Bangladesh is a booming economy, recently making the list of low-middle income countries as per the World Bank. According to the IMF, the Bangladeshi economy is projected to grow from $180 billion to $322 billion by 2021. The rate of GDP in 2015 was $195.1 Billion and the gradually escalating growth rate was 6.6%. High-growth domestic markets, government support, lower valuations of takeover targets and ready access to capital have provided unprecedented opportunities for investors all across the world to explore new market in Bangladesh. Bangladesh is already one of the leading FDI targets in the Asia Pacific.
In the last six years, net FDI inflows into Bangladesh have grown enormously, hitting $2.2 billion in 2015. China alone, as per the Chinese ambassador to Bangladesh, is planning to increase the Chinese FDI in Bangladesh by 50% in the coming years. The Government has taken initiatives for developing the infrastructure of the country through Public Private Partnership (PPP) to sustain the growth in the economy.
Bangladesh has the third largest capital market of South Asia with two full-fledged automated stock exchanges, hosted on computer based trading system. Consequently, the country is seeing more and more of direct foreign and local investments in different corporate sectors and in the capital market.
The increased need of investment is facilitated by various legislations, development of infrastructure through Public Private Partnership and supported by multiple commercial banks, financing corporations and NBFIs (As per Bangladesh Bank’s report, there are 56 scheduled banks, 4 non-scheduled banks and 31 Financial Institutions and 9 Foreign Commercial Banks are operating in Bangladesh). Furthermore, tax holiday for new businesses has been given and special Economic Zones (EZs) have been established to facilitate the business growth.
Bangladesh has 1, 66,000 sq. km area of sea, abundance with living and non-living resources and has more than 200 rivers all around the country, with a total length of about 22,155 km, which occupy about 11% of total area of the country. Major export and import of Bangladesh (about 85%) depends on the ports. To facilitate the process, the Government has installed a new Deep Sea Port on the Bay of Bengal, in addition to the two previous Ports. The famous port ‘Potenga’ was listed by Lloyd’s List, the leading and the oldest source for the Maritime industry, as the 76th busiest ports in the world. It was noted that despite worldwide decline in the volume of shipment, the volume of containers carried through this Bangladeshi port actually increased in 2015, hitting over 2.02 million containers in that year. The increase was 17% more in compare to the last year. In 2016, by end of August the port has seen carriage of 15.5 million containers, expected to reach 2.32 million by the end of the year. The increase in volume of shipping activity is a direct indication of development of the economy as export-import of industries within the country largely depends on shipment. The statistics clearly suggests that the businesses are expanding fast in Bangladesh.
The Government has given highest priority to the power sector development in Bangladesh and is committed to make electricity available to all citizens by 2021. The Government has initiated implementing reform measures in the power sector, including significant development programs. As of April 2016, total installed generation capacity was 12,339 Megawatt (MW) including 6,440 MW in the public sector and 5899 Megawatt in the private sector. According to the Power Sector Master Plan, installed capacity will rise to 30,000 MW by the year 2021. To reach this goal, the Government is facilitating establishment of multiple LNG, Coal, Solar and Wind based power plants on BOT or BOO basis.
In the Real Estate Sector, the number of registered members of Real Estate & Housing Association of Bangladesh (REHAB), an association for the real estate developers, have increased from 11 in 1991 to 1151 in 2016. Each year approximately 9,000 to 10,000 units of apartments and approximately 5,000 to 6,000 units of plot are being delivered by these Real Estate ventures. Hand in hand, the Tourism and Hospitality sector is growing as well. International brands are opening their hotels and resorts in Bangladesh.
Telecom sector has seen mobile penetration growth that has exceeded all expectations and gradually brining the Government’s vision of DIGITAL BANGLADESH into reality. In recent years, the Telecommunication Sector of Bangladesh has seen some bold moves from the operators and the regulators, including merger of two of the leading providers and takeover of one operator by a foreign operator. Telecom sector is having transformative impact on the economy in terms of aggregate investment, Foreign Direct Investment and productivity levels. The Government of Bangladesh has revisited its taxation policy for mobile telecommunication industry for creating opportunity for them to reach out to poor population of rural Bangladesh. Such decision will surely attract more investment by the telecommunications operators. The government is planning to accelerate the process of introducing new telecommunication technologies (e.g., 4G, LTE) in the telecom sector through transparent licensing system within shortest possible time.
Within the Health Sector, Bangladesh’s pharmaceutical industry was valued at about $1.5 billion in 2013, expected to grow at more than 3 times the rate of GDP growth. Based on IMF World Economic Outlook GDP projections and a GDP/Pharmaceutical ratio of 3.3 percent the pharmaceutical industry growth rate is expected to be 23% for the next 10 years, with revenues reaching $4 billion in 2016 and $9 billion by 2020. In 2015, to expand the horizon of this sector, the Government issued permission for establishing the first ever Clinical Research Organization in Bangladesh.
Truly Bangladesh has become the new destination for the investors. The country should be an excellent place for the potential investors to explore and the development of the country should be an exciting thing to watch.
Bangladesh is a booming economy, recently making the list of low-middle income countries as per the World Bank. Consequently, in Bangladesh, the fastest growing practice area is the Corporate/Project Financing & Investment as the economy is enlarging with a stable government in power. According to the IMF, the Bangladeshi economy is projected to grow from $180 billion to $322 billion by 2021.
The Government has given highest priority to the power sector development in Bangladesh and is committed to making electricity available to all citizens by 2021. In this connection, the Government has initiated implementing reform measures in the power sector, including significant development programs.
Despite the recent growth of the corporate sectors in Bangladesh, the legal profession is still dominated with high volume of litigations. To ensure our clients are receiving best litigation supports, we offer litigation services through 03 (Three) separate wings of A.S & Associates, dedicated for the Criminal Litigations, the Civil Litigations and the Writ Matters at the High Court Division respectively.
Real estate business is one of most rising ventures in Bangladesh. This sector plays an important role for sustainable development of the economy of Bangladesh. In each year approximately 9,000 to 10,000 units of apartment deliver to the people who are expecting to be an owner of the apartment at the same time approximately 5,000 to 6,000 units of plot deliver to the people who are expecting to be a land owner.
Although Bangladesh is not developed in the industrial sector, the progress of development in this sector is remarkable. Govt. of Bangladesh has introduced number of different legislations and policies, in line with international requirements, for protecting its labor market.
With the change in the corporate culture, the need of regulatory and policy compliance, good governance and internal control have increased significantly. Even the local business entities are now being compelled to adhere to minimum industry standard for surviving the competitive international markets.
We understand that legal support required by different Govt. entities, Non-Profit Organizations, NOGs or Charitable Organizations/Foundations is inherently different from the need of the corporate sector. In fact, these entities are governed by special legislations and regulations.
In Bangladesh, Telecom sector has seen mobile penetration growth that has exceeded all expectations to bring the vision DIGITAL BANGLADESH of Bangladesh Government in reality. In recent years, the Telecommunication Sector of Bangladesh has seen some bold moves from the operators and the regulators, including merger of two of the leading providers, takeover of one operator by a foreign operator and revocation of license of another leading operator for non-compliance.
In the Corporate World, the importance of Agreement cannot be denied in any way rather it bears extensive significance. All corporate transactions are based on and governed by the mutually agreed terms and conditions of the Contract. We believe that a meticulously drafted agreement, that captures and reflects the understanding of the Parties, is the key to a successful business relation and makes the difference between a long and complex legal battle and an amicable resolution in case of a dispute.
Bangladesh as an emerging developing country is committed to augmenting revenue and achieving fiscal discipline with a view to increasing self-reliance. The external environment influencing the tax performance of Bangladesh has changed remarkably as the country became increasingly integrated with the global economy.
In light of the globalization, the way business is conducted in Bangladesh has changed fundamentally. The Government has put much emphasis in developing the Business sector of the Country and thereby offering incentives, tax holiday for new business enterprises. The manifestation of the government has also been proved in the decision of establishing some Economic Zones (EZs) at different parts of the country.
As a Developing Country, Bangladesh is rapidly growing in various industrial sectors. The mandate of the current government of Bangladesh is to be a developed country by 2050. To facilitate the process, Govt. has created multiple Special Economic Zones and is providing incentives to business corporations.
The Capital Market of Bangladesh is the major heart of financial sector of Bangladesh. Its capital market is the third largest in the south Asia region. It has two full-fledged automated stock exchanges. The Securities and Exchange Commission regulates the stock exchanges and the listed securities over the market.
The opportunity for Banking and Financial Institutes are enormous in the context of the developing economy of Bangladesh. With projected grow of economy from $180 billion to $322 billion by 2021, 6.6% growth rate of the GDP, net Foreign Direct Investment hitting over $2.2 billion in 2015, the Banking & Financial Institutes are likely to become one of the most profitable sectors of Bangladesh.