Foreign investment, economic development<\/p>\n
The present government has clear and well-defined economic
\npolicies, geared to promoting foreign investment in the country.
\nThe country welcomes private investment in all areas of the
\neconomy, with the exception of five sectors due to national
\nsecurity issues. Investors are not restricted on the amount of
\ninvestment. A foreign investor can own 100 percent of an asset
\nwithout prior government approval.<\/p>\n
Foreign investors are eligible for a wide range of tax and
\nfiscal incentives. The government also has set up a high-powered
\ncommittee to accelerate the approval and processing of foreign
\ninvestment proposals. This Board of Investment (BOI) coordinates
\nand facilitates implementation of foreign direct investment
\nprojects.<\/p>\n
The government is focusing on developing the country's
\ninfrastructure and has initiated a number of policies to pursue
\nprivate investment in infrastructure facilities and services.
\nInvestors are encouraged to build and operate with options to own
\nor transfer.<\/p>\n
Projects the government is focusing on include:<\/p>\n
* Power generation,<\/p>\n
* Exploration and exploitation of natural resources,<\/p>\n
* Highway development, including bridges, expressways and
\ntunnels,<\/p>\n
* Port infrastructure development,<\/p>\n
* Transportation facilities,<\/p>\n
* Industrial parks\/private Export Processing Zones (EPZs).<\/p>\n
Major reforms undertaken by the government include:<\/p>\n
* The Private Export Processing Zone Act,<\/p>\n
* A permanent law reform commission to ensure greater
\ntransparency and predictability in the way rules and regulations
\nare made,<\/p>\n
* The Administrative Reforms Commission,<\/p>\n
* An update and modernization of Company Law 1913,<\/p>\n
* Reorganization of the Securities and Exchange Commission,<\/p>\n
* An amended Industrial Relations Act to enhance labor market
\nefficiency,<\/p>\n
* Opening of power generation to the private sector,<\/p>\n
* Opening of air cargo operations to the private sector,<\/p>\n
* Multiple-entry visas issued to visiting foreign investors,<\/p>\n
* Provisions allowing for the import of standby generators free
\nof tax. Sale of excess electricity to nearby industrial units
\nwithout permission from any agency is allowed, provided own
\ndistribution line is used,<\/p>\n
* Licenses issued to four cellular telephone operators,
\nillustrating the government's commitment to a competitive and
\nmarket economy.<\/p>\n
Fiscal incentives allowed for power generation include:<\/p>\n
* A 15-year corporate income tax exemption for private power
\ncompanies,<\/p>\n
* Power companies will be allowed to import plant equipment
\nwithout paying customs duties, VAT or any other surcharges as
\nwell as import permit fees, except for indigenously produced
\nequipment manufactured according to international standards,<\/p>\n
* Repatriation of equity along with dividends will be allowed
\nfreely,<\/p>\n
* Lenders to such companies will receive income tax exemptions,<\/p>\n
* Power generation has been declared an industry, making the
\ncompanies eligible for all concessions available to industrial
\nprojects,<\/p>\n
* Private parties may raise local and foreign funds in accordance
\nwith regulations applicable to industrial projects as defined by
\nBOI,<\/p>\n
* Capital gains are exempt from transfer of shares by the
\ninvesting company.<\/p>\n
The Ministry of Energy and Mineral Resources has signed two
\nagreements, with two more expected to be signed shortly, for two
\nbarge-mounted power projects involving foreign investments worth
\nUS$400 million. These are expected to be operational by the end
\nof 1998.<\/p>\n
The government has secured foreign investment against
\nnationalization, expropriation and will compensate investors in
\nthe event of a loss due to civil unrest, etc.<\/p>\n
The government also provides adequate protection for
\nintellectual property rights, with guarantees through
\nmultilateral agencies.<\/p>\n
The BOI is also setting up a one-stop service, where investors
\nwill no longer be required to go from door to door for services
\nlike gas, electricity or telephone connections. Representatives
\nfrom the Power Development Board, Dhaka Electricity Supply
\nAuthority, the rural Electrification Board, WASA and T&T will all
\nbe conveniently located on one floor at the BOI.<\/p>\n
The BOI has set up a welcome counter at Dhaka Airport to
\nwelcome foreign investors. The board is also establishing
\nindustrial parks where all facilities, including land, will be
\navailable for investors to set up industries. These parks will be
\nset up outside EPZ areas but will be modeled on existing EPZs.
\nLocal entrepreneurs have also shown an interest in setting up
\nsuch industrial parks.<\/p>\n
Bangladesh has established prudent monetary and fiscal
\npolicies to keep inflation at a lower rate, reduce the fiscal
\ndeficit and maintain a healthy foreign exchange reserve to ensure
\ncompetitiveness in the economy. International investor confidence
\nand significant inflow of new investment funds is now helping
\nBangladesh move forward confidently into the 21st century.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investment-economic-development-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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