Medical &Health

Bangladesh receives US$2.3b FDI in 2016

DHAKA, June 8, 2017 (BSS)-Despite a sluggish trend in global FDI flows, Bangladesh experienced a modest growth in Foreign Direct Investment (FDI) inflows as the country received US$2.3 billion in 2016, up 0.1 billion from US$2.2 billion of 2015, according to World Investment Report (WIR)-2017 of UNCTAD .

"Inflow of FDI has been maintaining a steady growth in Bangladesh. We received only US$768 million in 2007 but FDI inflow witnessed an upward trend from 2011 and Bangladesh has received US$ 2.3 billion in 2016 which is a positive sign for us," said Kazi M Aminul Islam, executive chairman of Bangladesh Investment Development Authority (BIDA) while releasing the WIR here today.

Executive director of Policy Research Institute (PRI) Ahsan H Munsur presented the WIR-2017 of the United Nations Conference on Trade and Development (UNCTAD) and highlighted the different sides of the report.

Chief Coordinator for Sustainable Development Goals (SDG) Affairs in the Prime Minister's Office (PMO) Abul Kalam Azad and president of Bangladesh Women Chamber of Commerce and Industry (BWCCI) Selima Ahmad also spoke at the programme.

Aminul Islam said the most important source of FDI in Bangladesh were reinvested earnings which shows that foreign companies which are operating in the country feel comfortable in investing their profits in expansion of their existing operations.

"This is positive for attracting new investors in Bangladesh," he added.

He said telecom and power sectors were the areas which received the major FDI inflows which is also positive for Bangladesh because investment in power sector will help Bangladesh attract investments to other sectors.

The BIDA executive chairman said Bangladesh has taken steps to improve its doing business rank for attracting more FDI.

According to the report, in 2016 global FDI flows decreased by 2 percent to US$1.75 trillion owing to weak economic growth and significant policy risks. FDI flows to developing countries were particularly hit hard with a 14 percent decline to US$646 billion, it added.

The report said global investment is witnessing a moderate recovery, with projections for 2017 cautiously optimistic. Global flows are forecast to increase almost US$1.8 trillion in 2017, continuing to US$1.85 trillion in 2018.

Source: Bangladesh Sangbad Sangstha (BSS)