Switzerland-Bangladesh
Switzerland-Bangladesh Relations
The Amity Between Bangladesh and Switzerland Exists Since 13 March 1972 When Switzerland Recognized Bangladesh as a Sovereign Nation.
Since the mid-1990s, the relationship primarily focused on humanitarian aid and development coordination but has now been enhancing through rising bilateral trades and, political, economic and cultural affairs.
Switerland-Bangladesh Relations
The Amity Between Bangladesh and Switzerland Exists Since 13 March 1972 When Switzerland Recognized Bangladesh as a Sovereign Nation.
Since the mid-1990s, the relationship primarily focused on humanitarian aid and development coordination but has now been enhancing through rising bilateral trades and, political, economic and cultural affairs.
Investments & Trade
The gross value of FDI stock owned by Switzerland in Bangladesh has grown by 98% since 2015, with values amounting to USD 38.26 Mn in 2019, indicating a growing relationship between the two countries.
At present, around 100 Swiss companies are present in Bangladesh, and Swiss multinational companies such as Nestle, SGS, Reiter, and Incepta are planning to diversify their portfolios, showing high potential for increased bilateral trade.
Bilateral trade between Bangladesh and Switzerland has tripled to USD 894 Mn since 2010, showing huge potential for growth. Switzerland has established a positive image in Bangladesh, which plays a significant role in the promotion of Swiss companies and their products in the local market.
Source: Bangladesh Bank, World Trade Organization, Embassy of Switzerland Dhaka, The Business Standard
Exchange Rate
The average exchange rate fluctuations between Swiss Franc and Bangladeshi Taka have remained approximately stable from 2011-2019.
Source: ExchangeRates.org.uk
Policies & Incentives
Bolstering the Bilateral Relationship: An Inter-agency Committee was formed by the Government of Bangladesh (GOB) in September 2018 to review and address challenges of Swiss businesses and investors in Bangladesh
- Facilitation of Investment: A Memorandum of Understanding (MoU) on cooperation between Korea Trade-Investment Promotion Agency and BIDA (Bangladesh Investment Authority) had been signed for the period 2019-2023.
- Enjoy Facilitation of Operations: In 2009, the two countries ratified a bilateral agreement on the Avoidance of Double Taxation under which companies and professionals receive better legal protection, profits, dividends, royalties, pensions, etc.
Tax incentives: The Government of Bangladesh provides tax exemption of five to seven years to international investors in certain sectors.
- LDC Benefits: Bangladesh receives duty-free market access from Switzerland as an LDC.
Source: Investment Policy Hub, The Business Standard
Official Development Assistance
Despite Switzerland Being a Key Multilateral Player with a Strong Humanitarian Tradition, the Swiss Cooperation Policy 2018-2021 Focuses More on Institutional Building and Policy Influencing. Compared to the SDC’s former cooperation strategies, the budget for the development aid has declined by 13.6% from 2016 to 2018.
Switzerland is currently engaging more on a mix of cooperation instruments for assistance such as providing technical assistance, defining possibilities for knowledge transfer, and developing programs that will increase Bangladesh’s capacity to adapt and innovate.
The SDC Humanitarian Aid Unit has implemented projects amounting to USD 5.1 Mn that involves clean water provision, food security and human rights protection for the Rohingya minority as well as the host communities.
The Swiss Aid has provided infrastructure support to two hospitals in Cox’s Bazar to provide healthcare support to the host communities.
Source: Swiss Cooperation Strategy for Bangladesh 2018-2021, OECDiLibrary
Potential Sectors of Investments
The prior investment patterns of the Netherlands indicates further diversification and investments in the following sectors:
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