We are happy to note that Bangladesh has registered a record level of FDI inflow last year as mentioned in the World Investment Report (WIR) 2019 of the United Nations Conference on Trade and Development (UNCTAD). 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 earnest endeavours and 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.
Friendly business environment,
taxation reform and long-term
policy are needed to attract mor
e foreign investors in order to maintain the
current tempo of FDI inflow in Bangladesh
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.
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.