Private sector is the main engine of economic growth in Bangladesh. The government therefore attaches high priority to private investments, both domestic and foreign, and has been relentlessly working for ensuring an ideal investment climate through policy and institutional supports, infrastructure improvements, administrative and regulation reforms, modernization of financial institutions, and special incentive packages. Government has also established export processing zones as well as economic zones where privileged treatment and special package are offered to investors. Such initiatives have enabled Bangladesh to maintain a GDP growth rate of over 6% on average for more than a decade and also to double its export earnings in just five years despite slow pace in the recovery of global economy. Owing to robust economic growth for consecutive years, Bangladesh has recently graduated to the status of a lower middle-income country with per capita income hovering around US$ 1,314 at the moment.
Bangladesh is now a highly competitive location for commercial ventures in terms of costs, inputs, human resources, size of the domestic market, access to international markets, trade facilitation, investment protection including consistency in policies, socio-political stability etc. Inflow of FDI is on continuous rise for last few years and the inbound FDI rose by 24% year-on-year basis to US$ 1.83 billion last year. Following would give an overview on current investment climate in Bangladesh:
Bangladesh offers a unique winning combination of high connectivity, rapidly expanding huge domestic market, privileged access to international market, business-friendly environment and competitive cost structure that creates the opportunity for best return on investments.
Bangladesh is geographically located in the cross road of East Asia, South East Asia and South Asia, three most dynamic regions of Asia. Such unique location provides the country a greater access to international maritime and air routes. Country is also rapidly developing its core infrastructures like roads, highways, surface transport and port facilities to further improve multi-modal connectivity to emerge as a leading regional business and communication hub.