Bangladesh

Embassy of Denmark, Dhaka1

13. maj 2014

Among seven ”hottest” emerging markets (2008)

J.P.Morgan Named as one of the ”Frontier Five” (2007)

Bangladesh included in “Next 11 countries to watch” (2006)

“The scale and potential for Bangladesh is obvious –

a population of 150m, strong demographics, hard working people and the

early signs of an emerging middle class.”

Ranked 15th most promising country for overseas business in the

medium term (2010)

World Bank Ease of Doing Business Index 2013

Ranked 22nd worldwide in investor protection, 6th overall amongst Low Income countries

& 5th overall in the region, ahead of India

“Bangladesh is a 'rising star' of economic growth and fiscal discipline”

Rob Vos, director of UN Department of Economy and Social Affairs (UN-DESA) (February 16th 2012)

Bangladesh – A Rising Star

Moderate Muslim society

Culturally homogenous society

Democratic developing

economy

Country of ~161 mil. people

Aspirant to secure private

sector growth

An achiever in the social sector

in the last decade

Bangladesh is a moderate Muslim country

Free national election in 2008

Free and fair local election in 2011

Political transition from state of

emergency to elected governance

Building a fragile democracy

…but issues remains

The Opposition boycotted the national

election in January 2014

Ruling Party and the Opposition in

constant disagreement

Disagreements regarding a caretaker

government

Crippling Hartals & Political Violence pre

national elections

Political Developments

Social Development Indicators

Indicators

1. Annual GDP Growth 5.04% in 1992 6.23% in 2012

2. GDP per Capita (in US Dollars) $278 in 1992 $752 in 2012

3. Aid per Capita (in US dollars) $16.17 in 1992 $9.75 in 2011

4. Life expectancy at birth 61.1 years in 1992 70.3 years in 2012

5. Infant Mortality rate (Per 1000 births) 92.0 in 1992 33.1 in 2012

6. Adult Literacy Rate (15 years and older) 35.3% in 1991 57.7% in 2011

7. Mean years of schooling 2.9 in 1990 4.8 in 2012

8. Population below poverty line (1 US dollars a day) 56.6 % in 1992 31.5 % in 2010

9. Undernourishment (% of population) 36% in 1992 16% in 2012

10. Malnutrition, weight for age (% of children under 5

years)

64% in 1992 37% in 2012

5Source: The World Bank & UNDP

• Biggest industrial Catastrophe in Bangladesh

• A symptom of underlying failures in the system

• Several initiatives from both NGO’s, Foreign

Missions, Donor Agencies and National Ministries

• The Alliance

• The Accord

• Initiatives cover building regulations, labour

conditions, workers rights and Policy initiatives,

including trade negotiations

• The conference ‘Post Rana Plaza: A Vision for the

Future’ was held in Copenhagen on the 3rd of April

2014

The Rana Plaza Disaster

• Rana Plaza changed the agenda in Bangladesh

• CSR is now a heavily debated subject

• Everybody has a responsibility to ensure

fundamental human rights

• Governments, manufacturers, buyers and consumers

• And this goes beyond Bangladesh and the RMG

industry

The Game Changer

Many Challenges Remain

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1. Insufficient Power supply

2. Corruption

3. Insufficient infrastructure

4. Poor management

5. Deficient legal system

6. Lack of skilled workers

7. Developing law & order situation

8. Natural disasters

The Opportunities in Bangladesh

Location:Strategic location of the

country is ideal for global

trades with access to

international sea and air

route

Natural Resources:

Bangladesh is endowed

with abundant supply of

natural gas, water and

fertile land

Human Resources:

A population of 161 million

who are hard working and

intelligent. There is an

abundant supply of young,

disciplined, easily trainable

workforce

The Opportunities in Bangladesh

Social Stability:

Bangladesh is a democracy and mostly a one

race country.

Language:

Although Bengali is the official language,

English is generally used as second language in

the country.

Market Access:

As the country has a huge population of

approximately 161 million, there is a logical

potential of dramatic increase of domestic

consumption with every incremental

improvement in national income

No Trade Barriers:Most Bangladeshi products enjoy complete

duty and quota free access in EU, Japan, USA,

Australia, including most other developed

countries.

Danida Business PartnershipsAim: To Create value for companies and at the same time create overall value for society

• DBP provides opportunities for Danish companies to set up

Joint Ventures with Bangladeshi companies/partners

• Denmark has supported Private Sector Development in

Bangladesh since 2000

• Textile, agriculture, fishery, IT, shipbuilding, energy,

cleantech, manufacturing, food processing etc.

• Focus on creation of employment, technology transfer,

women empowerment, food security, renewable energy and

sustainable growth

• Increased focus on multi-sector Business Projects with green

elements

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IT Cooling Equipment Marine/Fishing Textile Food Medical Other

Active DBP-projects

Trade Council

• GPA – Global Public Affairs

– Bangladesh is still a very authoritative country

– Huge issues with corruption and bureaucracy

– Royal Danish Embassy business cards open doors

– 70% of all our services in Bangladesh is within GPA

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Trade Council Services

• TC Consulting Services

– Market Evaluations

– Partner/Customer search and contact

– Tariff and Non-tariff barriers identification

– Assistance in making business visits to Bangladesh

– Sourcing/procurement assistance

– Investment identification

– Tailor-made CSR counselling

– FOCS: 1 Hour Consultation or Research Assignment

• TC Support Services

– Export Start Package

– Green Vitus

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The Danida Business Partnerships and The Trade Council

Commercial Counsellor:

Anette Snedgaard Galskjøt (from 1 August Søren Robenhagen)

Programme Officer - Danida Business Partnerships & Trade

Farah Nayer Zabeen

Senior Commercial Officer - Trade Section

Samina Ahsan Shahrukh

Programme Officer - Danida Business Partnerships

Tasmim Zahid AnwarProgramme Officer - Trade Section

Jalal Khaled

Interns:

Jonas Lundberg Hansen

Rikke Haurvig Nielsen

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Danish Companies Present in Bangladesh

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…and many more