It is good to note that 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.
Foreign direct investment (FDI), the bedrock of Bangladesh’s economic growth, is considered an important motivator of economic development and a principal avenue for the development finance. Over the last 10 years, FDI has been playing an essential role in maintaining the tempo of the current economic development of Bangladesh.
Necessary steps should be taken
to guarantee better business facilities
alongside market diversification
Reportedly, the net FDI has increased by almost 245 percent to USD 2.45 in the last 10 years. In 2018, net FDI jumped to $3.61 billion, up by more than 67 per cent from $2.15 million in 2017. Although the FDI inflow declined in 2017, it has increased by 219.47 per cent to $3.61 billion in the last 8 years.
FDI has immensely contributed to reinforcing foreign reserves, creating new job opportunities and increasing labour skills in recent times. There is no denying that all these are the consequences of the government’s earnest endeavours and various time-befitting policies to attract investors and to create a congenial atmosphere for fuelling the FDI inflow.
Though the FDI has been increasing over the years, experts say that yet there is room for further investment in the coming days, especially in the post-corona era. In this regard, special attention should be given to ensure better business facilities alongside market diversification to attract more foreign investors. Also business-friendly environment, taxation reform and long-term policy are needed to attract them.
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. It is mentionable that the incumbent government pursues the most liberal investment policy in South Asia which incorporates protection of FDI by law and duty-free import of raw materials.
The country currently has no electricity and gas problems. Following the other Asian countries which have been able to attract massive FDI, Bangladesh should take immediate steps to develop more infrastructures, build more skilled workforce, improve connectivity and encourage high-tech for a sustainable economic growth.