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Bangladesh Foreign Domestic Investment (FDI) on a rising trend

Bangladesh received over $1.22 billion net Foreign Direct Investment (FDI) in the first seven months (July-January) of the current fiscal year.

The amount is 30.4 percent more than the net FDI received in the same period in 2014-15 financial year.

Finance Minister AMA Muhith has credited the ‘strong’ base of Bangladesh’s economy and the ‘stable’ political condition for the rise in FDI despite global recession.

“The rise in FDI means that an environment of investment has been created in the country. Bangladesh is getting attractive to the foreign investors,” he said.

The minister said the continuous GDP growth of over 6 percent has added gloss to Bangladesh’s image.

“It has positively affected the foreign investment,” Muhith said.

Analyst Zaid Bakht, however, is ‘not happy’ with domestic investment.

“Foreign investment in telecoms and energy sectors may have risen, but we should keep in mind that foreign investment will not increase if local investment does not grow,” he said.

According to Bangladesh Bank, the net FDI was $1.7 billion in 2014-15 fiscal year and a little over $1.43 billion in 2013-14.

The FDI in Bangladesh’s capital market, however, dropped sharply in July-January period to $8 million from last fiscal year’s $316 million.

Despite of global recession in FDI, FDI in Bangladesh from major countries has increased. In 2014 FDI of UK in Bangladesh was $186 million, which is $310 million in 2015, which marks increase of UK's investment in Bangladesh. Thereby, UK institutions can also think of increasing their investment in Bangladesh market on market development. 

   

Read the relevant article,

FDI picture mixed

Bangladesh Bank Economic Data

 

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