VII. INVESTMENT CLIMATE Openness to Foreign Investment The policy of the Government of Bangladesh (BDG) is to pursue foreign investment actively. It has placed advertisements in international print media promoting Bangladesh for foreign investment, and the Prime Minister headed an investment mission to Japan in March 1994, accompanied by a large delegation, half from the private sector. Although it has welcomed foreign investment since at least 1980, Bangladesh has been singularly unsuccessful in attracting it. To date, the Embassy estimates just over 100 foreign firms have invested in Bangladesh, of which 26 existed prior to independence in 1971. Since 1986, overall private investment in Bangladesh has only been six percent of GDP or less, the lowest in Asia. Probably less than $15 million annually (excluding the KAFCO project--noted later), a tiny fraction, has been foreign investment. Some of the difficulty has been with overcoming a seemingly indelible image of poverty and disasters. However, the major weaknesses in the investment climate have been man-made. Domestic businesses generally cite such problems as government red tape and corruption, an uncertain law and order situation, poor infrastructure, inadequate commercial laws and courts, and policy instability. Many of the small number of foreign investors in Bangladesh-- particularly long-resident British investors in import- substitution industries and other nations' firms in the Chittagong EPZ--have had favorable experiences. However, when existing foreign investors encounter problems with policies and regulations, the BDG does not pay adequate attention. Three prominent foreign firms, the U.S. company Pfizer Laboratories, the Dutch firm Philips, and the Swedish firm Swedish Match, divested in 1993. Pfizer was the last of three U.S. pharmaceutical firms left in Bangladesh. The investment climate is also still suffering from the BDG's holding up for a year in 1991 of the $520 million KAFCO fertilizer plant project, which includes $70 million in equity from companies from several donor countries as well as equity from the BDG. KAFCO is scheduled to commission its plant by December 1, 1994. However, there are concerns about whether the BDG will deliver natural gas--likely to be in short supply--as contracted. KAFCO is seen by Japanese investors in particular as a bellwether of the BDG's treatment of foreign investment. Major laws affecting foreign investment are the Foreign Private Investment Act of 1980, the Industrial Policy of 1991, the Bangladesh Export Processing Zones Authority Act of 1980, and the Companies Act, 1913. In addition, foreign investors are also affected by regulations of the Bangladesh Bank (central bank), the National Board of Revenue (for taxation and customs matters), and others. Although discrimination against foreign investors is not widespread, some discriminatory policies and regulations exist. For example, manufacturing and import controls imposed by the national drug policy and the Drugs (Control) Ordinance of 1982 discriminate against foreign drug companies. BDG authority for dealing with foreign investment proposals is fragmented, and no BDG office has the clout to be a "one-stop shop." BOI, touted as a one-stop shop for all investors, is only set up to register investors in industrial projects outside the export processing zones and assist them with tax treatment, land acquisition, utility hook-ups, and incorporation. (The corresponding EPZ authority is the Bangladesh Export Processing Zones Authority (BEPZA)). Registration with BOI is necessary to obtain benefits such as importing machinery at concessionary duty rates or importing items on the "restricted list." In March 1994, BOI began using a greatly reduced form and providing registration automatically. The BOI also administers the approval of foreign loans and technology remittances on behalf of the Bangladesh Bank (central bank). In addition to setting passbook quotas, these guidelines--enforced before by withholding registration--covered royalties, technical assistance fees, expatriate work permits, and foreign loans and supplier's credit. For certain important investors BOI is largely irrelevant. Investments in power, mineral resources, and telecommunications must be approved by the corresponding BDG utilities and ministries, while garment makers must seek production allocations for quota exports to North America from the Export Promotion Bureau. Although privatization is a critical part of the BDG's economic reform policy, privatizations have not progressed to where foreign investors have expressed interest in participating. Similarly, United States and foreign firms have not expressed interest in BDG research and development programs. Work permits for other than expatriate chief executives are frequently restricted, directly contrary to the 1991 Industrial Policy, with re-entry visas limited to two-to-three entries. There are no distinctions between foreign and domestic private investors regarding investment incentives or export and import policies. Incentives for investors, which the BDG hails as the most liberal in Asia, include 100 percent ownership in most sectors; tax holidays; reduced import duties on capital machinery and spares; duty-free imports for 100 percent exporters; and tax exemptions on technology remittance fees, on interest on foreign loans, and on capital gains by portfolio investors. There are few performance requirements, and these do not generally present a problem for foreign investors. Conversion and Transfer Policies The taka was recently made freely convertible for current account transactions, and the BDG has announced plans to make the taka convertible on the capital account as well. The BDG's foreign exchange reserves currently are $2.7 billion, representing eight months of import cover, and foreign exchange is generally available for permissible private sector transactions. The taka has been relatively stable against the dollar, depreciating gradually less than 10 percent between 1991 and 1994. The Foreign Investment Act guarantees the right of repatriation of invested capital, profits, capital gains, post-tax dividends, and approved royalties and fees. Bangladesh Bank exchange control regulations and the United States-Bangladesh Bilateral Investment Treaty (entered into force July 23, 1989) provide similar investment transfer guarantees. In practice, most foreign firms are able to repatriate these items without too much difficulty, provided the appropriate documentation is in order. Foreign firms in joint ventures, which are only able to remit profits in the form of dividends, also report no difficulties in the process. However, in some cases, foreign firms' profit remittances have been delayed for over one year pending tax clearance from the National Board of Revenue. Where tax disputes are causing the delay, firms may have to choose between timely profit remittance and sacrificing legitimate positions on tax issues. Although the law provides in general for capital transfers, there are still some significant restrictions in practice. For example, repatriating capital gains, other than from the sale of publicly listed shares, is limited to ten percent of the capital gain, and is difficult to accomplish. BOI also issues passbooks limiting repatriation of royalties and other technology transfer fees. However, in 1992 BOI increased the limit on remitting such fees without permission to six percent of sales. The increase greatly pleased the Foreign Investors Chamber of Commerce and Industry. Expropriation and Compensation In the years immediately following independence in 1971, widespread nationalization resulted in government ownership of over 90 percent of fixed assets in the modern manufacturing sector, as well as all banking and insurance interests, except those in foreign (non-Pakistani) hands. All domestically owned cotton textiles, jute, and sugar manufacturing units, none of which were owned by foreigners, were placed under government control. Since then, the Foreign Investment Act of 1980 has forbidden nationalization or expropriation without adequate compensation. There have been no instances of expropriation of foreign property since the Foreign Investment Act was passed. Dispute Settlement Underlying other impediments to investment in Bangladesh is a weak legal system in which, realistically, enforceability of contracts is in doubt. Over ten years can easily pass by between bringing a court case and executing a judgment. With no interest charged on judgments, there is no penalty for delaying proceedings. It is generally believed that in the lower courts where cases are first brought, private sector parties with the means to make "good connections" with the judge have an advantage, even in cases where the government is the opposing party. Articles 115 and 116 of the Constitution allow the head of state to control and discipline judges, including Supreme Court justices. Legislation to make the judiciary independent is pending. Nevertheless, the Supreme Court has retained a reputation for fairness and competence. This has meant that at least at the appellate level the outcome of commercial cases is determined by merit. There have not been any investment disputes over the past few years involving U.S. or other foreign investors or contractors in the Bangladeshi courts. A recent World Bank-supported Foreign Investment Advisory Service study which looked at the legal environment for private investment did not indicate whether judgments of foreign courts are accepted by local courts. However, the author stated that in the case of arbitration, although Bangladesh was a signatory of the International Convention for the Settlement of Disputes, it had not yet acceded to the U.N. Convention for the Enforcement of Foreign Arbitral Awards. A provision in the United States-Bangladesh Bilateral Investment Treaty gives procedures for referring unresolvable investment disputes to ICSID for third-party settlement. In any case, the ability of the Bangladeshi judicial system to enforce its own awards is weak, and there is no reason to think enforcement of foreign judgments would be any stronger. Most laws affecting investment in Bangladesh badly need overhauling. Among others, Bangladesh has a 1913 Company Law, a 1909 and a 1920 Insolvency Law, an 1861 Admiralty Law, a 1911 Patents Law, a 1933 Patent and Design Rule, a 1940 Trademark Act, and a 1962 Copyright Ordinance. Some drafts of new legislation produced by ad hoc government committees are more than ten years old, but final reviews have not been conducted. Resource constraints in the Law Ministry are a major problem. However, the World Bank is making an effort to assist with moving law reforms forward. The insolvency laws, which apply mainly to individual insolvencies, are not being used because of a web of falsified assets and uncollectible cross-indebtedness supporting insolvent banks and companies. Although land, whether for purchase or lease, is often critical for investment and as security for loans, antiquated real property laws guarantee chaos. Land registration records are untrustworthy and unreliable. Parties avoid registering mortgages, liens and encumbrances because certain stamp duties and charges have been set at very high levels. Instruments take effect from the date of execution, not the date of registration, so a bona fide purchaser can never be certain of title. Dispute settlement is also hampered by shortcomings in accounting practices and the registration of real property. With the possible exception of those conducted by a few internationally affiliated accounting firms, audits of balance sheets and profit and loss statements often follow clients' instructions and fail to conform to international standards. Documents affecting title to real property are often not registered, complicating transfer of ownership and collateralization. Performance Requirements/Incentives The BDG prefers manufacturing which uses local inputs and has shifted its preference for high technology products to more labor-intensive industries. Ready-made garment manufacturers are encouraged to use locally produced fabric. However, nearly all manufacturers are unable to source local fabric of sufficient quality to do so. Manufacturers are required to achieve a total local value added content of their garments of 25-30 percent for most garments. The 1991 Industrial Policy states it is "mandatory to pack food materials, sugar, cement, fertilizer, etc. in jute bags." However, this is also not being followed in practice because of inadequate supplies. In order to qualify for incentives available only to exporters, such as no duties or reduced duties on imported machinery and spare parts, a company must establish that it exports 60 percent or more of its output. Other incentives available to firms establishing themselves as exporters are bonded warehouse facilities and tax holidays of ten years or more. Right to Private Ownership and Establishment Officially, six sectors are reserved for government investment only. These are: A) Arms, ammunition, defense equipment, and machinery; B) Production of nuclear energy; C) Security printing and minting; D) Forestry in the reserved forest areas; E) Airways (except short take-off and landing services) and railways; and F) Transmission and distribution of electricity. Industrial activity is still dominated by inefficient public sector enterprises, which stifles the potential for greater economic performance. In its early years, Bangladesh limited private firms to fixed assets below $200,000 and prohibited them from entering certain key businesses, such as jute exporting, insurance, and banking. Although investment ceilings for private industry were finally abolished in 1978, the private sector's confidence has been slow to recover. The BDG's privatization efforts have been watched closely as a barometer of the official attitude towards the private sector. Although on paper the BDG has sold off a significant number of companies and shares, including about 38 percent of the country's jute milling capacity, 70 percent in textiles, 12 percent in sugar and food, 10 percent in chemicals, and 4 percent in steel and engineering, it has retained control of many. Privatized firms in these sectors continue to behave as parastatals and to be heavily regulated; e.g., management has not been able to reduce employment rolls. In at least three cases of foreign firms whose joint venture partners were nationalized at independence, the foreign firms have been unable to persuade the government to sell them its shares at fair market value. Despite continued rhetoric to the contrary, privatization has slowed to a virtual standstill. In 1992, the BDG expressed a commitment to privatize 42 industrial units. The Chairman of the Privatization Board has handed over only two state-owned enterprises, with only seven others at various stages in the process. Unofficially, many sectors are reserved at least in part for the government. Although occasionally the BDG has given way to the private sector, such as for wheat and fertilizer imports and fertilizer distribution, parastatals have often stifled private sector initiatives and undermined legal and policy reforms. Licenses required for businesses in which parastatals compete, such as banking and insurance, are not readily granted. Following a BDG decision in mid-1993 to allow the private sector to import petroleum products, a private firm imported a shipment of diesel fuel in December 1993. A court injunction won by the monopolist Bangladesh Petroleum Corporation tied up the cargo in port for months. Although the private company eventually prevailed, the BDG reversed policy and reinstated its monopoly. In another instance, a private firm has arranged to charter a tanker for the crude oil imports of the state-owned refinery, which agreed to the deal to save on shipping costs. However, the private firm has not received "permission" for nearly two years from the Bangladesh Shipping Corporation, which began lobbying the BDG to charter its own tanker after learning of this deal. Protection of Property Rights The laws of Bangladesh generally afford some protection of property rights, as well as of intellectual property rights, but the laws need to be updated and enforcement is lax. As indicated, Bangladesh has a 1911 Patents Law, a 1933 Patent and Design Rule, a 1940 Trademark Act, and a 1962 Copyright Ordinance. In addition, Bangladesh is a member of the World Intellectual Property Organization. However, trademark and copyright violations are common. Inadequate patent protection would be an impediment if investors were otherwise prepared to bring in proprietary technology. A draft of new trademarks and patents legislation was submitted to the government in 1990, but no action was taken. A new draft was submitted recently. In an example of what businesses face to obtain protection, a local firm which developed Bangla language banking software tried to get a copyright in 1989 but kept receiving requests from the Copyright Office for a hard copy printout. The Copyright Office did not understand the difference between code and text produced using the software and did not have its own computer to examine the software. The company finally got registration by submitting a description of what the software did. Regulatory System: Laws and Procedures Starting from a position of extreme over-regulation, the trend roughly since 1989 has been for governmental obstruction of private business gradually to decrease. However, it is important to bear in mind that these changes, despite their overwhelming merits, have been driven by post-Cold War global economic realities and donor enthusiasm, not by the Bangladeshi political or business elite. Many regulatory changes have not yet been politically possible to implement. Although some civil servants and ministers receive good marks, reforms face broad-based resistance from nearly all groups of actors in the economy including, ironically, the business community. The official chambers of commerce include manufacturers with protected industries and well-connected commission agents pursuing government contracts. They call for a greater voice for the private sector in government decisions and for privatization, but they are also protectionist, subsidy-minded and tamed by their official roles. Policy and regulations in Bangladesh are often not clear, consistent, or publicized. One commentator has described BDG regulations as "by and large unpublished, unknown to the public, and unknowable." Generally, the civil service, elite businesspeople, professionals, trade unions and political parties have vested interests in a system in which confidentiality is used as an excuse for lack of transparency and in which patron- client relationships are the norm. Businesses must always return to civil servants to get action, and may not get it, even after receiving assurances at higher political levels. Traditionally, the BDG's poorly paid civil servants regard businesspeople as exploitative and regard themselves as having a near monopoly on economic acumen and patriotism. Although many civil servants impede business and add to its costs out of a desire to control the economy, safeguard public sector jobs, or protect consumers, others do so by rent-seeking activities. Under a democratically elected, civilian government, getting things done within the bureaucracy has become even slower, as there is greater scrutiny of civil servants' actions and risk to their careers . Accounts from domestic and some foreign investors of solicitation of bribes continue to be numerous. Delays in moving files--the hallmark of red-tapism--have increased. Donors have come to regard public administration reforms as central to overall economic reform. In practice, BDG laws and regulations and their enforcement do not reduce distortions or impediments to investment, but create them. Continued unhelpful treatment of businesses by BDG officials, coupled with other negatives in the investment climate, raise business start-up and operational costs, add to risk, and counteract the BDG's investment incentives. In this regard, business people agree that Customs and Excise deserves special mention. Businesses spend a great deal of time and money dealing with Customs. One common tangle concerns tariff schedules, which Customs uses to determine the value of goods unless pre-inspected to which it then applies published rates of duty. The schedule is changed every year. Changes apply while goods are in transit. Efficient Capital Markets and Portfolio Investment Foreign investors have access to local credit markets, but most seeking financing obtain it offshore. If they finance locally, it is with a foreign bank branch. The BDG owns seven banks, and there are 17 private banks, of which six are foreign. The estimate of total deposits of the five largest banks, four of which are government commercial banks, is $5.1 billion, with total loan portfolio size of $3.9 billion. Total sector deposits are valued at approximately $9.0 billion with outstanding loans estimated at $7.5 billion. The government banks and many local private banks have a high percentage of classified or non- performing loans. At the government banks, this resulted from directed lending, mostly to money-losing parastatals, diverting credit from the private sector. The banking system is impaired by a web of weak balance sheets, high liquidity, high real interest rates, weak demand from creditworthy borrowers, and heavy reliance on liquid asset-based lending. Despite market reforms, such as the liberalization of interest rates, the BDG is jawboning its own banks to lend to "sick" industries, both parastatal and privatized, and all banks to increase term lending. Donor institutions are assisting with financial sector reforms. Part of the reform effort is to upgrade regulations and accounting standards to international standards as far as possible, enhance capital adequacy, improve bank supervision, and improve loan recovery. The private sector can also receive financing from two leasing companies and by issuing shares or debentures on the Dhaka Stock Exchange (DSE). One of the world's smallest share markets, the privately owned DSE only has 30 companies actively traded out of 142 companies listed. Trading picked up in 1993, when a boom began, believed by insiders to have been helped by local businesses bringing in offshore funds as foreign investment. Between June 1993 and March 1994, as much as $60 million in foreign funds may have followed, the DSE index grew 115 percent, and market capitalization of listed companies reached $625 million. Average daily trading jumped from $10,000 to over $300,000. However, overall DSE growth is severely limited by the small number of available shares of the active issues. Although the BDG formed a Securities and Exchange Commission in 1993 to regulate the DSE and protect investors, it remains to be seen whether it will be effective, as the de facto unregulated DSE and its politically influential members have successfully resisted enforcement in the past. The DSE's articles limit it to 200 members. With the family "sponsors" of most listed companies retaining majority ownership, there is no issue of hostile takeovers. There are also no restrictions on foreign investment in private firms or practices which limit it. Political Violence There have not been any incidents over the past few years involving politically motivated damage to projects or installations. Although the environment in Bangladesh is growing increasingly politicized as national elections approach, which must take place not later than February 1996, and civil disturbances may become more common, violence targeted against business concerns is unlikely. "Hartals," or general strikes, which are being called by opposition political parties and political movements with greater frequency, mostly affect businesses by keeping workers away with the threat of violence, resulting in significant productivity losses. A general deterioration in law and order, which is a combination of poverty, urbanization, and politically sponsored thuggery, is a widespread matter of concern among Bangladeshis and has impacted negatively on domestic investment. It has not yet become a factor in foreign investment decisions. Bilateral Investment Treaties The Foreign Investment Act includes a guarantee of national treatment. National treatment is also provided in bilateral investment treaties for the promotion and protection of foreign investment which have been concluded with eleven countries: the United States, the United Kingdom, Germany, France, Belgium, the Netherlands, South Korea, Romania, Italy, Thailand, and Turkey. The United States Bilateral Investment Treaty, signed on March 12, 1986, entered into force on July 23, 1989. Bangladesh has concluded tax treaties, assuring investors of fair treatment and the reduction or elimination of double taxation, with a number of countries, and generally adheres to the principal of national treatment with respect to tax policies. Separate bilateral agreements for the avoidance of double taxation have been signed with twelve countries: the United Kingdom, Canada, Sweden, Singapore, South Korea, Sri Lanka, Pakistan, France, Malaysia, Japan, Germany, and Italy. A bilateral tax treaty with the United States is under negotiation. OPIC And Other Investment Insurance Programs The United States Overseas Private Investment Corporation provides insurance coverage for a number of U.S. firms currently doing business in Bangladesh. In recent years, BDG authorities have been cooperative in approving requests for OPIC insurance. Bangladesh is a member of the Multilateral Investment Guarantee Agency. Labor With a population of 120.5 million and unemployment and underemployment estimated at over 30 percent, Bangladesh's claimed comparative advantage in cheap labor for manufacturing belies low productivity, due to low skills, poor management, and inefficient infrastructure and machinery. Technically trained personnel often seek and find employment in the Middle East at substantially higher wages than they would receive in Bangladesh. Nevertheless, foreign investors and managers report that Bangladeshi workers generally respond well to training. All employers are expected to comply with the government's labor laws, which specify employment conditions, working hours, wage levels, leave policies, health and sanitary conditions, and compensation for injured workers. Freedom of association and the right to join unions is guaranteed in the Bangladesh constitution. The right to form a union, subject to government approval, is also guaranteed. However, unions are not permitted to form yet in the export processing zones. Approximately three and a half percent of Bangladesh's work force is unionized. Labor unions remain strongest in the jute, textile, and transportation sectors. Bangladesh's public sector labor unions, most of which are associated with the political parties, have a reputation for militancy. At Adamjee Jute Mills, a state-owned factory, for example, clashes between rival labor groups resulted in numerous injuries and several deaths in 1992. Violence and the threat of violence by public sector trade unions have produced wage increases in excess of productivity increases, raising unit labor costs. Worker layoffs, or the mere threat of reductions in force, can be expected to cause some of the most serious and confrontational labor disputes. Labor in private sector enterprises is mostly not unionized and comparatively more productive. As indicated above, productivity in Bangladesh is adversely affected by hartals (general strikes). Foreign Trade Zones/Free Ports Under the Bangladesh Export Processing Zones Authority Act of 1980, the BDG established an export processing zone (EPZ) in Chittagong in 1983. Another EPZ has been set up near Dhaka. One hundred percent foreign-owned investments, joint ventures and one hundred percent Bangladeshi-owned companies are all permitted to operate in the EPZ and enjoy equal treatment. Fifty-seven companies operated in the Chittagong EPZ as of October 1993, representing an investment of about $103 million and directly employing over 20,000 people. Their combined exports in fiscal year 1993 were $110 million. As of January 1994, five companies with a total investment of $4.7 million were operating in the Dhaka EPZ. Investors in the Dhaka and Chittagong EPZs are generally satisfied with their investments. Five U.S. firms are currently operating in the Chittagong EPZ, including one garment factory and four specialized textile manufacturers. Other foreign countries with investment in the EPZs include Japan, South Korea, Hong Kong, Singapore, the United Kingdom, Sweden, the Netherlands, Thailand, and Pakistan. Industries represented in the EPZ include garments, textiles, terry towel manufacturers, electronics, sporting goods, steel chain, and services (including equipment leasing and container repairs and handling). Capital Outflow Policy Beginning in fiscal year 1992, the Bangladesh Bank introduced measures to relax existing controls on the use of foreign exchange, especially on current account transactions. However, the taka remains mostly inconvertible for capital account transactions, except for foreign investors. The BDG discourages capital outflow, and Bangladeshi investments abroad require case- by-case approval by various government agencies and the Bangladesh Bank. Cases are more likely to be favorably considered if it can be shown that the investment will contribute directly to the export of goods, services or labor from Bangladesh--areas with potential for generating additional foreign exchange earnings. Foreign Direct Investment Statistics Data on the value of foreign direct investment in Bangladesh (position/stock and annual direct investment capital flows) by country of origin and by industry sector destination by and large do not exist. BOI only maintains statistics on proposed investments registered (sanctioned) by it, not on actual investments made. These statistics do indicate the nature of the investment, the foreign investing country if any, the equity breakdown if a joint investment with a local partner, and the value of the proposed investment. However, many investments registered by BOI, perhaps more than half, are abandoned or indefinitely pending. BEPZA provides data on actual investments, but does not provide data on investment stocks or annual flows. No data at all are available for most foreign investments in the textile, finance, insurance, and other service sectors. Statistics on Bangladeshi direct investment abroad which has been approved by or reported to the BDG are also not available, but the official amounts would be negligible. The International Financial Corporation put the book value of foreign direct investment (FDI) in Bangladesh as of 1984 at $85.7 million. The bulk of investment in the EPZs, representing most foreign investment in Bangladesh since 1984, has more than doubled this amount. Although the BDG has chosen not to include any of the foreign-financed portions of the KAFCO fertilizer plant project among BOI's statistics, on the basis that the BDG has guaranteed the portion of the project financed by foreign export credits, this clearly is foreign investment which should be accounted for statistically. Including the KAFCO investment, which the Embassy estimates to represent a foreign investment of $275 million and which has been largely made at this point, we estimate the book value of foreign investment in Bangladesh to be between $450 million and $500 million. The Embassy estimates current FDI stock as a percentage of GDP to be 2.0 percent and FDI inflows as a percentage of GDP to be 0.1 percent. The Embassy estimates the largest three foreign investors in Bangladesh by place of origin to be Hong Kong (including possible Chinese investment through Hong Kong), the United Kingdom, and Japan. U.K. investment includes over $45 million from the Commonwealth Development Corporation. These countries are followed by the Netherlands, Canada, and South Korea. The largest sources of investment following these would be Singapore, China, Italy, the United States, Saudi Arabia, and Switzerland. The Embassy estimates U.S. investment in Bangladesh at $25 million in book value, including five manufacturers in the Chittagong EPZ, the assets of one life insurance company, the banking operations of one U.S. commercial bank and one representative banking office, and about ten other U.S. service and marketing firms. Major Foreign Investors The following is a list of major foreign direct investments in Bangladesh of which the United States Embassy is aware: - Karnaphuli Fertilizer Company Limited, manufacture of urea and ammonia, 54 percent held collectively by Chiyoda, Marubeni and IPM (Japan), Haldor Topsoe A/S (Denmark), Stamicarbon (Netherlands), and Commonwealth Development Corporation (U.K.) - Olympic-MI Bangladesh Ltd., manufacture of electric tools, fishing, and golf equipment (Japan) - Bangladesh Tobacco Ltd., manufacture of cigarettes and smoking tobacco, BAT Ltd. (U.K.) - Azmat Bangladesh Ltd., manufacture of bed sheets (Netherlands) - Lever Brothers Bangladesh, manufacture of soaps, detergents, toiletries, and glycerin, Unilever Group (U.K.) - Bata Shoe Co. Ltd., manufacture of footwear, Bata (Canada) - Youngones Co. Ltd., manufacture of sportswear (South Korea) - Bangladesh Oxygen Ltd., manufacture of dry ice, welding electrodes, industrial and medical gases, British Oxygen Ltd. (U.K.) - Fisons Ltd., manufacture of pharmaceutical and toiletries products, Fisons Ltd. (U.K.) - James Finlay & Co., tea estates, P & O Containers (U.K.) - Duncan Brothers (Bangladesh) Ltd., tea estates, Lawrie Group (U.K.) - Glaxo Bangladesh, manufacture of pharmaceuticals and related products, Glaxo Group Ltd. (U.K.) - Reckitt & Colman, manufacture of pharmaceuticals and related products, Reckitt & Colman (U.K.) - Berger Paints Bangladesh Ltd., manufacture of paint products, Berger Group (U.K.) - Ciba-Geigy (Bangladesh) Ltd., manufacture of pharmaceuticals and related products (Switzerland) - Siemens Bangladesh Ltd., manufacture of telecommunications equipment (Germany) - Nestle Bangladesh Ltd., manufacture of food products (60 percent Switzerland) - American Express Bank, commercial banking (U.S.) - Standard Chartered Bank, commercial banking (U.K.) - ANZ Grindlays Bank, commercial banking (Australia/U.K.) - Banque Indosuez, commercial banking (France) - Islami Bank, Islamic banking (75 percent Saudi Arabia) - Al-Baraka Bangladesh Bank, Islamic banking (80 percent Saudi Arabia) - State Bank of India, commercial banking (India) - Habib Bank, commercial banking (Pakistan) - Industrial Promotion and Development Company of Bangladesh, holding company (U.K. joint venture) - International Development Leasing Company of Bangladesh, leasing (Korea/U.K. joint venture) - Singer Bangladesh Limited, manufacture of sewing machines, consumer electronics, lighting products and appliances (Canada) - Lister Diesels, manufacture of engines, Lister-Petter Ltd. (U.K.) - Saudi-Bangladesh Industrial Investment & Agriculture Investment Company Ltd., holding company (Saudi Arabia joint venture) - Kader Synthetic Fibers Ltd., manufacture of synthetic yarn (Saudi Arabia, Netherlands joint venture) - Tamijuddin Textile Mills Ltd., manufacture of textiles (Netherlands joint venture) - The General Electric Company of Bangladesh, manufacture of fans, GEC Ltd. (U.K.) - Advanced Chemical Industries Ltd., manufacture of chemicals, ICI Ltd. (U.K.) - Rhone-Poulenc (Bangladesh) Ltd., manufacture of pharmaceuticals, May & Baker (U.K.) - Tootal Thread (Bangladesh) Ltd., manufacture of thread, Tootal Group (U.K.) - Burroughs Wellcome & Company (Bangladesh) Ltd., manufacture of pharmaceuticals, Burroughs & Wellcome Ltd. (U.K.) - The Sea Resources Limited, deep-sea fishing (Thailand joint venture) - Hoechst Pharmaceutical, manufacture of pharmaceuticals, Hoechst (Germany) - Organon Bangladesh, manufacture of chemicals (Netherlands) - Bengal Fisheries Ltd., deep-sea fishing and processing, (Japan joint venture) - Ahmed and Hakodate, deep-sea fishing (Japan joint venture) - Cosmo Food Ltd., seafood processing (Japan joint venture)