FDI drops 37pc in Jul�Sept quarter

Despite Bangladesh offers wide-ranging incentives to foreign investors, the volume of FDI has remained historically low in the country

Foreign direct investment (FDI) in Bangladesh has declined 37.47 per cent during the third quarter of the current year, Board of Investment (BOI) records show.
Data show that from July to September, BOI received proposals of 40 projects worth Tk. 843.20 crore, while it received proposals of 39 projects worth Tk. 1,348.47 crore from April to June.
During the former quarter, the BOI provided registration to 372 units involving Tk. 14,562.07 crore, while in the latter, it registered 403 units with total investment of Tk. 33,079.92 crore. According to the BOI, overall investment in Bangladesh reduced 56 per cent during the third quarter compared with the second.
According to the BOI, of the total investment proposals, 30.24 per cent was in the apparel sector, 22.52 per cent in the services sector, 19.94 per cent in chemicals, 14.08 per cent in agro industries, 0.49 per cent in engineering industries, and 12.73 per cent in others.
Despite the wide-ranging incentives Bangladesh offers to foreign investors, and the global image of the country as a highly attractive investment destination, the volume of FDI has remained historically low in the country, a World Bank report has said.
Regarding low FDI flows, Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) president Matlub Ahmad said foreign investors are yet to consider energy and power supplies reliable enough to invest in Bangladesh.
“Foreign investors are extremely careful. They want confirmation about gas and power connections before they set up their industries,” he said, adding, “I think the FDI flow will increase if the government can ensure gas and power supplies.”
The government should declare that industries would face no power crisis and connections would be provided without delay, he explained.
A United Nations Conference on Trade and Development (UNCTAD) report showed that FDI inflows worldwide grew to USD 1.45 trillion in 2013. It expected it to grow to USD 1.85 trillion in 2016.
Flows to developing countries reached a record high of USD 778 billion in 2013, 54 per cent of the amount worldwide. This meant that for the second year running, developing countries got more investment than the developed ones.
Asia retained its place as the continent with the most FDI inflows, with its USD 426 billion inflows making it worth almost 30 per cent of worldwide investment. Most of this was due to rising investment in China, the Republic of Korea and Taiwan.

FDI drops 37pc in Jul�Sept quarter

Despite Bangladesh offers wide-ranging incentives to foreign investors, the volume of FDI has remained historically low in the country

Foreign direct investment (FDI) in Bangladesh has declined 37.47 per cent during the third quarter of the current year, Board of Investment (BOI) records show. Data show that from July to September, BOI received proposals of 40 projects worth Tk. 843.20 crore, while it received proposals of 39 projects worth Tk. 1,348.47 crore from April to June. During the former quarter, the BOI provided registration to 372 units involving Tk. 14,562.07 crore, while in the latter, it registered 403 units with total investment of Tk. 33,079.92 crore. According to the BOI, overall investment in Bangladesh reduced 56 per cent during the third quarter compared with the second. According to the BOI, of the total investment proposals, 30.24 per cent was in the apparel sector, 22.52 per cent in the services sector, 19.94 per cent in chemicals, 14.08 per cent in agro industries, 0.49 per cent in engineering industries, and 12.73 per cent in others. Despite the wide-ranging incentives Bangladesh offers to foreign investors, and the global image of the country as a highly attractive investment destination, the volume of FDI has remained historically low in the country, a World Bank report has said. Regarding low FDI flows, Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) president Matlub Ahmad said foreign investors are yet to consider energy and power supplies reliable enough to invest in Bangladesh. Foreign investors are extremely careful. They want confirmation about gas and power connections before they set up their industries, he said, adding, I think the FDI flow will increase if the government can ensure gas and power supplies. The government should declare that industries would face no power crisis and connections would be provided without delay, he explained. A United Nations Conference on Trade and Development (UNCTAD) report showed that FDI inflows worldwide grew to USD 1.45 trillion in 2013. It expected it to grow to USD 1.85 trillion in 2016. Flows to developing countries reached a record high of USD 778 billion in 2013, 54 per cent of the amount worldwide. This meant that for the second year running, developing countries got more investment than the developed ones. Asia retained its place as the continent with the most FDI inflows, with its USD 426 billion inflows making it worth almost 30 per cent of worldwide investment. Most of this was due to rising investment in China, the Republic of Korea and Taiwan.