Bangladesh: An Emerging Country for Pharmaceuticals
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Bangladesh is emerging as a key country for pharmaceutical exports and manufacturing due to its low production costs, educated workforce, and strategic geographic location for global trade. The pharmaceutical sector exported over $14 billion between 2009-2010 and domestic production is growing rapidly, with the country aiming to become a $5 billion exporter by 2023. Bangladesh has a large, low-cost, and English-speaking workforce that can be easily trained for pharmaceutical jobs.
Bangladesh: An Emerging Country for Pharmaceuticals
- 1. Bangladesh: An Emerging Country for Pharmaceuticals
- 3. Export between FY 2009 – 10: US$ 14 billion
- 4. Bangladesh Overview No. of registered doctors 48,000 Rural doctors (estimated) > 100,000 Persons per reg. physician (2006) 3,353 No. of hospitals (govt.) 645 No. of hospitals (private) >5,000 No. of medical institutes (govt.) 16 No. of medical institutes (private) 20 Health Sector Source : 1. Bangladesh Medical Council 2. Bangladesh Economic Review 2007
- 5. Macroeconomics: Health GDP per Capita 445 US$ Total Expenditure as % of GDP 3.2% Total health exp per capita 12.16 US$ Public health exp per capita 4 US$
- 7. US$ 800 million (IMS 09-10) 800
- 17. place (US 300 million dollar in last 3 years) for
- 22. (US $300 m in last 3 years)
- 24. Location Ideal for global trades with access to intl. sea & air route Natural Resources Abundant supply of natural gas, water and fertile land Human Resources Abundant supply of easily trainable and low-cost workforce Social Stability A one race and one religion country. Social stability much higher Language English is generally understood and used as second language Investment Climate in Bangladesh
- 25. Source : Bangladesh Board of Investment ( BOI ) Cost Heads Unit Dhaka Bangkok Kuala Lampur Seoul 1. Worker Wage person/month 50-100 141 250 890-1275 2. Managerial Staff person/month 331 622 1510 1989 3. Industrial Land Price per sq. m 7-15 45 49-99 - 4. Office Rent sq.m/month 3-4.5 9.9 13.33-14.16 34.50 5. Electricity per kWh .06-.10 .037-.039 0.05 0.04 6. Water for Business use per cu.m .25-.33 2.02+.0.33 0.47-0.51 0.62-0.98 7. Gas for Business use per cu.m 0.085 4.18/BTU 0.11-0.17 0.29 8. Gasoline per liter 0.44 0.30 0.34 0.96 9. Corporate Tax basic rate 30% 30% 28% 28% 10. Personal Income Tax basic rate 25% 37% 28% 40% Comparative Costs in Competing Cities (in US$)
- 26. Tax Exemption Generally 5 to 7 years. The period of tax holiday will be calculated from the month of commencement of commercial production Duty No import duty for export-oriented industry Tax Law a) Double taxation can be avoided in case of foreign investors on the basis of bilateral agreements b) Exemption of income tax up to 3 years for the expatriate employees in industries specified in the relevant schedule of Income Tax ordinance Remittance Facilities for full repatriation of invested capital, profit and dividend Incentives for Foreign Investors
- 27. Incentives for Foreign Investors Exit An investor can wind up on investment either through a decision of the AGM or EGM. Once a foreign investor completes the formalities to exit the country, they can repatriate the sales proceeds Ownership Foreign investor can set up ventures either wholly owned or in joint collaboration with local partner
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