FDI Investment In Bangladesh

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Aman Group of Companies ltd Investment plan in Aman Industrial Park At Ashulia, Zirabo, Savar Dhaka, Bangladesh

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Current status of Bangladesh and prospectus of FDI Investment in Bangladesh

Transcript of FDI Investment In Bangladesh

Aman Group of Companies ltdInvestmentplan in Aman Industrial ParkAt Ashulia, Zirabo, SavarDhaka, BangladeshWhy BangadeshAdvantages & Incentves RMG Sector of BangadeshCompettveness of the Bangadesh RMG SectorAftermath Intatves Rana paza budng coapseImprovng RMG Sector & Passng T-Shrt PhaseWhy You Choose Aman Group Why you Invest n Aman Industra Park Short Synopss of Aman Spnnng Investment proposa WhyBangladeshChnaandIndabetweenthemhavevastandncreasngy prosperous popuatons, whch are pro|ected to grow to three bon by2050.Bangadeshswestuatedneverysensetotake advantageofthsopportunty.Wthmprovngeducaton, technoogyandeconomcgrowth,Bangadeshsownmarketof 146.6 m peope s becomng ncreasngy attractve to busness and foregnnvestors.ThecostofdongbusnessnBangadeshhas sgncanty and vsby decreased n recent tmes.Advantageous Trading Agreements Advantageous Trading AgreementsDutyandquotafreeaccesstoEU,|apan,Canada, Austraa and most other deveoped countres.BangadeshsasgnatorytotheMutatera InvestmentGuaranteeAgency(MIGA);Overseas PrvateInvestmentCorporaton(OPIC),USA; InternatonaCenterforSettementofInvestment Dsputes(ICSID);WordInteectuaProperty Organzaton (WIPO).Batera agreements to avod doube taxaton.Youth & Ambition 59.3 % of the popuaton are economcay actve (15 years and over).The country s young too, 40 years od.Source: Board of Investment BangadeshBangadeshhas31pubcunverstes,54 prvate unverstes, 60 teacher tranng coeges and 1,143 technca and vocatona nsttutons.Thousands of Bangadeshs who have wde work experenceabroad add to thenatona reservor of sk.Yetoursecondanguage,Engsh,swdey spoken, understood and wrtten.Morethan90%ofstahatmanagementeve s uent n Engsh.Source: Bangladesh Bureau Of Educational Information And Statistics Bangladesh Technical education BoardBangadeshohersamostberaFDI regmenSouth Asa, wth no pror approva requrements or mts on equtypartcpatonandrepatratonofprotsand ncome n most sectors.Bangadeshen|oystarh-freeaccesstotheEU, Canada,Austraaand|apan.Bangadeshsthetop manufacturedproductsexportertotheeast deveopedcountresasweastoEurope,wthmore than 50% market share.signi!cant bene!ts to e"#orters$Dhaka'sskedaborcostbasesstessthanthe other ma|or ctes.Dhaka's management grades are 2-3 tmes ess than n Sngapore, Shangha, Bangkok.IndustraestaterentnDhakascostehectvethan Shangha, |akarta, Bangkok.Omcerentsareasoverycompettvewthother nternatona ctes.Dhaka'shousngrentforforegnersareessexpensve than Sngapore, Mumba, Karach, Hano.CostofdesenDhakasfoundtobemore compettvey prced than most other arge ctes.VehcesncreasngyuseLPGasDhakagasonecosts are compettve wth most other ctes.Source: The 20th Survey of Investment-Reated Cost Comparson n Ma|or Ctes and Regons n Asa.Remttanceofroyaty,techncaknow-how and technca assstance fees.Repatratonfactes ofdvdend and capta at ext.Permanent resdent permts on nvestng US$ 75,000andctzenshponnvestngUS$ 500,000.Taxhoday:100%nrsttwoyears:50%n the year three and four: and 25% n the year ve. Acceerated deprecaton for new ndustres. Busnessesexportng80%ormoreofgoods orservcesquafyfordutyfreemportof machnery and spares, bonded warehousng. 90% oans aganst etters of credt and funds for export promoton.Export credt guarantee scheme.Domestcmarketsaesofupto20%s aowed.5%to20%Cashncentvesand export subsdes on seected products.Source: Natona Board of Revenue of BangadeshSector %ighlights: Te"tile & A##arel Sector of Bangladesh

Texte and Appare s the ma|or ndustry of BangadeshGenerates around &'$() of the total e"#ort recept of the country Bangadesh exported around *S+ ,-$., billion in the /Y0-1 The second largest a##arel e"#orter n the word.Te"tile Industry 2alue 3hain Sector %ighlights Sector %ighlightsCost and quaty of products that are produced on tme. Reabyandverycompettveywthahghysked abor force.Aunqueregonaocatonforexpansonntokey Eastern and other markets.Favored tradng status wth the EU and the USA.The growng demand for yarn n the oca market.Comparatvey ow cost of dong busness.ucratve ncentve packages.Favorabe nvestment pocy.Source: Board of Investment BangadeshInvestment O##ortunities and 4overnment Su##ortEstabshmentofnewtexte/RMGmnthe prvate sector.|ont ventures wth the exstng texte/RMG mAcqustonofpubcsectortextemsthatare beng prvatzedIndrectnvestmentthroughnancaservces and/or easngBack to back LC and bonded warehouse.Government support spnners by provdng ower tarhsformachnerysparesandrawmateras, cashncentves,reducedtaxrate,andow-cost fundng etc.Therewasannowsof$666mforegndrect nvestmentn2007whchrasedsgncantyn 2008to$1086m.Asof2011,nowsofforegn drect nvestment recorded to $1136.38m.Source: Board of Investment BangadeshTe"tile Sector in Bangladesh 3a#ital 5ar6et Tota No. of Lsted Companes ,.' Lsted Texte Companes 1, Tota Market Cap. of DSE 281 Billion Texte Sector Market Cap. 7$. Billion 5ar6et 89E -.$7'Te"tile Sector 89E -($1,Data Source : Dhaka Stock Exchange, March 2014. Ready Made Garments (RMG) Composte Texte Denm DyengSpnnngGarments ; 26%Denm; 11%3om#osite Te"tile: -,)Dyng; 4%Spnnng; 47%Sub;sectoral 5ar6et 3a# as ) of Total Sector 3a#40% Industra Vaue Addton Comes From TexteProvde Over 5.0 Mon |obs of whch 80% are womanOver81%oftheexportearnngcomesfromTexte& Texte reated productTheVaueAddtonnwovenRMGsnowaround35%to 40% and KNIT RMG s around 70%Around40%ofthetotademandofWovenFabrcsfor Export orented RMG s supped by the oca weavng ms90% of the domestc fabrcs and 100% yarn requrements of Knt Garments are met by Prmary Texte Sector (PTS)Provde0.2Mon|obsnWasteRecyceIndustryreated to RMGContrbutes 13% to GDPGeneratehugecentabaseforBankng,Insurance, Shppng,Transport,Hote,Cosmetcs,Toetres&reated economc actvtes.Exportorentedready-made garments(RMG)sectorhas emerged79%of Bangadeshs export basket. Bangadeshmeetsatte more than 6% of the tota US andEurozoneappare demand,and2%ofgoba apparebusness-makngt the2ndargestappare exporternthewordafter Chna. ExportstotheUSoverthe pastfewyearshavegrown fasterthananyother country.Source: Export Promoton Bureau, Bangadesh BankIm#ortantissuesrelatedto theBangladeshs 4S8 facility under ?+3