15 years

Padma bridge linking the south-west of the country, to northern and eastern regions.

Power & Energy

Energy Diversification through introduction of LNG, Nuclear power, Solar, Wind, LPG etc.

Rail Road & 4 Lane Highway

All the national highways are being

converted into 4-lane ones

Metro Rail, Elevated Expressway and High

Speed Express Railway connecting

the mega cities

Hi-Tech & Software Parks

28 Hi-Tech & Software Parks to

attract foreign direct investment in hardware and

software manufacturing

industry.

2019 2021 2030

20,133

MW

24,000

MW

30,000

MW

1 2 3 4 5 6 7

07. Initiatives to Foster Competitiveness

Tax Holidays 5 – 10 Years for some sectors and up to 10 Years

for Infrastructure and Economic Zones

Tax Concessions for Capital Machines and import of Raw Materials

Avoidance of Double Tax under DTIs

TAXES FINANCIAL OTHERS

Cash Incentives

Export Development Fund

Equity Entrepreneurship Fund

Accelerated Depreciation In lieu of tax holidays

Fast Track Approvals

Citizenship Permanent

Residency

Quick

Immigration Skilled Work

Permits

NRB

Preferences

Bonded

Warehousing

1 2 3 4 5 6 7