China is the No. 1 trading partner of Bangladesh. The trade between China and Bangladesh has crossed the 10 billion USD mark in 2013 from only more than a billion USD in 2002.
Export to China: Bangladeshi products export to China is approaching the 1 billion USD mark. It has already reached 746 million USD in FY 2014 from only 32.36 million USD in 2002.
Major Exportable: Bangladeshi export basket to China is dominated by the apparels. The other major export items include fish-crustacean-molluscs and other aquatic invertebrates, raw hides and skins, plastic products, ores –slag an ash, optical-photo-technical and medical apparatus, oil seeds, cotton, electrical and electronic equipments, footwear, furniture etc.
Imports from China: Bangladesh imports almost a quarter of her total imports from China. In 2014 it imported 7.75 billion USD from China, while her total import was 36.99 billion USD.
Major Imports from China: Bangladesh’s major imports from China include – cotton, machinery, electrical and electronic equipments, manmade staple fibers, knitted or crocheted fabric, manmade filaments, plastics, vehicles other than railway, special woven or tufted fabric – lace – tapestry etc, articles of iron or steel, articles of apparel-accessories, fertilizers, organic chemicals, iron and steel etc.
Investment Attractiveness of Bangladesh:
- Largely homogenous society
- Democratic country with broad support for market oriented economic policies
- Steady 6+ GDP growth for the last ten years
- Abundant supply of disciplined, easily trainable and low–cost work force with increasing supply of professionals, technologists, mid and low level skilled workers.
- Training expenditure of the employer is exempted from income tax.
- English proficiency of the workers in general
- Active encouragement for Foreign Private Investment with legal protection – Foreign Private Investment (Promotion and Protection Act 1980)
- Bangladesh exports enjoy EBA (Everything but Arms) to EU and GSP in most of the developed countries including Japan and Australia.
- Bangladesh has bilateral agreements to avoid double taxation with 31 countries including China.
- 4621 Bangladeshi products enjoy duty free and quota free access to Chinese market.
Investment Facilities –fiscal and non-fiscal:
o Repatriation of dividend and full capital at exit
o Foreign investment enjoys 5 years of tax holidays in Dkaha and Chittagong divisions while 07 years in other places
o Duty free imports of machineries and spares for 80% or more exporting industries
o Up to 90% loan facilities against letter of credits
o Cash incentives and export subsidies of selected products ranges
Trade Policy of Bangladesh
Export Policy: The Export Policy 2012-15 is targeted to have a liberalized trade regime, encouraging labor intensive export-oriented production, augmenting productivity and diversification of products.
Import Policy: The Import Policy Order, 2012-2015 has been issued in exercise of the powers conferred by the section 3(1) of the Import and Export (Control) Act 1950.
National Board of Revenue Bangladesh: http://www.nbr-bd.org/
Board of Investment Bangladesh: http://boi.gov.bd/
Ministry of Commerce, Bangladesh: http://www.mincom.gov.bd/
Bangladesh Bank: http://www.bangladesh-bank.org/
Export Promotion Bureau of Bangladesh http://www.epb.gov.bd/