ASSIGNMENT OF

INTERNATIONAL BUSINESS

BANGLADESH

SUBMITED TO: PROFESSOR VENKATESH

SUBMITED BY:

BIJAL MAMNIA M0916

NEHA GOEL M0932

SWAPNIL PATIL M0950

TANAY RATHOD M0952

 Bangladesh

Peoples Republic of Bangladesh

Greetings from Bangladesh

Greetings from the land of fantastic natural beauty and exotic wildlife.
Elephants still roar free in the east, and the endangered Royal Bengal Tiger
wander in the south west.

Although an independent Bangladeshi state has existed for only the last
few decades. Our culture is millenia old. Small Buddhist and Hindu kingdoms
controlled and the land until Muslim conquests began in the early thirteenth
century. In the 1757, the British East India Company took control, a century
later; they ceded power to the British government.

The United Kingdom ruled the area until 1947, when the independent
nations of the India and Pakistan were formed. The rest of the area was divided
into two regions, separated by Indian Territory: the largely Muslim East Bengal
(later renamed East Pakistan) and the largely Hindu West Bengal (West
Pakistan). These regions differed markedly in language, ethnicity, and culture.

Since the creation of the regions, the people of East Pakistan (the
Bengalis) desired independence from West Bengal. They got their wish. After a
nine month civil war in 1971, Bangladesh finally became an independent
nation.

Although we Bangladeshi formed our nation as a secular state, we have

one of the world’s largest Muslim populations. More than 80 percent of our
population is Muslim. Our attachment to folk tradition enriches our devotion to
Islam. We frequently consult Ojha (shamans) and fakirs (Muslim holy men
who perform exorcism and faith healings). And despite becoming increasingly
rare and discouraged, polygamy is still officially legal.
 Many Westerners think Bangladesh is an overcrowded, poor country. It is
true that almost half of Bangladeshi live in poverty. But steady economic
growth has encouraged us, and Chittagong has been an important trading port
for centuries.

We know our population is growing too quickly for young people to find
good local jobs. Many must leave to work in places like Saudi Arabia and
Malaysia. But they still keep strong family ties. In fact, money sent home from
expatriate Bangladeshi accounted for 6 percent of our gross domestic product
2004. We believe these funds will help give us means to continue to grow and
improve.

Although 80 percent of us live in rural areas, urbanization rates are rising

and pollution has become a problem in our cities. We are working hard to solve
the problem with program for reducing emissions and method.

We know that education is the key to our future. We have embraced

literacy programs and have seen first hand how education can improve lives.
Our government is working towards attaining 100 percent literacy in the next
decade.

While we obviously want the comforts and the advantages that more
developed countries enjoy, we do not want to lose our culture. Bangladeshis
respect age, position, and hierarchy, and believe the group is more important
than an individual. Although it influence is diminishing, social class is still very
important to us. We highly value friendship and do not extent out friendship
casually.

We fanatics. When things go wrong, we will not panic or get angry. More
commonly, we will shrug and say, “As Allah Will.” But we are also hard
working and friendly. Please come to our beautiful, ancient land and find out for
yourself.
Facts and Statistics

Capital: Dhaka

Location: Southern Asia, bordering the Bay of Bengal, between Burma and
India

Climate: tropical; mild winter (October to March); hot, humid summer (March
to June); humid, warm rainy monsoon (June to October)

Population: 144,319,628 (July 2005 est.)

Ethnic Make-up: Bengali 98%, tribal groups, non-Bengali Muslims

Religions: Muslim 83%, Hindu 16%, other 1%

Meeting and Greeting

Bangladeshis are hospitable and enjoy meeting new people, especially

foreigners.

 As a greeting, men and women commonly salaam (a low bow while

touching the right hand to the forehead) to one another and among
themselves.

 Men may also lightly shake hands with other men. They rarely shake
hands (or otherwise touch) with women, especially in public.

 Western women any extent a hand to Bangladeshis women in urban areas

or to those used to interacting with Westerners. (In villages however
women may be too shy and would prefer a nod instead.)
  Western men should wait for the women to extent the hand which is
unlikely. If a woman doesn’t extent her hands just nod her instead.

 Western women shouldn’t extend a hand to the Bangladeshi men. Some

traditions forbid touching between sexes, especially in public. If a
Bangladeshi man extent his hand to a foreign woman, she may shake it.

 If possible, have a respected third party to introduce.

Names and Titles

 Bangladeshi name order is first name (given name) + last name

(surname). Some women, however, have only first names.

 Bangladeshis address one another by courtesy title + last name. Either

bangla titles or English titles (Mr, Mrs, and Miss) are acceptable.

 It’s acceptable to address someone courtesy title only, especially when

you don’t know the persons last name.

 People of the same age and class generally use first names. Don’t use first
names unless your Bangladeshi does so.

 When addressing older people or people with authority, Bangladeshis add

honorary suffixes to first name to show esteem and the level of closeness.
Bangladeshis don’t expect foreigners to use these suffixes, but they ll
appreciate the show of respect of visitors use them.

Language

Bangladeshis official language is Bangla (Bengali), which descended

from Sanskrit ans was influenced by the Persian, Arabic, Turkish and English
languages. The Bengali alphabet is derived from the Brahmi alphabet, the
ancestor of modern Indian alphabets.
 A number of bangla dialects are spoken across the country, and small
ethnic group speak their own languages.

In the mid twentieth century, language becomes a point of contention

between East and West Pakistan. When West Pakistan dominated government
excluded Bangla as an official language, the Bengalis used the slight to rally for
an independent state (now Bangladesh)

 Bangladeshis with a university education usually speak English. When

doing business with Westners, most speak English.

 Many young Bangladeshis understand Hindi (because of the languages

prevalence in media)

 Written Bangla is read just as written English (that is, left to right, top to
bottom).

Conversation

 Bangladeshis consider indirect language polite and sophisticated. For

example, they say, “That will be difficult” instead of “no.”

 Bangladeshis appreciate flowery, expressive speech, but they don’t

appreciate jokes or sarcasm.

 Use a soft, modulated tone when speaking. They consider loudness

impolite.
Acceptable Topics

 Sport, especially football and cricket.

 Hindi movies.

 Travel.

 Your home country (but never compare your country with to Bangladesh)

Unacceptable Topics

 Someone’s profession or family (although you may discuss them after

establishing relationships) it’s particularly rude to ask a man about his
wife.

 Any criticism of elders or people of high status

Topics that require sensitivity

 Bangladeshis history and current relationships with Pakistan and India.

 Interfaith relationships.

Body Language

 Don’t expect a Bangladeshis to return a smile. Although friendly, they

don’t smile as often as Americans do. They often consider smiling a sign
of immaturity.
 Bangladeshis generally don’t touch one another while speaking. While
talking with a peer of the same sex, they stand closely to one another.
While talking to someone of different status they stand far apart. When
talking to someone of the opposite sex, they never stand close together.

 Never touch someone of the opposite sex in public.

 When speaking to peer maintain eye contact. Bangladeshis believe eye

contact shows sincerity. When speaking to older people or colleagues,
however look down to show respect.

 Rural women may not make an eye contact in first meeting.

 Don’t cross your leg or show your soles.

 Don’t touch anything with your foot. Bangladeshis consider it as

disrespectful by touching anything with your lower body.

 Point with your chin rather with your hand or finger.

 Never pass or move anything with your left hand. Bangladeshi considers
the left hand unclean.

 Don’t gesture to beckon adults; Bangladeshis believe doing so is rude. If

you must beckon a child, with your hand (palm face-down and fingers
together).

 To Bangladeshis, the “okay” sign is crude, and the thumb-up gesture

indicates rejection.

 Don’t blink at people; Bangladeshis think blinking is rude.

 Phrases
Bangla uses the Bengali alphabet and there is no standard
transliteration into English. Below are the phonetic equivalents.
English Bangla
Hello Assalam walaikum
Response to hello Walaikum assalam
Please Onugraba kore
Thank you Dhanyabad
You are welcome Apnakeo dhanyabad
Yes Zee ba’a
No Na
Excuse me Kichu mone korben na
Goodbye Khoda bafez
Nice to meet you Porichito boye valo laglo
How are you? Kemon achen?

Dining

Bangladeshi cuisine is known for its tantalizing blend of wonderful,

fragrant spices, as well as its numerous sweets made from milk.

 Bangladeshis serve many foods from a communal plate.

 Many Bangladeshis eat with their right hands (left hands are unclean
because they are used for personal hygiene). They may eat sweets
with a spoon.

 Visitors may ask to use utensils there may be a separate plate to place
bones and other food refuse.

 During meals, men and women may be segregated (common at formal

occasions).

 Be prepared for little to no conversation. Bangladeshis are usually

silent while eating.
Drinking

Bangladeshis commonly drink soft drinks, fruit juices, lassi (a yogurt-

based drink), and tea- especially chai (spices tea with milk). Bangladesh
produces only 2 percent of the world’s tea supply, but tea is a vital part of the
country’s economy.

Although most Bangladeshis are Muslim, many drink alcohol. In fact,

most hotels have bars. None the less, don’t order or request an alcoholic
beverage unless your Bangladeshi colleagues do so first or offer you one.

Toasting

Toasting isn’t common custom in Bangladesh. If during with traditional

Bangladeshis, don’t propose a toast.

If dining with Bangladeshis who are familiar with western toasting

etiquette and will receive toasts well, men or women may propose a short toast
to friendship or other appropriate subjects.

Tipping

Restaurants: The bill usually doesn’t include a service charge. Bangladeshis

rarely tip servers, but servers may expect westerners to tip 5 percent of the bill.

Taxis: Tip BDT 5 to BDT 10.

Bellhops: Tip BDT20 to BDT 50.

Porters, doormen, hair stylist and barbers: Tip BDT 50 to BDT 100.

Manners
 Never refuse an invitation directly. If you must decline an invitation, say,
“That will be difficult, but I will try or I will have to see.”

 Remove your shoes before entering a home, mosque, or temple.

 Always wash your hands before eating. If a home or restaurant doesn’t

provide an obvious hand-washing area, ask where you should wash your
hands.

 No one eats until the old person at the table begins eating.

 If eating with your hands never eat or pass food with your left hand. Also
don’t let your fingers touch the sauces when dipping food.

 Hosts will urge guests to eat. To decline additional helpings, politely

praise the food and say “I m full.”

 Some Bangladeshis eat meals in their homes sitting on floor. In this case,
men sit with legs crossed in front, and women sit with legs to one side.
Be careful not to direct your soles at anyone while in this position.

 Don’t smoke in the presence of an older person or senior colleague,

whether or not he or she smokes.

 Don’t eat, drink or smoke on the street during Ramadan (the ninth month
of the Islamic year). Doing so is offensive.

 When dining in a restaurant with friends or family, the bill may be split or
the person who extended the invitation may pay. If the latter, the others
will protest but out of courtesy only. The person, in turn, should insist on
paying.

In business situations, however, the person who extended the invitation pays
the bill.
  It’s rude to give an end time on an invitation for a social event.

 It’s very rude to refuse an offer of tea.

Punctuality

Bangladeshis believe promptness shows respect. Arrive on time for

business appointments to prove your dedication to creating or maintaining a
business relationship.

Arrive on time for social events as well. Although hosts may serve dinner
several hours after the given “start time”, they may have scheduled
entertainment before the meal.

Gifts

 Bangladeshis believe the thought behind giving a gift matters more than
the gift itself. Nonetheless they expect recipients to reciprocate with a
tangible gift or an invitation to a meal or event

 People generally don’t open gifts in the giver’s presence. Recipients

thank the giver sincerely and put gifts aside to open later

 Bangladeshis in urban areas give birthday gifts, but people in rural areas
may not.

 Make sure gifts are nicely wrapped, and always present gifts with both
hands.

 Never give Muslim alcoholic beverages or items that aren’t halal (lawful
to the Islamic faith). Never give Hindus item containing beef or co w
leather

Hostess Gifts
Along with giving a gift, invite the hostess to an occasion if possible.
Consider Giving

 Pastries

 High quality chocolates or other sweets

 Travel books

 Gifts from your home region

 Flowers expect frangipani or any white flowers (for funerals only)

Don’t Give

 Obviously expensive items (difficult to reciprocate)

 Tobacco

Business Gifts

 Giving a small, inexpensive gift to a Bangladeshi colleague is a token of

goodwill.

 Gifts that feature your company logo are acceptable.

 Although not compulsory, business colleagues may give gifts on religious

holidays, especially after Ramadan and hajj.
Consider giving

 Office supplies

 Sweets to share

Don’t give

 Obviously expensive items (difficult to reciprocate and may be

considered bribes)

Health and Safety

 Be aware that medical facilities in Bangladesh are below U.S. standards.

There is no emergency medical care system in the nation, and emergency
cases may have to be transported to Singapore or Bangkok.

 Prescription medicine purchased in Bangladesh may be unavailable or

untrustworthy. Make sure to pack an ample supply of your medications.

 Especially in urban areas , don’t carry large sums of money , wear

expensive jewellery , or walk alone after dark (street lights are rare).Pick
pocketing and snatch-and-grab crime is common

 Always store valuables in your hotel’s safe.

 Don’t drive in Bangladesh since roads are narrow, poorly maintained,

and extremely crowded. If you get into traffic accident, a crowd will
quickly gather and judge the more affluent party to be at fault-potentially
dangerous position for you.

 Don’t hire rickshaw or baby “taxies” (small 3 wheel taxies) neither is

safe.
  Avoid using ferries; their safety record isn’t good. Many people die every
year from capsized ferries.

Corporate culture

Bangladesh is working to modernize, and there’s been steady 5 percent

growth over the last several years. But insufficient state-owned enterprises,
inadequate port facilities delays in exploiting natural gas reserves, and a corrupt
government at all levels make modernization make struggle.

Small and medium size businesses employee about 25 percent of the total
labour force in Bangladesh (80 percent of industrial jobs) and constitute 25
percent of the Gross Domestic Product (GDP).

The service sector generates half of the GDP, but the agriculture sector
employs nearly two-thirds of Bangladeshis.

Structure

 Bangladeshis expect leaders to be parent figures, whose subordinates expect

and appreciate strong leadership.

 The most senior executive makes the decisions that are best for the entire
group. Foreigners who hope to decentralize the decision making process
must be patient and persistent.

Meeting

 Initial meetings are for getting acquainted, not for doing business. Have a
respected third party introduce you to meeting participants.

 Subsequent meetings are for presenting decisions. The most senior person
sets the agenda, content and peace.
 Small talk over tea usually precedes meetings. Let your Bangladeshi
colleagues initiate business discussions.

 Bangladeshis believe taking notes expresses respect and acceptance

 Meetings end when all relevant business is completed.

 Meeting may end without obvious resolution of problems

Appointments

 Regular office hours are 9:00 am to 5:00 pm, Saturday through Thursday.
Some offices close at noon on Saturdays. Offices are closed on Fridays.

 You can’t do business during hartal, industries and offices close and public
transportation stops, political parties announce hartal ahead of time.

 When scheduling initial meetings, it’s extremely important to give your title
and credentials. Some Bangladeshis refuse to meet with someone of lower
rank of status. Likewise, you may lose face if you meet with Bangladeshi of
considerably lower rank or status.

Communication

 Always defer to the most senior person.

 Keep your feelings in check. Showing emotion causes you to lose face,
especially when talking with someone older or more senior than yourself.

 While Bangladeshis respect age and status, never bully or talk down to
people. They will especially resent condescending foreigners.

 Communication must follow the appropriate hierarchy. Don’t try to skip

levels, which will make everyone involved lose face.
 You won’t get direct answers to questions, so ask them in several different
ways to make sure you understand the real answer. Bangladeshis believe
direct communication is rude and direct disagreement causes loss of face.

 It’s essential to always be courteous to the receptionist and other office staff.
They control appointments and communication with high-level employees.

Business Cards

 Bangladeshis exchange business cards upon first meeting.

 Make sure your card includes your academic degree(s) and formal title.

 Present your business card with your right hand only.

 Accept someone’s card respectfully with your right hand only. Read it
carefully, and then place it in your briefcase or business card case.

 Be sure to present your business card to the receptionist upon arrival.

Socializing

 Bangladeshis do business entertaining both at home and in restaurants.

 They sometimes include spouses in business functions.

 Its good manners to host a meal at restaurant for your Bangladeshis

colleagues. Hotel restaurants are usually appropriate.

Especially for Women

Many more women than men in Bangladesh live in poverty, suffer abuse,
and are in poor health. Women don’t have the same educational and economic
opportunities as men have. As a result, the literacy rate for women is roughly
half that for men. Workplaces are highly patriarchal, and many women are
unemployed.

Middle-class women are leading the fight for gender equality, and the
Bangladeshi government has taken steps toward that goal. The constitution
guarantees men and women equal rights. The no. of girls enrolling in school has
been rising, at least on the primary level.

Of the women who do work, a large number of them work in export-

oriented industries, which compose 70 percent the nation’s foreign exchange.
Thus, women are undeniably an important part of the Bangladeshi economy.
Grandparents or older siblings traditionally provide childcare when a mother
works.

 Western women may have some difficulty doing business in Bangladesh, but
Bangladeshis generally accept them.

 It’s acceptable for a western woman to invite a Bangladeshi man to business

dinner at a restaurant. She should arrange payment with the wait staff
beforehand.

 Women should avoid making eye contact with people walking on stress.
They will attract unwanted attention if they do.

Exporting to Bangladesh

Bangladesh's biggest asset is its plentiful supply of very cheap labour.

The UK is historically the largest investor in Bangladesh, with around 50
companies operating in the market. Britain has traditionally been the biggest
overseas investor in the country.
 Companies from developed countries, the UK included, sell into the
market on the basis of quality, or life-cycle cost, training and/or after-sales
service.

Assess the opportunity to trade with Bangladesh

UK exports to Bangladesh up to November 2004 were £61 million, an

increase of 20% on the same period in 2003. The main exports to Bangladesh
are power generation equipment (10% of the total), general industrial machinery
and dyeing, tanning and colouring materials. The UK has also been traditionally
successful in the construction sector, especially bridge building and also in the
consultancy and education sectors.

Regional focus

Dhaka, the capital and by far the largest city in Bangladesh, has grown to
become the country's main commercial centre. The second city, Chittagong, is
home to Bangladesh's largest seaport and a thriving business scene. Sylhet,
Khulna and Bogra are the country's other commercial centres.

Understanding Bangladesh customers

Bangla (Bengali) is the official national language, but English is the key
language for commerce. Most business people you deal with, when exporting,
are likely to speak good English.
 Bangladesh business culture tends to be formal and follows a hierarchical
structure - for example business cards are exchanged after the initial
introduction. It's normal practice to start meetings with small talk rather than
getting straight down to business. A good rule of thumb in meetings is to follow
your host's lead.

Building relationship

It is generally accepted that to do business in Bangladesh a foreign

company needs to appoint an influential local partner (usually an agent), who
knows how business is done and can navigate a path around Bangladeshi
bureaucracy. The appointment of the right agent is considered to be
fundamental to success.

Winning new business can take longer than you would like. You should
be prepared to invest time and effort in building a long-term relationship.

Trade visits to Bangladesh

Successfully exporting to Bangladeshi customers depends on building

relationships, and often requires several face-to-face meetings. Trade visits can
help you identify potential customers and key contacts, and find out what they
think of your product. You can also use them to build relationships with local
advisers and other key contacts.

To make the most of trade visits, plan well in advance. Make sure you
have a clear objective and organise all the support material you need. Try to
make appointments with target contacts in advance, and reconfirm them shortly
before you travel. Make sure you're speaking to people who make exporting
decisions. If you have local agents, use their expertise. In an organised trade
visit, the organisers should help you find contacts.
Marketing and selling in Bangladesh

To succeed in the Bangladeshi market, you need to compete with local,

national and multinational businesses. As an exporter based in the UK, your
costs are likely to be higher than those of many competitors. You therefore need
to clearly demonstrate the value of what you offer. Superior technology and
quality may give you an edge.

There are several ways to reach customers:

 Exporting directly can suit high value products or services. However

winning new customers is likely to require significant investment in
building relationships, and several visits.
 You may find it more cost-effective to work with a local agent or
distributor.
 A joint venture with a local partner can be a way of accessing the Indian
market, particularly in highly regulated sectors.
 Larger businesses, and increasing numbers of middle-market consumers,
have Internet access.

You must be prepared to adapt your offering to suit Bangladesh market.

Any advertising or other promotion should be adapted to suit Bangladeshi
culture (for example imported goods and their containers must not incorporate
any words, pictures or inscriptions of a religious or obscene connotation). You
also need to take into account local product regulations.

Financing exports to Bangladesh

Bangladeshi companies purchasing imports generally need approval. If

you are selling to an experienced importer, they should be able to advise you of
the documentation they require.
 Imports are generally financed using import letters of credit or import
bills. These are promises from your customer's bank to make payment to you
once the goods or services you export are received and the documentation
covering the transaction is properly and correctly presented.

Taxes, duty and legal consideration for export to Bangladesh

In the UK, you must declare all exports to HM Revenue & Customs
(HMRC). You also need to keep documentary evidence of exports, and record
the value of exports on your VAT return. Exports of most products to
Bangladesh are zero-rated for VAT. There are no additional export taxes.

Most goods can be freely exported to Bangladesh, though there are

restrictions in areas such as goods with potential military use.

Bangladesh taxes and regulations

There are some restrictions on imports - often to protect local businesses

in particular sectors. Imports must comply with local regulations.

Bangladesh's regime of import or tariff duties is not considered to be

unduly protectionist, in global terms. Rates of duty on more commonly
imported items range from 25% (for textiles and clothing products competing in
Bangladesh's key economic sector); for high energy-consuming home electrical
and electronic items; and for motor cars) down to zero (for key inputs into the
textiles and clothing industries; for fertilisers; and for many foodstuffs).

As a Least Developed Country (LDC), Bangladesh will not be required to

reduce tariff barriers as part of the (now-stalled) Doha Round.

Duty
 When you export goods to Bangladesh, they will attract import duty. You
or your local representative will have to pay this before the goods will be
released by customs. The level of duty will depend on the type of product.

Export-Import Information

Year Import (Billion US $ ) Export (Billion US $ )

2001-02 8.54 5.99
2002-03 9.66 6.55
2003-04 10.90 7.60
2004-05 13.15 8.65
2005-06 14.75 10.53
2006-07 17.16 12.18
2007-08 20.37 14.11
2008-09 21.44 15.57
(www.mincom.gov.bd)
 Department of Commerce
Export Import Data
India - Bangladesh

Dated: 18/07/2010
Values in US $ Millions

S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

1. EXPORT 1,631.12 1,664.36 1,629.57 2,923.72 2,497.87

2. %Growth 2.04 -2.09 79.42 -14.57

3. India's Total Export 83,535.94 103,090.53 126,414.05 163,132.18 185,295.36

4. %Growth 23.41 22.62 29.05 13.59

5. %Share 1.95 1.61 1.29 1.79 1.35

6. IMPORT 59.37 127.03 228.00 257.02 313.11
7. %Growth 113.96 79.49 12.73 21.82

8. India's Total Import 111,517.43 149,165.73 185,735.24 251,654.01 303,696.31

9. %Growth 33.76 24.52 35.49 20.68

10. %Share 0.05 0.09 0.12 0.10 0.10

11. TOTAL TRADE 1,690.49 1,791.39 1,857.57 3,180.74 2,810.98
12. %Growth 5.97 3.69 71.23 -11.62

13. India's Total Trade 195,053.37 252,256.26 312,149.29 414,786.19 488,991.67

14. %Growth 29.33 23.74 32.88 17.89

15. %Share 0.87 0.71 0.60 0.77 0.57

16. TRADE BALANCE 1,571.75 1,537.34 1,401.57 2,666.70 2,184.76
17. India's Trade Balance -27,981.49 -46,075.20 -59,321.19 -88,521.83 -118,400.95

Note: The country's total imports (S.No.6) since 2000-2001 does not include import of
Petroleum Products (27100093) and Crude Oil (27090000)

(http://commerce.nic.in)
Doing Business in Bangladesh

With approximately 150 million hardworking people, Bangladesh has

great market potential. Although today Bangladesh is still a low income
country, tomorrow, Bangladesh could very well be the next emerging market in
South Asia.

Bangladesh’s macroeconomic performance has been relatively good over

the last years; the economy has grown at over 6% per annum, with inflation
remaining at acceptable levels. Aided by moderate growth in agriculture, the
real GDP growth was propelled mainly by the industry and service sectors. The
growth has been mainly supported by private investment and bolstered by a
surge in workers remittances, which account for 9 Billions USD/year,
(amounting to 10 % of GDP). External trade of Bangladesh has emerged as a
vibrant source of economic growth. Exports stood at USD 14 billion in 2008,
with Ready Made Garments (RMG) constituting three fourths of the export
basket. The garments manufacturing sector (RMG, knitwear, textiles) is
providing employment to more than 2.5 million people (80% women) in 3500
factories. The cheap labour force compared to other countries in the region and
increased quality of the products are comparative advantages of the local RMG
industry.

The Bangladesh economy is driven mainly by the services sector, despite

the fact that the majority of its eligible labour force works in the agriculture
sector. Bangladesh is continuing the process of economic liberalization, though
it is expect to be at conducted at a slow pace. The government of Bangladesh is
trying to encourage foreign direct investment; beside the textile industry, ITC,
shipbuilding and power sector are highlighted as promising fields. However,
constraints of inadequate infrastructure, power shortages, bureaucracy and other
obstacles hinder accelerated growth and investment.

The GDP composition by sector is 20.6% agriculture, 29.7% industry,

and 50.2% services, while the labour force is divided: 50% agricultural, 11%
industry, and other services 39%.

Investment in Bangladesh is well protected by law and by practice. Major

laws affecting foreign investment are the Foreign Private Investment Act of
1980, the Industrial Policy of 1991, the Bangladesh Export Processing Zones
Authority Act of 1980, the Companies Act 1994. In addition foreign investors
are also required to follow the regulations of the Bangladesh Bank (central
Bank), the National Board of Revenue (for taxation and customs matters).
(source - Board of Investment) .
India can Export Organic Chemicals to Bangladesh

As per following chart shows India has produced Organic Chemicals in large
volumes and Bangladesh’s requirement for organic chemicals is at higher side.
Bangladesh does not have large no. of chemical industries which can fulfil their
requirement. So it is a good opportunity for India to export Organic Chemicals
to Bangladesh.
 Production of Organic Chemicals in India
(2001-2002 to 2008-2009)

(Figures in MT)

Production

Products
2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-
02 03 04 05 06 07* 08* 09(P)*

Acetic Acid 232005 251683 308084 287901 305911 287.85 316.01 230

Acetic Anhydride 29995 23191 28476 26707 28626 30.60 29.32 40

Acetone 38785 44131 46720 51677 36785 44.22 47.19 50

Phenol 60844 76216 75145 84140 58208 71.27 74.94 80.00

Methanol 309296 362165 389401 392198 386759 396.23 351.73 260.00

Formaldehyde 147613 181849 199127 196010 249392 234.82 242.76 250

Nitrobenzene 26283 25697 27923 26512 23591 14.73 13.11 20

Maleic Anhydride 13948 11885 14436 13402 12751 12.95 4.25 3.00

Penta-Erithritol 14353 14042 15245 14483 15182 13.73 14.95 10.00

Aniline 18257 14601 15696 16526 12393 47.37 44.98 40

Chloro Methanes 81562 79129 89565 92486 93798 92.19 85.86 95.00

Isobutyle 0 1950 1680 1678 2313 2.52 3.33 3.00

Oncb 14966 15171 12239 15599 14754 12.82 13.81 14.00

Pncb 23552 24506 18529 24665 22232 18.46 20.92 21.00

Mek 4237 8742 7636 7273 1363 0.10 0.00 0.00

Acetaldehyde 118930 126152 127452 139729 159106 163.87 182.48 155.00

Ethanolamines 158 10996 6543 9341 8645 7.27 9.86 10.00

Ethyl Acetate 0 40118 53806 66262 70292 7.27 90.84 90.00

Ortho Nitro Toluene 0 4416 6807 6230 7445 6.80 0.24 2.00

Citric Acid 5621 3327 0 0 0 0.00 0.00 0.00

PTA 1533 1713 1675.1 1738 1734.2 2379.2 2059 1500

Ethylene 603.9 2305 2421 2645 2719.2 2683.4 2810 2700

MEG 575 592 652 714 881 872.5 923 900

LAB 356 375.2 382 409 468 460 471 500

Paraxylene 58 1424 1389 1425.3 1394.8 1925.5 2137 2300

Caprolactum 108 100.4 110.3 122.1 116.8 121 86 90

Menthol 0 0 0 0 0 0.00 0.00 260

Source : Ministry of Chemicals and Fertilisers, Govt. of India. (10714)

& Centre for Industrial & Economic Research (CIER). (652)