Foreign direct investment (FDI) has significantly increased last year (2021) as the government’s time-befitting steps helped the country to rebound the import and export as Covid-19 infection drops.
Economists said the country has received huge foreign investment as many foreign countries including Korea, China and Hong Kong have invested 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 the previous fiscal year’s figure of $777 million.
During July-September, net FDI increased by about 50 percent to stand at $340 million from the same time of the previous year.
In the fiscal year 2019-20, Bangladesh received a 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 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.