Bangladesh

GDP (US$ Billion)

250.02 (2017)

World Ranking 43/191

GDP Per Capita (US$)

1,532 (2017)

World Ranking 152/190

Economic Structure

(in terms of GDP composition, 2018)

Services
(52.96%)
Industry
(28.54%)
Agriculture
(13.07%)

External Trade (% of GDP)

38 (2016)

Currency (Period Average)

Bangladeshi Taka

80.44 per US$ (2017)

Political System

Unitary multiparty republic

Overview

Bangladesh has an impressive track record for growth and development. It has made great progress in reducing poverty and has grown steadily over the past decade. Sustained economic growth has rapidly increased urbanisation as well as the demand for energy and transport infrastructure. To achieve its aspiration of becoming an upper-middle income country by 2031, the country needs to urgently to implement structural reforms, expand investment in human capital, improve domestic revenue mobilisation, increase female labour force participation and raise productivity through increased global value chain integration. Improving infrastructure – such as transport and access to reliable and affordable power – as well as the business climate would allow new productive sectors to develop and generate jobs. A sign of progress Bangladesh's significantly improved performance rating in the World Bank Group's recently released Doing Business 2020 report.

Sources: World Bank, Fitch Solutions

 

Major Economic/Political Events and Upcoming Elections

October 2018
The opposition Bangladesh Nationalist Party formed an alliance with other smaller opposition parties, creating the Jatiya Oikya Front (United National Front) to contest the next general election.

December 2018
Prime Minister Sheikh Hasina and the ruling Awami League secured a third consecutive term in the general election.

January 2019
The United Nations strongly recommended that Bangladesh sign free trade agreements with major trading partners such as Mainland China to counter a regime without a duty-free and quota-free facility after Bangladesh graduates from being a least developed country to a developing nation after 2027.

June 2019
A Joint Steering Committee of Nepal and Bangladesh agreed to jointly invest in feasible hydropower projects and collaborate on alternative energy in Nepal. Joint investments would cover the 1.1GW Sunkoshi II and 536MW Sunkoshi III reservoir hydropower projects, among others. The two nations have also agreed to build a new high-voltage transmission line to Bangladesh through India. The committee also decided to hold talks with India for exporting power from Nepal to Bangladesh by utilising Indian electricity transmission lines. Bangladesh has already formulated a policy to buy 9GW of electricity from Nepal by 2040 and to achieve this construction of transmission line, selection of projects and cooperation on alternative energy were in the pipeline.

July 2019
The Japan International Cooperation Agency signed an agreement with the Government of Bangladesh to provide an official development assistance loan of around USD1.3 billion to construct coal-fired power plant with a rated output of 1.2GW in the Matarbari area of Cox's Bazar District. The project was expected to stabilise the country's power supply and promote energy efficiency. The loan had a repayment term of 30 years along with a 10-year grace period. The project was expected to be completed in July 2024.

During a visit to Mainland China Prime Minister Hasina signed agreements and memoranda of understanding covering power, investment, culture, tourism and technology sectors, including loans worth USD1.7 billion for Bangladesh's power sector. Beijing also assured Dhaka that it would align its projects under the Belt and Road Initiative with Bangladesh's development priorities.

August 2019
Bangladesh ended a self-imposed export ban of fresh produce to Europe, introduced two years earlier in response to European Union (EU) regulators detecting pests in consignments of exports to Europe. Bangladesh has since improved the quality of its packing standards.

October 2019
Officials from Bangladesh and the EU met in Dhaka to discuss the key priorities for the post-2020 co-operation agenda and to look into the Bangladesh government's five-year plan from 2021.

The Oxford Internet Institute reported that Bangladesh is the second-largest supplier of online labour in the world, and because two-thirds of its population is under 25 years of age, it can potentially add many new workers to the digital pool in the years ahead.

Sources: BBC Country Profile Timeline, The Guardian, The Diplomat, BDNews24.com, Dhaka Tribune, Al Jazeera, Fitch Solutions

Major Economic Indicators
Graph: Bangladesh real GDP and inflation
 
Graph: Bangladesh real GDP and inflation
 
Graph: Bangladesh GDP by sector (2018)
 
Graph: Bangladesh GDP by sector (2018)
 
Graph: Bangladesh unemployment rate
Note: No data available from the IMF
Graph: Bangladesh unemployment rate
Note: No data available from the IMF
Graph: Bangladesh current account balance
 
Graph: Bangladesh current account balance
 

f = forecast
Sources: IMF, World Bank, World Economic Outlook Database
Date last reviewed: October 21, 2019

External Trade

Merchandise Trade

Graph: Bangladesh merchandise trade
 
Graph: Bangladesh merchandise trade
 
 

e = estimate
Source: WTO
Date last reviewed: October 21, 2019

Graph: Bangladesh major export commodities (2015)
 
Graph: Bangladesh major export commodities (2015)
 
Graph: Bangladesh major export markets (2015)
 
Graph: Bangladesh major export markets (2015)
 
Graph: Bangladesh major import commodities (2015)
 
Graph: Bangladesh major import commodities (2015)
 
Graph: Bangladesh major import markets (2015)
 
Graph: Bangladesh major import markets (2015)
 

Note: Latest available direct data is 2015; direct data not available for 2016, 2017 or 2018 from Trade Map
Sources: Trade Map, Fitch Solutions
Date last reviewed: October 21, 2019

 

Trade in Services

Graph: Bangladesh trade in services
 
Graph: Bangladesh trade in services
 
 

e = estimate
Source: WTO
Date last reviewed: October 21, 2019

Trade Policies
  • In July 1978, Bangladesh joined the World Customs Organization, and in January 1995, Bangladesh became a member of the World Trade Organization (WTO).

  • Bangladesh used to benefit from preferential access to the United States market through the Generalized System of Preferences (GSP) programme, but in June 2013 President Barack Obama suspended Bangladesh's membership in light of the government's insufficient progress in securing the rights of Bangladeshi workers. The United States government has provided Bangladesh with a 16-point action plan that, if implemented, will provide a basis for the reinstating of GSP trade benefits. The United States is the single largest export destination for Bangladesh. As a least developed country, 97% of goods originating from Bangladesh enjoy duty-free benefits on export to the United Sytates. However, the country's main export items – garments – has not been included in this package despite comprising 95% of Bangladeshi exports to the United States per year. As a result, Bangladeshi exporters face a 15.6% tariff on export of apparel items to the US, although some competing countries, such as Mainland China, Vietnam, Pakistan and India, face far lower tariffs.

  • Bangladesh continues to impose high tariffs on imports, which increases costs for businesses, with an average tariff rate of 10.7%, rising to 25% for some finished products. In addition, a 4% infrastructure development surcharge is levied on almost all imports, as well as VAT of 15%. Although some raw materials and capital goods imports are exempt from customs duties, these charges increase the difficulty of operating in Bangladesh.

  • Bangladesh and India's joint membership of regional free trade areas eases the flow of goods between the two countries, with India providing an important source of imports for Bangladesh. Dhaka has attempted to improve its economic relationship with India in recent years by reducing trade barriers and improving connectivity.

  • Bangladesh has imposed an export ban on raw hides and wet blue leather. Only exports of finished leather and leather goods are allowed.

  • In August 2015, Bangladesh imposed a regulatory import duty of 20% on raw and refined sugar. The measure was initiated to protect local suppliers in times of falling global prices of sugar. The budget for the upcoming 2019-2020 fiscal year proposes to raise it to 30% and to impose VAT on soybean oil, which was previously exempt.

  • Vehicles imported into Bangladesh are subject to a 165% import duty and domestically assembled vehicles are subject to a 60% tax. Domestically assembled vehicles are, therefore, more affordable.

Sources: WTO – Trade Policy Review, Dhaka Tribune, Fitch Solutions

Trade Agreement

Trade Updates

  • Bangladesh and Sri Lanka expressed interest in signing a free trade agreement (FTA) in March 2017 in an attempt to boost bilateral trade ties. The two countries are set to benefit significantly from the FTA as Bangladesh produces textiles, pharmaceuticals, cement, paper, electrical items and jute products, which are in high demand in Sri Lanka. Sri Lanka is also an important transhipment hub for the region. It is hoped that the FTA will be signed in 2019.

  • In October 2018, Brazil and Bangladesh agreed to sign an FTA to boost bilateral trade. Brazil also seeks to form a chamber of commerce and industry with Bangladesh to encourage private sector investors from both countries to enhance business communication. Exports from Bangladesh to Brazil are currently subject to duties of 35%. It is not yet certain when negotiations will begin, but in August 2019 the four countries of the Mercosur bloc indicated to a Bangladeshi delegation that they were interested in an FTA.

  • Bangladesh has successfully negotiated several regional trade and economic agreements, including the South Asian Free Trade Agreement, the Asia-Pacific Trade Agreement (APTA) and the Bay of Bengal Initiative on Multi-Sectoral, Technical and Economic Cooperation (BIMSTEC). Although Bangladesh has not ratified any bilateral FTAs, it has started initial FTA discussions with Sri Lanka and Brazil. As a founding member of the WTO and as a less developed country (LDC), Bangladesh has been an active advocate for LDC interests in WTO negotiations.

 

Multinational Trade Agreements

Active

  1. South Asia Free Trade Agreement (SAFTA): SAFTA consists of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAFTA entered into force on January 1, 2006, and covers trade in goods. In 2008 Afghanistan joined the original signatories. The agreement is an attempt to increase intraregional trade through the gradual dismantling of some tariff barriers; however, the agreement leaves out a large number of products denoted as sensitive and does not address non-tariff trade barriers. Intra-regional trade has the potential to increase existing trade by over 300%. Growing demand in the region for agricultural products creates an opportunity for exploring new avenues of intra-regional trade and investment in this sector.

  2. EU-Bangladesh Cooperation Agreement: EU countries are major export markets and businesses enjoy duty- and quota-free access for most goods exports to the bloc under the Everything But Arms agreement. The agreement entered into force on March 1, 2001. The EU is Bangladesh's main trading partner, accounting for around 24% of Bangladesh's total trade in 2015. EU imports from Bangladesh are dominated by clothing, accounting for over 90% of the EU's total imports from Bangladesh. EU exports to Bangladesh are dominated by machinery and transport equipment (49%). From 2008 to 2015, EU imports from Bangladesh almost trebled, from EUR5.5 billion to EUR15.2 billion, which is nearly half of Bangladesh's total exports. There will be increasing pressure on the government to improve working conditions in the garment industry as the EU will be closely observing Bangladesh. Several European importers have already come forward to help the country in improving safety features of ready-made garment factories, which is a good sign for the country.

  3. APTA: APTA consists of Bangladesh, Mainland China, India, Laos, South Korea and Sri Lanka. Some 4,721 Bangladeshi products enjoy duty-free access to Mainland China under APTA (in effect since September 1, 2006). In 2013 Bangladesh sought duty-free access for 17 more items. The country will have to grant duty-free access to products from Mainland China in its market if an FTA is signed between Bangladesh and Mainland China.
Under Negotiation

BIMSTEC: BIMSTEC is a regional organisation comprising Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. Apart from India, developing Asian states are not key trade partners for Bangladesh, although this agreement creates opportunities to increase regional trade flows. The organisation has been active since 2006. Negotiations for a tariff-free zone began between various actors at multiple points in 2014. Once in place, the agreement is expected to further integrate the seven-nation area and aid regional development. Only India and Bhutan are not currently participating in Mainland China's Belt and Road Initiative, which may explain why the government led by Narendra Modi in India appears to be according a new priority to BIMSTEC in its foreign policy.

Sources: WTO Regional Trade Agreements database, Asia Regional Integration Centre, The Diplomat, European Commission, Dhaka Tribune, Fitch Solutions

Investment Policy

Foreign Direct Investment

Graph: Bangladesh FDI stock
 
Graph: Bangladesh FDI stock
 
Graph: Bangladesh FDI flow
 
Graph: Bangladesh FDI flow
 

Source: UNCTAD
Date last reviewed: October 17 , 2019

 

Foreign Direct Investment Policy

  1. The Bangladesh Investment Development Authority (BIDA) is the principal authority tasked with supervising and promoting private investment. The Bangladesh Export Processing Zones Authority (BEPZA) acts as the investment supervisory authority in export processing zones (EPZs). BEPZA is the one-stop service provider and regulatory authority for companies operating inside EPZs. Investments that are wholly foreign owned, joint ventures and wholly Bangladeshi-owned companies are all permitted to operate and enjoy equal treatment in the EPZs.

  2. Some key sectors are reserved for government investment, such as defence equipment and machinery, forest plantation and mechanised extraction within the bounds of reserved forests, production of nuclear energy, and certain media and security services. In addition, there are 17 controlled sectors that require clearance from the respective line authorities. These sectors include fisheries; banking, insurance and other financial institutions; power generation; supply and distribution of power in the private sector; mineral extraction; large-scale infrastructure projects; crude oil refineries; energy-intensive operations; transport services; telecommunications; and media. BIDA lists more than a dozen potential sectors where investment is being encouraged through fiscal incentives: agri-business, garments and textiles, ICT, leather and leather goods, electrical and electronic products, plastics, light engineering, shipbuilding, tourism, frozen food, renewable energy, ceramics, medical equipment, and healthcare.

  3. The government's industrial policy favours manufacturing and labour-intensive industries using local inputs. Various subsidies and other incentives are available to different industrial ventures, primarily in export sectors and, to some degree, import substitution sectors. The government also provides loans at concessionary rates through state banks and government-owned development banks for exports, cottage industries and agriculture.

  4. The Bangladeshi government is keen to attract more foreign direct investment and has set out an ambitious plan to build 100 special economic zones (SEZs) by 2030. The Bangladesh Zone Act was passed in 2010 and to date, the Bangladesh Economic Zones Authority has obtained approval to establish 88 SEZs, comprising 59 goverment-owned zones and 29 private zones. In addition, there are other economic zones being established: Public- Private Partnership (PPP) EZs, of which two have opened, and Government-to-Government (G2G) EZs. There are also plans to set up three Special Tourism Parks in Cox's Bazar district, which have attracted investment interest from Thailand and Singapore, as well as an environmentally friendly Eco-tourism Park at Sonadia Island. The G2G EZs reflect requests from several Asian countries to have specialised economic zones in Bangladesh: India has signed a memorandum of understanding to create two, in Kustia and Mongla; a Chinese Economic and iIndustrial Zone is being developed at Anwara in Chittagong; and a Japanese Economic Zone is expected near Dhaka, to be developed by Sumitomo Corporation.

  5. Under the Belt and Road Initiative, Mainland China intends to set up economic corridors in alliance with other countries – for example the Bangladesh, China, India and Myanmar Economic Corridor. The corridor will link Kolkata in India, Kunming in Mainland China, Mandalay in Myanmar and Dhaka in Bangladesh (among the key points). The government from of Mainland China has pledged to finance multi-billion dollar infrastructure projects in Bangladesh, including the construction of a 220km-long oil pipeline in Bangladesh, which will reduce the time and costs of transferring and unloading imported crude oil to onshore facilities in the country.

Sources: WTO – Trade Policy Review, ITA, U.S. Department of Commerce, Bangladesh Investment Development Authority, Bangladesh Economic Zones Authority, Bangladesh Export Processing Zones Authority

 

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
Export Processing Zones (EPZs) – general incentives - The VAT rate on exports is 0%

- For companies that only export, import duties are waived for imports of capital machinery and spare parts

- For companies that primarily export (80% and above), an import duty rate of 1% is charged for imports of capital machinery and spare parts identified and listed in notifications to relevant regulators

- Import duties are also waived for EPZ industries and other export-oriented industries for imports of raw materials consumed in production

- Investors benefit from the duty-free import of construction materials, capital goods and certain raw materials

- Exemption from double taxation subject to double taxation agreements

- Full repatriation of capital
EPZs: Mongla, Ishward and Uttara: specific tax holiday incentives - A 10-year tax exemption for any industries established before January 1, 2012

- A seven-year tax holiday for any industries established after January 1, 2012, consisting of: an Income tax exemption of 100% for the first three years, 50% for the next three years and 25% for the seventh year
EPZs: Chittagong, Dhaka, Comilla, Adamjee, Karnaphuli: specific tax holiday incentives A five-year tax holiday for any industries established after January 1, 2012, consisting of an income tax exemption of 100% for the first two years, 50% for the next two years and 25% for the fifth year
Economic Zones: Mongla, Sirajganj, Anowara, Mirershorai, Maulvibazar – specific incentives - Income tax exemption of 100% for the first two years, falling to 80% in the third year and reducing by 10% increments each following year to 10% in the 10th year

- Exemption from dividend tax

- 50% exemption on stamp duty for leasehold land or factory space

- 50% tax rebate on income tax of employees for five years

- Exemption from capital gains tax
General incentives

- Income tax exemption of 100% for the first two years, falling to 80% in the third year and reducing by 10% increments each following year to 10% in the 10th year

- Exemption from dividend tax

- 50% exemption on stamp duty for leasehold land or factory space

- 50% tax rebate on income tax of employees for five years

- Exemption from capital gains tax

- 50% tax rebate on export income

- Tax holidays of five-to-seven years for new enterprises in textiles, pharmaceuticals, plastics, ceramics, iron and steel, fertilisers, computer hardware, petrochemicals, and agricultural and industrial machinery

- Exemption from income tax for up to 15 years for new projects in the power sector

- Cash subsidies are offered to firms in the furniture sector (at a rate of 15%), plastic products (10%), textile products destined for eurozone markets (4-6%), and fruit and vegetable production (20%) to help improve their global competitiveness

- Non-coal fired independent power plants (IPPs) commencing production after January 1, 2015, are granted a 100% tax exemption for five years, a 50% exemption for years six-to-eight years and a 25% exemption for nine-to-10 years

- For coal-fired IPPs contracting with the government before June 30, 2020, and with a commercial operating date before June 30, 2023, the tax exemption rate is 100% for the first 15 years of operation

- For power projects, import duties are waived for imports of capital machinery and spare parts

Sources: Bangladesh Economic Zones Authority, Fitch Solutions

Taxation – 2019
  • Value Added Tax: 15%
  • Corporate Income Tax: 25%

Source: Bangladesh National Board of Revenue

 

Business Taxes

Type of Tax Tax Rate and Base
Corporate Income Tax - 25% on profits for listed companies
- 35% on profits for unlisted companies
- 40% on profits for listed banks, insurance companies and financial institutions
- 42.5% on profits for unlisted banks, insurance companies and financial institutions
- 45% on profits for mobile phone operators and cigarette manufacturing companies
Branch Remittance Tax 20%
VAT 15% on the sale of most goods and services, but a reduced rate of 5% applies to electricity supply, information technology services, online business services, 4.5% on photography and garages, 2% on goldsmiths, and 1.5% on construction. Bangladesh introduced a new VAT regime on July 1, 2019, which made available reduced VAT rates of 7.5%, 5% and 10%. Certain products and services are exempt from VAT (foodstuffs, agricultural supply, public transport, pharmaceutical products and educational services).
Capital Gains Tax 15% net earnings
Withholding Taxes (paid to non-residents) - 20% on dividend income
- 20% on royalties
- 20% on interest
Stamp Duty Stamp duty dating from the 1899 Stamp Act is levied on a variety of things, including financial instruments, property and specified transactions – for example, mobile phone operators are subject to rates of 0.07 to 4% depending on the dutiable transaction.

Source: Bangladesh National Board of Revenue
Date last reviewed: October 21, 2019

Foreign Worker Requirements

Localisation Requirements

The Bangladesh Investment Development Authority (BIDA) stipulates that private sector industrial enterprises wanting to employ foreign nationals are required to apply in advance. Foreign nationals can normally be employed for jobs for which local personnel are not available, and the number of foreign employees should not exceed 5% of total employees (including management staff) in the industrial sector and 20% in the commercial sector. In addition, foreign nationals are initially considered for a term of only two years, after which employment may be extended dependent on BIDA approval.

 

Visa/Travel Restrictions

All foreign nationals seeking paid employment in Bangladesh must be in possession of a valid work permit. The tenure of a work permit for a foreign worker is generally two years. Foreign citizens or nationals of India, Pakistan and South Korea travelling by air to Bangladesh with a valid visa for 90 days or longer are required to register at the airport.

Sources: Bangladesh Investment Development Authority, Bangladesh Consulate General, Fitch Solutions

Risks

Sovereign Credit Ratings

  Rating (Outlook) Rating Date
Moody's Ba3 (Stable) 10/10/2018
Standard & Poor's BB- (Stable) 06/04/2010
Fitch Ratings BB- (Stable) 06/12/2018

Sources: Moody's, Standard & Poor's, Fitch Ratings

 

Competitiveness and Efficiency Indicators

  World Ranking
2018 2019 2020
Ease of Doing Business Index 177/190 176/190 168/190
Ease of Paying Taxes Index 152/190 151/190 151/190
Logistics Performance Index 100/160 N/A N/A
Corruption Perception Index 149/180 N/A N/A
IMD World Competitiveness N/A N/A N/A

Sources: World Bank, IMD, Transparency International

 

Fitch Solutions Risk Indices

  World Ranking
2017 2018 2019
Economic Risk Index N/A 57/202 64/201
Short-Term Economic Risk Score 66.9 70.0 63.3
Long-Term Economic Risk Score 62.6 63.4 61.4
Political Risk Index N/A 109/202 106/201
Short-Term Political Risk Score 60.0 58.1 60.6
Long-Term Political Risk Score 60.4 60.4 60.4
Operational Risk Index N/A 142/201 145/201
Operational Risk Score 38.2 38.6 38.5

Source: Fitch Solutions
Date last reviewed: October 28, 2019

 

Fitch Solutions Risk Summary

ECONOMIC RISK

Bangladesh has relatively low economic risk by regional comparison, which is a reflection of the country's high economic growth rate amid still-elevated inflation and long-running fiscal deficit. Remittances from overseas workers help to cover the substantial goods and services trade deficit. However, the trade gap remains a risk to economic growth in the near term amid rising headwinds for the global economy.

OPERATIONAL RISK

Bangladesh's large population, competitive labour costs and proximity to key source markets are significant pull factors for businesses looking to set up labour-intensive operations. The country offers promising opportunities for investment in the oil and gas, power, pharmaceutical, ICT, agribusiness, and infrastructure sectors. However, Bangladesh's underdeveloped transport sector and barriers to trade and investment constrain the country's overall investment attractiveness.

Source: Fitch Solutions
Date last reviewed: October 25, 2019

 

Fitch Solutions Political and Economic Risk Indices

Graph: Bangladesh short term political risk index
 
Graph: Bangladesh short term political risk index
 
Graph: Bangladesh long term political risk index
 
Graph: Bangladesh long term political risk index
 
Graph: Bangladesh short term economic risk index
 
Graph: Bangladesh short term economic risk index
 
Graph: Bangladesh long term economic risk index
 
Graph: Bangladesh long term economic risk index
 

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Political and Economic Risk Indices
Date last reviewed: October 21, 2019

 

Fitch Solutions Operational Risk Index

  Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Bangladesh Score 38.5 51.7 29.0 40.0 33.5
South Asia Average 42.1 44.3 40.4 43.6 40.0
South Asia Position (out of 8) 6 1 8 5 7
Asia Average 48.4 49.7 48.2 46.8 49.1
Asia Position (out of 35) 25 14 33 21 30
Global Average 49.7 50.3 49.8

49.3

49.2
Global Position (out of 201) 145 97 176 129 156

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Bangladesh vs global and regional averages
 
Graph: Bangladesh vs global and regional averages
 
Country/Region Operational Risk Index Labour Market Risk Index Trade and Investment Risk Index Logistics Risk Index Crime and Secruity Risk Index
India 53.3 45.9 53.6 66.5 47.0
Sri Lanka 50.4 46.0 49.3 55.9 50.5
Bhutan 49.1 43.6 44.7 51.0 57.3
Maldives 44.3 46.5 45.7 37.4 47.8
Pakistan 39.6 43.3 38.3 42.3 34.4
Bangladesh 38.5 51.7 29.0 40.0 33.5
Nepal 36.8 37.8 33.3 36.4 39.7
Afghanistan 24.4 39.8 29.0 19.0 9.7
Regional Averages 42.1 44.3 40.4 43.6 40.0
Emerging Markets Averages 46.9 48.5 47.4 45.8 45.9
Global Markets Averages 49.7 50.3 49.8 49.3 49.2

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: October 21, 2019

Hong Kong Connection

Hong Kong’s Trade with Bangladesh

Graph: Major export commodities to Bangladesh (2018)
 
Graph: Major export commodities to Bangladesh (2018)
 
Graph: Major import commodities from Bangladesh (2018)
 
Graph: Major import commodities from Bangladesh (2018)
 

Note: Graph shows the main Hong Kong exports to/imports from Bangladesh (by consignment)
Date last reviewed: October 21 , 2019

Graph: Merchandise exports to Bangladesh
 
Graph: Merchandise exports to Bangladesh
 
Graph: Merchandise imports from Bangladesh
 
Graph: Merchandise imports from Bangladesh
 

Note: Graph shows Hong Kong exports to/imports from Bangladesh (by consignment)
Exchange Rate HK$/US$, average
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
7.83 (2018)
Sources: Hong Kong Trade Statistics, Census and Statistics Department
Date last reviewed: October 21, 2019

  2018 Growth rate (%)
Number of Bangladeshi residents visiting Hong Kong 5,284 0.5
  2017 Growth rate (%)
Number of Bangladeshis residing in Hong Kong 450 1.4

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affaris  Population Division, Fitch Solutions

  2018 Growth rate (%)
Number of Asia Pacific residents visiting Hong Kong 61,043,576 12.0
  2017 Growth rate (%)
Number of South Asia residents residing in Hong Kong 36,680 1.6

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affaris – Population Division, Fitch Solutions
Date last reviewed: October 21, 2019

 

Commercial Presence in Hong Kong

  2019 Growth rate (%)
Number of Bangladeshi companies in Hong Kong N/A N/A
- Regional headquarters
- Regional offices
- Local offices

 

Treaties and agreements between Hong Kong/Mainland China and Bangladesh

  • Hong Kong has an air services agreement with Bangladesh which entered into force December 9, 2005.

  • Bangladesh has a double taxation agreement with mainland China, which entered into force on April 10, 1997.

  • Bangladesh has a bilateral investment treaty with mainland China, which entered into force on March 25, 1997.

Sources: Inland Revenue Department, Government of Hong Kong, State Administration of Taxation of The People's Republic of China, UNCTAD

 

Chamber of Commerce (or Related Organisations) in Hong Kong

Bangladesh Chamber of Commerce & Industry Hong Kong (BCCIHK)

Address: Room 1913-1916, China Merchants Tower, Shun Tak Centre, 200 Connaught Road, Central, Hong Kong

Email: info@bccihk.org

Tel: (852) 2812 1528 / 2834 1991

Source: Bangladesh Chamber of Commerce and Industry Hong Kong (BCCIHK)

 

Consulate General of the People's Republic of Bangladesh in Hong Kong

Address: 13/F, Kyoto Plaza, 491 Lockhart Road, Causeway Bay, Hong Kong

Email: bangladt@netvigator.com

Tel: (852) 2827 4278 / 2827 4279

Fax: (852) 2827 1916

Source: Consulate General of The People's Republic of Bangladesh in Hong Kong

 

Visa Requirements for Hong Kong Residents

Hong Kong residents need a visa before arrival when visiting Bangladesh.

Source: Consulate General of The People's Republic of Bangladesh in Hong Kong
Date last reviewed: October 21, 2019

·      Vehicles imported into Bangladesh are subject to a 165% import duty and domestically assembled vehicles are subject to a 60% tax. Domestically assembled vehicles are, therefore, more affordable.

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