Posted on Mar 16, 2021

Hassan and Associates

Current Investment Environment in Bangladesh

Low cost of labour and lower overhead cost compared to regional peers have enabled the country to operate at a cost advantage and the apparel sector has been the main thrust sector benefitting in the global market, which has catapulted Bangladesh as the second largest apparel manufacturer in the world, next to China. Leather and leather goods, jute products, agro-processing to frozen fish are some of the sectors that have been similarly contributing to the growth of the country.

Over the last decade, the domestic market has undergone rapid transformation, with sharply rising per capita income, rapid urbanization and evolving nuclear family structure and more involvement of women in the workforce. In 2005, 26.8% of the total population lived in urban areas, which have increased to 34.3% in 2015. By 2025, 42% of the population is predicted to be living in urban areas. Urbanization level is expected to grow further in the next ten years with the growing Middle and Affluent Class (MAC) population. There are bright opportunities for investors in both export-oriented sectors and sectors which cater to the burgeoning domestic demand....
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