BOARD OF INVESTMENT
ANNUAL REPORT - 2014
Board of Investment
Prime Minister's Office
Government of the People's Republic of Bangladesh
www.boi.gov.bd
Board of Investment
ANNUAL REPORT
2014
Board of Investment
Prime Minister's Office
Government of the People's Republic of Bangladesh
www.boi.gov.bd
Drive/D/Personal/494.2015 Annual Report 2014
Annual Report 2014, Board of Investment, Bangladesh.
References to and citations from this Report is allowed, but must be properly acknowledged.
This report is prepared under the guidance of Dr. Syed A Samad, Executive Chairman, Board of
Investment, Prime Minister’s Office.
The contents of this publication is contributed jointly by the wings of Board of Investment and
compiled, summarized, edited and designed by the following team members:
1.
2.
3.
4.
5.
6.
7.
Shamsunnahar Begum
Dr. Khandoker Azizul Islam
Md. Ariful Hoque
Umme Kulsum
Dr. Md. Nurul Alom
Jeb-un Nessa
Md. Abu Sayed Mahmud
Director
Director
Deputy Director
Deputy Director
Deputy Director
Deputy Director
Assistant Director
For further information on this Annual Report, please contact:
Director (Policy and Planning)
Board of Investment, Prime Minister’s Office
Government of the People’s Republic of Bangladesh
Jiban Bima Tower (17th Floor), 10 Dilkusha C/A
Dhaka-1000, Bangladesh
Phone: +8802 957 7271-2, 956 1416, 955 2097 Fax: +8802 956 2312
Email: service@boi.gov.bd Web: www.boi.gov.bd
Drive/D/Personal/494.2015 Annual Report 2014
Convenor
Member
Member
Member
Member
Member Secretary
Member
Contents
CONTENTS
PAGE
Acronyms
6
Map of Bangladesh
7
Honorable Prime Minister’s Message
8
Executive Summary
9
BOI at a Glance
10
1. Board Management and Functions
11
a.
The Board
11
b.
Executive Council
13
c.
BOI Offices: Head Office and Divisional Offices
14
2. BOI Investors Services
14
a.
Investment Counseling
15
b.
Industrial Project Registration
16
c.
Approval of Foreign Commercial Offices (FCOs)
21
d. Work Permits in Industrial Projects and FCOs
22
e.
Other Facilitations & Recommendations
24
f.
Digital Automation of BOI Services
25
3. Actual FDI inflow in Bangladesh
26
4. Investment Promotion
28
a.
Outward and Inward Investment Delegations
28
b.
Seminars / Workshops
29
c.
Publications
30
d. Other Promotional activities
30
5. Policy Advocacy & Consultations
30
6. Investment Agreements
31
7. Training & Capacity Development
31
8. Budget and Accounts
32
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APPENDICES
I.
BOI Staff Position (31 Dec, 2014)
II. Divisional Offices
III. BOI Budget 2014-2015 (Fiscal Year)
LIST OF TABLES
PAGE
33
33
34
PAGE
Table-1
Table-2
:
:
BOI services by major categories delivered: Jan-Dec 2014
Private investment proposals registered with BOI from CY 2006 to CY 2014
15
16
Table-3
:
Private investment proposals registered with BOI from FY 2006-07 to FY 2014-15
17
Table-4
:
Sources of the foreign and joint venture projects registered in 2014
18
Table-5
:
Top 10 local investment projects in 2014
19
Table-6
:
Top 10 Joint venture & 100% foreign investment projects in 2014
20
Table-7
:
21
Table-8
:
Table-9
:
Country wise list of established liaison, branch & representative (new &
extension) office in 2014
Country wise work permit employed in private sector for industrial enterprise
in 2014
Country wise work permit employed in commercial offices in 2014
Table-10
:
Extent of BOI facilitation/recommendation services in 2014
24
Table-11
:
FDI inflows by major sectors (in million US$)
26
Table-12
:
FDI inflows by major sources / countries (in million US$)
27
Table-13
:
Outward and inward investment delegations in 2014
28
Table-14
:
List of seminars/workshops/symposium organized/partnered by BOI in 2014
29
Table-15
:
Summary of major policy reviews made by BOI in 2014
30
Table-16
:
BITs concluded
31
Table-17
:
List of major training programmes attended by BOI officials in 2014
31
Table-18
:
BOI annual budgets since FY 2006-07
32
Table-19
:
Audit objections and settlements (1989-90 to 2011-12)
32
Table-20
:
BOI staff position on 31 dec 2014
33
Table-21
:
BOI staff went into PRL in 2014
33
Table-22
:
Function and authorities of the divisional offices
33
LIST OF EXHIBITS
22
23
PAGE
16
:
Monthly distribution of both local and joint & 100% foreign industrial projects
registered in 2012 vs 2014 (million taka)
Share of local vs joint venture & 100% foreign investment projects registered
with boi from FY 2006-07- FY 2014-15 (in terms of nominal project value)
(million taka)
Sector wise distribution of projects registered with BOI (in terms of nominal
project value)
Recent trend in FDI inflow in Bangladesh (in million US$)
Exhibit-5
:
FDI inflows by major sectors in 2014
26
Exhibit-6
:
Foreign Direct Investment ( FDI) inflows by component in 2014
27
Exhibit-7
:
Foreign Direct Investment ( FDI) inflows by component since 2008
27
Exhibit-8
:
BOI Budget FY 2014-15 by major heads
32
Exhibit-9
:
BOI Budget FY 2014-15 by major heads (revised)
32
Exhibit-1
:
Exhibit-2
:
Exhibit-3
:
Exhibit-4
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17
18
26
Acronyms
ADP
: Annual Development Plan
IFC
BCI
BEPZA
IPA
IPR
IRC
IT
JBC
JV
Km
KPI
LP
MIDA
:
:
:
:
:
:
:
:
CBD
CEPZ
: Bangladesh Chamber of Industries
: Bangladesh Export Processing Zones
Authority
: Bangladesh Economic Zones Authority
: Bangladesh Investment Climate Fund
: Bilateral Investment Treaties
: Board of Investment
: Build, Own, Operate and Transfer
: BOI Online Service Tracking System
: Build, Operate and Transfer
: Bangladesh Small and Cottage Industries
Corporation
: Central Business District
: Chittagong Export Processing Zone
: International Finance
Corporation
: Investment Promotion Agency
: Intellectual Property Rights
MNCs
MOPTs
:
:
CIS
CPA
CY
: Commonwealth of Independent States
: Chittagong Port Authority
: Calendar Year
NBR
NCBs
NCID
:
:
:
DEPZ
DITF
DTA
DTTs
:
:
:
:
Dhaka Export Processing Zone
Dhaka International Trade Fair
Domestic Tariff Area
Avoidance of Double Taxation Treaties
NOC
NRB
ORS
OPIC
:
:
:
:
EC, BOI
EPB
FBCCI
PMO
PPP
PI
:
:
:
EPZs
: Executive Council, Board of Investment
: Export Promotion Bureau
: Federation of Bangladesh Chambers of
Commerce & Industries
: Export Processing Zones
PSIG
FDI
FY
: Foreign Direct Investment
: Fiscal Year
SEZ
TRIPs
GDP
: Gross Domestic Product
UNCTAD
GNP
: Gross National Product
UNIDO
GOB
ICSID
: Government of Bangladesh
: International Center for Settlement of
Investment Disputes
: Import Permit
VAT
VOA
: Private Sector Infrastructure
Guideline
: Special Economic Zones
: Trade Related Aspects of
Intellectual Property Rights
: United Nations Conference on
Trade and Development
: United Nations Industrial
Development Organization
: Value Added Tax
: Visa on Arrival
WTO
: World Trade Organization
BEZA
BICF
BITs
BOI
BOOT
BOST
BOT
BSCIC
IP
Import Registration Certificate
Information Technology
Jiban Bima Corporation
Joint Venture
Kilometer
Key Performance Indicator
Land Permit
Malaysian Investment
Development Authority
Multinational Corporations
Ministry of Post And
Telecommunications
National Board of Revenue
Nationalized Commercial Banks
National Council for Industrial
Development
No Objection Certificate
Non-Resident Bangladesh
Online Registration System
Overseas Private Investment
Corporation
Prime Minister’s Office
Public Private Partnership
Private Investor
P#6
Map of Bangladesh
P#7
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Executive Summary
Since time immemorial, the spirit of free enterprise, competition and innovative entrepreneurship
have been the dominant driving forces in the economic life of Bangladesh which has always
encouraged external trade and investment. Being a plural, open, globally oriented society, Bangladesh
always welcomes foreign investment in its economy. It is now being considered as the most liberal
and business friendly economy in this region and an attractive destination for foreign private business
and investment. Its investment climate offers generous and attractive packages of incentives to
investors. There is no discrimination between local and foreign investors. Prevailing laws and
practices fully guarantee the safe investment returns.
Increasing global integration and trade internationalization are economic trends certain to characterize
the world economy to an even greater degree in the future. Bangladesh is well-positioned to take
advantage of these trends, including in attracting foreign direct investment (FDI). In recent years
Bangladesh has experienced a surge in FDI. Foreign investors were attracted by abundant resources,
skilled and cheap labor, effective monetary and fiscal policy, infrastructure improvements and longterm strategic planning. From an FDI inflow of $0.7 billion in 2009, effective government policy has
encouraged FDI inflow to rise to $ 1.53 billion in 2014.
The Board of Investment (BOI) has an important role in creating a favorable investment climate.
Established in 1989 with a mandate to encourage investment in the private sector, identify hindrances
to investment and provide necessary facility and assistance in the establishment of industrial units, the
BOI offers investors a wide range of services including promotion, support, advice and aftercare.
Coupled with the activities of the BOI, generous private investment opportunities under the
government's liberalized industrial policy and export-oriented, private-sector-led economic growth
strategy have strengthened ties with developed countries. It can yield cost advantages in the form of
the positive externalities resulting from technology transfer.
The present government of Honorable Prime Ministry Sheikh Hasina is committed to strengthening
Board of Investment (BOI) services and encourages investors for safe and win-win investments to
achieve the Vision 2021 which would see Bangladesh as a middle income country.
Board of Investment (BOI) had a busy schedule in 2014 with numerous activities and events related to
investment both from local and foreign sources. In 2014, BOI registered a total of 1555 projects
(local, joint venture and 100% foreign investment) with proposed investment of Tk.721387.194
million.
Board of Investment (BOI) also undertook various reform initiatives to make its services more clientfriendly. These include: (i) regularizing monthly executive council meeting and fortnightly interministerial committee meeting, (ii) introducing online service tracking system, (iii) online visa and
work permit for the expatriates (iv) operating online registration system, (v) establishing a
comprehensive website as a real e-gateway to BOI, (vi) publishing and distributing various
investment promotional materials, (vii) organizing and participating in the conferences, meeting,
seminars, workshops, road shows etc. and (viii) providing expert inputs to the formulation and review
of national policies.
The ‘’ Annual Report 2014 ‘’ is a part of series of publications made annually by BOI with a view to
disseminating comprehensive investment-related information primarily to the prospective investors,
researchers and interested readers. It presents facts and issues pertaining to the investment scenario of
Bangladesh. This report would assist the investors and the stakeholders to get a preliminary idea about
the prevailing investment climate of the country.
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BOI at a glance
1.
Official Name
:
Board of Investment (BOI)
2.
Controlling office
:
Prime Minister’s Office
3.
Established on
:
1 January, 1989
4.
Mandated by
:
The Investment Board Act, 1989
5.
Board
composition
:
17 Board members headed by Honorable Prime Minister and Chairman
6.
Chairperson
:
Sheikh Hasina, Honorable Prime Minister
7.
Chief Executive
:
Dr. Syed Abdus Samad, Executive Chairman
8.
Human
Resources
:
a.
b.
9.
Offices
:
Headquartered in Dhaka and 5 divisional offices in Chittagong, Rajshahi,
Khulna, Sylhet and Barisal.
10.
Key Functions
:
BOI encourage private investment and provide necessary assistance to
industries. More than 15 types of functions under following three categories:
Approved: 293 persons in 2014.
Existing
: Total 126 (Appendix-1)
(Class I-45; Class III-55; Class IV-26)
a. Investment promotion;
b. Investment facilitations; &
c. Policy advocacy.
In addition, BOI has also been mandated to function as secretariat for foreign
commercial offices approved & work permits etc.
11.
Investment
services
:
BOI provides 27 types of services to both local and foreign private investors
from initial investment counseling to business start up.
12.
Remarkable
activities in 2014
(Jan-Dec)
:
a. Investment Registration: Total 1555 projects with proposed investment of
Tk. 721387.194 million (US $ 9244.077 million) registered.
b. Undertaking various reform initiatives to make BOI services more clientoriented and simplified. These include:








Organizing monthly Executive Council meeting and fortnightly
Inter-Ministerial meeting.
Introducing Online Service Tracking System (BOST) to ensure
transparency in service delivery process.
An online business law database named “Business Law Website” has
been created for the investors and business community.
Online Registration Service (ORS) has been created to receive
registration application online.
Establishing a comprehensive website with latest info base and
making it a real e-gateway to BOI.
Publishing and distributing investment promotion materials like
newsletters, brochure, workshops & seminars proceedings and fact
sheet with up-to-date information.
Organizing and participating in the conferences, meetings, round
table dialogues, seminars, expo fairs, business fair, workshops, road
shows etc. in home and abroad to generate interests and awareness
on investing in Bangladesh.
Providing expert inputs to the formulation and review of national
policies related to private sector investment and industrialization.
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1. BOARD MANAGEMENT AND FUNCTIONS
BOI has a 3-tier management structure namely, the Board, Executive Council and the Office. The
Board is chaired by the Honorable Prime Minister of the country, while the Executive Council and the
Offices of BOI are headed by the Executive Chairman. This Chapter describes the structure, functions
and performances of BOI management.
a. The Board
The Board of Investment was established in 1989 under the Investment Board Act 1989 to encourage
investment in the private sector and to provide necessary facilities and assistance in the establishment
of industries.
Composition
Originally, the Board chaired by the Honorable Prime Minister with 18 members including four (4)
co-opted members. With the merger of Ministries of Jute and Textile in 2004, the current
memberships are 17. BOI Executive Chairman is the member-secretary ex-officio of the Board. Here is
a list of the present Board members:
1.
Honorable Prime Minister, Chairman.
2.
Minister, Ministry of industries who is also Vice-Chairman, ex-officio.
3.
Minister, Ministry of Finance, ex-officio.
4.
Minister, Ministry of Power, Energy and Mineral Resources, ex-officio.
5.
Minister, Ministry of Commerce, ex-officio.
6.
Minister, Ministry of Textiles and Jute ex-officio.
7.
Minister, Ministry of Planning, ex-officio;
8.
Governor, Bangladesh Bank, ex-officio.
9.
Secretary, Ministry of Industries, ex-officio.
10. Secretary, Finance Division, ex-officio.
11. Secretary, Internal Resources Division, ex-officio.
12. President, Federation of the Bangladesh Chambers of Commerce and Industries, exofficio.
13. President, Bangladesh Chamber of Industries, ex-officio.
14. Chairman, Executive Council, who is also its Secretary, ex-officio.
The Board also co-opted four additional members, namely:
15. Minister, Ministry of Foreign Affairs.
16. Minister, Ministry of Expatriate Welfare and Overseas Employment
17. Minister, Ministry of Post and Telecommunications.
18. Minister, Ministry of Science and Information & Communication Technology.
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Composition of the Board
Name and Designation
Position
Name and Designation
Position
Sheikh Hasina
Honorable Prime Minister
Government of The People’s
Republic of Bangladesh
Chairman
Architect Yeafesh Osman
Honorable State Minister
Ministry of Science and Information &
Communication Technology
Government of The People’s
Republic of Bangladesh
Member
Amir Hossain Amu
Honorable Minister
Ministry of Industries
Government of The People’s
Republic of Bangladesh
ViceChairman
Nasrul Hamid
Honorable State Minister
Ministry of Power, Energy & Mineral
Resources
Government of The People’s
Republic of Bangladesh
Member
Abul Maal Abdul Muhith
Honorable Minister
Ministry of Finance
Government of The People’s Republic of
Bangladesh
Member
Dr. Atiur Rahman
Governor
Bangladesh Bank
Member
Md.Emaz Uddin Pramanik
Honorable Minister
Ministry of Textile & Jute
Government of The People’s
Republic of Bangladesh
Member
Md. Mosharraf Hossain Bhuiyan ndc
Secretary
Ministry of Industries
Government of The People’s
Republic of Bangladesh
Member
AHM Mustafa Kamal
Honorable Minister
Ministry of Planning
Government of The People’s
Republic of Bangladesh
Member
Mr. Mahbub Ahmed
Senior Secretary
Finance Division
Ministry of Finance
Government of The People’s
Republic of Bangladesh
Member
Member
Md. Nojibur Rahman
Secretary
Internal Resources Division
Government of The People’s
Republic of Bangladesh
Member
Engineer Khandaker Mosharraf Hossain
Honorable Minister
Ministry of Expatriates Welfare and
Overseas Employment
Government of The People’s
Republic of Bangladesh
Member
Kazi Akram Uddin Ahmed
President
The Federation of Bangladesh Chambers
of Commerce & Industries (FBCCI)
Member
Tofail Ahmed
Honorable Minister
Ministry of Commerce
Government of The People’s
Republic of Bangladesh
Member
A K Azad
President
Bangladesh Chamber of Industries (BCI)
Member
Abul Hassan Mahmood Ali
Honorable Minister
Ministry of Foreign Affairs
Government of The People’s
Republic of Bangladesh
Member
Dr. Syed A Samad
Executive Chairman
Board of Investment
Member Secretary
Honorable Minister
Ministry of Posts and
Telecommunications
Government of The People’s
Republic of Bangladesh
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Board Functions:
The key function of BOI categorized in the following areas :
1. Investment promotion;
2. Investment facilitation; and
3. Policy advocacy.
Briefly BOI functions are:
a.
Providing of all kinds of facilities in the matter of investment of local and foreign capital for the
purpose of rapid industrialization in the private sector.
b.
Implementation of the Government policy relating to the investment of capital in industries in the
private sector.
c.
Preparation of investment schedule in relation to industries in the private sector and its
implementation.
d. Preparation of area-schedule for establishment of industries in the private sector and
determination of special facilities for such areas.
e.
Approval and registration of all industrial projects in the private sector involving local and
foreign capital.
f.
Identification of investment sectors and facilities for investment in industries in the private sector
and giving wide publicity thereof abroad.
g.
Invention of specific devices for the purpose of promotion of investment in industries in the
private sector and their implementation.
h. Creation of infrastructural facilities for industries in the private sector.
i.
Determination of terms and conditions for employment of foreign officers, experts and other
employees necessary for industries in the private sector.
j.
Formulation of policies relating to transfer of technology and phase-wise local production in the
private sector and their implementation.
k.
Financing and providing of assistance in the financing of important new industries in the private
sector.
l.
Adoption of necessary measures for creation of capital for investment in industries in the private
sector.
m. Collection, compilation, analysis and dissemination of all kinds of industrial data and
establishment of data-bank for that purpose.
n. Doing such other acts and things as may be necessary for the performance of the above functions.
b. Executive Council
Composition & Functions
Having delegated authority from the Board, Executive Council is the decision making body of BOI
which works successfully. It consists of a Chairman and other members not exceeding six in number.
Currently, there are four (04) members of the Executive Council.
The Chairman of the Executive Council is the Executive Chairman and acts as the Chief Executive of
BOI. The Executive Council advises and assists the Board in the efficient performance of its functions,
is responsible for implementation of the decisions of the Board, and exercises such powers and
performs such functions as delegated to it by the Board. Generally, Executive Council undertakes
decisions in meetings and the meetings are held under the directives of the Executive Chairman.
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Executive Council's Performance
Executive Council's meeting generally held on monthly basis. From 1 January 1989, the
establishment of BOI till 31 December 2014, the Executive Council held 582 meetings. Among these,
10 meetings were held in 2014.
C. BOI Offices
The headquartered of BOI is in Dhaka and its five (5) divisional offices are in Chittagong, Rajshahi,
Khulna, Sylhet and Barisal. The Divisional offices are delegated with some authorities to register
projects, recommend services and provide counseling and facilitations.
C.1. Head Office
Board of Investment head office known as BOI office, Located at Dilkuska - the Central Business
District (CBD) of Dhaka. All the functions and services of BOI are carried out at the head office. The
Executive Council and senior management of BOI office are housed here.
C.2. Divisional Offices
The Divisional offices are delegated some authorities to register projects, recommend services and
provide counseling and facilitations. The function, authority level and the mailing address are shown
at Appendix -II.
2. BOI INVESTORS SERVICES
Being an Investment Promotion Agency BOI services that are available for the investors, could be
categorized in three stages.
Stage 1: Pre-investment Information and Counseling
At this stage, BOI provides all sorts of information required by an investor to undertake initial
investment move. Professional Investment & Business Counselors provide cordial assistance upon
visit to the BOI office, over phone, by email & fax and express mailing. It also assists in getting BOI
registration.
Stage 2: Special Welcome Service to Foreign Investors
BOI has Welcome Service Desk at Hazrat Shahjalal International Airport, Dhaka. It assists in
obtaining necessary immigration and Visa on Arrival (VOA), Landing Permit (LP), hotel
accommodation. It also provides necessary courtesy services and first hand investment counseling at
the airport.
Stage 3: Investment Implementation and Commercial Operation
Once the investor decides to invest and forms a company, BOI provides following specific facilities
and comprehensive services:
a.
Industrial registration;
b.
Recommendation of industrial Plot (if available)/ in any designated industrial area other than
BSCIC, BEPZA & BEZA;
c.
Recommendation of utility connections (Gas, Electricity, Water & Sewerage, Telephone etc.);
d. Terms and conditions of foreign loan, supplier’s credit, deferred payment, PAYE scheme, etc.;
e.
Recommendation for industrial IRC to CCE&I (Adhoc & Regular);
f.
Permission/approval of branch office/liaison/representative office;
g.
Import permit (IP) for import of capital machineries against foreign equity;
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h. Import duty exemption and concession certificate on capital machinery clearance;
i.
Work Permit (Technical, Commercial & Industrial);
j.
Remittance of royalty, technical know-how and technical assistance fees;
k.
Miscellaneous.
Table-1: BOI services by major categories delivered in 2014
Sl
no
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Service Category
Investment Counseling
Project Registration
Airport Welcome Service
Work Permit (New & Extension)
Remittance Approval (Cases)
Unit
No.
No.
Person
Person
No.
Million Tk.
Foreign Loan Approval
No.
Million US$
IRC Recommendation
No.
Import Permit and Capital Machinery Clearance
No.
Visa on Arrival/Landing Permit Recommendation
No.
Visa Recommendation (E/E1/PI)
No.
NOC for Industrial Plots Transfer
No.
Branch Office Approval (New & Extension)
No.
Liaison Office Approval (New & Extension)
No.
Representative Office Approval (New & Extension)
No.
Providing Information to applicant reporter
No.
Press Release
No.
Source: Policy and Planning wing, Board of Investment
2014
(Jan-Dec)
2899
1555
41
5694
215
7725.483
116
1697.858
1477
547
442
3239
27
127
245
13
3
10
a. Investment Counseling
The BOI offers investment counseling to the investors aiming to help them in investment decision
making. During the counseling the BOI officials advice the investors in choosing investment
alternatives - from a host of potential sectors. Counseling process also highlights the regulatory
procedures, costs of doing business, investment incentives, specific market access opportunities,
comparative and competitive advantages of the sectors etc. So, counseling is the first step of direct
services given by BOI to the investors.
Generally, the counseling is provided at the BOI offices. The Director ( Investment Facilities and
Services) is the focal point for specialized counseling. However, other related desks also provide
investor counseling when requested.
Besides, counseling is also provided through regular responses to emails, letters, faxes and telephone
enquiries. Frequently, BOI extends outside counseling services to investors at the seminars,
workshops, road show, symposium and exhibitions organized at home and abroad. In 2014, BOI has
arranged 4 seminars/workshops, 1 launching programme and provided 2899 persons counseling in
office to the prospective and existing investors.
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b. Industrial Project Registration
According to the mandate given to the BOI, industries intend to be set up in the private sector, other
than those falling within the jurisdiction of the Bangladesh Export Processing Zones Authority
(BEPZA) or of the Bangladesh Small and Cottage Industries Corporation (BSCIC) and textile
industries, have to be approved by the board and registered in the prescribed manner.
The BOI, since established, has been registering industrial projects as per clause 10 (1) of the
Investment Board Act, 1989. It may be noted that registration is the prerequisite for getting services
from the BOI at the implementation level and post-implementation of a project.
In calendar year 2006 a total of 2,076 projects amounting Tk. 2,45,508.557 million was registered with
the BOI which grew to 1555 projects in Calendar year (CY) 2014 with a total proposed investment of
Tk. 721387.194 million. Table-2 presents the private investment proposals registered with BOI from
CY 2006 to CY 2014.
Table-2: Private Investment Proposals Registered with BOI from CY 2006 to CY 2014
Local Investment
Foreign /JV Investment
Proposals Registered
Proposals Registered
Calender
Project
Year
Value
Project Value
Projects (Million
Projects (Million Taka)
Taka)
2006
1,905
218,361.336
171
132,501.332
2007
1,482
133,018.057
152
44,707.709
2008
1,613
215,545.669
145
178,088.619
2009
1,395
181,321.715
129
46,896.015
2010
1,600
437,717.679
185
220,626.009
2011
1,755
546,067.600
219
485,008.252
2012
1,655
500,780.603
202
212,912.696
2013
1197
424887.312
181
204075.899
2014
1432
647960.579
123
73406.615
Source: Policy and Planning wing, Board of Investment
Total Investment
Proposals Registered
Project Value
Projects (Million Taka)
2,076
1,634
1,758
1,524
1,785
1,974
1,857
1378
1555
245,508.557
177,725.766
393,634.288
228,217.694
658,343.688
1,031,075.852
713,693.299
626627.610
721387.194
Total
Employment
opportunity
(Person)
456,970
375,477
393,877
287,782
448,736
503,983
364,930
211695
253856
A month wise analysis indicates that there were a mixed growth experiences in 2014 in comparison
with 2013 (Exhibit-1).
Exhibit-1: Monthly Distribution of both Local and Joint & 100% Foreign Industrial Projects Registered in
2013 VS 2014 (Million Taka)
CY 2014
41573
65478
Sep
55874
62642
Aug
40821
77482
Jul
55385
Jun
81468
May
12344
49987
63640
Apr
19548
60457
Mar
44447
35378
69625
64495
Feb
41864
76213
Jan
34462
27550
51376
51194
164707
CY 2013
Oct
Nov
Dec
Source: Policy and Planning wing, Board of Investment
Drive/D/Personal/494.2015 Annual Report 2014
P#16
BOI registered projects are dominated by the local investors both in terms of value and units. Among
all the projects registered since FY 2006-07 about 72% are local and 28% Joint venture & 100% foreign
investment projects (Table-3 & Exhibit-2).
Table-3: Private Investment Proposals Registered with BOI from FY 2006-07 to FY 2014-15(up to December)
Fiscal Year
Local Investment Proposals
Registered
Foreign /JV Investment Proposals Total Investment Proposals
Registered
Registered
Project Value
Projects
(Million Taka)
2006-07
1,930
196,580.902
191
2007-08
1,615
193,530.073
143
2008-09
1,336
171,174.916
132
2009-10
1,470
274,136.882
160
2010-11
1,746
553,690.466
196
2011-12
1,735
534,769.057
221
2012-13
1457
446148.388
219
2013-14
1308
497593.245
124
2014-15
609
349431.535
57
Total:
13,206
3,217,055.464
1443
Source: Policy and Planning wing, Board of Investment
Project Value
(Million Taka)
119,251.081
54,328.849
147,496.092
62,607.587
365,242.771
344,168.157
220721.295
185318.034
56666.29
1,555,800.156
Projects
Projects
2,121
1,758
1,468
1,630
1,942
1,956
1676
1432
666
14,649
Total
Employment
opportunity
(Person)
458478
410,744
308,037
330,663
503,662
451,150
309709
224943
99125
3,096,511
Project Value
(Million Taka)
315,831.983
247,858.922
318,671.008
336,744.469
918,933.237
878,937.214
666869.683
682911.279
406097.800
4,772,855.595
Exhibit-2: Share of Local VS Joint venture & 100% Foreign Investment Projects Registered with BOI from
FY 2006-07- FY 2014-15(up to December) (in terms of nominal project value) (Million Taka)
Foreign
Source: Policy and Planning wing, Board of Investment
Drive/D/Personal/494.2015 Annual Report 2014
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2006-07
Share of Local VS Foreign/JV
Investment
Local
*Provisional
P#17
Sector wise Distribution
Textile is the major sector of local investment projects and Engineering is the major sector of JV &
100% foreign investment projects. Besides these Agro-based, Chemical, Service, Food & allied
important sectors both in local & foreign investment. Following exhibit-3 presents a comparative
scenario of the sector wise distribution of local and JV & 100% foreign projects in CY 2014:
Exhibits – 3: Sectorwise distribution of projects registered with BOI
(in terms of nominal project value)
Sector wise Break-up: Local Projects
Sector wise Break-up: JV & 100% Foreign Projects
Food & Allied
3.95%
Printing &
Publishing
0.39%
Textile
23.72% Printing &
Publishing
0.39%
Agro Industry
17.49%
Tannery &
Leather
2.65%
Textile
15.25%
Tannery &
Leather
1.44%
Chemical
9.44%
Food & Allied
0.08%
Service
12.65%
Glass &
Ceramic
0.23%
Chemical
17.20%
Misc
1.74%
Glass &
Ceramic
1.45%
Service
17.38%
Agro Industry
14.46%
Misc
0.30%
Engineering
14.88%
Engineering
43.89%
Source: Policy and Planning & Investment Monitoring wing, Board of Investment
Sources of Foreign Investment Projects
Bangladesh has proved to be a resilient and attractive investment destination even in the thick of a
severe global economic downturn. New opportunities are emerging for foreign investors in
Bangladesh everyday. As a result, the sources of new foreign and joint venture projects registered
with BOI in 2014 received from 24 countries from different regions of the world. The South Asia is the
largest source in terms of investment amount followed by East and South East Asia, North America,
European Union and CIS region. Table-4 presents the source-wise distribution of the BOI registered
new projects in CY 2014.
Table-4: Sources of the Foreign and Joint Venture Projects Registered in 2014
Sl
no.
1
2
3
4
5
6
7
8
9
10
11
12
Country name
Australia
Canada
Chaina
Finland
France
Germany
Hong Kong
India
Italy
Japan
Malaysia
Nigeria
Drive/D/Personal/494.2015 Annual Report 2014
Projects
Investment
(Million Tk.)
2
3
21
1
1
2
3
15
3
17
6
1
506.339
136.585
1619.129
43.420
62.860
276.760
675.180
3234.257
163.000
1015.257
592.476
47.500
Investment
(Million US$)
6.493
1.758
20.811
0.556
0.806
3.532
8.655
41.470
2.067
12.985
7.646
0.614
P#18
13
14
15
16
17
18
19
20
21
22
23
24
Pakistan
South Africa
South Korea
Singapore
Switzerland
Taiwan
Thailand
The Netherlands
Turkey
UAE
UK
USA
Total
1
49.633
1
282.925
8
460.533
9
2104.462
3
1153.970
2
439.000
8
2657.560
2
39.290
1
27.663
1
4068.494
6
4525.213
6
9320.520
123
33502.026
Source: IM wing, Board of Investment
0.638
3.627
5.902
27.085
14.900
5.648
34.094
0.506
0.354
52.160
57.894
119.908
430.109
NB: The Difference between the figure shown in table-2 & 3 represents the addition of foreign
investment in the existing projects.
Particulars of Local & Foreign
Investors
In 2014, BOI gave registration 1555 industrial project Local and Joint Venture & 100% Foreign. BOI
registered projects are dominated by the local investors both in terms of value and units. Among all
the projects registered by BOI top 10 local and top 10 Joint venture & 100% foreign investments
particulars are shown in the following two tables 5 & 6.
Table 5: Top 10 Local Investment Projects
Name
Sector/Products
Proposed Investment
(Million Tk.)
1.
Akiz Particle Board Mills Ltd.
Particle Board
50700.00
2.
Abul Khair Strip Coating Ltd.
Steel Mills
20760.880
3.
Aman Steel Mills Ltd.
Steel Products
16456.566
4.
Neptune Commercial Ltd.
Power Plant
14280.000
5.
Mahim Real Estate Ltd.
Real Estate
11522.009
6.
Orion Pharma Ltd.
Pharmaceuticals
9710.000
7.
King Fisher Cox’s Bay Resorts Ltd.
Hotel
6364.360
8.
Sister Denim Composite Ltd.
Textile (Woven)
5391.647
9.
Titas Refinery Company Ltd.
Petroleum Products
5384.388
10.
Aman Cotton Fibres Ltd.
Spinning mill
4539.075
Source: R&I-2 wing, Board of Investment
Drive/D/Personal/494.2015 Annual Report 2014
P#19
Table 6: Top 10 Joint venture & 100% Foreign Investment Projects
Name
Sector/Products
1.
US-DK Green Energy (BD) Ltd
2.
S.M.Spinning Mills Ltd.
Engineering
Textile
3.
HMCL Niloy Bangladesh Ltd.
4.
Magnum Steel Industries Ltd.
5.
Elcon Bangladesh Ltd.
6.
Tongwel
Feed
Mill
Bangladesh Ltd.
Unilever
Bangladesh
Ltd.(Khulna Unit)
Beximco Communication Ltd
7.
8.
Engineering
Engineering
Service
Agro - based
Chemical
Service
9.
10.
Sung
Shing
Packaging
Industries Ltd.
First Auto Bricks Ltd.
Chemical
Country
Proposed Investment
(Million Tk.)
USA &
Bangladesh
UAE,
Labanon &
Bangladesh
India &
Bangladesh
UK &
Bangladesh
UK &
Bangladesh
Singapore
UK &
Bangladesh
Switzerland
&
Bangladesh
Hongkong
China &
Bangladesh
Source: IM wing, Board of Investment
Service
8930.000
4068.494
2059.140
1666.923
1576.040
1208.130
1172.000
999.000
550.740
489.636
Thrust Sectors (As per National Industrial Policy-2010)
The thrust sector means those industries/industrial sub-sectors which have already been able to
successfully contribute to the country’s industrialization and poverty alleviation by increasing GDP,
creating employment opportunities and increasing export income. The List of thrust sector has been
given below:
1.
2.
Human Resource Export
3.
Ship Building
5.
Tourism
6.
Basic chemicals/dye and
chemicals
8.
Readymade garment industry
9.
10. Herbal medicinal Plant
11.
12.
13. Jute and Jute products
16. Light Engineering
Industry
19. Handicrafts
14.
17.
Radio-active (diffusion)
Application Industry (e.g.
developing quality of decaying
polymer/preservation of
food/disinfecting medicinal
equipment)
Leather and leather products
Plastic Industry
Active Pharmaceuticals
Ingredient (API)
Industry and Radio
Pharmaceuticals
Industry
Development of Polymer
Industry
15.
18.
Hospital and Clinic
Furniture
21.
Frozen Fish Industry
22. Tea Industry
23.
Energy Efficient
Appliances/Manufacturing of
Electronic goods/Development
of Electronic materials
Home Textiles
24.
Ceramics
4.
7.
Agro-based and agroProcessing industry
Renewable Energy
(Solar Power,
Windmill)
ICT and ICT based
service
20.
Drive/D/Personal/494.2015 Annual Report 2014
P#20
25. Tissue Grafting and
Biotechnology
28. Container Service
26.
Jewellery
27.
Toy
29.
Warehouse
30.
Innovative and import
substitute Industry
31. Cosmetics and
toiletries
Reserved Sectors
Those industries that are necessary to be kept reserved by the government in the interest of national
security and are sensitive had been identified as reversed industries. The List of reversed industries
has been given below:
1.
2.
3.
4.
Arms and ammunition and other military equipment and machineries
Nuclear power
Security printing and minting
Aforestation and Mechanized Extraction with the boundary of reserved forest.
c. Approval of Foreign Commercial Offices
Based on the Investment Board Act 1989, on 27 October 2003 by an executive order BOI was made the
secretariat of an Inter-ministerial Committee responsible for approving the branch, liaison and
representative offices of the foreign commercial undertakings and work permits to the foreign staff
working in those offices. These branches, liaison and representative offices of the foreign-owned
commercial undertakings are known as foreign commercial offices
In 2014, the Committee approved 89 new branch/liaison/representative offices and extended the
term of 296 such offices. Those foreign commercial undertakings originate from 41 countries of
different regions (Table-7).
Table-7: Country wise list of established Liaison, Branch & Representative (New & Extension) Office in 2014
Sl.
no.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
Name of the country
Australia
Belgium
Bhutan
Bermuda
Bahrain
Canada
China
Denmark
France
Germany
Hong Kong
India
Iceland
Italy
Ireland
Japan
North Kotea
Kuwait
Malaysia
Mauritius
Malagasy
Norway
Pakistan
Panama
Poland
Qatar
Russia
Singapore
Branch office
New
4
1
1
2
1
1
5
3
2
Drive/D/Personal/494.2015 Annual Report 2014
Extension
5
3
3
1
1
5
1
4
6
20
1
1
6
1
1
2
1
1
3
4
Liaison office
New
1
2
2
14
8
2
1
3
2
1
4
Extension
3
1
1
3
3
1
4
4
61
19
1
6
1
1
3
2
1
4
1
1
13
Representative
office
New
Extension
1
1
1
1
1
2
Total
12
1
5
3
1
5
10
3
11
8
83
54
1
3
2
15
2
2
5
2
1
1
6
1
1
1
7
25
P#21
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
Spain
South Korea
Sri Lanka
Sweden
Switzerland
Taiwan
Turkey
Thailand
The Netherlands
United Arab Emirates
United Kingdom
USA
Uruguay
Total
4
5
1
1
2
33
3
5
1
1
1
1
5
7
94
2
4
1
1
1
2
1
1
53
2
8
2
3
7
1
1
2
5
9
17
1
192
2
3
1
1
2
10
11
22
2
2
4
8
3
2
4
8
16
31
1
385
Source: R&I-1, Commercial wing, Board of Investment
d. Work Permits in the Industrial Projects and Commercial Offices
Foreign experts wanted to work in Bangladeshi factories/industries (outside EPZ areas) need to take
permission from the BOI. In Bangladesh the investors are allowed to employ foreign experts/skilled
technicians, managers in their commercial and industrial undertakings. Allowing of the foreign
experts in the local industries aimed at ensuring proper technology and knowledge transfer from
those experts. However, if the expertise is available locally, no foreign employment is permitted.
In 2014, BOI approved 5694 work permits. Among these, 43.05% were in the commercial offices and
rest 56.95% were in the industrial projects. Besides, 41.08% were new and 58.92% were extension of
the existing permits. Following two tables, 8 & 9 present the distribution of work permits in the
industrial and commercial projects approved in 2014.
Table-8: Country wise Work permit employed in private sector for industrial enterprise in 2014
Sl. No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
Country
New
Extension
Total Work permit
Algeria
Argentina
Australia
Bosnia & Herzegovina
Canada
China
Colombia
Czech Republic
Denmark
Dominican
Egypt
Finland
France
Germany
Greece
Honduras
Hungary
India
Indonesia
Italy
Ivory Coast
Japan
Lebanon
Madagascar
Malaysia
Mauritius
Morocco
Mozambique
Nepal
Netherlands
New Zealand
North Korea
Norway
Pakistan
1
2
2
1
4
183
4
0
2
1
1
5
7
4
5
4
5
484
8
5
0
8
0
0
9
2
3
0
2
0
0
7
1
147
0
0
7
0
7
222
1
2
1
1
3
0
9
11
0
2
0
686
14
3
2
15
1
1
9
19
6
1
5
1
1
3
1
260
1
2
9
1
11
405
5
2
3
2
4
5
16
15
5
6
5
1170
22
8
2
23
1
1
18
21
9
1
7
1
1
10
2
407
P#22
Drive/D/Personal/494.2015 Annual Report 2014
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
Portugal
Serbia
Singapore
Slovenia
South Korea
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan
Thailand
The Netherlands
The Philippines
Turkey
U.K.
U.S.A.
Ukraine
Uzbekistan
Vietnam
Yemen
Total:
1
0
1
0
31
5
232
0
3
0
14
63
0
40
18
16
10
2
0
3
0
3
1
8
1
81
4
253
3
0
1
17
84
1
98
23
9
12
1
1
1
1
4
1
9
1
112
9
485
3
3
1
31
147
1
138
41
25
22
3
1
4
1
1346
1897
3243
Source: R&I-1, Industrial wing, Board of Investment
Table-9: Country wise Work permit employed in private sector for Commercial Offices in 2014
Sl. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
Country Name
New
Extension
Total Work permit
Australia
Algerian
America
Brazil
Bhutan
Balarus
Colombia
China
Canada
Cameroon
Egypt
Ecuador
France
Germany
Italy
Indonesia
Irish
India
Iran
Japan
Jamaica
Kuwaiti
Keniya
Malaysia
Mauritius
Moxico
New Zealand
Norway
Nepal
Pakistan
Portugues
Portugal
Russia
Romania
South Africa
23
3
28
5
2
5
0
61
26
5
5
5
18
5
9
12
4
210
5
35
2
2
2
19
1
2
2
2
4
45
3
3
4
3
9
26
2
42
4
3
3
2
88
23
2
13
1
30
10
19
17
3
348
3
43
1
4
1
17
3
0
2
4
3
68
2
2
5
5
10
49
5
70
9
5
8
2
149
49
7
18
6
48
15
28
29
7
558
8
78
3
6
3
36
4
2
4
6
7
113
5
5
9
8
19
P#23
Drive/D/Personal/494.2015 Annual Report 2014
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
Sri Lanka
South Korea
Singapore
Switzerland
Swedan
Spanish
Saudi
Thailand
Taiwan
The Philippines
Turkey
U.S.A.
UK
Ukraine
Uzbekistan
Venezola
Yemen
28
29
7
2
10
18
2
120
4
33
17
27
45
60
15
2
5
104
37
14
1
14
9
2
77
2
58
32
56
75
19
145
1
3
132
66
21
3
24
27
4
197
6
91
49
83
120
79
160
3
8
Total
993
1458
2451
Source: R&I-1, Commercial wing, Board of Investment
e. Other Facilitations and Recommendations
Other BOI services as mentioned above, include mostly recommendations in nature - for import,
utility connectivity and visa matters. Following table-10 presents the extent of BOI services in those
categories.
Table-10: Extent of BOI Facilitation/Recommendation Services in 2014
Services
2014
215 cases
Tk. 7725.483 million
Remittances for Royalty, Technical Assistance Fee, etc.
Recommendations-
1. IRC ( Adhoc & Regular)
2. Import Permit & Capital Machinery Clearance
1477
(i) Import permit (IP) for import of capital machinery against foreign
equity
(ii) Import duty exemptions and concessions certificate on capital
machinery clearance
3. NOC for Industrial Plot Transfer
4. Industrial plot/Land Acquisition
5. Gas Connection
6. Power Connection
7. Telephone Connection
8. E/EI/PI Visa Recommendation
9. Visa on Arrival/Landing Permit
10. Courtesy Service
Total
83
464
27
11
03
00
00
3239
442
41
6002
Source: Board of Investment
BOI Organogram
Based on the decision of 25th board meeting of BOI, an Organogram with 293 staff strength was
approved. This approved Organogram is now under the process of implementation.
BOI Building
Drive/D/Personal/494.2015 Annual Report 2014
P#24
Board of Investment (BOI), one of the most important organizations of Bangladesh, is now carrying
out its day-to-day functional and service oriented activities from a rented building situated in Jiban
Bima Tower, 10, Dilkusha Commercial Area, Dhaka-1000.
Considering the necessity of present and future requirements of this organization, Government of
Bangladesh has initiated a project for strengthening its full-fledged functional and service capabilities
by constructing one 14-storied building with three basements at Agargaon, Sher-e-Banglanagar,
Dhaka-1207.
Honorable Prime Minister Sheikh Hasina has laid down foundation stone on 18 June, 2011 for the
purpose of the construction of BOI own office building. The estimated cost of the project is 9834.85 lac
taka will be met entirely from GOB fund and the building will have 36,298 sqm floor area along with
other ancillary facilities under the execution of the Public Works Department (PWD) from July 2011 to
June 2014.
f. Digital Automation of BOI Services
To digitalize BOI following digital services were implemented:
Online Registration System
The Board of Investment (BOI) has introduced Online Registration System (ORS) to help investors get
their proposals approved faster and with less paper work.
BOI Online Service Tracking (BOST):
Board of Investment (BOI) is the first government agency to implement online service tracking system
in Bangladesh, named BOI Online Service Tracking System (BOST). This service tracking system
provides status update on any service requested by investors to BOI. Upon entering the service
request ID, the status can be tracked online at the BOI website. The status report indicates the
approval status, file location, process duration and further instructions to applicants, if any. BOI
service desks are being brought under effective monitoring through BOST for speeding up the
process. On the other hand, investors are in no need for frequent visits to BOI offices in order to
follow up the latest status of their requested services.
Business laws: e-library: www.business/ors.gov.bd
The e-Library of business laws is a website containing all the business-related laws, rules and
regulations, licensing/permit instructions, procedures and forms. Investors can search for relevant
regulatory information from a single window with universal accessibility.
BOI Website: www.boi.gov.bd
Board of Investment (BOI) has a new and fully featured website, “www.boi.gov.bd” to provide local
and foreign investors with the information, contact points and service commitments that they need.
The main focus of the newly developed website is centered on a strong country marketing aspects. It
marks a further step in the implementation of government’s Digital Bangladesh policy.
P#25
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3. Actual FDI inflows in Bangladesh
The actual FDI Inflow (Up to 2014) statistics are collected and compiled by Bangladesh Bank through
half-yearly Enterprise Survey. The survey recognized three components of FDI - equity capital,
reinvested earnings and intra-company loan.
The following Exhibit-4 presents the recent trend in actual FDI inflow in Bangladesh since 2006.
Exhibit-4: Recent Trend in FDI Inflow in Bangladesh
1086
792
666
2006
2007
913
700
2008
2009
2010
1136
1293
1599
1527
2011
2012
2013
2014
Source: Statistics Department, Bangladesh Bank
Exhibit-5: FDI Inflows by Major Sectors in 2014 Total FDI was US$ 1526.70 million)
Textiles & wearing alone
31%
consists of the 26% of the
Telecommunication
15%
FDI followed by Banking
Banking
Textiles & Waving
2%
3%
3%
20%, Power, Gas and
Petroleum 3%,
Pow er, Gas & Petroleum
Food Products
20%
Agriculture & Fishing
Telecommunication 15% ,
Others
26%
Agriculture 3% & Fishing
2%.
Source: Statistics Department, Bangladesh Bank
*Provisional
A more detailed sector wise data is available at the following Table-11 Since 2006
Telecommunications remained to be the top sector (highest in 2008, 2009, 2010 & 2012 and marginally
second in 2007) but Textile & Wearing become the top sector in 2011 , 2013& 2014.
Table -11: FDI inflows by major sector’s (in Million US $)
Sector
Telecommunication
Banking
Textiles & Wearing
Power, Gas & Petroleum
Food Products
Agriculture & Fishing
Others
Total FDI Inflows
2006
346.50
117.67
70.11
208.25
8.98
1.26
39.71
792.48
2007
2008
201.90 641.39
79.96 141.76
102.34 126.36
215.94 101.02
9.84
22.89
7.33
14.43
49.06
38.46
666.37 1086.31
2009
250.14
142.57
133.97
51.15
24.54
11.79
86.00
700.16
2010
2011
359.82 180.99
163.07 249.37
145.19 272.04
92.06 238.20
12.77
22.97
5.59
13.63
126.78 167.22
913.32 1136.38
2012
2013
2014
374.97
136.47
307.48
126.63
74.55
60.85
142.36
1292.56
324.89
327.48
421.63
98.88
40.13
31.04
355.11
1599.16
226.79
311.87
390.92
49.84
53.19
31.58
462.51
1526.70
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Exhibit-6: Foreign Direct Investment ( FDI) Inflows by component
in 2014
Reinvestment earnings alone
consists of the 65% of the FDI
17%
Equity Capital
followed by Equity Capital
18%
Reinvestment earnings
18% and Intra-company Loan
17%.
65%
Intra-company Loans
Exhibit-7: Foreign Direct Investment (FDI) Inflows by components since 2008
Equity Capital
2008
2009
2010
2011
Source: Statistics Department, Bangladesh Bank
2012
988.8
Intra-company Loans
2013
257.6
360.99
280.3
697.11
207.4
541.06
Reinvestment earnings
587.51
214.9
497.66
489.63
28.72
431.85
364.62
116.67
519.98
364.94
31.33
218.55
245.73
809.25
Million US$
2014
*Provisional
The inward FDI, 2014 was originated from 55 economies/countries of the world with UK top in the
list. Among the top 10 countries which constitute about 70.88% of the total inflow UK, South Korea,
USA, Switzerland, Saudi Arabia, Mauritius, The Netherlands has only a few projects of higher value.
However, the sources like Australia, Thailand and Egypt had many smaller FDI projects (Table-12).
Table 12: FDI Inflows by major sources / Countries (In million US$)
Country
Australia
Egypt
Mauritius
Netherlands
Saudi Arabia
South Korea
Switzerland
Thailand
UK
USA
Others
Total FDI
2007
2008
2009
2010
2011
2012
2013
2014
0.22
13.95
72.80
39.81
9.69
11.02
75.17
373.4
94.42
0.27
72.71
3.01
152.30
126.62
26.39
14.40
0.26
3.09
4.71
20.58
18.67
31.67
116.61
78.70
49.62
64.92
116.75
79.82
1.73
2.66
2.62
11.91
8.24
27.69
0.97
25.19
27.68
44.64
110.96 134.70
46.00
40.00
113.06
97.59
13.39
69.25
26.74
25.57
29.06
5.89
10.75
44.67
0.07
0.04
9.67
10.51
0.67
0.82
7.44
54.88
142.55
130.57
191.35 180.98
88.08 105.68
116.32
136.94
75.95
33.67
120.36
40.92
42.89
56.95
117.74
43.80
936.41 1011.69
266.74
393.16
368.03
607.1
416.27
620.16
666.36 1086.31 700.16 913.32 1136.38 1292.56 1599.16 1526.70
Source: Statistics Department, Bangladesh Bank
*Provisional
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4. INVESTMENT PROMOTION
Investment promotion is nothing but a multipurpose activity whose objective is to attract a host of
potential local and abroad investors to invest. It starts with dissemination of information to
prospectus all the investors. As an Investment Promotion Agency, BOI attempts investment
promotion activities through advertising, developing promotional materials (Handbook, Brochures,
Flyers and Newsletter), hosting website, organizing seminars, Road show, inward and outward
delegations, attending fairs/expositions and speaking in various investment events etc. The following
two tables-13 & 14 present the outward and inward investment delegations and seminars/workshops
organized/partnered by BOI in 2014.
a. Outward and Inward Investment Delegations
In 2014, BOI organized and/or attended numerous outward and inward investment delegations.
Among those the major delegations were:
Table-13: Outward and inward investment delegations in 2014
Outward and Inward Investment Delegations
1.
A Delegation of Japanese university facaulty
2.
A Delegation of China
3.
A Delegation of Deblin group
4.
6.
A Delegation of Bangladesh –Myanmar Chamber of
Commerce & Industries
A Delegation of Jobs and competitiveness non-leading
Technical Assistance Mission, World Bank
A Delegation of JICA
7.
8.
A Delegation of Thailand
A Delegation of Netherlands
9.
A Delegation of China
10.
A Delegation of European Union
5.
Venue
BOI, Dhaka
BOI, Dhaka
BOI, Dhaka
Date
2 February,
2014
16 February,
2014
25 February,
2014
BOI, Dhaka
30 March, 2014
BOI, Dhaka
31 March, 2014
BOI, Dhaka
BOI, Dhaka
09 April, 2014
21 August, 2014
08 September,
2014
06 November,
2014
11 December,
2014
BOI, Dhaka
BOI, Dhaka
BOI, Dhaka
Source: Board of Investment
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b. Seminars/Workshops
To promote investment locally and internationally, BOI organized and partnered a number of
seminars/workshops in 2014. These include following major events:
Table-14: List of Seminars/Workshops/Symposium Organized/Partnered by BOI in 2014
Seminars and Workshops
Venue
Date
Round
1.
Table Dialogue on ‘State of the Economy’
BOI , Dhaka
30 April, 2014
Launching
2.
Ceremony of World Investment Report, 2014
BOI, Dhaka
24 June, 2014
Round
3.
Table Dialogue on ‘State of the Economy’
BOI, Dhaka
13 July, 2014
Round
4.
Table Dialogue on ‘Blue Economy of Bangladesh’
BIAM Auditorium
26 August, 2014
Seminar
5.
on International Investor’s Forum, 2014
Hotel Sonargaon, Dhaka 17 September, 2014
Harmonization
6.
of Economic Policy in Bangladesh
BIAM Auditorium
14 December, 2014
Source: Board of Investment
Seminar on International Investor’s Forum, 2014 at
Hotel Sonargaon, Dhaka
Launching ceremony of UNCTAD’S World Investment
Report, 2014 at BOI, Dhaka
Seminar on International Investor’s Forum, 2014 at
Hotel Sonargaon, Dhaka
Round Table Dialogue on State of the Economy at
BOI, Dhaka
Harmonization of Economic Policies in Bangladesh, 2014 at
BIAM Auditorium, Dhaka
Drive/D/Personal/494.2015 Annual Report 2014
P#29
c. Publications
To promote and facilitate better service BOI website always invites and manages investment queries.
The role of promotion through website in the time of e-communications cannot be avoided.
www.boi.gov.bd is the new and fully featured website of BOI. This website is being managed by a
team of devoted staff and enthusiastic external technical.
A number of promotional publications are being circulated and distributed by BOI. These include
Investing in Bangladesh Handbook & Guidelines, cost of doing business, BOI corporate brochure,
quarterly newsletter, fact sheet and booklets. BOI also brought out Annual Report 2009, 2010 , 2011,
2012 & 2013.
d. Other Promotional activities
Besides, above activities BOI also attempted several types of programs and initiatives to promote
investment in Bangladesh such as meeting, seminar, work-shop, Road-show etc.
5. POLICY ADVOCACY & CONSULTATIONS
The intention of the policy advocacy and consultations functions of BOI is to abate the authoritative
burdens on the investors and promote a simpler, easier and hassle-free (effortless, smooth,
uncomplicated and manageable) policy and regulatory environment. BOI executes this important
function through:
a. Analyzing investment policies and suggesting for changes;
b. Participating/performing in the review process initiated by others and suggesting changes.
Some of the important policy reviews/comments made by BOI in 2014 are presented below:
Table-15: Summary of major Policy Reviews Made by BOI in 2014
Sl.
Policy
Ministry/Agency
1.
Investment Policy Review (IPR)
Ministry of Industries
2.
Import Policy Order (2015-2018)
Ministry of Commerc e
3.
Special Package Incentives Policy
Ministry of Industries
4.
Export Policy (2015-2018)
Export Promotion Bureau
5.
Textile Policy, 2014
Ministry of Textile & Jute
6.
Bangladesh Textile Industry (Registration
& Control Act, 2014)
Ministry of Textile & Jute
7.
National Industrial Policy, 2015
Ministy of Industries
Source: Policy and Planning wing, Board of Investment
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6. BILATERAL INVESTMENT AGREEMENTS
Foreign Private Investment Promotion and Protection Act, 1980 proposes equal and impartial
treatment to foreign private investment. Equel national treatment is also mentioned in bilateral
investment treaties (BITs) for the promotion and protection of foreign investment.
Bilateral Investment agreements which was concluded with 30 countries listed below in Table-16:
Table-16: BITs Concluded with Bangladesh:
1.
4.
7.
10.
13.
16.
19.
22.
25.
28.
Australia
Belgium
Canada
China
France
Germany
Indonesia
Iran
Italy
Japan
2.
5.
8.
11.
14.
17.
20.
23.
26.
29.
Korea, DPR
Korea, ROK
Malaysia
Pakistan
Poland
Romania
Switzerland
The Netherlands
The Philippines
Turkey
3.
6.
9.
12.
15.
18.
21.
24.
27.
30.
Thailand
UK
USA
Uzbekistan
Vietnam
Singapore
Denmark
India
UAE
KSA
7. TRAINING & CAPACITY DEVELOPMENT
In the field of human resource development, the most fundamental key is training of the officials on
the latest strategies, tools and techniques. BOI organizes the training to its officials through various
approaches- bilateral and multilateral partners, govt. agencies and self-sponsored etc. Here is a list of
major training programs attended by different levels of BOI officials in 2014.
Table-17: List of Major Training Programs attended by BOI Officials in 2014
Training Programs
1.
Agri-business Investment Summit
2.
Advanced Certificate Course in foreign Trade,
International Business & Office Productivity
3.
Venue
Date
Myanmar
21-22, January, 2014
India
17 January - 27 March, 2014
Leadership & Strategic Planning Course
NAPD
05-09 Januray, 2014
4.
Office Automation Training Course
NAPD
09 February - 04 March, 2014
5.
8th Computer Training Course
BCS Academy
16 February – 13 March, 2014
6.
Business Process Reengineering
BCS Academy
23-27 February, 2014
IFC
16 March – 25 May, 2014
SLIDA
22 May, 2014
Malaysia
27 May – 10 June, 2014
Malaysia & Vietnam
28 May – 5 June, 2014
Indonesia & Vietnam
28 May – 5 June, 2014
Malaysia
03 June – 06 June, 2014
JICA, Japan
01 September – 04 October, 2014
UNCTAD
13-16 October, 2014
UAE
27-30 October, 2015
NAPD
12 October- 13 November, 2014
Malaysia
12-21 November, 2014
7.
Basic IT Course of the selected BOI officers
8.
Strengthening Government through capacity development
9.
Strengthening Government through capacity development
10.
Investment Climate Improvement
11.
Investment Climate Improvement
12.
13.
Plugging into Global Value Chains: Role of Trade and
Investment Policy
Capacity Development for Export and Investment
Promotion
14.
World Investment Forum, 2014
15.
5th Edition International Development Investment and
Facilitation Summit
16.
Multimedia Application Development
9th Training Program for Officials of Investment
promotion agencies Malaysia investment promotion
model for IDB and OIC member countries
Source: Board of Investment
17.
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8. BUDGET & ACCOUNTS
a. BOI Budget 2014-15
Table-18: BOI Annual Budgets since FY 2006-07
For the current FY 2014-15,
BOI has a non-development
revenue budget of Tk. 92900
thousand and revised budget
Tk.106665 thousand which
includes pays of officers and
establishments,
allowances,
supplies and services, repairs
and maintenance (Table-18).
Budget
Revised Budget
(Thousand Taka)
(Thousand Taka)
2006-07
52404
54846
2007-08
54921
61568
2008-09
64296
64306
2009-10
64736
76219
2010-11
73747
76652
2011-12
70000
79720
2012-13
72500
77689
2013-14
85000
90575
2014-15
92900
106665
Source: Finance wing, Board of Investment
Fiscal Year
Exhibit-9: BOI Budget FY 2014-15 by Major Heads
(Revised)
Others
7%
Others
7%
Exhibit-8: BOI Budget FY 2014-15 by Major Heads
Pays
30%
Pays
32%
Supplies &
Misc
38%
Supplies &
Misc
37%
Allowances
23%
Allowances
26%
Source: Finance wing, Board of Investment
b. Audit
From 1989-90 to 2011-12, there have been 127 audit objections against BOI out of which 51 objections
have been settled. BOI has been working with the Audit Department to settle the rest 76 audit
objections. A summary of the status of the audit objections is given below:
Table-19: Audit Objections and Settlements (1989-90 to 2011-12)
Subject
Number
Amount (Million Taka)
Objections
Settlement
153
51
711.518
24.271
Remaining
102
Source: Finance wing, Board of Investment
Drive/D/Personal/494.2015 Annual Report 2014
687.247
P#32
Appendix I: BOI Staff Position (31 Dec 2014)
Staff Category
Class I
Table-20: BOI Staff Position on 31 Dec 2014
Approved
Existing
Male
79
45
36
Class II
Class III
135
55
Class IV
79
26
Total
293
126
Source: Personnel wing, Board of Investment
Female
9
48
19
103
7
7
23
Table-21: BOI Staff went into PRL in 2014
Staff Category
Went into PRL in 2014
Class I
1
Class II
Class III
11
Class IV
3
Total
15
Source: Personnel wing, Board of Investment
Male
Female
1
-
11
3
15
-
-
Appendix II: Divisional Offices of BOI
Table-22: Function and Authorities of the Divisional Offices of BOI
Sl. Divisional Office Function and Authority
1.
Chittagong
Registration of Local & Foreign
Projects Unlimited
2.
Rajshahi
Registration of Local & Foreign
Projects Unlimited
3.
Khulna
Registration of Local & Foreign
Projects Unlimited
Sylhet
Registration of Local Projects up
to
Tk. 500 million. No Foreign
Projects
Barisal
Registration of Local Projects up
to
Tk. 100 million. No Foreign
Projects
4.
5.
Drive/D/Personal/494.2015 Annual Report 2014
Contact
Board of Investment
Chittagong Division
Government Office Building No-1
(3rd Floor), Agrabad, Chittagong.
Phone: 031-2520608
031-2520904
Board of Investment
Rajshahi Division, Rajshahi
Prime Minister’s Office
Hia Bitan, C&B Mour
Kazihata, Rajshahi.
Phone: 072-772047
Board of Investment
Khulna Division
BDBL Bhaban (9th Floor)
25-26 KDA C/A
Khulna-9000.
Phone: 041-72007
Board of Investment
Sylhet Division, Sylhet
Prime Minister’s Office
Probaho -18, Taltola, Sylhet.
Phone: 0821-724306
Board of Investment
Barishal Divisional Office
90/87, Jordan Road, Barishal.
Phone: 0431-54797
P#33
Appendix- III:
BOI Budget 2014-15
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Board of Investment
Prime Minister’s Office
Government of the People’s Republic of Bangladesh
Jiban Bima Tower (19th Floor), 10 Dilkusha C/A, Dhaka-1000, Bangladesh.
Phone: +88 02 716 9580-3 Fax: +88 02 956 2312
Email: service@boi.gov.bd, Web: www.boi.gov.bd
Drive/D/Personal/494.2015 Annual Report 2014