What ways Bangladesh could attract more FDI in the country

 Some of the recent major measures undertaken by the government to attract FDI are:

 a) Private Export processing Zone Act has been enacted. Korea has set up a private EPZ at Chittagong.

b) A Regulatory Reform Commission (RRC) has been set up.

c) A permanent Law Reform Commission has been set up to ensure greater transparency and predictability in the way rules and regulations work.

d) An Administrative Reform Commission has been set up

e) The company law 1913 has been updated and revised in 1994.

f) The Industrial relations Act has been enacted to enhance labor market efficiency. g) Power generation in the private sector has been allowed.

h) Telecommunication in the private sector has been allowed. Foreign Direct Investment in Bangladesh 107

 i) Multiple entry visas to visiting foreign investors are being given by all the Bangladesh

Missions abroad.

j) Provision made for allowing import of standby generators free of tax and sale of excess electricity to nearby industrial units without permission from any agency provided own distribution line is used.

k) Licenses issued to six cellular telecom phone operators, which illustrate governments Commitment to a competitive and market economy.

l) Establishment of Bangladesh Better Business Forum (BBBF)

 

On the other hand, some of the incentives allowed for attracting FDI in Bangladesh are:

 i) No ceiling on investment

ii) 100% foreign equity participation allowed iii) Tax holiday up to 10 years

iv) Allowances of accelerated depreciation in lieu of tax holiday

v) Tax exemption and duty free importation of capital machinery and spare parts for

100% export oriented industries

vi) Residency permits for foreign nationals

vii) No restriction on issuing work permit to a foreign national viii) Capital, profit and dividend repatriation facilities

ix) Term loans and working capital loans from local banks

x) Avoidance of double taxation on the basis of bilateral agreement

xi) Tax exemption on the interest of payable to foreign loans and on royalties and technical know how fees

xii) Open exchange control

xiii) Multiple entry visas for investors

xiv) Convertibility of Taka for current account transactions

xv) Protection of foreign investment through ‘The Foreign Private Investment Act-1980’ and Settlement of Investment Dispute (ICSID), The Multilateral Investment Guarantee (MIGA), and World Intellectual Property Organization (WIPO).

xvi) Adequate protection is available for intellectual property rights such as patents, designs, trademarks and copyrights.