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Bangladesh —a potential destination for foreign investor

Incorporates the most liberal investment policy in South Asia


Bangladeshpost
Published : 22 Dec 2019 07:32 PM | Updated : 07 Sep 2020 03:46 AM

While speaking before a group of foreign visitors at 'Visit Bangladesh 2019' programme on Saturday Prime Minister's private industry and investment affairs advisor Salman F Rahman has rightly urged foreign investors to come to Bangladesh and invest in any sector. 

The visionary leadership of the Prime Minister Sheikh Hasina has turned Bangladesh into a lucrative destination for foreign investors over the last years. The government is providing continued support for increasing FDI inflow and has already completed standard operation measures for providing smooth services to attract more foreign investors. The government pursues the most liberal investment policy in South Asia which incorporates protection of FDI by law, duty free import of raw materials. Considering the country’s prevailing investment-friendly atmosphere and overall development, foreign companies have continued showing their zeal to invest here.

Japan, China, Russia, India, Saudi Arabia and many European countries have reportedly signed a large number of contracts to work in Bangladesh. Thus Bangladesh has registered a record level of FDI inflow last year.  Reportedly, the amount of FDI rose to record high by 68 percent to the level of USD 3.7 billion. There is no denying that such rise in FDI inflow is the consequence of the government’s various time-befitting policies to attract investors and to create a congenial atmosphere for fuelling the FDI inflow. Also experts attribute the contribution of new economic zones in attracting foreign direct investment (FDI) in Bangladesh.

Foreign direct investment (FDI) is considered an important motivator of economic development and a principal avenue for the development finance. Over the last ten years, FDI has been playing an essential role in maintaining the tempo of the current economic development of Bangladesh. Also it has immensely contributed to reinforcing foreign reserve, creating new job opportunities and increasing labour skills in recent times. 

Though the FDI has been increasing over the years, experts say that yet there is room for further investment in the coming days. 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 foreign investors. 

Currently FDI comes from Japan, Malaysia, Australia and China and in order to sustain the country’s economic growth in coming days, more foreign investments are needed. In this regard  maintaining the political stability in near future will be crucial.