Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 12/10/2018

Despite relatively strong economic growth over the past decade, investment climate constraints, deficiencies in energy and transportation infrastructure, and an opaque regulatory environment have prevented Bangladesh from achieving higher growth. Shortages of land, natural gas, and power remain major impediments to investment.  Corruption is also widely perceived to be endemic at all levels of society and discourages investments and inhibits economic growth.

Reputable companies have complained that the Bangladesh National Board of Revenue (NBR) is inconsistently subjecting businesses’ prior year tax returns to renewed scrutiny.  While this process is taking place, normal business activities such as banking, immigration procedures, and branch office licensing permissions may be slowed or stopped entirely.  Some companies have either exited the market or minimized their presence as a result of NBR’s actions.

Political unrest, largely stemming from local or national elections, has at times shut down business operations and impacted supply chains.  Increasing security challenges have hampered at least some investment and trade opportunities.  Bangladesh saw its biggest terrorist attack in July 2016 (claimed by Islamic State of Iraq and al-Sham - ISIS) at the Holey Artisan restaurant in Dhaka, where twenty people – mostly foreigners – were killed.  Prior to July 2016, several incidents of foreigners and bloggers being targeted by ISIS and Al-Qaeda took place.  The government and law enforcement forces have taken many security measures and conducted raids to restrain militant groups operating in Bangladesh.  Although extremist attacks are now a concern for the country, projections of continued GDP growth of approximately 6.7 percent (World Bank) show the resilience of Bangladesh’s economy in weathering these challenges.

A series of RMG industry accidents, including the tragic death of more than 1,100 workers in the Rana Plaza Complex collapse in April 2013, have highlighted the ongoing need for improved worker safety and labor rights in Bangladesh and led to pioneering initiatives to improve factory safety.  Workers continue to protest working conditions and low wages; however, massive crackdowns of these protesters have decreased.

Economic weaknesses also include an undeveloped and undercapitalized financial sector, an inefficient and chronically loss-making public sector, and a decision-averse bureaucracy that often resists measures to improve the investment climate.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.