For a steady FDI inflow

Identify and fix the barriers


Foreign direct investment (FDI) has long been the bedrock of the country’s economic growth. It is considered as 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. There is no denying that all these indeed 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. 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.


Following the 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


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. 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 219.47 per cent to $3.61 billion in the last 8 years. 

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. Reportedly, the government pursues the most liberal investment policy in South Asia which incorporates protection of FDI by law, duty free import of raw materials and Bangladesh is a good destination to invest as 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 labourers, improve connectivity and encourage high-tech for a sustainable economic growth.