Foreign Direct Investment (FDI): Bangladesh Perspective

4 Pages Posted: 3 Oct 2014

Date Written: September 24, 2014

Abstract

Bangladesh is a country with thousand year’s history in international trade, investment and business. We have both good and bad experiences with the foreign investors or trading partners. Because of fertile plain lands and favorable climatic condition, ours had predominantly been an agricultural country for centuries. Industrial setup started its journey in the region mainly during British colonial age but got its momentum during 1950s. Investment promotion agencies started their activities at that period.

Current Scenario: As a result, today we have an about USD140 billion economy, which is growing with on an annual average 5%-6.5% growth rate during last two decades. Bangladeshi economy is transforming from traditional agriculture based economy into industry based economy. Contribution of agriculture into GDP is reducing day by day but till now it employs 47.5% of workforce. In FY 2012-13, contribution of agriculture, industry and the service sector into GDP is about 13.09, 29% and 57.91% respectively. Contribution of investment is about 15.76% at the same time. Bangladesh received USD 1599.16 Million Foreign Direct Investment (FDI) in 2013 when we have exported about USD 30.71 billion and imported about USD 40.61 billion. Therefore the contribution of investment into GDP and percentage of FDI we received in the stated period is not satisfactory at all.

Sectors for Investment: Readymade Garment (RMG) is the prime mover of Bangladesh economy along with remittance, and export of home textile, frozen food and shrimp, agro-processing products, tea, vegetables, plastic products, pharmaceuticals, electrical products, etc. Other potential Bangladeshi sectors for investment could be agro-based and agro-processing industry, skilled human resource export, ship building, tourism, basic chemicals/dye and chemicals, ICT and ICT based service, active pharmaceuticals ingredient industry and radio pharmaceuticals industry, polymer industry, jute and jute products, leather and leather products, hospital and clinic, light engineering industry, plastic industry, furniture, energy efficient appliances, frozen and processed fish industry, tea industry, home textiles, ceramics, toy, container service, warehouse, innovative and import substitute industry, and cosmetics and toiletries, etc.

Keywords: FDI, Foreign Direct Investment, FDI into Bangladesh

JEL Classification: Foreign Direct Investment (FDI): Bangladesh Perspective , 4/4

Suggested Citation

Abdin, Md. Joynal, Foreign Direct Investment (FDI): Bangladesh Perspective (September 24, 2014). Available at SSRN: https://ssrn.com/abstract=2504397 or http://dx.doi.org/10.2139/ssrn.2504397

Md. Joynal Abdin (Contact Author)

DCCI Business Institute (DBI) ( email )

DCCI Building (11th Floor), 65-66 Motijheel C/A
Dhaka, 1000
Bangladesh

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