Foreign direct investment (FDI) has long been a building block of the country’s economic growth. It needs no emphasizing that over the last ten years FDI has been playing an essential role in maintaining the tempo of the ongoing economic development. FDI has immensely contributed to reinforcing foreign reserve, creating new job opportunities and increasing labor skills in recent times. All these indeed are the consequences of the government’s relentless effort and various time-befitting policies to attract investors.
Though the FDI has been increasing over the years, experts say that it is yet to reach a satisfactory level. In this regard, special attention should be given to ensure better business facilities alongside market diversification to attract more foreign investors. Also friendly business environment, taxation reform and long-term policy are needed to attract more FDI,
Reportedly, the net FDI has increased by almost 245 percent to USD 2.45 in the last 10 years. In 2008, this inflow was only USD 748 million. In the January-June period, FDI inflow jumped USD 1.42 billion, 43.44 per cent higher than the percentage in the same period last year, from USD 987 million.
Globally, the FDI inflow fell sharply to USD 470 billion during January-June period in 2018, which was 41 per cent lower than the amount in the same time of the previous year. On the other hand, the country received USD 2.58 billion in FDI in fiscal year (FY) 2017-18, which was more than 5 per cent higher from USD 2.4 billion in FY 17.
Report shows that Bulk of the FDI during April-June in 2018 came from China, which was USD 437 million, followed by USD 71 million from the United Kingdom, USD 61.12million from Hong Kong, USD 49.03 million from the United States of America and USD 36.7 million from Singapore.
The government is providing continuous support for increasing FDI inflow and has already completed standard operation measures for providing smooth services to attract more foreign investors. Currently FDI comes from Japan, Malaysia, Australia and China. It is needless to say that more investors are needed to achieve the sustainable economic growth.
Considering other Asian countries which have been able to attract massive FDI, Bangladesh should take immediate steps to develop more infrastructures to build more skilled laborers.
Bangladesh is a good destination to invest as the country currently has no electricity and gas problems. Remarkably, foreign investors have mostly betted on power chemical including pharmaceuticals, food, telecommunication and leather sectors in recent months. Hence, special focus should be given on these sectors by giving some extra facilities to attract more foreign investors.