Why Bangladesh IT Industry

Stable GDP Growth

  • Bangladesh achieved positive growth (5.24%) in 2020 amidst the pandemic as one of only two ASEAN and South Asian Economies
  • Before the pandemic, Bangladesh experienced nearly 8% GDP growth

Fast Emerging Economy With a Promising Future

  • 8th largest market in the world in terms of population
  • By 2025, the number of MACs to triple to about 34 million

Fast Scaling Infrastructure

  • 39 hi-tech parks to become the centre for all ICT activities
  • World's 7th largest tier IV data centre

Leapfrogging in ICT and Digital Adoption

  • 19th Largest market actively using smartphones
  • 98%+ population and geographic GSM coverage
  • 113 million internet subscribers

Significant Cost Arbitrage compared to peers

  • 10-60% lower cost, in terms of salary and benefits, infrastructure and other direct costs
  • 20-75% lower cost for assembling
  • Subsidized HTP rentals

Escalating Power and Internet Connectivity

  • Power generation capacity in excess of 21,000 MW
  • Cheap high-speed internet connections allowing 70% of the population to get online

The next hub for digital device manufacturing

  • Locally manufactured smartphones meet 82% of the local market demand

Committed government support

  • Customized and attractive incentive packages for foreign investors including no tax on profits, no foreign equity limit and 100% repatriation facilities

10 Billion dollar opportunity

  • Revenues across the IT sector to reach $10 billion by 2025
  • 21% CAGR in ICT spending
  • 2500+ start-ups, 42+ accelerators and ecosystem enablers

Growing Frontier Technology Adoption

  • Number of successful frontier tech companies on the rise

Incentives for investments:

10% Cashback on export-oriented revenue
No tax on profits till 2024 outside hi-tech parks
No foreign equity limit on shareholding
50% tax discount for foreign employees for first 3 years
Duty free import for fixed capital and assets
20-100% tax discount for 10 years from start of operations in hi-tech parks
100% repatriation facilities for profit and capital
100% VAT exemption on IT/ITeS office rents
80% VAT exemption on utilities in hi-tech parks
Partially and fully subsidized customized training programs for technical and managerial skills