Why invest in Bangladesh

Why invest in Bangladesh

Bangladesh is one of the fastest-growing economies in the world. Bangladesh’s GDP never seen negative growth during the last 30 years’ period and in the last 10 years, the GDP growth rate is more than 7%. Therefore, compared to other emerging markets, the GDP growth of Bangladesh has been outstanding. Bangladesh has political stability under a democratic system. Inflation is steady because of good monetary and fiscal management. Bangladesh is a winning combination with its high connectivity, competitive market, business-friendly environment, and competitive cost structure that can give you the best returns.

Bangladesh is highly focused on investment. Bangladesh sees the creation of an open, predictable, and competitive climate for private investment as an obvious step towards achieving its development goals. Energy prices in Bangladesh are the foremost competitive within the region. The Foreign Private Investment (Promotion and Protection) Act, 1980, protects the investment made in Bangladesh against expropriation & nationalization; equitable treatment, exit, and profit & capital repatriation.
A business operates within an environment decided by the economic, political, technological, social, and legal conditions that exist in a country. So Bangladesh has been working to make a contemporary business climate through reforms altogether spheres, diagnosing and correcting every procedure that has an impression on business. The legal and policy framework for business is favorable for foreign investment.

An open and diverse economy of Bangladesh with steady growth with both GDP per capita and consumption expenditure have demonstrated upward trends, which resultantly reflect higher living standards for Bangladeshis that expand the local market that would be the attractive destination for a foreign investor. Bangladesh has shown warm attitude towards foreign investors. The foreign investors are allowed to invest in most sectors and the investment authorities of Bangladesh providing favorable conditions for doing business.
One of the most driving forces of Bangladesh’s economic process is its young workforce. The country also shows potential in technical education. The European Commission listed Bangladesh as a perfect destination for outsourcing. There are Tech Parks situated in Dhaka, Rajshahi, Jessore, Sylhet, and Chattogram to promote the progress of the ICT sector to create Digital Bangladesh.

With a population of just over 160 million, the country has strong consumer demand, and the consumer goods market, ranging from white goods and clothes to fintech, is growing fast. There are opportunities to develop the country’s burgeoning service industry and the rise in population and GDP growth has knock-on effects on other areas of the economy such as the need for infrastructure development.A strategic geographic position as a gateway to countries in the Asia-Pacific region makes Bangladesh an inevitable partner in this region where the labor cost is very low compared with other competitor countries. Besides, that strategic geographic position also ensures easy access to other neighboring country’s big markets. Bangladesh’s capital city Dhaka has a well-structured communication system with its neighboring countries. It is also the commercial and financial hub of Bangladesh and therefore the largest economic center of Eastern South Asia. Furthermore, Bangladesh is situated on the coast of the Bay of Bengal which offers good conditions for doing trading business within Asian and Middle Eastern markets.

A strategic and competitive position in the value chain of the global economy creates an image of Bangladesh who is good enough as a supplier. Hence, Bangladesh has 30 plus bilateral agreement and free tariff agreement with the EU and other developed countries, several Treaties with Investment Provision (TIPs) and 20 intergovernmental agreements and multilateral or regional agreement or guidelines, principles, resolution, etc. also favorable to invest in Bangladesh. An economic and legislative environment globally favorable to business in Bangladesh is another strong point of foreign investment. Bangladesh government has already announced several incentives, tax exemption, policy reforms, removing infrastructural deficiencies and creating a positive business environment, and other facilities to encourage more investment in Bangladesh.