Kazi Zahidul Hasan :
Bangladesh has received $410.68 million foreign direct investment (FDI) during the first quarter (January-March) of the current calendar year, with highest inflows from the US Company Chevron.
“Foreign capital keeps flowing into the country as the government has taken various initiatives in recent years to encourage FDI,” a Senior Board of Investment official (BoI) told The New Nation on Friday.
He said, foreign companies continue to invest in Bangladesh to take advantage of relaxed FDI norms across sectors, relatively lower wages, special investment privileges, tax exemptions, and easy repatriation of profits
The BoI official further said that FDI flow into the country continue to growing in the months to come as a result of the government’s favourable policy regime and prevailing clam in the country’s political arena.When asked, he said, the recent terror attacks would not affect the FDI flow into the country as terrorism is now a global phenomenon.
According to a Bangladesh Bank (BB) statistics, Chevron brought the highest amount FDI totalling $42.76 million to Bangladesh during the period under review followed by Nortel (Grameen Phone) $ 39.88 million, YKK BD Pvt Ltd $25.48 million, Standard Chartered Bangladesh $25.35 million, British American Tobacco $17.37 million, HSBC $14.06 million, Young One CEPZ $12.60 million, Berger Paints BD Ltd $7.42 million and Orascom Telecom BD Ltd $ 7.26 million and Nestle BD Ltd $6.89 million.
The statistics shows that these 10 foreign companies altogether invested $199.07 million or 48.47 per cent of the total FDI inflows during January – March of the current calendar year.
Besides, investment of other foreign companies stood at $211.61 million, accounting for 51.53 per cent of the total FDI during the said period.
When contacted, Sheikh Zahidur Rahman, Manager, External Affairs of Chevron told The New Nation yesterday that the US Company is the largest producer of natural gas in Bangladesh and supplying approximately 50 per cent of the country’s natural gas consumption.
It has already invested $2.5 billion in Bangladesh since signing of the Production-sharing Contacts (PSC) with Petrobangla, the national oil company.
“Under the existing contact, the US oil and gas giant Chevron has to operate in Bangladesh up to 2029, requiring additional investment. The latest investment was made for the exploration and production of gas from its designated fields,” said Rahman.
The US Company operates three fields-Bibiyana, Jalalabad and Moulavi Bazar-under PSC signed with Petrobangla.
As the largest foreign investor, it provides employment for about 4,000 Bangladeshis.
“Flow of foreign capital into the country is a continuous process as foreign companies came here with a long-term business plan,” Rupali Chowdhury, President of the Foreign Investors’ Chamber of Commerce and Industry (FICCI) told The New Nation.
She said, the recent trend of FDI flow is satisfactory despite the existing challenges, including security concern and inadequate infrastructures, in Bangladesh’s investment sector. It has the potential to lure more FDI if the challenges could be removed.
Commenting on Dhaka terror attack, Rupali Chowdhury said, the attack has created a deep sense of fear and insecurity among the overseas investors as it was aimed at foreign nationals.
“All foreigners including our FICCI members feel insecure, vulnerable and unsafe after the incidence,” she added.
“The government has taken measures to improve the situation. But we request the Bangladesh authorities to ensure the safety and security of the foreign investors as well as foreigners and citizens of Bangladesh recognizing the security concern of all,” said Rupali Chowdhury.
Bangladesh received $2.23 billion FDI last year (2015), recording 44.1 per cent year-on-year growth, according to a report by the United Nations Conference on Trade and Development (UNCTAD).
The FDI inflow into the country reached $ 1.55 billion in 2014.
Officials said that the inflows of FDI to Bangladesh remains below 1 per cent of the country’s Gross Domestic Product (GDP) despite their yearly growth.
Bangladesh has received $410.68 million foreign direct investment (FDI) during the first quarter (January-March) of the current calendar year, with highest inflows from the US Company Chevron.
“Foreign capital keeps flowing into the country as the government has taken various initiatives in recent years to encourage FDI,” a Senior Board of Investment official (BoI) told The New Nation on Friday.
He said, foreign companies continue to invest in Bangladesh to take advantage of relaxed FDI norms across sectors, relatively lower wages, special investment privileges, tax exemptions, and easy repatriation of profits
The BoI official further said that FDI flow into the country continue to growing in the months to come as a result of the government’s favourable policy regime and prevailing clam in the country’s political arena.When asked, he said, the recent terror attacks would not affect the FDI flow into the country as terrorism is now a global phenomenon.
According to a Bangladesh Bank (BB) statistics, Chevron brought the highest amount FDI totalling $42.76 million to Bangladesh during the period under review followed by Nortel (Grameen Phone) $ 39.88 million, YKK BD Pvt Ltd $25.48 million, Standard Chartered Bangladesh $25.35 million, British American Tobacco $17.37 million, HSBC $14.06 million, Young One CEPZ $12.60 million, Berger Paints BD Ltd $7.42 million and Orascom Telecom BD Ltd $ 7.26 million and Nestle BD Ltd $6.89 million.
The statistics shows that these 10 foreign companies altogether invested $199.07 million or 48.47 per cent of the total FDI inflows during January – March of the current calendar year.
Besides, investment of other foreign companies stood at $211.61 million, accounting for 51.53 per cent of the total FDI during the said period.
When contacted, Sheikh Zahidur Rahman, Manager, External Affairs of Chevron told The New Nation yesterday that the US Company is the largest producer of natural gas in Bangladesh and supplying approximately 50 per cent of the country’s natural gas consumption.
It has already invested $2.5 billion in Bangladesh since signing of the Production-sharing Contacts (PSC) with Petrobangla, the national oil company.
“Under the existing contact, the US oil and gas giant Chevron has to operate in Bangladesh up to 2029, requiring additional investment. The latest investment was made for the exploration and production of gas from its designated fields,” said Rahman.
The US Company operates three fields-Bibiyana, Jalalabad and Moulavi Bazar-under PSC signed with Petrobangla.
As the largest foreign investor, it provides employment for about 4,000 Bangladeshis.
“Flow of foreign capital into the country is a continuous process as foreign companies came here with a long-term business plan,” Rupali Chowdhury, President of the Foreign Investors’ Chamber of Commerce and Industry (FICCI) told The New Nation.
She said, the recent trend of FDI flow is satisfactory despite the existing challenges, including security concern and inadequate infrastructures, in Bangladesh’s investment sector. It has the potential to lure more FDI if the challenges could be removed.
Commenting on Dhaka terror attack, Rupali Chowdhury said, the attack has created a deep sense of fear and insecurity among the overseas investors as it was aimed at foreign nationals.
“All foreigners including our FICCI members feel insecure, vulnerable and unsafe after the incidence,” she added.
“The government has taken measures to improve the situation. But we request the Bangladesh authorities to ensure the safety and security of the foreign investors as well as foreigners and citizens of Bangladesh recognizing the security concern of all,” said Rupali Chowdhury.
Bangladesh received $2.23 billion FDI last year (2015), recording 44.1 per cent year-on-year growth, according to a report by the United Nations Conference on Trade and Development (UNCTAD).
The FDI inflow into the country reached $ 1.55 billion in 2014.
Officials said that the inflows of FDI to Bangladesh remains below 1 per cent of the country’s Gross Domestic Product (GDP) despite their yearly growth.
