Bangladesh:An Emerging Country for Pharmaceuticals

Bangladesh:An Emerging Country for Pharmaceuticals

2

3

Export between FY 2009 – 10: US$ 14 billion

• 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

Bangladesh Overview

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$

6

7

US$ 800 million(IMS 09-10)

800

8

9

10

11

12

13

14

15

16

17

place (US 300 million dollar in last 3 years) for

18

19

20

21

22

(US $300 m in last 3 years)

23

Location

Ideal for global trades with access to intl. sea & air route

Natural ResourcesAbundant supply of natural gas, water and fertile land

Human ResourcesAbundant supply of easily trainable and low-cost workforce

Social StabilityA one race and one religion country. Social stability much higher

LanguageEnglish is generally understood and used as second language

Investment Climate in Bangladesh

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%

Source : Bangladesh Board of Investment ( BOI )

Comparative Costs in Competing Cities (in US$)

Tax ExemptionGenerally 5 to 7 years. The period of tax holiday will be calculated from the month of commencement of commercial production

DutyNo import duty for export-oriented industry

Tax Lawa) Double taxation can be avoided in case of foreign investors on the basis of bilateral agreementsb) Exemption of income tax up to 3 years for the expatriate employees in industries specified in the relevant schedule of Income Tax ordinance

RemittanceFacilities for full repatriation of invested capital, profit and dividend

Incentives for Foreign Investors

Incentives for Foreign Investors

ExitAn 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

OwnershipForeign investor can set up ventures either wholly owned or in joint collaboration with local partner

thank you

28