Bangladesh - UN ESCAP of...Bangladesh Investment Development Authority 2017 Vision 2021 Vision 2041...
Transcript of Bangladesh - UN ESCAP of...Bangladesh Investment Development Authority 2017 Vision 2021 Vision 2041...
© Bangladesh Investment Development Authority 2017
BangladeshMain Changes and Development in Investment Policy and
Regulatory Framework during 2016-2017
Nabhash Chandra Mandal
Executive MemberBangladesh Investment Development Authority
(BIDA)
© Bangladesh Investment Development Authority 2017
© Bangladesh Investment Development Authority 2017 2
The World’s
44th
Largest Economy
Ranked by World
Bank
Bangladesh is Now Lower-Middle Income
Country - World Bank
2nd in RMG Export after CHINA
Economic Indicators (2016 Est)
GDP Growth Rate (Last 10 years) 6% - 7%
GDP Size $224Billion
GDP Growth 7.24 %
Per Capita GDP $1602
Share of Investment to GDP 30.3%
Share of Industry Sector to GDP 31%
Remittance to GDP ratio 6.74%
Source: Bangladesh Economic Review 2016, Ministry of Finance, World Bank, Digital Year Book 2016
Country’s Key Digital Statistical IndicatorsGDP Share
Agriculture
15.35%
Industry 31.65 %
Service 53%
107 in WEF Global Competitiveness Index and 85 in Logistics Performance Index of WB
Economy of Bangladesh Today
Bangladesh Investment Development Authority 2017
“Bangladesh one of the
Frontier five economies- “JP
Morgan
“Bangladesh the Next
China” Mckinsey &
Company
“Bangladesh will be the 12th
economic power of the world in
2050” UBS.
“28th &23rdlargest
economy of World
by 2030&by2041” PwC
“Low cost and high return
Manufacturing
destination in Asia” JETRO
“ The Next Eleven (N-11),
Bangladesh one of 11
nations, have high
economic potential ”
Goldman Sachs
How Does World See Bangladesh?
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Bangladesh Investment Development Authority 2017
Vision
2021Vision
2041
GDP Growth 8% (Av. 7.4%) 8%
Per Capita Income $ 2000 $ 12600
Investment to GDP 34.4% 36%
Share of Industry to GDP 34% 40%
FDI $9.56 billion $153 billion
Infra Investment $100 billion $1150 billion
Economic Status Middle Income High Income
GDP Value $335 billion $2580 billion
Export earning $70 billion $350 billion
Economic Vision of Bangladesh
Bangladesh Investment Development Authority 2017
Growth: A Consistent Performance Amid Global Shocks
GDP at constant pricesProjections
2013 2014 20152016
(E)2017 2018
World 2.4 2.6 2.4 2.4 2.8 3.0
Advanced Economies 1.1 1.7 1.8 1.7 1.9 1.9
USA 1.5 2.4 2.4 1.9 2.2 2.1
Euro Area -0.3 0.9 1.6 1.6 1.6 1.5
Japan 1.4 -0.1 0.6 0.5 0.5 0.7
Emerging & Dev. Economies 4.7 4.2 3.4 3.5 4.4 4.7
Emerging & Developing Asia 6.8 6.8 6.6 6.3 6.2
China 7.7 7.3 6.9 6.7 6.5 6.3
India 6.6 7.2 7.6 7.6 7.7 7.7
Bangladesh 6.0 6.1 6.5 7.05 7.2 7.4
Source: Global Economic Prospects(June 2016), World Bank
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Bangladesh Investment Development Authority 2017
To become an Upper Middle Income Country by 2021 we need to move faster…
Parameters What we were (2015-16) As of now (2016-17 )
Per capita (USD ) 1465 (FY 2015-16) 1602 (FY 2016-17)In terms of purchasing power parity:
US$ 3790
Population under the poverty line 24.8% (2015-16) 23.2% (FY 2016-17)
Literacy Rate 63.6% (2015-16) 71% (2016-17 )
Female Literacy Rate 67%(2015-16) 77% (2016-17 )
GDP growth 7.11% (FY 2015-16) 7.24% (2016-17 )
Export (USD ) 34.26 bn (FY 2015-16) 34.85 bn (2016-17)
FDI (USD ) 2003 mill. (FY 2015-16) 2455 million (FY2017)
Forex Reserve (US$) 30.17 bn (FY 2015-16) 33.41 bn (June’2017)
Electricity Gen. Capacity(with
captive
14,565 MW (2015-16)(Mx. Gen. 9036 MW)
15,755 MW (2016-17)(Mx. Gen. 9479 MW)
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Growth of Bangladesh (2016-17)
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Economic Performance - growth
6.7
6.36.2
6.1
7.17.2
6.05.9
6.2
6.46.6
6.0
6.3
5.3
4.4
5.3
5.9
4.9
5.25.4
4.6
199619971998199920002001200220032004200520062007200820092010201120122013201420152016
328 350460
845 793666
1086
700
913
11361293
1599
22362332
1551
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
▪ Bangladesh economic growth (%)
“…constant unbroken GDP growth…”
Bangladesh Export growth (%)
“… Export driven growth in manufacturing…”
FDI Inflow
(2002-2016)
Source: Enterprise Survey, Bangladesh Bank
Source: Ministry of Finance & EPB *Export US$ billion
(USD Million)
(USD Million)
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Bangladesh is moving up in its competitiveness ranking compared to similarly-rated peers
▪ Bangladesh positively stands out within the region in terms of competitiveness trend, having
moved up the ranks by 7 steps in just a year alone – a remarkable achievement
▪ Broad-based progress in competitiveness affirms the government’s success in pressing
ahead with structural reforms and critical investments required to advance sustainable
economic growth for the future.
▪ Bangladesh attained many elements of MDG well before the target which measures up
favorably in socio-economic factors such as health and primary education, and is recognized
for the positive endowment of its large market size
Socio-Economic Improvements Move Bangladesh Up the
Competitiveness Ladder
118
6872 70
93
111
130
59
110
6572 70
107
120
133
60
107
68 66
56
117124 126
55
106
71
59 60
121127
122
39
99
85
67
55
122 125115
70
0
20
40
60
80
100
120
140
BangladeshBB1
Sri Lanka B- GeorgiaBB- Vietnam BB- Bolivia BB- Nigeria BB- Pakistan B- India BBB_
2012-13
2013-14
2015-16
2016-17
2017-18
Global Competitiveness Index (GCI), Rank (140 countries)
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Investment Climate
73
107 110
130 135144
176183
0
20
40
60
80
100
120
140
160
180
200
Among the 10 indicators of doing
business Bangladesh stands 176 out of 189
countries & lower performance in the
region:
Getting electricity (187), credit (157) & enforcing contracts
(189).
South Asia in Doing Business (Ranking by World Bank Doing Business Report, 2017):
Bangladesh Investment Development Authority 2017
BIDA and its Responsibility
Bangladesh Investment Development Authority
(BIDA) was created under Bangladesh Investment
Development Authority Act 2016 to:
“encourage investment in the industry in private
sector and to promote necessary facilities and
assistance in the establishment of industries”.
The act mandated BIDA as an organization for
promoting and facilitating private sector investment.
BIDA’s Functions are broadly categorized into :1. Investment promotion;
2. Investment Facilitation (approval, recommendations and aftercare)
3. Policy Advocacy4. Ensure inclusive investment5. Creating entrepreneurs and creating necessary
skill to complement local industry needs.
• Facilitate private investment to make Bangladesh MIC by 2021 and developed country by 2041
• Ensure most congenial business climate
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BIDAPrime Minister’s Office
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Developedwebsite
www.bida.gov.bd
Hosted most regulatory services online
Entrepreneurs development activities
are going on
Draft OSS Act is prepared and placed
Parliament for approval;
Hosting of iGuide to BIDA website is near to
completion
Prepared draft Corridor Act & rules
1st Governing Board Meeting (GBM) of BIDA, decision has taken to develop Economic
Corridor in the country;
Develop time bound framework to ease the Doing
Business
BIDA
Sep.’2016
BIDA Initiatives
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Targets & Achievements of Doing Business(Indicator wise)
Indicators Action Targets
Starting Business Online client service & National Level OSS
New VAT Law is completed
March 2018
Enact by June’19
Dealing with Construction
Permits
Simplification of approval process, time
bound SOP, rules amendment
March 2018
December 2018
Getting Electricity Time frame for connection (7-28 days),
Online tracking system
March 2018
Registering Property Reengineering process of digitalization of
land records & associated documents
December 2018
Paying Taxes Simplification of Tax related formsOne stop payment mechanism of transection
June 2018
Trading Across Boarder Process reengineering of documents
Establish electronic system
June 2018
Getting Credit Introduce efficient credit Bureau
Credit data dissemination
June 2018
Bangladesh Investment Development Authority 2017
Develop 100 EZs in the next 15
years
Create 10 million employment
opportunities
Foster industrialization
by increasing additional export of USD 40 billion
BEZA: Missions to Achieve
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0%
1%
2%
3%
4%
5%
6%
0 1 2 3 4
Pe
rce
nta
ge o
f G
DP
Plan Year
> Increase investment to 6% of GDP> Target 77.3% investment from private sector
PublicInvestment
PrivateInvestment
Seventh 5 Year Plan Infrastructure Target
“Investment in infrastructure is critical to addressing the
constraints to promote private sector led growth and unlock a
higher trajectory of growth for Bangladesh”
“The highest priority in budgetary allocations has been
accorded to development of infrastructure … with a steady
increase in resource allocations over the period”
One third of Government budget is allocated to Infrastructure
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
Energy Power Road Bridge Railway
FY2015
FY2016
FY2017
FY2018Mil
lio
n
US
D
Prioritization of Infrastructure Investment
To ensure sustainable infrastructure and Innovation in line with SDG 9 Bangladesh estimates
USD100 Billion Investment by 2021 and USD1150 Billion by 2041.
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Mayor Mohammad Hanif Flyover
(Completed October 2013)
Hathirjheel – Begunbari Development
(Completed January 2013)
Road
• 702 km of new road constructed between 2011 and 2017
• 4529 km of roads widened and strengthened
Bridge
• 70218 meter of new bridge constructed between 2009-2017
• 15 Major bridges constructed enabling hinterland trades and connectivity
Rail
• 236.87 km of new railway tracks constructed from 2011 to 2017
• Passenger kilometre increased from 7.3m (2010) to 8.9m (2017)
Port
• Turn around time reduced from 6.9 days (2011) to 4.9 days (2013)
• Container throughput per ship day increased from 373 (2011) to 490 (2013)
Multimodal and integrated infrastructure System
• Construction of road and rail overpasses and flyovers
• Introduction of multimodal transport system commuter train service
• Urban land and water waterways rehabilitation
Success in Delivering Infrastructure: Transport
Bangladesh Investment Development Authority 2017
• Roads and highways
• Mass-transit
• Railways
• Ports
• Airports
• Electricity
• Tourism
• Irrigation and
agricultural services
• Industrial estates
• Water supply and
distribution
• Wastewater
management
• Waste management
• Information and
• communications
technology
• Land reclamation and
dredging
• Oil and gas downstream
production
• Mineral resources
• Health
• Education
• Public facilities,
social infrastructure
and other social
services
• Other urban,
municipal and rural
projects
Sectors Covered under PPP Policy
Public Private Partnership (PPP) Authority
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