The Netherlands-Bangladesh
Netherlands-Bangladesh Relations
The Bangladesh- Netherlands duo is an exemplary friendship and this coalition between Bangladesh and the Netherlands dates back into the 1970s. This amity was instituted specifically in 1972 with the Netherlands being the first European country to accede to Bangladesh as a sovereign nation.
Since then the Netherlands has been a notable ally in the socio-economic development of this fairly new country. This harmony was not limited to but further enhanced over the years by the provision of the first expat club in Dhaka, known as the Dutch club. This landmark accentuated Dhaka on the global map inviting recognition from other key countries.
Netherlands-Bangladesh Relations
The Bangladesh- Netherlands duo is an exemplary friendship and this coalition between Bangladesh and the Netherlands dates back into the 1970s. This amity was instituted specifically in 1972 with the Netherlands being the first European country to accede to Bangladesh as a sovereign nation.
Since then the Netherlands has been a notable ally in the socio-economic development of this fairly new country. This harmony was not limited to but further enhanced over the years by the provision of the first expat club in Dhaka, known as the Dutch club. This landmark accentuated Dhaka on the global map inviting recognition from other key countries.
Investments & FDI
This relationship has been stable since the emergence of Bangladesh but to scrutinize the trend line over the last 5 years, the average net FDI flow from Netherlands has been U$ 236 million from 2015 to 2019. This includes FDI inflows in several sectors of Bangladesh but the key sectors being the food, textile, and wearing, cement, leather and leather products, gas and petroleum, the power to name a few. The FDI flow from the Netherlands has notably increased in 2019 with food & agriculture being the dominant sectors.
The FDI trendline is depicted which shows the recent FDI trading between Bangladesh and the Netherlands. The trend of trade has been expanding between Bangladesh and the Netherlands and this trade has been proliferating from both ends.
Trade
Imports from the Netherlands were worth €137 Mn in 2018-19 and the top imported items were machines and transport equipment.
Bangladesh exported goods worth €850 million (July-June 2019-20) to the Netherlands and the top exports were RMG, Footwear & Crustaceans.
In addition, the Dutch Collaboration in Jute sector would give the Netherlands and the EU direct access to Bangladesh’s high-quality Jute fiber and capitalize on meeting demand in expanding the sustainable economy and emerging circular economy. Another arena of Dutch-Bangla collaboration is the deep-sea market. The ocean economy already contributes to 3% of GDP and the Development of Bangladesh’s Blue Economy is also part of Delta Plan 2100 where the Netherlands is involved significantly.
Policies & Incentives
This alliance is further aided as the Government of Bangladesh (GoB) has instituted liberal investment and business operation policies regarding taxation, import duties, work documentation and capital repatriation among others, as such that it encourages further foreign investment in the secondary and tertiary sector of the country.
One such policy is the Bilateral signatories of Double Tax Avoidance (DTA) agreements. This agreement is endorsed with the Netherlands as well- constituting more opportunities for investment. The Bangladesh government provides five to seven years of tax exemption to international investors planning on operating in certain sectors. Investments in some priority sectors like power, enjoy tax exemption for up to 15 years.
Potential Sectors of Investments
The prior investment patterns of the Netherlands indicates further diversification and investments in the following sectors:
Previous
Next