Foreign direct investment (FDI) has rebounded and increased in line with the import and export of the country as Covid-19 infection drops.
Economists said foreign investment has come from Korea, China and Hong Kong in the garment sector over the past fiscal year.
Besides, some investments have also been made in power, banking and telecommunication sectors, they said adding that, the flow of foreign direct investment (FDI) has accelerated for that reason.
According to the latest data from Bangladesh Bank, in the first quarter (July-September) of the current fiscal year 2021-22, FDI has been increased by 9 percent to stand at $847 million over the same period of previous fiscal year’s amounting to $777 million.
During July-September, net FDI increased by about 50 percent to stand at $340 million from the same time of previous year.
In the fiscal year 2019-20, Bangladesh received foreign investment of $3.23 billion. During the period, the net investment was $1.26 billion.
About $5 billion in foreign investment, the highest foreign investment in the history of Bangladesh, came to the country in the 2017-18 fiscal year. Of this, the net FDI was $2.63 billion.
The country’s FDI witnessed a rapid growth at the time as the Japanese company (Japan Tobacco) invested a large amount in this. They invested about $1.5 billion in the Akij Group's tobacco business.
The total amount of foreign direct investment (FDI) in various sectors, after the investor has taken the profits to the country, the remaining amount is called net FDI.
Economists and business leaders said the FDI inflows have started increasing as now the coronavirus is returning to normal.
They said significant foreign investment has come from Korea, China and Hong Kong in the garment sector over the past fiscal year.
Apart from this, some investments have also been made in power, banking and telecommunication sectors, they said adding that, this is why, the flow of FDI has accelerated.
Expressing satisfaction over the positive trend in foreign investment, Syed Ershad Ahmed, President of the American Chamber of Commerce in Bangladesh, said, “Imports and exports are increasing. Other indicators are also good. There has been no instability in politics for a long time. All in all, a good environment has been created in Bangladesh for foreign investment as well as domestic investment. If it can be put to good use now, FDI in the country will increase further if foreign investors are given the necessary facilities.”
He said branding is the main problem of FDI in Bangladesh. We have not yet been able to properly present the country’s branding to foreign investors, he mentioned.
“In addition, we have problems with the port. So far we have not been able to automate our port,” he further said.
He hoped that if these were fixed, more investment would come to Bangladesh.
The government is implementing big infrastructure projects with loans from abroad, he said adding that, “These projects could also be done through foreign direct investment under PPP. In that case, foreign investment would increase.”
