Why foreign investment in Bangladesh

Why Investment in Bangladesh ?

S & F CONSULTING FIRM LIMITED

An international company consultancy firm in Bangladesh

Email: info@sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

In January 2010, JETRO conducted a comparative survey of investment-related costs in 29 major cities and regions in Asia. The following comparison is based on that survey with some selected cities.

Bangladesh offers a truely low competitive cost base. Wages and salaries are still lowest in the region, a strong business advantage. Yet this is an increasingly well-educated, adaptive and peaceful population with many skilled workers.
Dhaka's skilled labor cost base is still less than the other major cities.
Dhaka's management grades are 2-3 times less than in Singapore, Shanghai, Bangkok.
Industrial estate rent in Dhaka is cost effcetive than Shanghai, Jakarta, Bangkok.
Office rents are also very competitive with other international cities.
Dhaka's housing rent for foreigners are less expensive than Singapore, Mumbai, Karachi, Hanoi.
Cost of diesel in Dhaka is found to be more competitively priced than most other large cities.
Vehicles increasingly use LPG as Dhaka gasoline costs are competitive with most other cities. Fiscal & Non Fiscal Incentives Bangladesh offers some of the world’s most competitive fiscal non-fiscal incentives. BOI can advise further on this matter. In summary and in most cases, these amount to the following: Remittance of royalty, technical know-how and technical assistance fees. Repatriation facilities of dividend and capital at exit. Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000. Tax holidays In the Dhaka & Chittagong Divisions: 100% in first two years: 50% in the year three and four: and 25% in the year five. In the Rajshahi, Khulna, Sylhet, Barisal Divisions and three Chittagong Hilly Districts: 100% for first three years, 50% for next three years, 25% for year seven. Depreciation allowances Accelerated depreciation for new industries is available at the rate of 50%, 30% and 20% for the first, second and third years respectively, on the cost of plant and machinery. Cash and added incentives to exporting industries Businesses exporting 80% or more of goods or services qualify for duty free import of machinery and spares, bonded warehousing. 90% loans against letters of credit and funds for export promotion. Export credit guarantee scheme. Domestic market sales of up to 20% is allowed to export oriented business located outside an EPZ* on payment of relevant duties. Cash incentives and export subsidies are granted on the FOB** value of selected exports ranging from 5% to 20% on selected products. * Lower manpower cost help to make more profit return* www.sfconsultingbd.com Email: info@sfconsultingbd.com Dhaka, Bangladesh