The document discusses determinants of foreign direct investment (FDI) in Bangladesh. It identifies key factors that influence FDI, including market size, economic growth, infrastructure, policies/incentives, and labor costs. The presentation analyzes Bangladesh's current FDI situation and the role of government policies in attracting investment. It finds economic instability, infrastructure gaps, and bureaucracy as challenges and recommends strengthening the business environment, infrastructure, and ensuring political stability to promote more sustainable FDI.

1. Welcome to the Presentation
Group - 08
2123021023 Md Asifur Rahaman
2123021043 Md Muniruzzaman
2123021047 Jahid khan Rahat

2. “Determinants of Foreign Direct
Investment in Bangladesh”
Presentation Topic

3. Introduction
There are Several determinants of foreign direct investment (FDI) in Bangladesh. Including :
● Market Size and Potential
○ Bangladesh's large population and
○ Growing middle class
● Economic Stability and Growth
○ Stable economic environment,
○ Predictable policies, and
○ Consistent growth rates

4. Introduction
There are Several determinants of foreign direct investment (FDI) in Bangladesh. Including :
● Infrastructure
○ Quality and availability of infrastructure,
○ Including transportation,
○ Communication, and
○ Power supply
● Political Stability and Policies
○ Political stability,
○ Policy consistency, and
○ A transparent legal framework

5. Introduction
There are Several determinants of foreign direct investment (FDI) in Bangladesh. Including :
● Labor Market
○ Availability of skilled and
○ Educated workers
● Natural Resources
○ Gas, coal, and other minerals
● Incentives and Regulations
○ encourage foreign investment
■ such as tax breaks
■ reduced tariffs and simplified procedures

6. Problem Statement
● Identify the determinants of FDI works for Bangladesh
● The factors that influence foreign investors' decisions to invest in
Bangladesh
● The challenges faced by the government and policymakers
● Identify potential areas for improvement in infrastructure, policies,
and incentives to attract more FDI to Bangladesh

7. Objectives of the Study
Objectives:
● To identify the key economic, political, and social factors that influence FDI in Bangladesh.
● To analyze the current state impact of FDI in Bangladesh
● Find out the recommendations to policy makers on how to attract and make improvements on FDI.
● To assess the role of government policies and regulations in attracting FDI to Bangladesh.
● To evaluate the infrastructure, labor costs, natural resources, and other factors that impact FDI in
Bangladesh.
● To explore the potential benefits and risks associated with FDI in Bangladesh.
● To suggest strategies for sustainable growth and development that incorporate FDI in Bangladesh.
● To contribute to the academic and policy debate on FDI and economic development in Bangladesh.

8. Research Question
“What are the economic, political, and social factors that influence FDI in Bangladesh?”
“What are the main challenges and opportunities for attracting FDI in Bangladesh?”
“What role do government policies and regulations play in attracting FDI to Bangladesh?”
“How do infrastructure, labor costs, natural resources, and other factors impact FDI in
Bangladesh?”
“What strategies can be adopted to promote sustainable growth and development in Bangladesh
through FDI?”

9. Research Gap, Methodology, Design & Source and collection of data
Research Gap
● limitations in secondary data sources
● Information with Outdated Data
Research Methodology
● Based Secondary data
Research Design
● Both qualitative and quantitative data
Data Collection
● Research paper, thesis, Investopedia, and various
articles

10. Literature Review
Analysing From Past Data
● Tried to find out determinants of FDI in Bangladesh
● The Current situation of FDI in Bangladesh
● What are the Challenges, factors to analyse and Recommendation

11. Analysis of FDI in Bangladesh
● Current FDI situation in Bangladesh
● Macroeconomic factors that affect FDI
● Investment climate in Bangladesh
● Policies implemented by the government to attract FDI
● Comparison of Bangladesh's FDI situation

12. Current FDI situation in Bangladesh
● To direct investment
equity flows in the
reporting economy
● The sum of equity
capital, reinvestment of
earnings, and other
capital.
Bangladesh Foreign Direct Investment (FDI) increased by 1.5 USD bn in Dec
2022, compared with an increase of 1.2 USD bn in the previous quarter.

13. Macroeconomic factors that affect FDI
Determinant: Market Size
Bangladesh’s GDP reached $354.24 billion in fiscal year 2020-21 with an
annual growth rate of 6.94 percent.
Determinant: Economic Environment
Agriculture GDP has fallen from 23 percent in 2000
to 11.03 percent in 2022
service sector’s contribution has increased during
the same period from 42 to 49 percent. Industry’s
contribution has increased from 24 to 28 percent

14. Macroeconomic factors that affect FDI
Determinant: - Growth
In the last decade, the country has
recorded GDP growth rates above 5
percent due to development of
microcredit and garment industry.
Determinant: - Labor Costs and
Productivity
Determinant: Infrastructure
Determinant: Tax

15. Why FDI Invest in Bangladesh
World’s 44th
Largest
Economy by
World Bank
23rd Largest
Economy by
2041
GDP
USD831
Billion(PPP)
GDP Growth
6% - 7%
Last 10
Years
GDP Per
Capita USD
2,687.00
2 nd in RMG
Export after
China
Poverty rate dropped
to 12.9% from 44.2%
Each year Bangladesh
creates around 1.2 million
jobs
Export reaches to 44
billion in FY 22 from 36
billion in FY18

16. Policies implemented by the government to
attract FDI
● Sectors open to FDI
Manufacturing, energy, telecommunications, infrastructure development,
pharmaceuticals, textiles and garments, agribusiness, information technology,
and services
● Investment incentives
Tax holidays, reduced tax rates, duty-free import of
machinery and raw materials
● Special Economic Zones (SEZs)
Established SEZs to encourage investment and
industrial development.

17. Policies implemented by the government to
attract FDI
● Investment limits and approvals:
No restrictions on the percentage of foreign equity participation.
● Investor protection:
laws and regulations in place to protect the rights and
interests of foreign investors.
● Simplified procedures:
"One Stop Service Act" aim to streamline and
expedite various approvals and permits

18. Investment climate for FDI
• Liberalization of FDI
• Investment Incentives
• Infrastructure Development
• Special Economic Zones (SEZs)
• Skilled Labor Force
• Export-Oriented Industries
• Economic Growth

19. Comparison of Bangladesh's FDI situation
• India has leading position in South
Asia
• Afghanistan political crisis make
them worse position
• Bangladesh FDI position is better
than Nepal, Pakistan, Bhutan,
Maldives and Sri Lanka

20. Limitations of the study
• Limited data availability
• Focus on macroeconomic factors
• Lack of qualitative research
• Limited focus on specific sectors
• Selected determinant

21. Findings
• Economic instability
• Infrastructure
• Human capital
• Market size and potential
• Natural resources
• Government policies and incentives

22. Challenges
• Bureaucracy and Red Tape
• Corruption
• Infrastructure
• Political Instability
• Labor Issues
• Environmental Concerns

23. Recommendations
• Streamlining the Business Environment
• Improving Infrastructure
• Addressing Corruption
• Ensuring Political Stability
• Labor Reforms
• Environmental Sustainability