FDI climbs up in first nine months
Foreign direct investment (FDI) into Bangladesh inched up in the first nine months in the current financial year.
The recipient sectors are mainly RMGs, power, textile and wearing, telecommunications, banking, gas, and petroleum.
According to Bangladesh Bank's (BB) latest statistics during July-March in financial year 2021-2022 (FY22) the gross FDI including some fresh investments were $3.5 billion which is 34 per cent higher than the corresponding period of last fiscal year.
In the investment summit which was held last year, investors offered Bangladesh to invest an amount of $2.7 billion and it has already started that they are investing gradually through Bangladesh Economic Zone Authority, BEPZA, Public Private Partnership (PPP), High-Tech Parks and some other.
When talking with Daily Observer, a senior official in Bangladesh Investment Development Authority (BIDA) said all the proposed investments will not happen at a time. It's a
He said in November the highest single country proposal for FDI was made by Saudi Arabia of investing $1.7 billion in making power generators and setting up cement manufacturing plant.
Aygaz, a Turkish industrial group, announced it would invest $150 million along with local United Group, he said.
Besides, Karnaphuly Dry Dock signed a deal with Bangladesh Economic Zones Authority to invest $118 million in construction of a terminal in the Chattogram port, he said, adding that Barishal Electric Power Company with a foreign joint venture announced investment of $100 million in producing electricity.
Guopo Renewable Energy Technology proposed to invest $50 million. Hangzhou JY Supply Chain announced plans for investment of $20 million and IT Hub Investments will invest $15 million, the BIDA official said.
Despite the challenges of coronavirus pandemic, Bangladesh receiving FDI as it offers competitive facilities among other Asian countries and it is growing now as the pandemic situation is overcoming, said Md Sirajul Islam, Executive Chairman of the BIDA.
Regarding reformation of different policies, he said Bangladesh has eased many services for the foreign investors that currently a lot of services are included in One Stop Service.
The issues of taxation and remittance have also been solved and it is a continuous process.
As per the BB statistics, since January this year the FDI inflow is positive and the net FDI during July-March in the running fiscal was $1.7 billon. During this time portfolio investment slightly increased.
In July-February the gross domestic FDI was $3.1 billion which is $492 million higher than the corresponding period of last fiscal and in the same time net investment increased by $349 million to $1491 million from $1142 million of same time last fiscal.
Portfolio investment by NRBs in first nine months were $86 million but it is still negative compared to first nine months in the last fiscal that at that time the total portfolio investments by the NRBs were $174 million.
Former caretaker government adviser Mirza Azizul Islam said Bangladesh must strengthen its efforts to invite more FDI and apart from remittance and export it is the most important source of foreign currency.
He said as per economic growth FDI should also be increased in making high tech and high valued products.