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Download PDF Bangladesh has registered a significant 50 per cent growth in foreign direct investment (FDI), the second highest in South Asia, with $692 million investment in 2005.
The country also improved its ranking in receiving FDI, advancing to the 5th position from the previous 9th among the least developed countries (LDC).
This was revealed at a launching programme of the World Investment Report 2006 of United Nations Conference on Trade and Development jointly organised by the Board of Investment (BoI) and UN Information Centre (UNIC) at a city hotel yesterday.
Referring to Bangladesh Bank statistics, Energy Adviser and BoI Executive Director Mahmudur Rahman said the actual FDI inflow grew by 84 per cent in 2005 compared to the previous year, standing at $845 million.
The FDI flow to Bangladesh was $460 million in 2004 and $350 million in 2003.
The World Investment Report said the global FDI was $916 billion of which 59 per cent ($542 billion) went to the developed countries, 36 per cent ($334 billion) to the developing nations, and only 1.1 per cent to the LDCs.
The largest recipient of FDI was the United Kingdom, followed by the USA and China.
In Bangladesh, the telecommunications sector received the highest chunk of the FDI–33 per cent ($278.8 million), followed by the manufacturing sector with 26 per cent ($219.4 million). The energy and power sector received 25 per cent ($208.3 million) of the FDI during the year.
Mahmudur Rahman lauded the FDI growth, saying the FDI in manufacturing and telecommunications sectors helped Bangladesh achieve a remarkable growth in exports.
He identified the country’s negative images for corruption, political unrest and recent labour unrest among the major challenges to future investment in Bangladesh.
He suggested using the advantage of global appreciation for Nobel laureate Dr Muhammad Yunus to encourage more FDI.
Asked about the differences between the figures in the investment report and the Bangladesh Bank statistics, UN Resident Coordinator Renata Lok Dessallien said the gap is due to the difference in timing between the two organisations.
Dessallien said Bangladesh should improve its governance situation, corruption and political unrest to woo more investment in future.
The World Investment Report has been being published since 1991 and this year it focuses on FDI from developing and transition economies and its implications for development.
The World Investment Report 2006 said global foreign investment inflows rose substantially in 2005, spurred by cross-border mergers and acquisitions following increased corporate profits and recovery of stock markets.
M Ismail Hossain, professor of Jahangirnagar University, Kazi Ali Reza, officer-in-charge of UNIC, and Mamdood Hossain Alamgir, director of BoI, attended the launching ceremony.
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