Bangladesh 2020 Digital Policy Overview
Bangladesh's digital policy trajectory began with the "Digital Bangladesh 2021" vision and has since expanded toward "Smart Bangladesh 2041." Announced in 2008, the Digital Bangladesh vision rests on four pillars: ① digital government ② digital citizens ③ digital economy ④ digital infrastructure. By 2020, the country had achieved considerable progress across all four dimensions.
The core legislative and policy frameworks governing ICT in Bangladesh include the ICT Act 2006 (amended 2013), the Digital Security Act 2018, the National Cyber Security Strategy 2014, and the National ICT Policy 2018. The a2i (Access to Information) program oversees the e-government agenda, having established 25,000 Union Digital Centres (UDCs), digitized 5,000+ government services, and accumulated more than 250 million cumulative service transactions. Key incentives for ICT industry development include 28 designated Hi-Tech Parks, a 10-year corporate tax holiday for IT firms, and permission for 100% foreign ownership. Korean ICT companies have clear entry opportunities in e-government, cloud computing, cybersecurity, and smart city solutions.
Digital Bangladesh Vision and Achievements
The four pillars of the Digital Bangladesh 2021 vision have each recorded measurable outcomes. Digital Government: through 25,000 UDCs, more than 5,000 services — including birth registration, land records, passport applications, and tax payments — have been moved online. The e-Government Procurement (e-GP) system now handles 70%+ of government procurement, and the national tax portal (e-TIN, e-Return) is fully operational. Digital Citizens: internet penetration has reached 66%, mobile penetration exceeds 100%, and mobile financial service (MFS) accounts surpass 100 million — though broadband adoption (10%) and the urban-rural digital divide remain persistent challenges. Digital Economy: the ICT industry contributes USD 3.5 billion to GDP, IT exports reached USD 1.3 billion, and MFS transaction volume hit USD 58 billion — yet the ICT sector's share of GDP (1.1%) still falls well short of the 5% target. Digital Infrastructure: two submarine cables (SEA-ME-WE 4 and 5) connect Bangladesh internationally; 3G/4G coverage has been extended nationwide; and construction of a national data center is in progress.
| Policy / Law | Year | Scope | Achievements | Challenges | Korean Linkage | Notes |
|---|---|---|---|---|---|---|
| ICT Act 2006 | 2006/2013 | ICT industry promotion | IT exports USD 1.3B | Workforce development | Hi-Tech Parks | Amended 2013 |
| Digital Security Act | 2018 | Cybercrime penalties | In force | Free speech concerns | Security technology | Controversial |
| National ICT Policy | 2018 | ICT industry roadmap | IT export target USD 5B | Infrastructure investment | E-government | Comprehensive policy |
| a2i Program | 2009 | E-government development | UDC 25,000 | Service quality improvement | Korean e-government model | UNDP-supported |
| Hi-Tech Parks | 2010 | IT industry infrastructure | 28 sites designated | Attracting tenants | IT firm entry | 10-year tax exemption |
| Smart Bangladesh 2041 | 2022 | 4th Industrial Revolution | Vision established | Implementation planning | Smart cities | Long-term vision |
| 5G Policy | 2021 | 5G rollout | 2021 pilot | Spectrum allocation | 5G equipment | BTRC-regulated |
Hi-Tech Parks and ICT Incentives
Bangladesh's ICT incentive structure offers world-class tax benefits for IT industry participants. IT/ITES companies enjoy a 10-year corporate tax holiday followed by a 50% reduction for the subsequent five years, effectively eliminating corporate tax obligations for 15 years. IT export income is fully exempt from tax through 2024, and Hi-Tech Park tenants receive additional exemptions from customs duties and VAT. Kaliakoir Hi-Tech Park (Gazipur), spanning 232 acres and modeled on Korea's e-government development experience, has attracted interest from Korea SDS and Korea Motors Information Technology. The IT workforce of 500,000 (software developers) and approximately 20,000 annual CS/IT graduates provide a solid labor supply, while junior developer salaries of USD 300–500 per month compare favorably against India's USD 800–1,200, offering a meaningful cost advantage.
Korean ICT Firm Entry and Digital Cooperation Opportunities
Bangladesh's digital policy is building on the achievements of "Digital Bangladesh 2021" to advance toward "Smart Bangladesh 2041." Key milestones — 25,000 UDCs, 5,000+ digital services, and IT exports of USD 1.3 billion — demonstrate real momentum, backed by a 10-year corporate tax holiday and 28 designated Hi-Tech Parks. For Korean ICT companies, four strategic entry opportunities stand out: e-government modernization, 5G and telecommunications infrastructure, smart city projects, and offshore development centers. Government-to-government channels through KOICA and EDCF represent the most effective market entry pathway. With IT labor costs at USD 300–500 per month, Bangladesh offers Korean IT firms a compelling platform for expanding global development capacity.