© Bangladesh Investment Development Authority 2017

BangladeshMain Changes and Development in Investment Policy and

Regulatory Framework during 2016-2017

Nabhash Chandra Mandal

Executive MemberBangladesh Investment Development Authority

(BIDA)

© Bangladesh Investment Development Authority 2017

© Bangladesh Investment Development Authority 2017 2

The World’s

44th

Largest Economy

Ranked by World

Bank

Bangladesh is Now Lower-Middle Income

Country - World Bank

2nd in RMG Export after CHINA

Economic Indicators (2016 Est)

GDP Growth Rate (Last 10 years) 6% - 7%

GDP Size $224Billion

GDP Growth 7.24 %

Per Capita GDP $1602

Share of Investment to GDP 30.3%

Share of Industry Sector to GDP 31%

Remittance to GDP ratio 6.74%

Source: Bangladesh Economic Review 2016, Ministry of Finance, World Bank, Digital Year Book 2016

Country’s Key Digital Statistical IndicatorsGDP Share

Agriculture

15.35%

Industry 31.65 %

Service 53%

107 in WEF Global Competitiveness Index and 85 in Logistics Performance Index of WB

Economy of Bangladesh Today

Bangladesh Investment Development Authority 2017

“Bangladesh one of the

Frontier five economies- “JP

Morgan

“Bangladesh the Next

China” Mckinsey &

Company

“Bangladesh will be the 12th

economic power of the world in

2050” UBS.

“28th &23rdlargest

economy of World

by 2030&by2041” PwC

“Low cost and high return

Manufacturing

destination in Asia” JETRO

“ The Next Eleven (N-11),

Bangladesh one of 11

nations, have high

economic potential ”

Goldman Sachs

How Does World See Bangladesh?

3

Bangladesh Investment Development Authority 2017

Vision

2021Vision

2041

GDP Growth 8% (Av. 7.4%) 8%

Per Capita Income $ 2000 $ 12600

Investment to GDP 34.4% 36%

Share of Industry to GDP 34% 40%

FDI $9.56 billion $153 billion

Infra Investment $100 billion $1150 billion

Economic Status Middle Income High Income

GDP Value $335 billion $2580 billion

Export earning $70 billion $350 billion

Economic Vision of Bangladesh

Bangladesh Investment Development Authority 2017

Growth: A Consistent Performance Amid Global Shocks

GDP at constant pricesProjections

2013 2014 20152016

(E)2017 2018

World 2.4 2.6 2.4 2.4 2.8 3.0

Advanced Economies 1.1 1.7 1.8 1.7 1.9 1.9

USA 1.5 2.4 2.4 1.9 2.2 2.1

Euro Area -0.3 0.9 1.6 1.6 1.6 1.5

Japan 1.4 -0.1 0.6 0.5 0.5 0.7

Emerging & Dev. Economies 4.7 4.2 3.4 3.5 4.4 4.7

Emerging & Developing Asia 6.8 6.8 6.6 6.3 6.2

China 7.7 7.3 6.9 6.7 6.5 6.3

India 6.6 7.2 7.6 7.6 7.7 7.7

Bangladesh 6.0 6.1 6.5 7.05 7.2 7.4

Source: Global Economic Prospects(June 2016), World Bank

5

Bangladesh Investment Development Authority 2017

To become an Upper Middle Income Country by 2021 we need to move faster…

Parameters What we were (2015-16) As of now (2016-17 )

Per capita (USD ) 1465 (FY 2015-16) 1602 (FY 2016-17)In terms of purchasing power parity:

US$ 3790

Population under the poverty line 24.8% (2015-16) 23.2% (FY 2016-17)

Literacy Rate 63.6% (2015-16) 71% (2016-17 )

Female Literacy Rate 67%(2015-16) 77% (2016-17 )

GDP growth 7.11% (FY 2015-16) 7.24% (2016-17 )

Export (USD ) 34.26 bn (FY 2015-16) 34.85 bn (2016-17)

FDI (USD ) 2003 mill. (FY 2015-16) 2455 million (FY2017)

Forex Reserve (US$) 30.17 bn (FY 2015-16) 33.41 bn (June’2017)

Electricity Gen. Capacity(with

captive

14,565 MW (2015-16)(Mx. Gen. 9036 MW)

15,755 MW (2016-17)(Mx. Gen. 9479 MW)

6

Growth of Bangladesh (2016-17)

Bangladesh Investment Development Authority 2017 7

Economic Performance - growth

6.7

6.36.2

6.1

7.17.2

6.05.9

6.2

6.46.6

6.0

6.3

5.3

4.4

5.3

5.9

4.9

5.25.4

4.6

199619971998199920002001200220032004200520062007200820092010201120122013201420152016

328 350460

845 793666

1086

700

913

11361293

1599

22362332

1551

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

▪ Bangladesh economic growth (%)

“…constant unbroken GDP growth…”

Bangladesh Export growth (%)

“… Export driven growth in manufacturing…”

FDI Inflow

(2002-2016)

Source: Enterprise Survey, Bangladesh Bank

Source: Ministry of Finance & EPB *Export US$ billion

(USD Million)

(USD Million)

Bangladesh Investment Development Authority 2017 8

Bangladesh is moving up in its competitiveness ranking compared to similarly-rated peers

▪ Bangladesh positively stands out within the region in terms of competitiveness trend, having

moved up the ranks by 7 steps in just a year alone – a remarkable achievement

▪ Broad-based progress in competitiveness affirms the government’s success in pressing

ahead with structural reforms and critical investments required to advance sustainable

economic growth for the future.

▪ Bangladesh attained many elements of MDG well before the target which measures up

favorably in socio-economic factors such as health and primary education, and is recognized

for the positive endowment of its large market size

Socio-Economic Improvements Move Bangladesh Up the

Competitiveness Ladder

118

6872 70

93

111

130

59

110

6572 70

107

120

133

60

107

68 66

56

117124 126

55

106

71

59 60

121127

122

39

99

85

67

55

122 125115

70

0

20

40

60

80

100

120

140

BangladeshBB1

Sri Lanka B- GeorgiaBB- Vietnam BB- Bolivia BB- Nigeria BB- Pakistan B- India BBB_

2012-13

2013-14

2015-16

2016-17

2017-18

Global Competitiveness Index (GCI), Rank (140 countries)

Bangladesh Investment Development Authority 2017 9

Investment Climate

73

107 110

130 135144

176183

0

20

40

60

80

100

120

140

160

180

200

Among the 10 indicators of doing

business Bangladesh stands 176 out of 189

countries & lower performance in the

region:

Getting electricity (187), credit (157) & enforcing contracts

(189).

South Asia in Doing Business (Ranking by World Bank Doing Business Report, 2017):

Bangladesh Investment Development Authority 2017

BIDA and its Responsibility

Bangladesh Investment Development Authority

(BIDA) was created under Bangladesh Investment

Development Authority Act 2016 to:

“encourage investment in the industry in private

sector and to promote necessary facilities and

assistance in the establishment of industries”.

The act mandated BIDA as an organization for

promoting and facilitating private sector investment.

BIDA’s Functions are broadly categorized into :1. Investment promotion;

2. Investment Facilitation (approval, recommendations and aftercare)

3. Policy Advocacy4. Ensure inclusive investment5. Creating entrepreneurs and creating necessary

skill to complement local industry needs.

• Facilitate private investment to make Bangladesh MIC by 2021 and developed country by 2041

• Ensure most congenial business climate

10

BIDAPrime Minister’s Office

Bangladesh Investment Development Authority 2017 11

Developedwebsite

www.bida.gov.bd

Hosted most regulatory services online

Entrepreneurs development activities

are going on

Draft OSS Act is prepared and placed

Parliament for approval;

Hosting of iGuide to BIDA website is near to

completion

Prepared draft Corridor Act & rules

1st Governing Board Meeting (GBM) of BIDA, decision has taken to develop Economic

Corridor in the country;

Develop time bound framework to ease the Doing

Business

BIDA

Sep.’2016

BIDA Initiatives

© Bangladesh Investment Development Authority 2017 12

Targets & Achievements of Doing Business(Indicator wise)

Indicators Action Targets

Starting Business Online client service & National Level OSS

New VAT Law is completed

March 2018

Enact by June’19

Dealing with Construction

Permits

Simplification of approval process, time

bound SOP, rules amendment

March 2018

December 2018

Getting Electricity Time frame for connection (7-28 days),

Online tracking system

March 2018

Registering Property Reengineering process of digitalization of

land records & associated documents

December 2018

Paying Taxes Simplification of Tax related formsOne stop payment mechanism of transection

June 2018

Trading Across Boarder Process reengineering of documents

Establish electronic system

June 2018

Getting Credit Introduce efficient credit Bureau

Credit data dissemination

June 2018

Bangladesh Investment Development Authority 2017

Develop 100 EZs in the next 15

years

Create 10 million employment

opportunities

Foster industrialization

by increasing additional export of USD 40 billion

BEZA: Missions to Achieve

13

© Bangladesh Investment Development Authority 2017 14

0%

1%

2%

3%

4%

5%

6%

0 1 2 3 4

Pe

rce

nta

ge o

f G

DP

Plan Year

> Increase investment to 6% of GDP> Target 77.3% investment from private sector

PublicInvestment

PrivateInvestment

Seventh 5 Year Plan Infrastructure Target

“Investment in infrastructure is critical to addressing the

constraints to promote private sector led growth and unlock a

higher trajectory of growth for Bangladesh”

“The highest priority in budgetary allocations has been

accorded to development of infrastructure … with a steady

increase in resource allocations over the period”

One third of Government budget is allocated to Infrastructure

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

Energy Power Road Bridge Railway

FY2015

FY2016

FY2017

FY2018Mil

lio

n

US

D

Prioritization of Infrastructure Investment

To ensure sustainable infrastructure and Innovation in line with SDG 9 Bangladesh estimates

USD100 Billion Investment by 2021 and USD1150 Billion by 2041.

© Bangladesh Investment Development Authority 2017 15

Mayor Mohammad Hanif Flyover

(Completed October 2013)

Hathirjheel – Begunbari Development

(Completed January 2013)

Road

• 702 km of new road constructed between 2011 and 2017

• 4529 km of roads widened and strengthened

Bridge

• 70218 meter of new bridge constructed between 2009-2017

• 15 Major bridges constructed enabling hinterland trades and connectivity

Rail

• 236.87 km of new railway tracks constructed from 2011 to 2017

• Passenger kilometre increased from 7.3m (2010) to 8.9m (2017)

Port

• Turn around time reduced from 6.9 days (2011) to 4.9 days (2013)

• Container throughput per ship day increased from 373 (2011) to 490 (2013)

Multimodal and integrated infrastructure System

• Construction of road and rail overpasses and flyovers

• Introduction of multimodal transport system commuter train service

• Urban land and water waterways rehabilitation

Success in Delivering Infrastructure: Transport

Bangladesh Investment Development Authority 2017

• Roads and highways

• Mass-transit

• Railways

• Ports

• Airports

• Electricity

• Tourism

• Irrigation and

agricultural services

• Industrial estates

• Water supply and

distribution

• Wastewater

management

• Waste management

• Information and

• communications

technology

• Land reclamation and

dredging

• Oil and gas downstream

production

• Mineral resources

• Health

• Education

• Public facilities,

social infrastructure

and other social

services

• Other urban,

municipal and rural

projects

Sectors Covered under PPP Policy

Public Private Partnership (PPP) Authority

16

Bangladesh Investment Development Authority 2017 17

Thank You

<www.gov.bida.bd><em2@bida.gov.bd>