Business Tour
Welcome to Bangladesh
A Beacon of Hope in Asia
As per the information of Bangladesh Investment Development Authority (BIDA):
Bangladesh is one of the world’s fastest-growing economies.
Bangladesh, growing rapidly over a decade, is on its way to becoming the next Asian Tiger. Economic and political stability are driving its journey towards the future. Currently the 41st largest economy, Bangladesh will be the 25th largest economy by 2035.
7% average GDP growth in last five years
$2,227 per capita GNI in FY 2020-21, surpasses neighbors
$25 billion remittances, 6% of GDP
$44 billion in Forex reserve, 8-9 months import coverage
5.56% inflation in FY 2020-21
Stable sovereign ratings by Moody’s, Finch and S&P
90% businesses express high confidence during COVID-19: survey
Short overview the relationship between Bangladesh and South Korea.
- Over 200 South Korean companies have so far invested in Bangladesh.
- South Korea's collective investment in Bangladesh amounts to about $1.2 billion
- It is 5th largest foreign investor in Bangladesh
- The country is providing duty, quota free access for 95% of Bangladeshi products
Some major South Korean investors in Bangladesh:
- Youngone Corporation – Garments and Textile
- Bestec BD Limited – Gamrents
- Bohemian Travel Gear Limited – Furniture
- Campvalley Global Ltd – Tent
- Champha Outdoor LTD. - Tent, Slliping bag , all kind of bags and Camping Chair
- HKD Outdoor Innovations Limited – Tent
- Lhotse (BD) Ltd – Tent
- OFMA Camp. Ltd. – Tent
- Park (Bangladesh) Company Limited - Footwear & Leather goods
- PH Creative (BD) Ltd. – Tent
- Kido Dhaka Co. Limited – Garments
- Neo Bangla Limited – Chemical and Fertilizer
- Samsung Electronics
- Samsung C&T
- LG Electronics
- Woori Bank
- POSCO E&C
- Halla Corporation
- Pyunghwa Engineering
- Kunhwa Engineering
- LS C&S, Korea Expressway Corporation
- Yupoong, Bankotex
- Miraenetwork
- GEOMEX Soft
- Jonghyun HighTech
- Philko Sports
- ESE Knitwear
Why to Invest in Bangladesh
Bangladesh is actively seeking foreign investment and offers a competitive advantage with its well-connected infrastructure, fair market practices, and affordable production costs. The government is committed to creating a modern business climate through ongoing reforms, making it easier and more secure for foreign investors to operate.
The country boasts a large, young, and tech-savvy workforce, making it an ideal location for outsourcing and technological advancements. A growing population with rising incomes creates a thriving domestic market for consumer goods and services.
Strategically located near major Asian economies and with access to seaports, Bangladesh is a key player in the region. The country’s favorable trade agreements and supportive policies further solidify its position in the global market. Please consider the below points before invest.
Continuously rapid economic growth
Bangladesh’s economy is booming! Unlike many other developing nations, Bangladesh’s GDP has grown steadily for the past 3 decades, exceeding 7% in the last decade. This impressive growth is backed by political stability, controlled inflation, and a welcoming environment for businesses.
Strategic location
Bangladesh occupies a prime spot, bordering South and Southeast Asia, granting it close proximity to major regional markets like China. This strategic position extends to its capital, Dhaka, which functions as a commercial and financial hub, offering easy access to neighboring countries. Furthermore, Bangladesh’s coastal location on the Bay of Bengal provides a significant advantage for trade within Asia and the Middle East.
Young and skilled workforce
One of the main driving forces of Bangladesh’s economic growth is its young workforce.
Growing population
With a population exceeding 168 million in 2022, Bangladesh ranks among the world’s most populous nations, sitting at number 8 globally and number 5 in Asia. The UN predicts this population to surge to 265 million by 2050. Bangladesh is also witnessing a rapidly expanding middle class, projected to reach 34 million by 2025, a threefold increase from the current 12 million. This translates to roughly 2 million people joining the middle class annually.
Competitive labor costs
The average monthly wage for garment workers in Bangladesh is 12,500 BDT (US$ 115). In China, for example, garment workers earn on average about $370 a month.
In fact, increasing costs in developed countries such as China has become the main reason why many companies are moving their manufacturing to other destinations.
Openness to foreign investment
Bangladesh actively courts foreign investment by opening most sectors to foreign participation and creating a business-friendly environment. (This paraphrase emphasizes Bangladesh’s proactive approach to attracting foreign investment)
Foreign investors are greeted with open arms in Bangladesh, with opportunities to invest in a wide range of industries and benefit from policies designed to ease the process of doing business
Trade agreements
Beyond its domestic strengths, Bangladesh actively participates in the global marketplace. This is evident through its membership in the World Trade Organization (WTO) and numerous trade agreements. These agreements include regional partnerships like the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade Area and the South Asian Free Trade Area (SAFTA), along with broader agreements like the Asia-Pacific Trade Agreement. Furthermore, Bangladesh enjoys a strong trading relationship with the European Union, solidified by the EU-Bangladesh Cooperation Agreement which facilitates duty-free exports.
Business Tour of Bangladesh
1. Textile and Garments
The clothing industry dominates Bangladesh’s economy, generating over 80% of its export income. This massive sector, fueled by a large, affordable workforce and a business-friendly environment, is poised for even greater expansion. Here are some business ideas that you can consider in this sector.
- Manufacturing, Produce and Production
- Supply Chain Management
- Supply of Textile Machinery
- Fashion Design & Branding
- Textile Recycling
- Testing & Certification
- E-commerce Platform
2. Pharmaceutical
Bangladesh has a rapidly growing pharmaceutical industry, driven by a large domestic market and increasing demand from international markets. The government is also taking steps to support this sector, including offering tax incentives and simplifying regulatory procedures. The pharmaceuticals sector is one of the fastest-growing industries in Bangladesh, driven by a large domestic market and increasing demand from international markets. Here are some business ideas that you can consider in this sector.
- Production and Manufacturing
- Contract Manufacturing
- Pharmaceutical Research and Development
- Active Pharmaceutical Integrands (API) Manufacturing
- Biotech Research and Development
- Herbal Medicine
3. Healthcare
Bangladesh’s healthcare sector is experiencing a surge, fueled by a burgeoning middle class demanding better medical care. The government is actively involved, investing in new hospitals and expanding public health insurance. This growth translates into a wealth of opportunities for entrepreneurs and investors. Here’s a look at some promising ventures :
- Hospitals and Clinics
- Medical Equipment and Supplies
- Health Insurance
- Health and Wellness Centers
- Healthcare Service Door to Door
- Medical Tourism
4. Agribusiness
Bangladesh’s fertile lands and dedicated workforce have made agriculture the bedrock of its economy. Nearly half the population finds employment in this sector, contributing a significant portion of the country’s GDP. Recognizing this potential, the government actively promotes agricultural productivity, diversification, and value addition, making it a prime area for investment.
A Harvest of Business Ideas:
- Agribusiness Processing
- Supply of Ago Products
- Livestock and Poultry
- Fishing Firming
- Organics Firming
- Expert Agricultural Guidance
- Agrotourism
5. Infrastructure
Despite its economic progress, Bangladesh faces a significant infrastructure gap, particularly in power, transportation, and communication networks. This presents a golden opportunity for investors, as the government tackles this challenge through large-scale development projects. These projects are paving the way for growth in construction, engineering, and logistics.
Here’s a closer look at some promising ventures:
- Real Estate
- Hotels and Resorts Development
- Roads, Expressway and Bridges
- Modernizing the Railways
- Port Modernization
- Telecommunications
- Water Supply and Sanitation
- Renewable Energy
6. Financial Services
Bangladesh’s burgeoning population is fueling a surge in demand for modern financial services. From banking and insurance to microfinance and cutting-edge technology solutions, the financial services sector is experiencing explosive growth. The government’s focus on financial inclusion further fuels this trend, creating a fertile ground for investors and entrepreneurs. Here’s a glimpse into the exciting opportunities :
- Banking and Financial Institutions
- Payments and Remittance Services
- Microfinance
- Investments & Wealth Managements
- Insurance
- Financial Technology (Fintech) Revolution
- Expert Financial Guidance
7. Information Technology (IT)
Bangladesh’s IT sector is experiencing a meteoric rise, fueled by a potent combination: a highly skilled workforce and a cost-effective business environment. The government actively fosters this growth with tax breaks and dedicated technology parks, making it a haven for IT investment. Here’s a glimpse into the exciting opportunities this sector offers:
- Software Development
- IT Outsourcing
- E-commerce
- Digital Marketing
- IT Training & Education
- Cybersecurity Service
- IT Consulting
8. Energy
Bangladesh faces a crucial challenge: bridging the energy gap for its growing population. However, the country boasts immense potential for renewable energy sources, making it a prime location for investment in this sector. The government actively incentivizes renewable energy through tax breaks and subsidies, recognizing its importance for a sustainable future. Here’s a look at the exciting possibilities within this dynamic landscape:
- Solar Power
- Wind Energy
- Biomass Energy
- Optimizing Energy
- Natural Gas
- Energy Storage
- Hydropower
9. Frozen Foods
Frozen foods is the second largest export sector of the economy. The massive natural resources available in Bangladesh make this sector particularly promising for investors looking to supply in international as well as in domestic markets.
The Public sector corporation and the private organizations have setup about 148 numbers of shore-based export-oriented fish processing plants at Dhaka, Chittagong, Khulna, Jessore, Satkhira, Bagerhat, Cox’s Bazar, Chandpur, Kishoregonj, Syihet and Patuakhali. These plants produce Fresh Water shell On (FWSO), Ser Water shell On (SWSO), Peeled and Deveined (P&D), Peeled and Undevined (PUD), shrimp products under the most hygienic and sanitary condition under the supervision, control and guidance of foreign trained handling & processing experts. At all levels, USFDA registrations and directives of the European Communities concerning the production and exportation of frozen foods are strictly followed.
Exportable Products
The private organization and the public sector corporation offer the following products for export:
- Frozen shrimp & prawn
- Frozen fish
- Fresh & chilled fish
- Frozen fillets & steaks of fish, sharks shells skates & rays
- Shark fins & fish maws
- Salted & dehydrated fish
- Dry fish
- Live crabs & tortoises
- Fish meals & crushed
Value added shrimp & fish products
10. Leather and Leather Goods
Bangladesh has a long-established tanning industry which produces around 2-3% of the world’s leather from a ready supply of raw materials. The country is therefore an established and attractive location to source and outsource the manufacture of finished leather products. The leather industry is ideally suited to Bangladesh with its abundance of labor and natural resources at internationally competitive rates.
11. Electric & Electronics
Bangladesh’s electronics industry is poised for significant growth, with exciting opportunities in several areas:
Semi-Conductor: While large-scale semi-conductor manufacturing might not be feasible yet, smaller, localized production facilities could emerge. Bangladesh has over two decades of experience in basic electronics production. This experience, coupled with recent collaborations between European and Asian electronic firms with Bangladeshi counterparts, has laid a solid foundation for further growth. The ability to produce competitive electronics positions Bangladesh as a key player in the regional market.
Cell Phone Assemble: The country is on track to become South Asia’s leading cell phone market, presenting a vast opportunity for cell phone assembly companies. Private companies are now allowed to operate in rural telecommunication, paging, cellular mobile services, and riverine radio trucking. Currently, seven private operators cater to around 100,000 customers. Additionally, the government has approved private-sector participation in expanding Dhaka’s digital telephone network by 300,000 lines. Continued Growth and Opportunity: The government is committed to further liberalizing the telecommunication sector, ensuring fair competition while prioritizing economic viability. This ongoing support creates a fertile ground for continued growth and exciting opportunities in Bangladesh’s electronics industry
The government is committed to further liberalizing the telecommunication sector, ensuring fair competition while prioritizing economic viability. This ongoing support creates a fertile ground for continued growth and exciting opportunities in Bangladesh’s electronics industry. In this context, relocation, outward investment and joint venture with Bangladeshi companies could be gainful strategies. To capitalize on the comparative advantages, substantial foreign investment from those countries is highly encouraged.
12. Ceramic
The global ceramics industry is a multi-billion dollar market exceeding $10 billion. Bangladesh is ideally situated to capitalize on this flourishing sector with its unbeatable combination of:
Bangladesh offers highly competitive production costs, making it an attractive option for businesses seeking to optimize their bottom line. The country boasts a talented and creative workforce, ensuring the production of high-quality ceramic products.
This strategic advantage is particularly relevant in the tableware industry. Currently, this sector is experiencing consolidation, with smaller firms in developed countries struggling to compete. This creates a golden opportunity for Bangladesh. Major brands like Noritake, Wedgewood, Lenox, Villeroy & Boch, and Royal Doulton are all growing into billion-dollar corporations, and they need reliable production partners.
Bangladesh, with its abundant natural gas resources and low labor costs, is perfectly positioned to fill this gap. The ceramics sector actively welcomes investment, making it a lucrative opportunity for businesses seeking to expand their operations in a thriving market.