Business Sectors & Investment Incentives in Bangladesh


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Md. Joynal Abdin*

Business Consultant & Digital Marketer

Co-Founder & CEO of Bangladesh Trade Center


Major business sectors of Bangladesh economy could be classified into three broad heads, namely industrial (manufacturing) sectors, Service sectors, agriculture (agro-processing) sectors. Major sectors of Bangladesh economy are as follows:


  1. Industrial (Manufacturing) Sectors of Bangladesh:
Business Sectors & Investment Incentives in Bangladesh
Md. Joynal Abdin, Business Consultant, Digital Marketer & Author
  1. Major Service Sectors:



  1. Agriculture (agro-processing) Sectors:


Business Sectors & Investment Incentives in Bangladesh, this is the summary of two chapters from the book “Most Prospective Sectors to Invest in Bangladesh” of the Author. To purchase the book click here.

Business Sectors & Investment Incentives in Bangladesh
Most Prospective Sectors to Invest in Bangladesh

Business Sectors & Investment Incentives in Bangladesh, this is the summary of two chapters from the book “Most Prospective Sectors to Invest in Bangladesh” of the Author. To purchase the book click here.

Investment incentives offered by Bangladesh:

Bangladesh achieved independence from Pakistan through a bloody liberation war for 9 months at a cost of 3 million lives. After liberation war major investment was in reconstruction of the bridges, railway lines, water ways, ports and a large number of developing houses destroyed or burnt during the war. The first five years plan was prepared in a spirit to achieve socialism in the country. There was thus emphasis on investment in public sector. In the early 1980s the trend reversed and started a new trend of privatizing state-owned enterprises (SOE). Many SOEs were sold out to private owners, at the same time new enterprises started to be developed in private sector.


The government has designed and implemented different policy reforms for creating more open and competitive environment for local and foreign investment. Considerable reforms and policy changes have been brought in recent years to promote the congenial atmosphere for foreign direct investment in Bangladesh. Private investment from foreign sources is welcome in all areas except four strategic industries reserved for public sector only namely Arms and ammunitions and other defense equipment and machinery; Production of nuclear energy; Forest plantation and machinated extraction within the bounds of reserve forest; and Security printing currency notes and minting. The foreign private investment (promotion and protection) Act, 1980 has been passed that ensures legal protection to foreign investment against nationalization and expropriation. It also guarantees repatriation of capital and dividend; and equitable treatment with local investors with regard to indemnification, compensation, restitution, or other entitlement as is accorded to investment. The government has made bilateral agreements for avoidance of double taxation with 26 countries and negotiations are going on with 23 countries.


Investment treaty for promotion and protection of investment between Bangladesh and twenty countries have been concluded and negotiations are going on with 9 other countries. Besides these, Bangladesh is a signatory to MIGA (Multilateral Investment Guarantee Agency), OPIC (Overseas Private Investment Corporation) of USA, ICSID (International Centre for Settlement of Investment Disputes) and a number of WIPOs (World Intellectual Property Organization) a Permanent committee on development and cooperation related to industrial prosperity. Adequate provision is also made available for intellectual property rights, such as patents, design and trademarks and copy right.


The government has already enacted bankruptcy law. A law commission has been constituted with a view to identify the anomalies and weaknesses in the existing laws and legal system. One of the main tasks of this commission is updating the existing laws in relation to industries, trade and business.


All these are expected to improve general business environment along with the environment of FDI. Efforts are being made to reform the bureaucratic administration in order to make it efficient and supportive of better services for inflow of FDI and economic development oriented activities. Substantial modifications have been made to up-date the laws dealing with financial sector. The Companies act 1994 and labor Act 2006 have been enacted for facilitating inflow of FDIs in Bangladesh.


In order to improve the environment of private foreign investment and FDI, several EPZs have been established in Chittagong, Dhaka, Khulna under the Bangladesh Export Processing Zones Authority (BEPZA) in 1980. The private Export Processing Zones (PEPZs) Act has also been enacted to encourage the establishment of “Private Export Processing Zones” by the local and foreign investors. These EPZs are well enriched with the necessary infrastructural facilities and are completely protected from any law and order problems or union activities.


The BEPZA approves all projects to be located in the EPZS and offers “One window same day service” to the investors in the EPZs. The government has also approved the private power generation policy of 1996 and tax exemption on income of the company for 15 years from the date of commercial production is allowed.


The Government has undertaken several steps to make import liberalization and industrial deregulations more effective including announcing its strategy of reducing effective protection over the medium term, continuing its efforts to lower and simplify tariffs, publishing a clear tariff schedule, developing an action plan for legal reforms and a blue pint for deregulation, and putting an action plan for implementing its exports development strategy. These efforts have improved the investment environment in Bangladesh.


Bangladesh is one of the promising economies with a large domestic market, availability of labor with competitive price, low utility charges, two Seaports and a potential Deep Seaport facility, long-term tax holiday, 100% repatriation facility, and easy access to largest regional market like India and China.


Facilities and Incentives for a foreign investor:

Bangladesh Trade Center
Invest in Bangladesh

Fiscal incentives:


Financial incentives for export oriented industries:


Additional Facilities / Incentives:


Other factors of Investment Environment:

Bangladesh offers investment friendly environment compared to the other South Asian Countries. Salient features are enumerated below:


Business Sectors & Investment Incentives in Bangladesh, This is the summary of two chapters from the book “Most Prospective Sectors to Invest in Bangladesh” of the Author. To purchase the book click here.


*Author’s Short Profile:

business consultant
Md. Joynal Abdin

Mr. Md. Joynal Abdin is a Business Consultant & Digital Marketer based in Dhaka, Bangladesh. He is also Co-Founder & CEO of Bangladesh Trade Center. Previously he served at Dhaka Chamber of Commerce & Industry (DCCI) as Executive Secretary; DCCI Business Institute (DBI) as Executive Director; SME Foundation as Deputy Manager; and the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) as Assistant Secretary.


The list of services Mr. Abdin is offering includes but not limited to Business Research and Documentations like Feasibility Study, Project Proposal Preparation, Writing Business Manual, Standard Operating Procedures etc.; Export Market Selection and Product Positioning at Home and Abroad; Buyers-Sellers Matchmaking; Website Development; Search Engine Optimization (SEO); and Social Media Marketing etc.


Business Sectors & Investment Incentives in Bangladesh, This is the summary of two chapters from the book “Most Prospective Sectors to Invest in Bangladesh” of the Author. To purchase the book click here.


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