Bangladesh - A Winning Combination for Smart Investment

Introduction:
As the world seeks promising investment destinations, Bangladesh emerges as a winning combination with its unique blend of advantages. With a highly skilled and competitive workforce, strategic location, attractive incentives, and a rapidly growing economy, Bangladesh presents a plethora of opportunities for investors seeking high returns. In this blog post, we will explore why Bangladesh is an attractive investment hub and why it is considered the next Asian Tiger.

Industrious Competitive Workforce:
One of Bangladesh's biggest strengths lies in its industrious and adaptable workforce. With the lowest wages and salaries in the region, Bangladesh offers cost-effective solutions for various industries. The country's young population, with about 57.3% under the age of 25, ensures a continuous supply of talented and skilled professionals. The prevalence of English as a widely spoken language makes communication seamless, further enhancing Bangladesh's appeal as an investment destination.

Strategic Location and Regional Connectivity:
Strategically located between India, China, and ASEAN markets, Bangladesh serves as a gateway to these vast economies. As the South Asian Free Trade Area (SAFTA) comes into effect, investors in Bangladesh can enjoy duty-free access to India, as well as preferential access to EU, Japan, and major developed countries. This regional connectivity opens up a wide range of possibilities for businesses seeking to tap into these lucrative markets.

Strong Local Market and Growth:
With a population of 160 million and consistent economic growth over the past decade, Bangladesh offers a robust local market with a growing demand for various products and services. This strong domestic market serves as a stable foundation for businesses and ensures steady growth opportunities.

Low Cost of Energy:
One of the key factors contributing to Bangladesh's competitive advantage is its low cost of energy. Energy prices in the country are the most competitive in the region, providing cost savings for industries and businesses.

Proven Export Competitiveness:
Bangladesh boasts tariff-free access to the European Union, Canada, and Japan, making it an attractive destination for exports. The country enjoys a significant market share in the Ready-Made Garments (RMG) sector within the EU, showcasing its competitiveness as a manufacturing exporter.

Competitive Incentives:
Bangladesh offers a liberal Foreign Direct Investment (FDI) regime, allowing 100% foreign equity ownership with unrestricted exit policies. The country provides a host of incentives, including tax holidays, reduced tax rates for specific sectors, export incentives, and fiscal benefits to attract and retain foreign investors.

Investment Protection:
The Foreign Private Investment (Promotion and Protection) Act, 1980, ensures protection for foreign investments made in Bangladesh. Investors enjoy safeguards against expropriation, equitable treatment, and the freedom to repatriate capital and profits.

Opportunities in Economic and Industrial Zones:
Bangladesh offers export-oriented industrial enclaves with well-developed infrastructure and logistic support for foreign investors. The country is actively developing Economic Zones to further enhance its business environment, with a focus on improving road networks, highways, surface transport, and port facilities.

Chinese Economic and Industrial Zone:
Bangladesh has collaborated with China to establish the Chinese Economic and Industrial Zone, facilitating Chinese investments in the country. This partnership presents immense potential for mutual benefits and further strengthens Bangladesh's position as an attractive investment destination.

Positive Climate and Government Support:
Bangladesh boasts a harmonious and homogenous society that welcomes foreign investors. The democratic country enjoys broad bi-partisan political support for private investment, ensuring a stable and conducive business environment. The legal and policy framework supports foreign investment, making Bangladesh an investor-friendly nation.

Conclusion:
Bangladesh, with its winning combination of high connectivity, competitive market, business-friendly environment, and competitive cost structure, offers an attractive investment destination for global investors. The country's industrious workforce, strategic location, export competitiveness, and government support create a fertile ground for businesses to thrive. As Bangladesh continues to transform into an economic powerhouse, investors can be confident in exploring the myriad of opportunities it presents. By capitalizing on Bangladesh's potential, businesses can benefit from its sustainable growth and establish themselves as key players in this dynamic market.