Bangladesh: Investing

FDI in Figures

Foreign direct investment in Bangladesh remains structurally weak (1% of the GDP).

Foreign investors often find that ministries demand unnecessary licenses and authorizations. Added to these difficulties are problems caused by the uncertainties linked to criminality, poor infrastructures, inadequate commercial laws and courts, not honoring contracts and policy instability (decisions taken by previous governments are overturned when a new government comes into power). The difficulties in attracting foreign investment also result from Bangladesh's image as an impoverished and undeveloped country, subject to frequent and devastating natural disasters.

The country’s main strengths are its strategic geographical position between South and South-East Asia, the potential of its consumption market and its natural resources.

FDIs are generally oriented towards the sectors of telecommunications and textile and energy industry. By far the main investor is Egypt, followed by the United Kingdom, U.A.E. and Malaysia.

	Bangladesh	South Asia	الولايات المتحدة	Germany
Index of Investor Protection	6.7	5.0	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	1,086	700	913
FDI Stock (million USD)	4,816.0	5,279.0	6,072.1
Performance Index*, Ranking on 141 Economies	115	121	-
Potential Index**, Ranking on 141 Economies	120	-	-
Number of Greenfield Investments***	13.0	17.0	-
FDI Inwards (in % of GFCF****)	5.7	3.0	-
FDI Stock (in % of GDP)	6.1	5.8	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 15%
Company Tax: 27.5%
Withholding Taxes: Dividends: 15%, Interests: 10%, Royalties: 10%, Import of goods: 3%
Bilateral Agreement: A tax agreement has been signed between Egypt and Bangladesh, but still has not been ratified.
Social Security Contributions Paid By Employers: 8.3% of the basic salary.

Investment Opportunities

Tenders, Projects and Public Procurement: DgMarket, Tenders Worldwide
Asian Developement Bank, Proposed Projects in Asia
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Bangladesh.
Useful Resources: Board of Investment Bangladesh (BOI)
Egyptian Embassy in Bangladesh
HOUSE No.9, ROAD 90 GULSHAN 2
DHAKA
Phone: (008802)8858737- 8858738 - 8858739 - Dir: 9884433
Fax: (008802) 8858747
Contact the Embassy via Email.
Embassy of Bangladesh in Egypt
20 Gezeret El Arab Street
Mohandesin-12411
Cairo, Egypt
Phone: 20 2-33462003, 33462009
Fax: 20 2-3346 2008
Contact the Embassy via Email

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