Doing Business in Bangladesh

The GDP rose by 5.9% (estimate) in the financial period 1/7/2008-30/6/2009. Services continue to account for the largest share, but manufacturing also staged a recovery. The 2008-2009 Budget Act confirmed the tax reliefs for the import of raw materials and machinery, and in some cases increased them.There are still possibilities for exporting machinery, particularly for the textile and leather processing industries, and for equipment. With a rising middle and upper-middle class, it would be advised to focus on consumer goods.   Foreign investment is governed by a fairly liberal policy. Foreign investments are welcomed, and are treated as local investments for tax and import/export purposes, even though any final decisions regarding investment proposals, particularly those submitted by large Groups, may take time. No prior authorisation is required, generally speaking; foreign ownership is permitted, there are no restrictions on the repatriation of invested capital and dividends, and there is little risk of expropriation. When examining investment decisions, it should be borne in mind that Bangladesh has a huge young and low-cost labour force, with a domestic market of about 160 million people and the vast Asian basin thanks to its geographical position.   The best investment opportunities are still in the infrastructure and services sectors, and in manufacturing. There are eight Export Processing Zones, in areas situated close to the main towns and cities.