Foreign Direct Investment Scenario: Bangladesh Perspective

FDI scenario- Bangladesh
Foreign direct investment has improved and become double through past ten years. Because of
the imphasis of government and concentating on some new sectors such as leather, RMG
products, energy etc. foreign direct investment of bangladesh is seeing this massive growth.
Significant improvement in the infrastructure and energy sector is encouraging the foreign
investors to invest in this country more. According to Bangladesh Bank data shows that
Bangladesh received 912 million US dollars in 2009-10 year fiscal year which increased to
$2650 million US dollars in 2018-2019 financial year.
However, according to United Nations Conference on Trade and development (UNCTAD)
Bangladesh foreign direct investment inflow fell by 11% in 2020. The inflow was $ 2.87 billion
in 2019 and reach at $2.56 billion in 2020. The decline indicates the economic crisis triggered by
COVID-19 pandamic.
Bangladesh has a advantage of being in a strategic geographic position between south and
southeast position. Bangladesh has cheap labor and also fertile land which is favourable for
agricultural products. Bangladesh also has a large reserve of natural gas and certain offshore
discoveries in bay of Bangladesh which make this country more lucrative to the investors than
the neighboring countries. Bangladesh has two most important port one is in Mongla and the
other one is in Chittagong. There is other small sea port such as payra, coxsbazar which is
alongside the Matarbari, Sanodia. There are also 23 land port in our country which works as
customs station. These port works as important route for shipment of products. A number of
more developed Asian countries have outsourced their factory production, mainly textile, to the
country. Moreover, in 2020, the government simplified a set of laws as part of its efforts to
reduce barriers to foreign investment in this country.
The main investors in Bangladesh are-
China
South Korea
India
Egypt