Fdi in Bangladesh

Topics: Natural gas, Investment, Macroeconomics Pages: 26 (7876 words) Published: March 17, 2013

Foreign Direct Investment Opportunities in Bangladesh

Prepared by
Sadiqul Alam

Executive Summery

Bangladesh received $999 million foreign direct investment (FDI) in 2011, a 16 percent drop from the previous year's $793 million, although the global FDI marked a 30 percent rise in the same period, according to a global investment report. The United Nations Conference on Trade and Development (UNCTAD) has prepared the World Investment Report 2011 titled "Transitional corporations and infrastructure challenge". The report shows that Bangladesh slipped its position to 121st this year in term of inward FDI performance index from 120th last year. The Board of Investment (BoI) launched the report at a press conference at its office in Dhaka. Professor M Ismail Hossain of Economics Department at Jahangirnagar University made a presentation on the report. Government officials, an economist and a trade expert identified political uncertainty, indecision over some big proposals and infrastructure constraints as major reasons for the FDI fall. "Political uncertainty existed, although there was no political unrest last year, Kamaludding Ahmed, executive chairman of BoI, tild reporters. Ahmed said: "The BoI has decided to discourage FDI in gas-run industries. FDI in services sector will be given priority." |FDI Inflows : Fact Sheet | |Year |2009 |2010 |2011 | |Bangladesh |845 |793 |999 | |India |7606 |19662 |22950 | |South Asia |12136 |25780 |30620 | |World |958697 |1411018 |1833324 | |  |Figures in US$ million |

Executive Director of the Centre for Policy Dialogue Mustafizur Rahman echoed the BoI chief's view but Zaid Bakht, an economist, added another major point indecisiveness about big foreign investment proposals for the decline in FDI. "There was a serous political uncertainty in the country in 2011. Investors, both foreign and local, fear to invest in such a climate," Mustafizur Rahman told The Daily Star. Zid Bakht, a research director of Bangladesh Institute of development Studies (?BIDS), blamed the government for its failure to reach decision on some big foreign investment proposals. "The government did not respond timely. Even they handled some cases, including Tata, very poorly, which has sent a wrong sight to global investors," Bakht told The Daily Star.

Table of Contents

| |Page | |Letter of Transmittal |i | |Acknowledgement |ii | |Chapter One: Industrial Situation of BD |1-7 | |1.1 General Background |1 | |1.2 Energy |2 | |1.3 Oil |2 | |1.4 Natural |3 | |1.5 Coal |4 | |1.6 Electricity...
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