Bangladesh to attract foreign investments: US Report
According to a report, Bangladesh will continue to attract foreign direct investments (FDI) as a favourite place for global investors, despite the Covid-induced economic downturn.
Bangladesh
Bangladesh will continue to
attract foreign direct investments (FDI) as a favourite place for global
investors, despite the Covid-induced economic downturn, according to the news
report released by the US Department of State, which is titled “2021 Investment
Climate Statementsâ€. It mentioned Bangladesh’s sustained economic growth over
the past decade, a large, young, and hard-working workforce, strategic location
between the large South and Southeast Asian markets, and the presence of a
vibrant private sector.
The Bangladesh government’s
efforts to improve the business environment in recent years show promise, but
implementation has yet to materialize, according to the report, which analyses
the investment climate in more than 170 global economies that are current or
potential markets for US companies.
Bangladesh has made gradual
progress in reducing some constraints on investment, including taking steps to
better ensure reliable electricity, but inadequate infrastructure, limited
financing instruments, bureaucratic delays, lax enforcement of labour laws, and
corruption continue to hinder foreign investment.
Much of this growth continues
to be driven by the ready-made garment (RMG) industry, which exported $28
billion of apparel products in FY20, and continued remittance inflows, reaching
a record $18.2 billion in FY20, as per the report.
The government actively seeks
foreign investment in sectors like agri-business, textile, leather goods, light
manufacturing, power and energy, electronics, light engineering, information
and communications technology (ICT), plastic, healthcare, medical equipment,
pharmaceutical, shipbuilding, and infrastructure.
Bangladesh’s Foreign Direct
Investment (FDI) stock was $16.9 billion in 2019, with the United States being
the top investing country with $3.5 billion in accumulated investments.
Bangladesh received $1.6 billion FDI in
2019. The rate of FDI inflows was only 0.53% of its GDP, one of the lowest
rates in Asia, according to the US report. Capital markets in
Bangladesh are still developing, and the financial sector is still highly
dependent on banks.
Source: Dhaka Tribune
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