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BOARD OF INVESTMENTANNUAL REPORT - 2015Board of InvestmentPrime Minister's OfficeGovernment of the People's Republic of Bangladeshwww.boi.gov.bd
Board of InvestmentANNUAL REPORT2015Board of InvestmentPrime Minister's OfficeGovernment of the People's Republic of Bangladeshwww.boi.gov.bdDrive/D/Personal/502.2016 Annual Report 2015
Annual Report 2015, Board of Investment, Bangladesh.References to and citations from this Report is allowed, but must be properly acknowledged.This report is prepared under the guidance of Dr. Syed A Samad, Executive Chairman, Board ofInvestment, Prime Minister’s Office.The contents of this publication is contributed jointly by the wings of Board of Investment andcompiled, summarized, edited and designed by the following team members:1.2.3.4.5.6.7.Shamsunnahar BegumDr. Khandoker Azizul IslamSonjoy ChakrabartyUmme KulsumJeb-un NessaMd. Abu Sayed MahmudMd. Abu HanifaDirectorDirectorDeputy DirectorDeputy DirectorDeputy DirectorAssistant DirectorAssistant DirectorFor further information on this Annual Report, please contact:Director (Policy and Planning)Board of Investment, Prime Minister’s OfficeGovernment of the People’s Republic of BangladeshJiban Bima Tower (17th Floor), 10 Dilkusha C/ADhaka-1000, BangladeshPhone: 8802 957 7271-2, 956 1416, 955 2097 Fax: 8802 956 2312Email: service@boi.gov.bd Web: www.boi.gov.bdDrive/D/Personal/502.2016 Annual Report 2015ConvenorMemberMemberMemberMember SecretaryMemberMember
ContentsCONTENTSPAGEAcronyms6Map of Bangladesh7Honorable Prime Minister’s Message8Executive Summary9BOI at a Glance101. Board Management and Functions11a.The Board11b. Executive Council13c.14BOI Offices: Head Office and Divisional Offices2. BOI Investors Servicesa.Investment Counseling1415b. Industrial Project Registration16c.21Approval of Foreign Commercial Offices (FCOs)d. Work Permits in Industrial Projects and FCOs22e.Other Facilitations & Recommendations24f.Digital Automation of BOI Services253. Investment Followed by 9 MEGA Projects264. Actual FDI inflow in Bangladesh335. Investment Promotion35a.Outward and Inward Investment Delegationsb. Seminars / Workshops6. Bangladesh Road Show in UK: Beginning of a New Eraa.Publications35353739b. Other Promotional activities397. Policy Advocacy & Consultations408. Bilateral Investment Agreements419. Training & Capacity Development4110. Budget and Accounts42Drive/D/Personal/502.2016 Annual Report 2015
APPENDICESI.BOI Staff Position (31 Dec, 2015)II. Divisional Offices of BOIIII. BOI Budget 2015-2016 (Fiscal Year)LIST OF TABLESPAGE434344-46PAGETable-1Table-2::BOI services by major categories delivered: Jan-Dec 2015Private investment proposals registered with BOI from CY 2007 to CY 20151516Table-3:Private investment proposals registered with BOI from FY 2007-08 to FY 2015-1617Table-4:Sources of the foreign and joint venture projects registered in 201518Table-5:Top 10 local investment projects in 201519Table-6:Top 10 Joint venture & 100% foreign investment projects in 201520Table-7:21Table-8:Table-9:Table-10:Country wise list of established liaison, branch & representative (new &extension) office in 2015Country wise work permit employed in private sector for industrial enterprisein 2015Country wise work permit employed in private sector for commercial offices in2015Extent of BOI facilitation/recommendation services in 2015Table-11:FDI inflows by major sectors (in million US )33Table-12:FDI inflows by major sources / countries (in million US )34Table-13:Outward and inward investment delegations in 201535Table-14:List of seminars/workshops/symposium organized/partnered by BOI in 201535Table-15:Summary of major policy reviews made by BOI in 201540Table-16:BITs concluded with Bangladesh41Table-17:List of major training programmes attended by BOI officials in 201541Table-18:BOI annual budgets since FY 2006-0732Table-19:Audit objections and settlements (1989-90 to 2011-12)32Table-20:BOI staff position on 31 dec 201543Table-21:BOI staff went into PRL in 201543Table-22:Function and authorities of the divisional offices of BOI43LIST OF hibit-4:Monthly distribution of both local and joint & 100% foreign industrial projectsregistered in 2014 vs 2015 (million taka)Share of local vs joint venture & 100% foreign investment projects registeredwith boi from FY 2007-08- FY 2015-16 (in terms of nominal project value)(million taka)Sector wise distribution of projects registered with BOI (in terms of nominalproject value)Recent trend in FDI inflow in Bangladesh (in million US )Exhibit-5:FDI inflows by major sectors in 201526Exhibit-6:Foreign Direct Investment ( FDI) inflows by component in 201527Exhibit-7:Foreign Direct Investment ( FDI) inflows by component since 200834Exhibit-8:BOI Budget FY 2015-16 by major heads42Exhibit-9:BOI Budget FY 2015-16 by major heads (revised)42Drive/D/Personal/502.2016 Annual Report 201516171833
AcronymsADP: Annual Development CBDCEPZ: Bangladesh Chamber of Industries: Bangladesh Export Processing ZonesAuthority: Bangladesh Economic Zones Authority: Bangladesh Investment Climate Fund: Bilateral Investment Treaties: Board of Investment: Build, Own, Operate and Transfer: BOI Online Service Tracking System: Build, Operate and Transfer: Bangladesh Small and Cottage IndustriesCorporation: Central Business District: Chittagong Export Processing Zone: International FinanceCorporation: Investment Promotion Agency: Intellectual Property RightsMNCsMOPTs::CISCPACY: Commonwealth of Independent States: Chittagong Port Authority: Calendar YearNBRNCBsNCID:::DEPZDITFDTADTTs::::Dhaka Export Processing ZoneDhaka International Trade FairDomestic Tariff AreaAvoidance of Double Taxation TreatiesNOCNRBORSOPIC::::EC, BOIEPBFBCCIPMOPPPPI:::EPZs: Executive Council, Board of Investment: Export Promotion Bureau: Federation of Bangladesh Chambers ofCommerce & Industries: Export Processing ZonesPSIGFDIFY: Foreign Direct Investment: Fiscal YearSEZTRIPsGDP: Gross Domestic ProductUNCTADGNP: Gross National ProductUNIDOGOBICSID: Government of Bangladesh: International Center for Settlement ofInvestment Disputes: Import PermitVATVOA: Private Sector InfrastructureGuideline: Special Economic Zones: Trade Related Aspects ofIntellectual Property Rights: United Nations Conference onTrade and Development: United Nations IndustrialDevelopment Organization: Value Added Tax: Visa on ArrivalWTO: World Trade t Registration CertificateInformation TechnologyJiban Bima CorporationJoint VentureKilometerKey Performance IndicatorLand PermitMalaysian InvestmentDevelopment AuthorityMultinational CorporationsMinistry of Post AndTelecommunicationsNational Board of RevenueNationalized Commercial BanksNational Council for IndustrialDevelopmentNo Objection CertificateNon-Resident BangladeshOnline Registration SystemOverseas Private InvestmentCorporationPrime Minister’s OfficePublic Private PartnershipPrivate InvestorP#6
Map of BangladeshP#7Drive/D/Personal/502.2016 Annual Report 2015
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Executive SummaryThe government of Bangladesh has established the Board of Investment (BOI) to encourageinvestment in the private sector and provide necessary services for the establishment of industries tocontribute to the socio-economic development of Bangladesh.Bangladesh offers the most liberal investment climate in south Asia. Bangladesh occupies astrategic location as a bridge between South and South-East Asia and beyond. Private sectorinvestment is at the heart of economic growth in Bangladesh. Considering all the factors of doingbusiness, at present, Bangladesh is a unique place for investment. The present government is givingmore thrust on establishment of knowledge based hi-tech investment and the vision is to make DigitalBangladesh by 2021 and a rich and developed country by 2041.Board of Investment (BOI) had a busy schedule in 2015 with numerous activities and eventsrelated to investment both from local and foreign sources. The major activities includes investmentpromotion, investment facilitation, policy advocacy and after care services and research. In 2015, BOIregistered a total no. of 1537 Projects (Local, joint venture and 100% foreign investment) withproposed investment of Tk. 949795.902 million.According to various global ratings, Bangladesh considered as one of the most convenientinvestment destinations. Under Prime Minister’s Office (PMO), Board of Investment (BOI) is theapex investment promotion and facilitation agency of Bangladesh. It offers wide-ranging services tothe investors beginning from conceptualization to product marketing advice. Disseminating accurateand reliable information to the investors is a key agenda for BOI.The “Annual Report 2015” is a part of a series of publications made annually by BOI. It presentsfacts and issues pertaining to the investment scenario of Bangladesh. This “Annual Report” wouldassist the investors and the stockholders to get a preliminaring idea about the prevailing investmentclimate of Bangladesh. It will be helpful for the investors to making decision and doing business inBangladesh.P#9Drive/D/Personal/502.2016 Annual Report 2015
BOI at a glance1.Official Name:Board of Investment (BOI)2.Controlling office:Prime Minister’s Office3.Established on:1 January, 19894.Mandated by:The Investment Board Act, 19895.Boardcomposition:17 Board members headed by Honorable Prime Minister and Chairman6.Chairperson:Sheikh Hasina, Honorable Prime Minister7.Chief Executive:Dr. Syed Abdus Samad, Executive ed in Dhaka and 5 divisional offices in Chittagong, Rajshahi,Khulna, Sylhet and Barisal.10.Key Functions:BOI encourage private investment and provide necessary assistance toindustries. More than 15 types of functions under following four categories:Approved: 293 persons in 2014.Existing: Total 157 (Appendix-1)(Class I-38; Class III-52; Class IV-67)a. Investment promotion;b. Investment facilitations;c. Policy advocacy &d. Research.In addition, BOI has also been mandated to function as secretariat for foreigncommercial offices approved & work permits etc.11.Investmentservices:BOI provides 27 types of services to both local and foreign private investorsfrom initial investment counseling to business start up.12.Remarkableactivities in 2015(Jan-Dec):a. Investment Registration: Total 1537 projects with proposed investment ofTk. 949795.902 million (US 12123.032 million) registered.b. Undertaking various reform initiatives to make BOI services more clientoriented and simplified. These include: Drive/D/Personal/502.2016 Annual Report 2015Organizing monthly Executive Council meeting and fortnightlyInter-Ministerial meeting.Introducing Online Service Tracking System (BOST) to ensuretransparency in service delivery process.An online business law database named ―Business Law Website‖ hasbeen created for the investors and business community.Online Registration Service (ORS) has been created to receiveregistration application online.Establishing a comprehensive website with latest info base andmaking it a real e-gateway to BOI.Publishing and distributing investment promotion materials likenewsletters, brochure, workshops & seminars proceedings and factsheet with up-to-date information.Organizing and participating in the conferences, meetings, roundtable dialogues, seminars, expo fairs, business fair, workshops, roadshows etc. in home and abroad to generate interests and awarenesson investing in Bangladesh.Providing expert inputs to the formulation and review of nationalpolicies related to private sector investment and industrialization.P#10
1. BOARD MANAGEMENT AND FUNCTIONSBOI has a 3-tier management structure namely, the Board, Executive Council and the Office. TheBoard is chaired by the Honorable Prime Minister of the country, while the Executive Council and theOffices of BOI are headed by the Executive Chairman. This Chapter describes the structure, functionsand performances of BOI management.a. The BoardThe Board of Investment was established in 1989 under the Investment Board Act 1989 to encourageinvestment in the private sector and to provide necessary facilities and assistance in the establishmentof industries.CompositionOriginally, the Board chaired by the Honorable Prime Minister with 18 members including four (4)co-opted members. With the merger of Ministries of Jute and Textile in 2004, the currentmemberships are 17. BOI Executive Chairman is the member-secretary ex-officio of the Board. Here isa list of the present Board members:1.Honorable Prime Minister, Chairman.2.Minister, Ministry of industries who is also Vice-Chairman, ex-officio.3.Minister, Ministry of Finance, ex-officio.4.Minister, Ministry of Power, Energy and Mineral Resources, ex-officio.5.Minister, Ministry of Commerce, ex-officio.6.Minister, Ministry of Textiles and Jute ex-officio.7.Minister, Ministry of Planning, ex-officio;8.Governor, Bangladesh Bank, ex-officio.9.Secretary, Ministry of Industries, ex-officio.10. Secretary, Finance Division, ex-officio.11. Secretary, Internal Resources Division, ex-officio.12. President, Federation of the Bangladesh Chambers of Commerce and Industries, exofficio.13. President, Bangladesh Chamber of Industries, ex-officio.14. Chairman, Executive Council, who is also its Secretary, ex-officio.The Board also co-opted four additional members, namely:15. Minister, Ministry of Foreign Affairs.16. Minister, Ministry of Expatriate Welfare and Overseas Employment17. Minister, Ministry of Post and Telecommunications.18. Minister, Ministry of Science and Information & Communication Technology.Drive/D/Personal/502.2016 Annual Report 2015P#11
Composition of the BoardName and DesignationPositionName and DesignationPositionSheikh HasinaHonorable Prime MinisterGovernment of The People’sRepublic of BangladeshChairmanArchitect Yeafesh OsmanHonorable MinisterMinistry of Science and Information &Communication TechnologyGovernment of The People’sRepublic of BangladeshMemberAmir Hossain AmuHonorable MinisterMinistry of IndustriesGovernment of The People’sRepublic of BangladeshViceChairmanAbul Maal Abdul MuhithHonorable MinisterMinistry of FinanceGovernment of The People’s Republic ofBangladeshMemberMr. Fazle KabirGovernorBangladesh BankMemberMd.Imaz Uddin PramanikHonorable MinisterMinistry of Textile & JuteGovernment of The People’sRepublic of BangladeshMemberMd. Mosharraf Hossain Bhuiyan ndcSecretaryMinistry of IndustriesGovernment of The People’sRepublic of BangladeshMemberAHM Mustafa KamalHonorable MinisterMinistry of PlanningGovernment of The People’sRepublic of BangladeshMemberMr. Mahbub AhmedSenior SecretaryFinance DivisionMinistry of FinanceGovernment of The People’sRepublic of BangladeshMemberMemberMd. Nojibur RahmanSenior SecretaryInternal Resources DivisionGovernment of The People’sRepublic of BangladeshMemberNurul Islam BScHonorable MinisterMinistry of Expatriates Welfare andOverseas EmploymentGovernment of The People’sRepublic of BangladeshMemberAbdul Mattub AhmedPresidentThe Federation of Bangladesh Chambersof Commerce & Industries (FBCCI)MemberTofail AhmedHonorable MinisterMinistry of CommerceGovernment of The People’sRepublic of BangladeshMemberA K AzadPresidentBangladesh Chamber of Industries (BCI)MemberAbul Hassan Mahmood AliHonorable MinisterMinistry of Foreign AffairsGovernment of The People’sRepublic of BangladeshMemberDr. Syed A SamadExecutive ChairmanBoard of InvestmentMember SecretaryHonorable MinisterMinistry of Posts andTelecommunicationsGovernment of The People’sRepublic of BangladeshDrive/D/Personal/502.2016 Annual Report 2015MemberHonorable State MinisterMinistry of Power, Energy & MineralResourcesGovernment of The People’sRepublic of BangladeshP#12
Board Functions:The key function of BOI categorized in the following areas :1. Investment promotion;2. Investment facilitation;3. Policy advocacy; and4. Research.Briefly BOI functions are:a.Providing of all kinds of facilities in the matter of investment of local and foreign capital for thepurpose of rapid industrialization in the private sector.b. Implementation of the Government policy relating to the investment of capital in industries in theprivate sector.c.Preparation of investment schedule in relation to industries in the private sector and itsimplementation.d. Preparation of area-schedule for establishment of industries in the private sector anddetermination of special facilities for such areas.e.Approval and registration of all industrial projects in the private sector involving local andforeign capital.f.Identification of investment sectors and facilities for investment in industries in the private sectorand giving wide publicity thereof abroad.g. Invention of specific devices for the purpose of promotion of investment in industries in theprivate sector and their implementation.h. Creation of infrastructural facilities for industries in the private sector.i.Determination of terms and conditions for employment of foreign officers, experts and otheremployees necessary for industries in the private sector.j.Formulation of policies relating to transfer of technology and phase-wise local production in theprivate sector and their implementation.k. Financing and providing of assistance in the financing of important new industries in the privatesector.l.Adoption of necessary measures for creation of capital for investment in industries in the privatesector.m. Collection, compilation, analysis and dissemination of all kinds of industrial data andestablishment of data-bank for that purpose.n. Doing such other acts and things as may be necessary for the performance of the above functions.o. Conducting research regarding investment and other policy preparation of the government.b. Executive CouncilComposition & FunctionsHaving delegated authority from the Board, Executive Council is the decision making body of BOIwhich works successfully. It consists of a Chairman and other members not exceeding six in number.Currently, there are four (04) members of the Executive Council.The Chairman of the Executive Council is the Executive Chairman and acts as the Chief Executive ofBOI. The Executive Council advises and assists the Board in the efficient performance of its functions,is responsible for implementation of the decisions of the Board, and exercises such powers andperforms such functions as delegated to it by the Board. Generally, Executive Council undertakesdecisions in meetings and the meetings are held under the directives of the Executive Chairman.Drive/D/Personal/502.2016 Annual Report 2015P#13
Executive Council's PerformanceExecutive Council's meeting generally held on monthly basis. From 1 January 1989, the establishmentof BOI till 31 December 2015, the Executive Council held 590 meetings. Among these, 8 meetings wereheld in 2015.C. BOI OfficesThe headquartered of BOI is in Dhaka and its five (5) divisional offices are in Chittagong, Rajshahi,Khulna, Sylhet and Barisal. The Divisional offices are delegated with some authorities to registerprojects, recommend services and provide counseling and facilitations.C.1. Head OfficeBoard of Investment head office known as BOI office, Located at Dilkuska - the Central BusinessDistrict (CBD) of Dhaka. All the functions and services of BOI are carried out at the head office. TheExecutive Council and senior management of BOI office are housed here.C.2. Divisional OfficesThe Divisional offices are delegated some authorities to register projects, recommend services andprovide counseling and facilitations. The function, authority level and the mailing address are shownat Appendix -II.2. BOI INVESTORS SERVICESBeing an Investment Promotion Agency BOI services that are available for the investors, could becategorized in three stages.Stage 1: Pre-investment Information a
Board of Investment (BOI) had a busy schedule in 2015 with numerous activities and events . An online business law database named ―Business Law Website‖ has been created for the investors and business community. Online R
