The Golden Bengal
Shining a light on growth prospects and emerging opportunities in Bangladesh.
Since gaining independence in 1971, Bangladesh has demonstrated remarkable growth and economic resilience. In just half a century, the South Asian nation has lifted itself to United Nations low-income country status, and today stands on the brink of transitioning to an upper middle-income country by 2031.
The country’s Gross Domestic Product (GDP) growth has accelerated over the past decades, doubling from an average of 3.5% per year in the 1980s to 7% annual growth over the past decade. In 2022, the country’s GDP grew by 7.1% to exceed $460 billion, maintaining its momentum towards the goal of becoming a $1 trillion economy by 2040.
Forging Strategic Partnerships
As Bangladesh heads toward this economic milestone, opportunities for partnerships and strategic investments abound—all part of a collective effort to turn its national aspirations into an international reality.
Highlighting this forward-looking approach, in March 2023, Bangladesh welcomed foreign investors, high-level global dignitaries, business leaders from 17 countries, as well as ministers from six countries—including the United Kingdom, Saudi Arabia, China, Bhutan, the United Arab Emirates—to the inaugural Bangladesh Business Summit, organized by The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country’s apex trade body promoting the interests of its private sector.
In one of the plenary sessions, Commerce Minister Tipu Munshi emphasized that Bangladesh is fully committed to identifying new export markets and sectors, and that efforts towards this goal are proceeding at full speed. Helping Bangladesh achieve its goal to increase exports from US$33.6 billion in 2020 to US$56 billion by 2025 include plans to explore the trade and investment potential between Bangladesh and Japan, open up untapped markets including Africa, and improve access to UK markets through its new Developing Countries Trading Scheme.
During the three-day summit held in Dhaka, partnerships worth $1.7 billion were secured, including a $150 million deal between Saudi-based Red Sea Gateway Terminal International Limited and Chittagong Port Authority. The strategic agreement will provide public-private partnership (PPP)-based equipment, operations, and maintenance at the Patenga Container Terminal. Three separate deals were also signed with Engineering Dimension International Investment during the summit, including plans for a sugar mill and agro-processing complex at Rangpur. The company also agreed to invest in infrastructure to transport gas from the Indian national grid to Bangladesh, and to set up a fertilizer plant in Khulna.
An additional MoU was inked with the China Council for the Promotion of International Trade to further explore bilateral trade and investment opportunities between the two countries.
A New Global Player
Through its young workforce, combined with improvements in infrastructure and a burgeoning digital economy, Bangladesh is well-positioned to further accelerate its growth trajectory. The country’s key commercial and industrial sectors offer $100 billion in investment opportunities in areas such as infrastructure, logistics, PPPs, and green investments.
One of the critical factors supporting the country’s growth is a need for infrastructure development, particularly in logistics, to facilitate efficient transportation of people and goods. The government’s plan to establish 100 Special Economic Zones across the country is expected to generate an additional US$40 billion worth of export earnings by 2030.
Similarly crucial to help the country realize its growth potential are PPP projects. Since 2015, public-private partnerships worth a total of $36.5 billion have positioned the private sector in a pivotal role—especially regarding large scale projects—to deliver Bangladesh’s Vision 2041, whose key goals are to end absolute poverty, and lift the population to a developed nation by 2041.
To further ease the cost, time, and processes in starting a business in the country, Bangladesh Investment Development Authority (BIDA), the principal government agency facilitating private investment in the country, has also launched the centralized One Stop Services (OSS). New investor services, ranging from company and VAT registration to work permit issuance and environmental clearance, are already integrated in this national portal, with the goal to one day provide 154 services from 35 agencies through the single platform.
Adding to the appeal, Bangladesh is actively courting investors by offering fiscal and non-fiscal incentives, including tax holidays, reduced import duties on capital machinery and raw materials, a minimized value-added tax, and export subsidies. Businesses located within economic zones and export processing zones also enjoy various tax exemption packages, making Bangladesh an increasingly attractive destination for investment.
A Bright Economic Future
With a buoyant economy, strategic geographic position, and burgeoning middle class, Bangladesh is set to stride confidently into a future of continued growth. In this landscape, Bangladesh is primed to foster innovation and entrepreneurship, underpinned by a commitment to social progress and sustainable development.
At the Bangladesh Business Summit, Prime Minister Sheikh Hasina shared that her government remains committed to improving the investment landscape with the implementation of specific policies to minimize bureaucratic red tape and attract local and foreign direct investments.
As the Summit clearly showed, the nation is ready to leverage its vast potential through infrastructure development, modernization of key industries, and enhanced digital connectivity, crafting a conducive business environment that will set Bangladesh for lasting success.
