► Cold storage facilities serving the supply chain, especially fresh produce for export
► Fresh produce production for local and export markets
► Production of fertilizers and cultivation of seeds
► Eco-friendly jute production, supported by jute technology development institutes
► Meat and meat products
► Milk and dairy products
► High value-added foods for export, including herbs, spices, nuts and pulses
► The Equity Entrepreneurship Fund for development of agribusiness industry
► Special loan facilities available to set up an agribusiness
► Tax holidays
► Investment in this sector will enjoy similar tax benefits as available in other sectors
► Imposition of supplementary duty on mango, orange, grape, apples, dates and others to utilize the high quality and cheaper local resources
► Cash incentives to the exporters ranges from 15-20% in various sub-sectors
Garments and Textile
The textiles and clothing industry is Bangladesh’s biggest export earner with value of over US$ 16 billion of exports in 201213. This rapidly growing sector of the economy offers a unique competitive edge that supports expansion into new strategic markets. Bilateral agreements with 28 countries and Generalized System of Preferences (GSP) of the EU are key reasons for Bangladesh (Ready-Made Garments) RMG products having access to global markets.
This sector now employs over 50% of the industrial workforce and accounts for 77% of the total export earnings of the country in 2012-13. The growing trend in the textile and the garments sector means that Bangladesh is perfectly positioned to appeal to foreign investors.
► Historically the Bangladesh RMG industry has depended largely on imported yarns and fabrics and produced only 10% of the export-quality cloth used by the garments industry. The need for establishment of backward-linkage industry has become an immediate concern to the government and the exporters and there are enormous opportunities to set up a composite textiles industry combining textile, yarn and garments.
► The government has created a highly favorable policy framework for investment in these sectors offering investors the following choices:
► Establishment of new textile/RMG mill in the private sector
► Private parties as concessionaire with the existing textile/RMG mill
► Acquisition of public sector textile mills that are being privatized
► Indirect investment through financial services and/or leasing
► Backward linkage is a significant trading opportunity and is supported by a government backed incentive: 15% cash subsidy of the fabric cost to exporters sourcing fabrics locally.
► The government is also supporting spinners by providing lower tariffs for machinery spares and raw materials, cash incentives, reduced tax rate, and low-cost funding etc.
Bangladesh is progressing phase of development where automation is the key to its economy and business. As the country continues to industrialize the importance of power generation and electricity supply becomes a key government priority. Public and private sector produces 63% and 37% of electricity respectively. Public sector produces electricity through Bangladesh Power Development Board (BPDB), Ashuganj Power Station Company LTD (APSCL) and Electricity Generation Company of Bangladesh (EGCB). On the other hand, private sector produces power through small independent power producers and rental that government buys at a constant price.
At present, 48.5% of the total population of Bangladesh has electricity supply. As of April 2010, the total length of transmission and distribution lines is 8,359 km and 266,460 km respectively. However, 53,281 villages have been electrified so far. In Bangladesh per capita generation is 220 KW hr which is comparatively lower than other developed countries in the world. The government has set the goal of providing electricity to all citizens by 2021; hence it provides immense opportunity for both private investors and foreign investors to invest in power sector.
Industry incentives for private power companies:
► Exemption from corporate income tax for a period of 15 years
► Allowed to import plant and equipment and spare parts up to a maximum of ten percent (10%) of the original value of total plant and equipment within a period of twelve (12) years of commercial operation without payment of customs duties, VAT and any other surcharges as well as import permit fee except for indigenously produced equipment manufactured according to international standards
► Repatriation of equity along with dividends allowed freely
► Exemption from income tax for foreign lenders to such companies
► The foreign investors will be free to enter into as concessionaire but this is optional and not mandatory