private sector engagement and trade facilitation
TRANSCRIPT
Private Sector Engagement and Trade Facilitation
Md. Sirazul Islam, Executive Chairman, Bangladesh Investment Development Authority
Dr. Md. Jafar Uddin, Secretary, Ministry of Commerce
29 January, 2020
I s s u e s t o D i s c u s s
• Vision for Prosperity and Peace
• Existing Scenario of Trade & Prosperity
• Trade Facil itation Status
• Opportunities and Challenges
• Areas that require Assistance/Support from
Development Partners 29 Jan 2020 Export Wing, Ministry of Commerce 2
The dream of the father of our nation
Bangabandhu Sheikh Mujibur
Rahman was to build a Shonar Bangla
(Golden Bangladesh).
Under the strong & dynamic leadership
of Honorable Prime Minister H.E.
Sheikh Hasina, Bangladesh is now
being considered as miracle for the
developed nations and a Dazzling
Delta.29 Jan 2020 Export Wing, Ministry of Commerce 3
J o u r n e y w i t h V i s i o n
429 Jan 2020 Export Wing, Ministry of Commerce
P ro g re s s
• Simpl i f icat ion of Bus iness ( fees and documents reduced for company registrat ion, Introduct ion of Advance Rul ing System in NBR, Draft Customs Act 2018)
• Automation (Registrar Jo int Stock Company, Company Registrat ion, Registered Exporter System, Onl ine Module, part ia l Nat ional S ingle Window)
• Harmonizat ion (Automated System for Custom Data, e -commerce, Inter -country Customs cooperat ion with Bhutan, India & Nepal)
• Infrastructure (Ports , Dhaka -ctg. 4 lane Road, PangaonContainer Terminal , A irport terminal)
29 Jan 2020 Export Wing, Ministry of Commerce 5
P ro g re s s ( 2 )
• Appointment of Author ized Economic Operator by NBR (3 companies of the Pharmaceut ica l sector were g iven AEO l icense)
• 100 Specia l Economic Zones (Many are now ready for investors from both home and abroad)
• Bangladesh Trade Porta l (BTP - 13.03.2016) and Customs Information Porta l (CIP)
• One Stop Serv ice (OSS) Act and 18 processes have been streamlined and made avai lable through onl ine
29 Jan 2020 Export Wing, Ministry of Commerce 6
P ro g re s s ( 3 )
• Export Readiness Fund, Technology Development Fund and Green Fund
• Compl iance and Implementat ion of Due di l igence in factor ies and Establ ishments (Amendment of labor Law, EPZ labor Act , Modernizat ion of labor Court , Trade Union Registrat ion, Strengthening Dept. of Inspect ion and Factor ies Establ ishment & F ire Serv ice, and Overs ight of BGMEA/BKMEA)
• R a n k i n t h e D o i n g B u s i n e s s I n d e x ( 1 6 8 F r o m 1 7 6 )
• G r a d u a t i o n f r o m L D C s t a t u s ( B y 2 0 2 4 )
29 Jan 2020 Export Wing, Ministry of Commerce 7
A c h i e v e m e n t : E x p o r t
9.34.0
29.3
5.7
10.110.5
3.3
8.91.2
5.5
9.5
0
10
20
30
40
50
60
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Total Export (Billion USD) Growth
29 Jan 2020Export Wing, Ministry of Commerce
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A c h i e v e m e n t : F D I
9 Source: Enterprise Survey, Bangladesh Bank
0
500
1000
1500
2000
2500
3000
3500
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
1480.34
1833.872003.53
2454.81 2580.44
3888.99FDI Inflow (Net) (in Million US$)
29 Jan 2020 Export Wing, Ministry of Commerce
Tr a d e F a c i l i t a t i o n A g r e e m e n t I m p l e m e n t a t i o n S t a t u s
• According to the provision of TFA Ministry of Commerce finalized Category A, Category B and Category C measures for trade facilitation
➢ Category A : 21 sub measures - already implemented by February 2018.
➢ Category B : 19 sub measures - to be implemented from February 2020 to February 2022.
➢ Category C : 13 sub measures - to be implemented upon receipt of capacity building support from Development Partners. List of Categories_A_B_C.docx
1029 Jan 2020 Export Wing, Ministry of Commerce
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I n v e s t m e n t C l i m a t e o f B a n g l a d e s h
Secured by law
against
nationalization and
expropriation
Local and Foreign
investments are
given equal
treatment
100% foreign
equity is allowed
along with
unrestricted exit
Almost all
industrial sectors
are open for
foreign investors
Bilateral
Investment treaties
(BITs) signed
with 32 countries
Double taxation
treaties with 28
countries
including UK
All laws, regulations are
conducive to investment
C o m p e t i t i v e E d g e o f B a n g l a d e s h i n I n v e s t m e n t
12
Export OrientedAbundance of competitive work-force, Lowest Wage in Asia, Duty Free Market Access, Bond Facilities, EZs/EPZs
Consumer Market/ Finance
Population of more than 160 Million, along with 3 billion regional market with Young and Brand Conscious Consumers
Infrastructure/ Energy
Number of Mega Projects, Volume of ODA, external finance
Start-Ups / ITHigh Mobile Density, Internet Density, Tech Savvy Young Generation, Digital Bangladesh Policy
O p p o r t u n i t i e s
G o a l F Y 2 0 1 9 V i s i o n 2 0 2 1 V i s i o n 2 0 4 1
GDP (Billion USD) 302.43 335 2,580
GDP (Growth Rate) 8.15 8.2 9.9
GDP Per Capita (USD) 1,909 2,140 16,994
Export (Billion USD) 46.87 60 100
FDI (Billion USD) 3.9 9.56 153
Private Investment as % of GDP 23.0 24.0 33.9
29 Jan 2020 Export Wing, Ministry of Commerce 13
C h a l l e n g e s
• Removal of DFQF upon Graduat ion form LDC
• Regular T ime Release Sur vey ( t ime reduced for Goods c learance at port )
• Ful ly funct iona l Nat iona l S ing le Window in the Nat iona l Board of Revenue
• Divers i f i cat ion of export product basket
• Transport Fac i l i tat ion and coordinat ion between border agenc ies
• Formulat ion of Comprehens ive Trade Po l icy
• Inst i tut iona l Capac i ty Development
• Commitment of the Development Partners for t imely implementat ion of T.F. measures
29 Jan 2020 Export Wing, Ministry of Commerce 14
A s s i s t a n c e N e e d e d
• Category C measures (e.g . establ ishment of enquiry point , test procedures, r isk -management, post -c learance audit , authorized operators , expedited shipment, c learance of perishable goods, border agency cooperat ion, s ingle window, some aspect of t rans it ) . L ist of Category_C.docx
• Integrated Transport Modal i ty and logist ic support
enabl ing environment for enhanced investment and export
• Post LDC benef it for export sector
29 Jan 2020 Export Wing, Ministry of Commerce 15
A s s i s t a n c e N e e d e d ( 2 )
• T i me re l ea s e S u r vey rep or t s ca n b e p rod u c ed for all border clearance on
re gu l a r b a s i s by t h e Nat i on a l S i n g l e W i n d ow
• C a p a c i t y D eve l op me nt o f O t h e r G ove r n me nt A ge n c i e s ( B ST I ,
Q u a ra nt i n e , F i s h e r i e s a n d L i ve stoc k , Por t A u t h or i t i e s a n d
n u me rou s l i c e n s e i s s u i n g a ge n c i e s a p a r t M i n i s t r y o f C omme rc e
a n d Nat i on a l Boa rd o f Reven u e)
• S t re n gt h e n i n g p r i vate s e c tor to re gu l ate wi t h t h e a u tomat i on o f
gove r n me nt a ge n c i e s a n d mod e r n i zat i on o f c u stoms p roc e d u re s29 Jan 2020 Export Wing, Ministry of Commerce 16
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Her Excellency Sheikh HasinaHon’ble Prime Minister of the People’s Republic of Bangladesh05/06/2016, Kingdom of Saudi Arabia
As we (Bangladesh) strive to
materialize the goals of
'Vision 2021' and
'Vision 2041',
I request the international
investors and entrepreneurs to
partner with us in investment,
trade, profit sharing and
prosperity.
29 Jan 2020 Export Wing, Ministry of Commerce