Opportunities for Chinese Investment in Bangladesh

Ground Realities and Prospects

Liaquat Ali Choudhury1

Muhammad Abdul Mazid2
Mohammad Zahid Hossain3

Introduction:

1. The People’s Republic of China (henceforth China) and its close southern neighbor-Bangladesh
can boast of age old deep historical ties. Bangladesh is no stranger to China. Chinese monks, scholars and
traders of Qin dynasty are known to have visited ancient Bangladesh as early as second century BCE,
travelling across the South-West Silk Road. Visits of Chinese monks to northern parts of Bangladesh
were frequent in the fifth and seventh centuries. Famed Bengali Buddhist master Atish Dipankar Srigana
traveled to Tibet in the eighth century. Relations between the two countries flourished during the early
Bengal Sultanate in the fourteenth and fifteenth centuries. The ruler of Bengal, Ghiyasuddin Azam Shah
sent the first emissaries to China, and rulers of Bengal and the Ming dynasty frequently exchanged
diplomatic missions.

2. The relations between China and Bangladesh have grown steadily during the recent years. A
country of over 150 million people – modern Bangladesh deeply values her relations with China. The
multi-faceted cooperation between the two countries continues to draw its strength from the rich tradition
of their historical ties and shared interests in many domains, including the vital areas of economic
cooperation, trade and investment. Strengthening and promoting bi-lateral trade, investment and
connectivity has been identified as a major policy priority by the governments of both countries. During
the visit of Prime Minister of Bangladesh to China in 2010, the two countries, agreed to “encourage and
support their own enterprises to carry out two-way investment and mutually beneficial cooperation, and
provide facilitation for enterprises of both sides in project contracting and labor service cooperation.”
During the visit, Bangladesh welcomed “the active involvement of Chinese enterprises in the energy,
communication, transportation, industry and infrastructure sectors in Bangladesh.” China agreed on the
occasion to “encourage and support capable and reputable Chinese enterprises to explore and carry out
investment cooperation in the above-mentioned fields in Bangladesh, and to provide possible facilitation
and financing support for the mutually agreed cooperation projects.”

3. Within the broad framework of cooperation between Bangladesh and China and set of priorities
stressed at the highest political level by both countries, there thus exists significant opportunities for
Chinese investments in Bangladesh and possibilities of economic engagements on a wide front. The
nature of dynamics of contemporary economic evolution in South Asia in general and Bangladesh, in

1 Ambassador Liaquat Ali Choudhry was a career Diplomat and served as Bangladesh Ambassador to the Kingdom of Netherlands and High
Commissioner to India
2
Dr. Muhammad Abdul Mazid was a Secretary to the Government of Bangladesh and is currently, the President of the Chittagong Stock
Exchange
3
Dr. Mohammad Zahid Hossain was a Principal Economist at the Asian Development Bank

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particular, has all the underpinnings to enable both countries and their investors to gain by seizing these
opportunities. Investors from China may especially take advantage from the following ground realities
and broad positive trends in Bangladesh economy. Chinese investments in Bangladesh can lead to win-
win gains for all partners and stakeholders from the two friendly countries.

Bangladesh: Things to Know about Geography, Economy and Macro-economic performance

4. Bangladesh is strategically located in the growing South-Asian region with borders with India on
the west, north and northeast, Myanmar on the southeast and the Bay of Bengal on the south. It has a
sizeable domestic market with a population of 153.7 million (2013), living within a land area of 147,570
square kilometers. The country’s middle class population base is growing. Arable land of Bangladesh,
well known for its fertility, constitutes 65% of total land. Bangladesh’s estimated gross domestic product
(GDP) in FY (fiscal year) 20154 was $193.9 billion, with a per capita GDP of $1229. Bangladesh has an
advantageous geographical location, situated between two fast growing economies i.e. India and China.
Bangladesh is also a connecting point between South Asia and Southeast Asia, and has the potential to act
as a trade and transportation hub in the region and play a key role in fostering regional connectivity.
Because of its openness to the Bay of Bengal, Bangladesh is also close to the Indian Ocean maritime trade
route. In view of its long coastline, Bangladesh already has two seaports, and a third is expected to be
constructed in the next few years.

5. Bangladesh has made impressive gains in terms of income growth, social development and
poverty reduction since the country’s independence in 1971. In the face of periodic domestic and external
challenges, GDP growth rose steadily, from 3.5% on average in the 1980s, to 4.8% in the 1990s, and
further to over 6.0% in the past 15 years. Food production tripled (between 1973 and 2010) and
population growth rate declined, boosting per capita food availability. Exports (mainly apparels and
textile), remittances and agricultural growth were the main drivers of economic growth. Supportive
government policies helped in the emergence of a dynamic private sector, which played a key role in the
growth process. An abundant supply of hardworking and economical workforce, aided by a rise in female
labor force participation, a rise in investment supported by higher national savings, and higher
productivity growth contributed in Bangladesh’s rapid economic growth. Bangladesh achieved most of
the millennium development goals within the stipulated period. The progress in social development is
noteworthy, considering the country’s stage of economic development. The government’s numerous
social protection programs and the civil society’s wide ranging social development activities contributed
significantly to improving the social development indicators.

6. Bangladesh’s steadily rising economic growth certainly benefited from the sound macroeconomic
management. Her prudent monetary policy has been a characterizing hallmark of Bangladesh’s overall
broad economic policy. It has helped to contain inflation to a reasonably moderate level, effectively
manage recurrent public spending, ensuring to keep fiscal deficits within an acceptable level. Outstanding
public debt has been steadily declining with a debt level of 28.6% of GDP in FY2014. Exchange rate
management has been pragmatic, contributing to exchange rate stability and build up of healthy foreign
reserves. The current account of the balance of payments has been in surplus (or a small deficit) in recent
years. The economy has been undergoing a structural transformation, with the share of agriculture
4 FY2015 started on 1 July 2014 and ended on 30 June 2015.

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declining and that of industry and services increasing. The share of agriculture in the labor force has also
been falling, although slower than expected, and that in industry and services rising.

7. Although Bangladesh became a lower middle income country in 2015 and head-count poverty
rate declined (according to the national poverty line) to 24.5% in 2015, the country still faces major
poverty reduction and employment creation challenges. The growth rate needs to rise to ensure a deeper
cut in poverty, and many more productive jobs will need to be created to ensure that economic growth is
broad-based and inclusive, through cutting down underemployment and absorbing those annually joining
the labor force (more than 2 million) into well-paid jobs. Investment will be needed both from the
domestic and external sources to ensure sustained growth and employment generation in the country.

Investments in Bangladesh: Why it can be a winning proposition for Chinese investments

8. Bangladesh has, in fact, reached a turning point in its endeavor to attain higher economic growth.
The country is fully committed to support initiatives at all levels and of all types – private and public,
breakout of the 6% plus growth pattern experienced over the past 15 years and embark on the more
difficult journey of shifting the economy to a higher growth trajectory, to substantially improve economic
welfare for its citizens. In this background, the government (in 2015) prepared the country’s Seventh
Five-Year Plan, FY2016-FY2020 (the Plan), keeping in view the quite daunting challenges that
Bangladesh will need to contend with in its efforts to translate the vision elaborated in the Plan into a
reality. The Plan seeks to attain an average GDP growth of 7.4% during the plan period, reaching 8%
growth in the terminal year, reduce poverty to 18.1% and raise per capita gross national income from
$1349 in FY2015 to $2009 in FY2020.

9. To achieve the above broad objectives, the Plan has set upon itself ambitious targets in several
areas, which will open up major opportunities for all potential investors. In terms of macroeconomic
development, the key targets include raising investment from 27.6 % of GDP in FY2015 to 34.4% in
FY2020. Much of the investment will be geared to enhancing infrastructure (e.g. in power and transport),
developing skills and expanding manufacturing production. The Plan also envisages a steep rise in FDI,
from $1.6 billion in FY2015 to $9.6 billion in FY2020, which is also expected to support infrastructure
development. Annual exports are projected to grow from $31.7 billion to $55.1 billion, and trade-GDP
ratio from 37.8% to 50%. The share of manufacturing in GDP is projected to rise from 19% to 25.1%, and
the share of manufacturing employment in total employment from 15.4% to 20%. Similarly ambitious
targets have been set for infrastructure and human resource development. For example, electricity
generation is projected to rise from 13,540 MW in FY2015 to 23,000 MW in FY2020 and electricity
coverage from 70% to 100%. Access to improved sanitation facilities is targeted to rise from 57% of the
population to 100%, and the net enrolment at secondary level is also projected to rise from 57% to 100%.

10. The primary focus of the Plan is on raising investment, and for this, FDI will not only be
encouraged; but will also certainly be welcomed. This will not only be so for the financing part but also
for introducing better management and for the introduction, transfer and adoption of new technology.
Bulk (about two-thirds) of the envisaged additional investment is expected to come from the private
sector. The government is expecting public-private partnership (PPP) and joint venture initiatives in

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infrastructure investment to pick up, especially for power generation and transport. The government has
prioritized several power and transport projects for implementation including through PPP arrangements.

11. The priority attached by the government to infrastructure development under the Plan and the
imperatives to boost investment (including FDI) provide a good opportunity to scale up Chinese
involvement in implementing, especially, power and transport projects in Bangladesh in the public
sector, and also through PPP and in the private sector, including through joint ventures. In view of
China’s long involvement and track record of timely and efficiently implementing transport (e.g. bridges)
and power projects, China has a clear advantage in this regard. As the government has also prioritized
port development in the Plan, there will also be opportunity to provide Chinese support in developing
ports in Bangladesh.

12. Potential for greater Chinese support to Bangladesh’s economic development also exists in the
context of initiatives such as the Bangladesh, China, India and Myanmar Economic Cooperation (BCIM-
EC) and China’s own One Belt-One Road (OBOR) initiatives. BCIM-EC, which was formally launched
at the intergovernmental level in Kunming, China in December 2013, envisages close cooperation
amongst the participating countries, both in public and private sectors, in trade, investment and finance, in
addition to developing cross-border trade and transport infrastructure and logistics.

13. Within the BCIM initiative, Chinese involvement will, in particular, be relevant from the point of
view of finance, technology and expertise, for infrastructure projects (e.g. ports, land-ports, deep sea
ports, railways, roads, free-trade zones and industrial parks, and power and natural gas projects) in
developing the BCIM economic corridors. China has a key role to play in the mobilization of the required
large infrastructure financing including through exploring the possibility of setting up a regional stock
exchange and bond market development.

14. Bangladesh is also expected to benefit from the OBOR initiative (encompassing countries in
Southeast Asia, South Asia, West Asia, Central Asia, Middle East, and Europe) piloted by China, seeking
closer regional integration through infrastructure development, enhancing trade and fostering cultural
exchanges. Backed by its enormous financial power and the drive to seek out new markets and investment
opportunities, China is expected to contribute much to development of all countries in the OBOR region.
The China-led Asian Infrastructure Investment Bank (AIIB), which is expected to soon start lending
operations in borrowing member countries, is also expected to contribute significantly to Bangladesh’s
infrastructure development. It is expected that AIIB will be able to adopt quicker and more efficient
project approval and implementation processes. The participation of Chinese investments as part of AIIB
supported projects and initiatives is also a distinct possibility.

15. The private sector in China can also significantly benefit from cost advantage by exploiting the
opportunities arising out of the possibility of relocating Chinese production facilities or setting up new
factories and manufacturing plants in the investor friendly and locationally advantageous economic space
in Bangladesh. Bangladesh has preferential trade access to the major economic blocks in the West and has
locational advantage in terms of connectivity to major markets in close proximity to Bangladesh. As the
South Asian Free Trade Area (SAFTA) fully comes into force, Bangladesh will enjoy substantial duty-
free access to India and Bangladesh does also have duty-free access to EU countries, Japan and other

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major developed countries. Even China allows duty-free access to an important number of Bangladeshi
export products. With labor costs fast rising in China and the consequent erosion of competitiveness, it
would make good economic sense to also relocate factories from China to Bangladesh, for possible buy-
back, export to a third country or sell into the domestic market of Bangladesh, which is witnessing a rapid
expansion of the middle class. Major Chinese banks e.g. EXIM Bank, and China Development Bank,
given their strong financial capacity, are also in a position to finance both development and private sector
projects in Bangladesh. The recent inclusion of Yuan in the Special Drawing Rights reserve currency
basket will also facilitate quicker settlement of trade payments between China and Bangladesh.

16. Bangladesh has a young population, offering a potential demographic dividend. At present,
59.3% of Bangladesh’s population (age 15 years and over) is economically active. Bangladesh offers a
well-educated, highly adaptive and industrious work force, with low wages and salaries by the regional
standards. Bangladesh has 31 public universities, 54 private universities, 60 teachers’ training colleges
and 1143 technical and vocational training institutions. Typical of the sub-continent, vocational training
and professional qualifications in Bangladesh are highly respected. As the recent Bangladesh experience
has shown, workers in Bangladesh are highly trainable, enthusiastic, hardworking and disciplined.
Although Bengali (Bangla) is the official language in the country, English is generally used as a second
language and the majority of the educated population can read, write and speak in English. More than
90% of the professionals at the management levels is fluent in English.

17. China and Bangladesh have robust economic relations, with trade between the two countries
steadily growing during the recent years. China’s major exports to Bangladesh include machinery and
electronic products, cement, fertilizers, textiles and raw silk. On the other hand, China’s main imports
from Bangladesh include frozen foods, raw jute, leather, and knitwear and cotton textile. In 2010, China
offered duty-free access to about 5000 products from Bangladesh. Bangladesh has offered to set up a
Special Economic Zone (SEZ) exclusively for China. The landlocked Yunnan province of China is keen
to step up economic cooperation with Bangladesh and also interested in gaining access to the Bay of
Bengal through Bangladesh.

18. China and Bangladesh are also seeking to foster closer energy cooperation. China has shown
interest in setting up nuclear power plants and developing natural gas resources in Bangladesh, and helped
in setting up the Boropukuria power plant. Under a Bangladesh-China joint venture initiative, a coal-
based 1320 MW power plant is being set up in Patuakhali. Bangladesh is also looking forward to Chinese
financial assistance for raising power generation capacity to 24,000 MW by 2021. To that effect, 15
projects have been identified. China has also been providing support to Bangladesh in the areas of science
and technology including providing hydrological data for improving flood forecasting, and education and
culture.

19. China and Bangladesh signed several key agreements for closer economic cooperation and
boosting trade and investment. These include, the Agreement on Economic and Technical Cooperation,
the Agreement on Encouraging and Protecting Investment and the Agreement for the Avoidance of
Double Taxation. The two countries also signed the Agreement of Cooperation on Science and
Technology. Bangladesh is China’s third largest trading partner and China is Bangladesh’s largest trading
partner. In FY2013, bilateral trade between the two countries crossed $6.8 billion with the trade balance

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heavily tilted in favor of China (the trade gap was over $5.9 billion). To narrow the trade gap, China
signed the Asia-Pacific Free Trade Agreement to eliminate tariffs on its imports of 84 items from
Bangladesh, in addition to providing economic aid. All these favorable factors create congenial enabling
conditions for increased Chinese investments in Bangladesh.

20. The Government of Bangladesh has decided to allocate 800 acres of land for the SEZ for China in
Anowara, Chittagong, with prime locational advantage. Chinese investment including entities bringing in
FDI from China, will also benefit from the favorable opportunities offered to foreign investors in
Bangladesh.

Investment in Bangladesh: The things to know about specifics

21. Bangladesh offers the most liberal FDI regime in South Asia, allowing 100% foreign equity
ownership with unrestricted exit policy, remittance of royalty and repatriation of equity and dividend.
Bangladesh’s broad FDI policy and regulatory framework are guided, amongst others, by the following:
Box 1
1. General National Industrial Policy 2010
2. Business start-up The Companies Act (Bangladesh), 1994
The Securities and Exchange Commission Act, 1993
The Foreign Private Investment (Promotion & Protection)
3. Protection
Act, 1980
The Bangladesh Export Processing Zones Authority
Act, 1980.
Bangladesh Private Export Processing Zones
4. Export Zones
Authority Act, 1996.
The Bangladesh Economic Zones
Act, 2010
5. Facilitation The Investment Board Act, 1989
6. Corporate/ Personal Tax and The Income-Tax Ordinance, 1984
Incentives National Budget (Annual)
The Finance Act/ Bill (Annual)
7. International Trade (Export & Bangladesh Export Policy
Import) Bangladesh Import Policy
8. Sectoral The Bangladesh Energy Regulatory Commission Act,
2003
The Bangladesh Telecommunication Act, 2001
National Drug Policy, 2005
9. Foreign Exchange Guidelines for Foreign Exchange Transactions

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22. According to industrial policy 2010, Bangladesh welcomes foreign private investment in all areas
of the economy, except for the following, which are reserved on strategic grounds, for public sector
investment only:
(a) Production of arms and ammunitions and other defense equipment and machinery
(b) Forest plantation and mechanized extraction within the bounds of reserved forests
(c) Production of nuclear energy and
(d) Security printing (currency notes) and minting.

There is no restriction on the amount of share of investment. Foreign investors are eligible to take
advantage of a wide range of generous tax concessions and other fiscal incentives and facilities.

23. Bangladesh is a signatory to the Multilateral Investment Guarantee Agency (MIGA);

Overseas Private Investment Corporation (OPIC), USA; International Center for Settlement of
Investment Disputes (ICSID); World Intellectual Property Organization (WIPO). Bilateral
agreements to avoid double taxation have been signed with 30 countries, with a further nine countries
under negotiation. The Foreign Private Investment (Promotion & Protection) Act 1980 provides
protection for investments made in Bangladesh.

24. The most favorable treatment offered by Bangladesh to FDI, including FDI from China can be
availed under the following broad categories:

Fiscal-and-Non-Fiscal-Incentives
 Remittance of royalty, technical know-how and technical assistance fees.
 Repatriation facilities for dividend and capital at exit.
 Permanent resident permits on investing US$ 75,000 and citizenship on investing US$
500,000.
 Tax holidays: In Dhaka and Chittagong Divisions: 100% in first two years: 60% in year three
and 40% in year four: and 20% in year five. In Rajshahi, Khulna, Sylhet, and Barisal
Divisions and three Chittagong Hilly Districts: 100% for first two years, 70% for 3 rd year,
55% for fourth, 40% for fifth and 25% in the sixth and 20% for seventh to tenth year. An
amount, equal to 50% of the income derived from export business is exempted from tax.
 Listed companies are entitled to 10% tax rebate, if they declare dividend of 20% or more.

Depreciation allowances
 Accelerated depreciation for new industries is available on the cost of plant and machinery at
the rate of 50%, 30% and 20% for the first, second and third year, respectively.

Other incentives to export oriented industries

 Businesses exporting 80% or more of goods or services qualify for duty free import of
machinery and spares, and duty free bonded warehousing for raw materials.
 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
Export Processing Zone (EPZ), on payment of relevant duties.

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  Cash incentives and export subsidies are granted on the FOB value of selected exports
ranging from 5% to 20% on selected products.

25. During recent years, the favorable investment conditions prevailing in Bangladesh have been in
evidence from interest expressed or investment actually made by investors from a large number of
countries. According to the Bangladesh Board of Investment (BOI) data and information, they include the
following:

Table - 1
Country-wise foreign and joint venture investment during 2010-2015
Country No. of Projects
Saudi Arabia 3
Australia 4
USA 5
Finland 2
India 9
South Korea 12
Malaysia 3
Netherlands 5
China 12
United Kingdom 5
Pakistan 2
Japan 8
Denmark 1
Sri Lanka 2
Canada 2
Taiwan 1
Singapore 4
Turkey 1
Greece 1
Italy 2
Hong Kong 5
Total 89

Export Processing Zones

26. EPZs in Bangladesh have been at the forefront of the country’s industrialization drive, and these are
economic spaces particularly suitable for and supportive of interested overseas investors. In addition to
the existing EPZs, the government is planning to establish 22 new SEZs. The EPZs and SEZs are export
oriented industrial enclaves, which provide the infrastructure and administrative and support services for a
wide variety of enterprises. Bangladesh’s highly successful EPZs in Dhaka and Chittagong are now being
complemented by SEZs and other valuable real estate developments around the country.

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27. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the
government to promote, attract and facilitate foreign investment in the EPZs. The primary objective of an
EPZ is to provide special areas where potential investors would find a congenial investment climate, and
location free from cumbersome procedures. Businesses from 32 countries have so far invested in the
existing zones.

Box-2
There are currently eight zones, with others due to open in the next few years.
EPZ-Adamjee EPZ-Chittagong EPZ-Comilla
EPZ-Dhaka EPZ-Ishwardi EPZ-Karnaphuli
EPZ-Mongla EPZ-Uttara

28. The incentives and facilities in the EPZs include the following:

Fiscal Incentives
 10-year tax holiday for industries established before 1st January, 2012 and for industries set
up after 31st December, 2012, the tax holiday period will be:
Box 3
Tax exemption period Rate of tax exemption
st nd
First 2 years (1 and 2 Year) 100%
Next 2 years (3rd and 4th Year) 50%
Next 1 years (5th Year) 25%

Duty free imports

 Import of construction materials
 Import of machinery, office equipment and spare parts etc.
 Import of raw materials and export of finished goods

Other facilities and relief

 Relief from double taxation
 Exemption from dividend tax
 Generalized System of Preferences (GSP) facility
 Accelerated depreciation on machinery or plant
 Remittance of royalty, technical and consultancy fees

Non – Fiscal Incentives

 100% foreign ownership
 Most favored nation (MFN) status
 No ceiling on foreign and local investment
 Full repatriation of capital and dividend
 Foreign currency loan from abroad under direct automatic route
 Non-resident Foreign Currency Deposit (NFCD) Account
 Operation of FC account by 'B' and 'C' type industries

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  Utilization Declaration, Import Registration Certificate, Export Registration Certificate and
renewal of Bond license not required
 Work permits issued by BEPZA
 Secured and protected bonded area
 Off-Shore banking available
 Import on Documentary Acceptance (DA) basics
 Back to Back letters of credit (L/C)
 Import and Export on CM basis allowed
 Import from Domestic Tariff Area (DTA)
 10% sale to DTA allowed
 Customs clearance at factory site
 Simplified sanction procedure
 Sub-contracting with export oriented industries inside and outside EPZ
 Relocation of foreign industries
 Resident-ship and Citizenship
 One Window, same day service and simplified procedure

29. In March 2010, FDI Magazine of the Financial Times conducted a survey entitled “Global
Ranking Competition of Economics Zones” based on the following nine categories of ranking:

 Best Overall Global SEZ

 Best Economic Potential
 Best Cost Effectiveness
 Best Facilities
 Best Transportation Link
 Best Incentives
 Best Promotion
 Best Airport
 Best Port

30. In the survey, 200 EPZs globally were considered and evaluated. All EPZs were evaluated on a
10 point scale on the basis of some set criteria. The Chittagong EPZ, Bangladesh secured 3rd position in
terms of “Best Cost Effectiveness” and 4th position in terms of the “Best Economic Potential” for 2010-
2011.

Finance and Banking in Bangladesh

31. The financial sector in Bangladesh is continuously evolving towards a more modern and efficient
system of finance, which is supportive of greater investment and inclusive economic growth. The
financial system consists of the Bangladesh Bank, scheduled banks, non-bank financial institutions, micro
finance institutions, insurance companies, co-operative banks, credit rating agencies and stock exchanges.

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Bangladesh Bank

Bangladesh Bank has been working as the central bank since the country's independence.
Bangladesh Bank is responsible for formulating and implementing monetary policy. Its other
prime jobs include issuing currency, maintaining foreign exchange reserves and providing
payment systems. Bangladesh Bank has a governing body comprising nine members with the
Governor as its chief. Apart from the head office in Dhaka, it has nine branches, of which two are
in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

Scheduled Banks

Out of the 6,514 scheduled bank branches operating in the country (up to end December 2006),
the nationalized commercial banks operate 3,384 branches, of which 2,146 are in rural areas and
1,238 are in urban areas; specialized banks have 1,354 branches of which 1,200 are in rural areas
and 154 are in urban areas; private commercial banks have 1,776 branches of which 488 are in
rural areas and 1,288 are in urban areas.

Cooperative Banks

In Bangladesh, 119 cooperative banks are operating, of which 64 are central cooperative banks,
48 are land mortgage and the remaining 7 are other cooperative banks. The maximum share of
total assets, 90%, is controlled by central cooperatives. Similarly, the maximum share deposits
(85%) and advances (90%) are handled by the same central cooperatives.

Investment Corporation of Bangladesh

The Investment Corporation of Bangladesh (ICB) was established in 1976 with the objective of
encouraging and broadening the base of industrial investment. ICB underwrites issues of
securities, provides bridge financing, and maintains investment accounts, floats and manages
closed-end and open-end mutual funds and closed-end unit funds to ensure supply of securities as
well as generate demand for securities. ICB also operates in the stock exchanges as dealers.

Bangladesh Securities and Exchange Commission

The Bangladesh Securities and Exchange Commission (BSEC) was established in 1993 under the
Securities and Exchange Commission Act, 1993. The Chairman and Members of the Commission
are appointed by the government and have overall responsibility to administer securities
legislation. The Commission is a statutory body and is attached to the Ministry of Finance.

Dhaka Stock Exchange

Dhaka Stock Exchange (DSE) is the main stock exchange of Bangladesh. It is located in
Motijheel- the heart of the Dhaka city and its central business district. It was incorporated in
1954. DSE is the first stock exchange of the country. At the end of March 2010, the amount of

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 issued capitalized securities and debenture was $8,179m, which is 24% greater than the value as
of June 2009 ($6,611m). DSE is a public limited company. It is formed and managed under the
Companies Act 1994, Security and Exchange Commission Act 1993, Security and Exchange
Commission Regulation 1994, and Security Exchange (Insider Trading) Regulation 1994.
According to stock market rules, only members can participate in the floor and can buy shares for
himself or his clients. At present it has 238 members. DSE became demutualized in November
2013, separating ownership from management.

Chittagong Stock Exchange

Chittagong Stock Exchange (CSE) is the first automated and modern trading bourse in the
country. The CSE began its journey in 1995 from Chittagong city through the cry-out trading
system with the promise to create a state-of-the art bourse in the country. Introduction of
automated trading system in June 1998, replacing the practice and culture of age-old manual cry-
out system of trading, was a revolutionary step made by the CSE in the history of the country's
capital market. At the end of March 2010, issued capital increased by 29% compared to June
2009, reaching $2,539m. In addition, total market capital had a growth of 93% in March 2010,
compared to June 2009, reaching of $26,894m. Moreover, share index reached 12,194 at the end
of March 2010, with an increment of 54% compared to the index of June, 2009. CSE also became
demutualized in November 2013.

32. In Bangladesh, opportunities exist for foreign investment or joint venture investment in EPZs or
outside EPZs (with the exception of the five industries mentioned earlier). Portfolio investment is allowed
by purchasing shares in publicly listed companies through the stock exchanges. Investment opportunities
exist in infrastructure projects such as power generation; oil, gas and mineral exploration,
telecommunication, ports, roads and highways. Outright purchase or purchase of shares of state-owned
enterprises, which are under process of privatization, is possible.

Non-Bank Financial Institutions

33. Non-bank financial institutions are an important part of the Bangladesh financial system.
Operations are regulated under the Financial Institutions Act, 1993. The non-bank financial institutions
consist of investment, finance, leasing companies etc. There were 29 financial institutions operating in
Bangladesh as of 31 December 2006. Of these, one is government owned, 15 are local (private) and the
other 13 are established under joint venture with foreign participation. Bangladesh Bank has introduced a
policy for loan and lease classification and provisioning for non-bank financial institutions from
December 2000. Among the 29 financial institutions, 12 have been listed in the stock exchanges up to 31
December 2006, to strengthen financial capability and the rest are under process to be listed in due
course.

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Insurance

34. The insurance sector is regulated by the Insurance Act, 1938 with regulatory oversight provided
by the Insurance Development and Regulatory Authority. A total of 62 insurance companies have been
operating in Bangladesh, of which 18 provide life insurance and 44 are in the general insurance field.
Among the life insurance companies, except for the state-owned Jiban Bima Corporation and the foreign
owned American Life Insurance Company, and the rest are in the private sector. Among the general
insurance companies, the state-owned Shadharan Bima Corporation is the most active in the insurance
sector. A total of 31 insurance companies are listed in the capital market, of which eight offer life
insurances.

Workforce in Bangladesh and Employment Conditions

35. Bangladesh offers an abundant supply of affordable workforce suitable for any labor-intensive
industry. Of late, there has been also an increase in the supply of professionals, technicians and other low
and middle level skilled workers and professionals. They receive technical training from universities,
colleges, technical training centers, polytechnic institutions etc. The expenditure incurred by an employer
to train his employee is exempted from income tax.

Employment Conditions

36. The minimum age for workers in Bangladesh is 16 years in factories and establishments.
Contracts are made in the form of a letter of offer. Workers may also be engaged on verbal agreements. In
government organizations and in some private organizations as well, a probationary period exists for
skilled or semi-skilled workers, varying between three months to one year. During this period, either party
may serve one month's notice for termination from or leaving the job. In the private sector, the dignity of
labor is ensured in accordance with the principles enunciated in the International Labor Organization
(ILO) convention and recommendations.

Table - 2
Employment Status (in million) 5
Labor force characteristics MES 2009 (m) LFS 2005-06 (m)
Economically active population (15 years+)53.7 49.5
Employed population 51.0 47.4
Male 38.5 36.1
Female 12.5 11.3
Self employed/own account workers 20.0 19.9
Employer 0.2 0.1
Employee 8.7 6.6
Unpaid family helper 10.8 10.3
Day laborers 10.3 8.6
Others 0.9 1.9

5 Source: Report on monitoring and employment survey-2009, Bangladesh Bureau of Statistics

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 MES = Monitoring on Employment Survey LFS = Labor Force Survey m = million

37. According to the Report on monitoring and employment survey-2009, labor force increased from
49.5m in 2006 to 53.7m in 2009. The growth rate has been 2.7% a year. About 63% of the population are
of age 15 years and over and out of them 59.3% are economically active and 40.7% are economically not
active.

Labor Laws

38. In Bangladesh, the following major labor laws are now in operation:
 Labor Act 2006
 Private Road Transport Labor Welfare Fund Law 2005
 Labor Welfare Foundation Law 2006
 Minimum Wages Board Law

39. The following two broad policies are also in operation in Bangladesh:
 Child Labor Policy
 Domestic Worker Protection and Welfare Policy 2010

Working Hours

40. Workers in the public or private sector typically work for eight and a half hours daily (including
half an hour for meal or prayer), or 48 hours per week. Friday and Saturday are typically the weekly
holidays.

Investment in Bangladesh: Highlight of Procedures to help investors

41. In Bangladesh, interested Chinese investors can collect investment related information from a
wide range of government and private sources and they may follow the following procedures while
undertaking their investments in the country:

Step 1. Information Searches and Registration

There are many information sources. These days, an investor may collect information from
website and internet. BOI can also help and suggest other government agencies, chambers of
commerce, and professional associations, international organizations such as the World Bank,
Asian Development Bank, UNCTAD and IFC.

The potential investors may register their intentions. Investors are advised to apply to the BOI for
registration as early as possible in order to benefit from the many incentives and tax concessions
available. The application form can be found online at BOI’s website [www.boi.gov.bd].

Step 2. A Fact-Finding Visit

The investors may make a physical verification by visiting Bangladesh. They can make their
travel arrangements or let BOI arrange things for them and benefit from BOI’s Welcoming

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Service. Business travelers may request a visa for limited or multiple entries, which can vary
from one month to five years. Given certain conditions, there is also the possibility of a landing
permit and visa on arrival. BOI or the Bangladesh diplomatic mission in that potential investors’
country can advise them on this.

Counseling: On arrival, investors can take advantage of in-depth BOI counseling. Professional
investment and business counselors can offer advice and practical assistance over the phone, via
email or fax or, best of all, at a personal meeting in the BOI offices here in Dhaka, Chittagong,
Sylhet, Rajshahi, Khulna and Barisal.

Step 3. Getting Started

The representatives of investors will need to set up an appropriate company structure. By this
stage, they will know, if they are going to operate as a branch/liaison representative office (or
Buying House) or if they will be establishing an industrial project. This is relevant to the type of
business structure to be set up.

Incorporation: Business in Bangladesh can be carried out by a company formed and incorporated
locally or by a company incorporated abroad but registered in Bangladesh.

The incorporation or registration is done by the Registrar of Joint Stock Companies and Firms
(RJSC&F).

Companies may be private or public limited companies or unlimited companies. In establishing a

place of business of a foreign company, the company has to be registered with the RJSC&F as the
place of business. Such registration is required in respect of capital issue and obtaining clearance
from the Bangladesh Bank.

To open or extend a branch/liaison representative office of a foreign company, the company has
to apply to the BOI.

Step 4. Business/Plant Set-up

BOI in Bangladesh helps with the following:
 Obtaining industrial plots.
 Approval of foreign loans, supplier’s credit, PAYE schemes etc.
 Obtaining utility connections: water, gas, electricity, phones.
 Registration for certification for importing raw materials.
 Work permits for foreign nationals and key staff.
 Registration with the Factories Act, which regulates work conditions.
 Registration with environmental legislation.
 Remittance of royalty, technical know-how and technical assistance fees.

Step 5. Commercial Operation

After starting commercial operations, BOI will be following up with what the investors need
subsequently. Investors need to a submit half-yearly performance report to the BOI on production

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 and employment in their projects. Any changes to the information provided in the registration
should be indicated to the BOI.

Potential Sectors for Chinese Investments in Bangladesh

42. Apart from the growing sizeable opportunities for Chinese investors to invest in infrastructure
and power related industries in Bangladesh, opportunities also abound for investment in a wide range of
other industries detailed in this section.

Agribusiness
About 75% of the total population lives in rural areas and are engaged in a wide range of
agricultural and non-agricultural activities. Agriculture contributes about 16% to the country’s
GDP. The abundance of natural resources available in Bangladesh supports a range of highly
profitable investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in
Bangladesh, yet in this fertile land there is under- utilization of the country’s agricultural
capacity. This presents many opportunities for investors seeking to export agricultural products,
or to meet the rapidly growing local demand.

Sector Highlights
 Thriving in this sector are canned juice, fruits, vegetables, dairy and poultry. The country
offers:
 Huge supply of raw materials for the agribusiness industry.
 A tropical climate for all year growing, a lot of fresh water, indeed a land interspersed with
numerous rivers, available land with fertile soil.
 Government and NGOs’ regular training programs to develop skilled manpower in the
industry.
 Wide range of biodiversity for different crops.
 Agricultural commodities with a comparatively higher value added than non-agricultural
commodities.

Investment Opportunities
There is a wide variety of investment opportunities including:
 Cold storage facilities serving the supply chain, especially fresh produce for export.
 Fresh production for local and export markets.
 Production of fertilizers and cultivation of seeds.
 Eco-friendly jute production, supported by jute technology development institutes.
 Shrimp farming.
 Halal foods.
 Milk and dairy products.
 High value-added foods for export, including herbs, spices, nuts and pulses.

Industry Outlook
Bangladesh has the essential attributes for successful agro-based industries, namely rich alluvial
soil, a year-round frost-free environment, available water and an abundance of cheap labor.

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Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could
supply raw materials to local agribusiness industries for both domestic and export markets.
Progressive agricultural practices, improved marketing techniques and modern processing
facilities have raised the quality of agribusiness and expanded production levels significantly.

Industry Incentives
The government encourages development of the agricultural sector through measures to increase
crop sector productivity and production of non-crop agriculture. To achieve this, it provides
increased credit, and facilitates greater access to inputs and modern technology. Investments in
agribusiness industries in Bangladesh are encouraged with the following support measures:
 The Equity Entrepreneurship Fund for development of agribusiness industry.
 Special loan facilities available to set up an agribusiness.
 Agribusiness industry enjoys tax holidays.
 Any investment in this sector will enjoy similar tax amnesty as available in other sectors.
 Imposition of supplementary duty at the import stage on mango, orange, grape, apples, dates
and others to utilize the high quality and cheaper local resources.
 Cash incentives to the exporters ranges from 15% to 20% in various sub sectors.

Ceramics
Bangladesh is perfectly positioned to expand rapidly in the ceramics sector with its high quality:
cost ratios and creative human resource base.

Sector Highlights
Thriving in this sector are tableware, sanitary ware and insulators. The country’s key advantages
are:
 Technical expertise and skilled manpower in tableware and other ceramics.
 Clean gas reserves in certain locations to fire kilns for competitive cost advantage.
 Bangladesh ceramic tableware has a good reputation in the international markets like North
America and EU countries.
 Sanitary ware and insulators have a strong domestic demand as well as international market
demand.

Industry Outlook
The global ceramic tableware industry is currently going through a phase of acquisition and
consolidation, as smaller firms in the developed countries are becoming uncompetitive and
bankrupt. As a result, the big names like Noritake, Wedgewood, Lenox, Villeroy & Boch and
Royal Doulton are all individually becoming billion-dollar operations.

Traditionally, the tableware industry is labor-intensive and companies in developed countries

experience difficulties in remaining competitive. Bangladesh, being a gas-rich and low-labor-cost
economy, is perfectly positioned to be a strategic partner in production and supply of ceramic
products. Investment interests in this sector are strongly welcome.

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Industry Status
A few ceramic tableware manufacturers dominate the industry producing high quality products
for the international brands. A pool of skilled manpower has been developed. The latest
technological advancements in ceramics are also being utilized. Bangladesh produces high quality
bone china, transferring the technology from Japan.

Electronics
The high skill, low cost labor resource of the electronics sector in Bangladesh offers companies
great returns on investment. Whilst the global market for semiconductors is worth in excess of
$200bn and is dominated by the Asian economies, Bangladesh has significant financial and
economic factors in its favor that make it the best choice for many companies.

Sector Highlights
 Manufacturing of semiconductors could be established as a stand-alone industry.
 Bangladesh is going to be one of the largest cell-phone markets in South Asia.
 The home appliance market in Bangladesh is growing rapidly.
 The labor-intensive nature of the electronic industry matches the ability of Bangladesh to
provide a high skilled labor source.

Industry Background
The electronics industry in Bangladesh mostly produces consumer items. Home appliances
including televisions, radios, DVDs and CD players, refrigerators, air conditioners, ovens,
electronic fans, blenders etc. are being assembled. To ensure performance reliability, the key
challenges in this sector are technical assistance and proper technology orientation of the
industry. Developing significant capacity and skill in assembly and manufacture of a wide range
of electronic components and parts is crucial.

As yet, Bangladesh does not have any telecommunication equipment industry in the private
sector. However, an urgent need for diversification and modernization is felt among the existing
entrepreneurs, government and professionals. The government is keen to provide and ensure
enabling assistance to the development of this sector.

Industry Outlook
Bangladesh's experience in basic electronics spans over two decades. In recent years, European
and Asian electronic firms have established technical collaboration with their Bangladeshi
counterparts to produce some electronic goods at competitive prices. This has tremendous
potentiality for expansion.

The Government of Bangladesh has adopted the National Telecommunication Policy, 1998.
Investment is encouraged through BLT-BOT/BOO/BTO and other joint venture schemes, which
by greatly increasing the capacity, quality and type of services, will create improved efficiencies
in other sectors such as transportation energy and the textile industry. Skilled, easily trainable and
low-cost human resources are the main cost advantage of setting up electronic industry in
Bangladesh. Growing domestic demand and international market access are some key attractive

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issues to the investors. In economies like Malaysia, Singapore, Korea and Thailand, electronics
contribute a major portion in the GDP. They are encouraging electronic industry to shift from
low-end assembly operations with high import content of inputs to upstream higher value-added
activities. 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.

Frozen Food
Frozen food 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 shore-based export oriented fish processing plants at Dhaka,
Chittagong, Khulna, Jessore, Satkhira, Bagerhat, Cox's Bazar, Chandpur, Kishoregonj, Syihet and
Patuakhali. These plants produces Fresh Water shell On (FWSO), Sea Water shell On (SWSO),
Peeled and Deveined (P&D), Peeled and Un-deveined (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.

Sector Highlights
 Thriving in this sector are shrimp farming and fish production.
 The government is promoting semi-intensive shrimp farming.
 Shrimp processing and export industry is largely dominated by the small business sector.
 Government has developed initiatives for quality assurance for frozen foods in co-operation
with exporters.
 15% cash incentive offered to shrimp export amount.

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

Industry Outlook
This export oriented industry includes the following sub-sectors, which are themselves promising
investment opportunities:
 Hatcheries

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  Sustainable aquaculture technology
 Feed meals plants
 Processing unit for value-added products.

Garments & Textiles

From spinning to weaving, from knitwear to leisurewear and high street fashions, the textiles and
clothing industry is Bangladesh’s biggest export earner with value of over $25 bn of exports in
FY 2015. Our factories design and produce for the world’s leading brands and retailers. This
rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that
supports profitable expansion into new strategic markets.

Table-3
Key Statistics of Readymade Garments (RMG) Sector6
Comparative Statement on Export of RMG and total export of Bangladesh
TOTAL EXPORT OF
EXPORT OF RMG % OF RMG’S TO
YEAR BANGLADESH
(IN MILLION US$) TOTAL EXPORT
(IN MILLION US$)
1983-84 31.57 811.00 3.89
1984-85 116.2 934.43 12.44
1985-86 131.48 819.21 16.05
1986-87 298.67 1076.61 27.74
1987-88 433.92 1231.2 35.24
1988-89 471.09 1291.56 36.47
1989-90 624.16 1923.70 32.45
1990-91 866.82 1717.55 50.47
1991-92 1182.57 1993.90 59.31
1992-93 1445.02 2382.89 60.64
1993-94 1555.79 2533.90 61.40
1994-95 2228.35 3472.56 64.17
1995-96 2547.13 3882.42 65.61
1996-97 3001.25 4418.28 67.93
1997-98 3781.94 5161.20 73.28
1998-99 4019.98 5312.86 75.67
1999-00 4349.41 5752.20 75.61
2000-01 4859.83 6467.30 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01
2003-04 5686.09 7602.99 74.79
2004-05 6417.67 8654.52 74.15
2005-06 7900.80 10526.16 75.06
2006-07 9211.23 12177.86 75.64
2007-08 10699.80 14110.80 75.83
2008-09 12347.77 15565.19 79.33
2009-10 12496.72 16204.65 77.12

6 Source: Data Source Export Promotion Bureau Compiled by BGMEA [www.bgmea.com.bd]

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2010-11 17914.46 22924.38 78.15
2011-12 19089.69 24287.66 78.60
2012-13 21515.73 27027.36 79.61
2013-14 24491.88 30186.62 81.13
2014-15 25491.40 31198.45 81.71

Sector Highlights
 Cost and quality of products that are produced on time, reliably and very competitively with a
highly skilled labor force.
 A unique regional location for expansion into key eastern and other markets.
 Favored trading status with the EU and the USA.
 Clusters of companies providing a local supplier base with real depth in skilled labor, training
and technical development facilities.

The growing demand for yarn in the local market, comparatively low cost of doing business, lucrative
incentive packages and a favorable investment policy regime are important reasons for investment in
this sustainable sector.

RMG and Backward Linkages

The phenomenal growth in the RMG sector in the last decade created many new factories and
employment opportunities. Having enjoyed more than 70% of total investments in the manufacturing
sector during the first half of the 1990s, RMG and knitwear now account for about 4,825 factories and
a workforce of about 4m -80% of which are women. This sector now employs over 50% of the
industrial workforce and accounts for 79% of the total export earnings of the country. The growing
trend in the textile and the garments sector means that Bangladesh is perfectly positioned to appeal to
foreign investors.

Favored Trading Status

Bilateral agreements with 28 countries and GSP of the EU are key reasons for Bangladesh RMG
products having access to global markets. The current cycle of GSP applied from 1 January 2009 to
31 December 2011. Bangladesh is now a significant RMG supplier to North America and Europe.
Bangladesh has also taken a better position in the USA market through competition. Bangladesh is
expected to maintain its tariff-free access to EU under the European GSP, since the GSP is not
covered by the Uruguay Round Agreement. Recently, Canada has also provided tariff-free access for
all the items from Bangladesh. Meantime, the Bangladesh RMG industry has become very
competitive as a global standard RMG source. Marketing investments have been made in trading
partner economies; end users can often differentiate products with confidence. Historically, the
Bangladesh RMG industry has depended largely on imported yarns and fabrics and produced only
10% of the export-quality cloth used by the garments industry. The need for establishment of
backward-linkage industry has become an immediate concern to the government and the exporters
and there are enormous opportunities to set up a composite textiles industry combining textile, yarn
and garments.

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Investment Opportunities and Government Support
Enormous investment opportunities exist in this sector. In the RMG industry, demand for fabric
significantly exceeds local supply and so is currently being met by imports. Backward linkage is a
significant trading opportunity and is supported by a government backed incentive: 15% cash subsidy
of the fabric cost to exporters sourcing fabrics locally.

Additionally, the government has created a highly favorable policy framework for investment in these
sectors offering investors the following choices:

 Establishment of new textile/RMG mill in the private sector

 Joint ventures with the existing textile/RMG mill
 Acquisition of public sector textile mills that are being privatized
 Indirect investment through financial services and/or leasing

The most beneficial public policy of introducing back to back LC and bonded warehouse facilities
provide a tremendous impetus to the export scenario in Bangladesh.

Spinning
The government is committed to fostering a strong spinning sector within the economy to support the
robust textile and garment industry that has developed. The government is therefore supporting
spinners by providing lower tariffs for machinery spares and raw materials, cash incentives, reduced
tax rate, and low-cost funding etc.

ICT and Business Services

ICT and business services in Bangladesh, is a vibrant sector supported by an enthusiastic culture and
a government committed to providing a pro-business climate for all investors. Over 400 IT companies
are now thriving in the country supplying to local and international markets worldwide.

IT Industry in Bangladesh
Though the current size of Bangladesh IT Industry and software/ITES industry in particular is still lot
smaller compared to the overall economy and the number of population (over 150 million), over the
last few years, the industry has grown considerably and is expected to grow at that rate for some time.
It is estimated that during the last five years, the average yearly growth rate of software & ITES
industry has been over 40%. The growth has been driven by both good export trends in recent years
as well as the growing IT automation demand in domestic market (local demand has been led by large
automation projects by telecom, banking sector and export oriented garments/textile industry).
Currently, there are over five hundred registered software and ITES companies in the country
employing over 20,000 ICT professionals. Out of these companies, around 60% are mainly domestic
market focused while 40% are mainly export focused (significant number of companies work for both
local and export clients).

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 In the telecom sector, government dismantled its own monopoly and issued licenses for IGW
International Gateway (IGW), Interconnection Exchange (ICX) and International Internet Gateway
(IIG). These licensing arrangements saw a huge leap both in terms of attracting FDI and also fast
growing users, falling call rates. The main trigger was the deregulation by the government.
 Government revenue earning has surged from BDT 345 million in 2001-02 to BDT 32 billion in
2008-09. Government’s earnings from VAT and taxes also increased to BDT 63 billion in 2012-
13.
 FDI of around USD 2 billion
 100 million phone subscribers - 200 fold increase in the last 15 years or so.
 The call charges of half a US cent per minute - among the lowest in the world
 This reduced cost of doing business at a mass level, reaching the grass-roots.
 Internet usage shot up, with currently 20.3% penetration rate, 96% by cell phones.
 Mobile banking, e-commerce, cash transfer, extension services to farmers

Conclusion

43. Bangladesh and China have very supportive policy frameworks to help their investors,
businessmen and public sector entities to contribute to the further strengthening of the economic
cooperation between the two countries and widening the range of such cooperation. Bangladesh is
specially committed to help Chinese entities and investors take advantage of the unique economic
opportunities existing in Bangladesh. The growing economy of Bangladesh, its incremental integration in
the international product and value chains, the cost advantage of investment in Bangladesh and favorable
market access enjoyed by Bangladesh in key export destinations as well as growing domestic market
opportunities both in Bangladesh and China for independent Chinese investment or joint Bangladesh –
Chinese investment offers exciting opportunities for potential investors. Investors in China will certainly
benefit from availing these opportunities and they are welcome to do so. Welcome to Bangladesh as
Bangladesh and China go ahead in further advancing their shared economic interest!

References:
1. Asian Development Bank (2011): Bangladesh Country Partnership Strategy 2011-2015, Manila, Philippines.
2. Embassy of the People’s Republic of China in the People’s Republic of Bangladesh (2010): Joint Statement
between the People’s Republic of China and the People’s Republic of Bangladesh, Dhaka, Bangladesh.
3. Export Promotion Bureau Compiled by BGMEA [www.bgmea.com.bd]
4. General Economics Division, Planning Commission, Ministry of Planning, Government of the People’s
Republic of Bangladesh (2015): Bangladesh Seventh Five-Year Plan (Final Draft), FY2016-FY2020, Dhaka,
Bangladesh.
5. Noor Mohammad Sarker (2014): Bangladesh-China Relationship at the Dawn of the Twenty-first Century,
Peace and Security Review (Volume 6, No. 11, pp. 72-96), Dhaka, Bangladesh.
6. Report on monitoring and employment survey-2009 (www.bbs.gov.bd)
7. Syed Mahmudul Huq (2013): Presentation on “Investment in Myanmar: Relevance of Bangladesh experience”
[http://www.unescap.org/sites/default/files/MBDW-Day4-S14-ICC_MEMBER_SYED_MAHMUDUL_HUQ.pdf].
8. Wikipedia: Bangladesh China Relations (downloaded on 29 November 2015).

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