WHY INVEST IN BANGLADESH ?
WHY INVEST IN BANGLADESH ?
- Bangladesh : Open and Attractive Investment Destination
- Investment Outlook
- Why Bangladesh
- Why Invest in Leather Footwear and Leather Goods Sector ?
BANGLADESH : OPEN AND ATTRACTIVE INVESTMENT DESTINATION
Bangladesh is set to establish itself as the next rising star in South Asia for foreign investment. It is a cost competitive investment destination in several respects. Firstly, it offers a young, industrious workforce with competitive wages in the region. Secondly, industrial estates, offices and housing for foreigners in the country are cheaper than other South and South East Asian countries. Thirdly, Bangladesh enjoys tariff-free access to the European Union (through EU’s Generalized System of Preferences, GSP), Canada, Australia and Japan. Fourthly, it has strong competitiveness that can be illustrated as follows:
.Bangladesh offers some of the world’s most competitive fiscal and non-fiscal investment incentives. • Bangladesh offers the most liberal FDI regime in South Asia, allowing 100% foreign equity with unrestricted exit policy, easy remittance of royalty, and repatriation of profits and incomes. • Bangladesh offers export-oriented industrial enclaves, Export Processing Zones (EZ) with 10 years tax holiday and a host of benefits for the foreign investors. Bangladesh<p/p>
Bangladesh is attracting increasing interest from international investors as an emerging preferred low-cost manufacturing hub in Asia with a steadily growing economy, abundant, easy to train and affordable young labour force, preferential market access and strategic geo-economic location. Bangladesh offers exciting investment opportunities under its liberalized Industrial Policy and export-oriented private sector-led growth philosophy. Around 100 new economic zones (SEZ) are being offered to invest and setup factories. The international investment ratings highlight the growing attractiveness of Bangladesh as an investment destination for leather and footwear sector.
Goldman Sachs listed Bangladesh as one of the “Next 11” countries that have the potential to grow by 700% over the next decade. • JETRO’s preferred investment destination 2015: Japanese firms operating in China rate Bangladesh THE SECOND BEST investment destination, where around 72% firms want to expand operations in Bangladesh. • Standard & Poor’s and Moody’s sovereign credit ratings: Bangladesh received its credit ratings (BB- and Ba3) in 2010 (reconfirmed in April 2011). Moody’s rating puts Bangladesh at par with Vietnam. • JP Morgan’s Frontier Five: Bangladesh has been listed in 2007, similar to Vietnam as one of the five countries that have impressive economic and investment potential.
Bangladesh offers a perfect sourcing diversification opportunity for manufacturing mostly over dependent on China. • A young, industrious, affordable workforce growing by roughly 2 million annually. • Proven volume and quality export capability demonstrated by Bangladesh’s position as the world’s 2nd largest producer of apparels after China. • Preferential market access to EU, Canada, Australia and Japan. • Investment friendly regulation: Bangladesh offers some of the world’s most competitive fiscal and non-fiscal investment incentives and the most liberal FDI regime in South Asia, allowing 100% foreign equity with unrestricted exit policy, easy remittance of royalty, and repatriation of profits and incomes. • Growing middle class purchasing power: with improving education, health and human development indicators, Bangladesh’s own market of 160 million people is becoming lucrative to business and foreign investors. • Bangladesh is one of the top 10 remittance earning countries in the world, with flow backs of more than USD 15 billion per year from Bangladeshis working abroad.
Bangladesh has a large domestic raw material base and strongly moved towards environmentally sustainable production of processed rawhide and leather products. • Availability of a young, skilled and semi-skilled labour force and qualified leather technologists. • International brands like ABC Mart, Adidas, Aldo, Esprit, Hugo Boss, H&M, Kate Spade, K-Mart, Michael Kors, Marks & Spencer, Nike, Steve Madden, Sears, Timber Land, etc. are sourcing leather goods and footwear from Bangladesh. • Can utilize tariff-free access to the European Union (through EU’s Generalized System of Preferences, GSP), Canada, Australia and Japan. Bangladesh also enjoys DFQF in major Asian market such as China, Turkey, and in some Latin American Countries. • Emerging as a sourcing hub for leather goods and footwear. • Giant leather export countries such as China, are shifting their production units in Bangladesh due to increasing production cost. • Almost 90% value addition is possible. • Government is establishing a state-of-the-art DESIGN & TECHNOLOGY CENTER. • Bangladesh leather sector aspires to be the next apparel (RMG) industry for Bangladesh, which is the world’s second largest apparel producer.