FDI in Bangladesh

1. Impact of FDI in Bangladesh
Presented to :
Md. Gias Uddin Khan,
Assistant Professor
Department of Economics, SUST
Presented by :
Jannatul Naeem
Reg. No: 2016231056
Wednesday, 19 January, 2020
Shahjalal University Of Science & Technology ,Sylhet

2. Reference
Saha, A. K. (2012). Scenario of the Foreign Direct (FDI)
investment in Bangladesh: An Evaluation, 5(6),19-26.
Hossain, M. E., Sultana, I., Uddin, Md. S., Hoq, M. N.,
Ibrahim, Md. (2018). FOREIN DIRECT INVESTMENT IN
BANGLADESH: ANALYSIS OF SECTOR WISE IMPACT
ON ECONOMY. Asian Journal of Social Sciences &
Humanities, 7(4).
Kafi, Md. A., Uddin, M. M., Islam, M. M. (2007). Foreign
Direct Investment in Bangladesh: Problems and Prospects,
The Journal of Nepalese Business Studies, iv.

4. An investment made by a company
or entity based in a country into
an entity based in another country.
An investment in the form of a
controlling ownership
A category of cross-border
investment
The intention of establishing a
lasting interest.

5. Example : Telenor group
55.8% of the shares in Grameenphone.

6. Current situation of FDI in Bangladesh
•FDI in Bangladesh averaged 994.88 USD million from
2002 until 2018
•Record of high of 1726 USD million (2013)
•Record of low of276 USD million (2004)

7. Objectives
• The position, the problems associated with the FDI in
Bangladesh and to suggest for creating congenial
atmosphere of FDI, (Saha, 2012)
• The sector wise growth rate of foreign investment,
(Hossain, Sultana, Uddin, Hoq, Ibrahim, 2018).
• The determinants, impediments, favorable environment
and potential of FDI for Bangladesh, (Kafi, Uddin,
Islam, 2007).

8. Methodology
• Used secondary data.
• Data collection from the site of Bangladesh Bank,
Ministry of Finance (Bangladesh Economic Review),
Bangladesh Bureau of Statistics, Bangladesh
Investment Development Authority (BIDA).

9. Findings
• According to (Saha, 2012), FDI fluctuated year to year
& a major shift happened.
• (Hossain, Sultana, Uddin, Hoq, Ibrahim, 2018) found a
positive relationship between GDP and the three
independent variables (Domestic Saving, Government
Expenditure on Agriculture and FDI on Agriculture).
• (Kafi, Uddin, Islam, 2007) found problems that
hindered the attraction of FDI in Bangladesh.

10. Problems
• Complicated bureaucracy
• Political unrest, corruption
• High inefficiency cost, absence of autonomous regulatory
body
• Differential treatment, insufficient power supply,
inconsistent policy implementation
• Tax authority’s discretion, lack of effective cooperation of
Board of Investment (BOI)
• Legal absurdity, disrupting fiscal policy
• Administrative coordination problem
• Time wasting customs processing.

11. Recommendation
• Ensuring of good governance
• Coordinated government agencies
• Dynamic and independent govt. agencies
• Accountability and transparency, developing diplomatic
relation
• Devoting efforts to shift FDI track
• Ensuring power and energy
• Political reformation.

12. Thank You