Why Bangladesh IT Industry

Fast Emerging Economy

  • A staggering GDP growth rate of 7.25% in the FY21–22 as one of the strongest South Asian Economies
  • To restore the pre-pandemic economic high growth trajectory in FY22-23, which averaged around 8% for a few years till FY18-19
  • To become the 23rd largest economy in the world by 2041

Large Consumer Market High in Digital Consumption

  • 8th largest consumer market in the world in terms of population with arising Middle and Affluent Class density (34 million by 2025)
  • 19th largest market for active smartphones and high internet penetration with about 130 million online population
  • Growing e-Commerce users with a current market value of around US$ 3.5 billion, growing at 50% every year
  • Large banked population with over 100 million MFS users and average daily transactions worth over BDT 2 billion

Fast Scaling Infrastructure

  • 92 Government & 17 Private Hi-Tech Parks (HTP), Software Technology Parks (STP), and Incubation Centers at the center of all ICT activities nationwide
  • Worlds 7th largest Uptime certified Tier IV Data Center reducing foreign dependence on data preservation
  • Fiber optic connection and satellite-based internet services are being enabled in places with difficult terrains

Large talent pool

  • 5,00,000+ college graduates from 150+ universities enter the workforce every year.
  • 2nd largest source of the global online workforce
  • Sheikh Hasina Institute of Frontier Technologies (SHIFT), Schools of Future, Center for 4IR, Digital Leadership Academy, and Research and Innovation Centers to build knowledge and innovation-based SMART Bangladesh by 2041.

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

Local frontier tech companies flourishing

  • Growing investment and focus on frontier technologies such as RPA, AI, cloud, IoT, Blockchain, VR/AR
  • The major export markets are North America, the EU, and East Asian countries
  • Thriving startup ecosystem with more than US$ 750 million foreign venture fund creating more than 1.5 million+ employment.

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

  • Consumer electronics market is worth US$ 1.38 billion with a 7.94% annual growth
  • Major global brands such as LG, Daikin, Panasonic, Hisense, Haier, Samsung, and Arçelik have setup their SKD and CKD manufacturing plants in Bangladesh
  • Local consumer electronics brands are exporting to over 45 countries worldwide

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