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2. Information for Dutch Companies

 

2.2 Bilateral economic relations between Bangladesh and the Netherlands

The Netherlands has a structural trade deficit with Bangladesh (see table 3). This trade pattern is common for Bangladesh with most of the European Union countries and the USA. On the other hand, Bangladesh has a huge trade deficit with India (both formal and informal).

 

Table 3 Bilateral trade NetherlandsBangladesh (2002 -2005) in mln Euro (source: CBS)

 

 

2002

2003

2004

2005

Import

243.5

250.3

272.7

234.7

Export

76.7

43.9

54.7

45.2

Balance

-166.8

-206.4

-217.5

-189.5

 

When looking at the composition of the bilateral trade figures, the Netherlands mainly imports various manufactured good from Bangladesh, while exporting mostly machinery, transportation and chemicals (see table 4).

 

Table 4 Compostion of Dutch import from and export to Bangladesh (source CBS)

Import

SITC code

Description

2002

2003

2004

2005

 

 

Total

243.5

250.3

272.2

234.7

 

Total agriculture

22.0

14.2

10.8

11.3

 

Total industry

221.5

236.1

261.4

223.4

0

Food and live animals

22.0

14.2

10.8

11.3

6

Manufactured goods

12.0

10.9

13.1

14.9

7

Machinery and transportation

7.3

5.2

4.8

3.0

8

Various manufactured goods (particularly RMG)

201.8

219.5

242.1

202.8

Export

SITC code

Description

2002

2003

2004

2005

 

 

Total

76.7

43.9

54.7

45.2

 

Total agriculture

11.9

5.1

7.0

6.0

 

Total industry

64.8

38.8

47.7

39.2

0

Food and live animals

11.7

5.0

6.7

5.9

5

Chemicals

15.6

14.1

5.7

10.6

6

Manufactured goods

10.0

4.9

4.9

7.9

7

Machinery and transportation

37.1

17.6

35.3

11.7

8

Various manufactured goods

1.7

1.7

1.5

8.5

 

 

 

 

 

 

Foreign Direct Investment (FDI) inflow to Bangladesh6

FDI inflow to Bangladesh in 2005 was USD 845.3 million registering 83.6% growth over the previous year. The top investor countries in 2005 were UK (USD 152.8 million), USA (USD 141.8 million), Singapore (USD 97.5 million), UAE (USD 55.4 million) and Norway (USD 543.5 million). The Netherlands FDI was USD 15.4 million, making the Netherlands the 14th biggest FDI source in Bangladesh (17th place in 2004). Recently a lot of large conglomerates have shown interest to invest in Bangladesh, for example Indias Tata which expressed to invest up to USD 3 billion in Bangladesh. For more details see table 5 and figure 1.

 

Table 5 - FDI inflow in Bangladesh during 2005: Distribution by Source (in million USD)

 

FDI Sources

2004

2005

2005 Share (%)

2005 Rank

FDI-2004

Rank 2004

Jan-Jun

Jul-Dec

FDI-2005

Canada

0.4

23

-

0.7

0.7

0.08%

25

China

0.4

24

1.4

0.2

1.6

0.19%

22

Denmark

18.8

9

6.4

11.8

18.2

2.15%

13

Egypt

19.9

7

22.2

26.2

48.4

5.73%

7

France

0.7

22

0.9

0.8

1.7

0.20%

20

Germany

6.8

15

0.1

1.5

1.6

0.19%

21

Hong Kong

13.9

11

27.2

25.9

53.1

6.28%

6

India

6.8

16

0.8

1.9

2.7

0.32%

18

Indonesia

-

28

-

1.3

1.3

0.15%

23

Japan

30.0

5

33.8

12.7

46.5

5.50%

8

Luxembourg

3.0

19

-

0.4

0.4

0.05%

27

Malaysia

38.9

4

24.9

8.2