Staff Reporter :
Inadequate infrastructure, financial constraints, bureaucratic intervention and corruption continue to hinder foreign direct investment (FDI) in Bangladesh, says the US department of State in a statement.
US State department published a statement on ‘Bangladesh Investment Climate Statement 2015’ where it said recently.
Bangladesh has made a gradual progress in reducing some constraints on investment, says the report.
The lack of effective alternative dispute resolution mechanisms and slow judicial processes impede the enforcement of contracts and the resolution of business disputes, according to the US report.
There was significant political violence and uncertainty during the first quarter of 2015 centering the one year anniversary of controversial national elections held in January 2014, explained the report.
The government actively seeks foreign investment in the apparel industry, energy, power, and infrastructure projects.
According to the central bank of Bangladesh, the country received $ 1.5 billion in foreign direct investment (FDI) FY 2013 – 14, up from USD 990 million in the previous fiscal year. Actually, FDI inflows remain at below 1 per cent of Gross Domestic Product (GDP).
The country has a lot of opportunities for investment in the energy, power, pharmaceutical, information technology, telecommunications, and infrastructure sectors as well as in labour – intensive industries such as readymade garments, household textiles, and leather processing. Bangladesh offers a large young and hard-working workforce and vibrant private sector to encourage investment, the report revealed.
Major laws affecting foreign investment, including the Foreign Private Investment (Promotion and Protection) Act of 1980, the Bangladesh Export Processing Zones Authority Act of 1980, the Companies Act of 1994, the Telecommunications Act of 2001, the Industrial Policy Act of 2005, and the Bangladesh Economic Zones Act 2010, said the report.
Economist and Former Adviser to the Caretaker Government Mirza Azizul Islam said, that country needs at least $five to six billion FDI to achieve the GDP target of seven per cent.
The government has immediately taken action which is hindering FDI in the country, he suggested.
Co-ordination among various authorities and institutions can attract more FDI to attain a sustainable economy, he said.
More improvement of the economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives needed for attracting more inflow of investment in the country”, he observed.
He said, in absence of a widely encompassing law on investment, the entry, establishment, treatment and protection of FDI are regulated by a number of laws.
To meet the investment targets set out in the Sixth Five Year Plan we need a comprehensive plan to attract more FDI near about $5.4 billion to fulfill the dream of getting middle-income status, said economist Mamun-Ur- Rashid.
Presently, Bangladesh ranks 122nd among 183 countries of the world in terms of business environment, he said.
The Industrial Policy 2010 is not connected to land management and allocation of land for industrialization, he claimed.
Expansion of industries needs more electricity and gas services, but separate authorities provide utility services and they are not well coordinated, he observed.
Talking on trade policies he said, the commerce ministry is responsible for domestic and international trade, but in many instances it shared with a wide variety of institutions including Chief Controller of Imports and Exports, Bangladesh Tariff Commission, National Board of Revenue and Board of Investment.
However, he further underscored the need for reducing business cost to attract more FDI in the country.
Inadequate infrastructure, financial constraints, bureaucratic intervention and corruption continue to hinder foreign direct investment (FDI) in Bangladesh, says the US department of State in a statement.
US State department published a statement on ‘Bangladesh Investment Climate Statement 2015’ where it said recently.
Bangladesh has made a gradual progress in reducing some constraints on investment, says the report.
The lack of effective alternative dispute resolution mechanisms and slow judicial processes impede the enforcement of contracts and the resolution of business disputes, according to the US report.
There was significant political violence and uncertainty during the first quarter of 2015 centering the one year anniversary of controversial national elections held in January 2014, explained the report.
The government actively seeks foreign investment in the apparel industry, energy, power, and infrastructure projects.
According to the central bank of Bangladesh, the country received $ 1.5 billion in foreign direct investment (FDI) FY 2013 – 14, up from USD 990 million in the previous fiscal year. Actually, FDI inflows remain at below 1 per cent of Gross Domestic Product (GDP).
The country has a lot of opportunities for investment in the energy, power, pharmaceutical, information technology, telecommunications, and infrastructure sectors as well as in labour – intensive industries such as readymade garments, household textiles, and leather processing. Bangladesh offers a large young and hard-working workforce and vibrant private sector to encourage investment, the report revealed.
Major laws affecting foreign investment, including the Foreign Private Investment (Promotion and Protection) Act of 1980, the Bangladesh Export Processing Zones Authority Act of 1980, the Companies Act of 1994, the Telecommunications Act of 2001, the Industrial Policy Act of 2005, and the Bangladesh Economic Zones Act 2010, said the report.
Economist and Former Adviser to the Caretaker Government Mirza Azizul Islam said, that country needs at least $five to six billion FDI to achieve the GDP target of seven per cent.
The government has immediately taken action which is hindering FDI in the country, he suggested.
Co-ordination among various authorities and institutions can attract more FDI to attain a sustainable economy, he said.
More improvement of the economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives needed for attracting more inflow of investment in the country”, he observed.
He said, in absence of a widely encompassing law on investment, the entry, establishment, treatment and protection of FDI are regulated by a number of laws.
To meet the investment targets set out in the Sixth Five Year Plan we need a comprehensive plan to attract more FDI near about $5.4 billion to fulfill the dream of getting middle-income status, said economist Mamun-Ur- Rashid.
Presently, Bangladesh ranks 122nd among 183 countries of the world in terms of business environment, he said.
The Industrial Policy 2010 is not connected to land management and allocation of land for industrialization, he claimed.
Expansion of industries needs more electricity and gas services, but separate authorities provide utility services and they are not well coordinated, he observed.
Talking on trade policies he said, the commerce ministry is responsible for domestic and international trade, but in many instances it shared with a wide variety of institutions including Chief Controller of Imports and Exports, Bangladesh Tariff Commission, National Board of Revenue and Board of Investment.
However, he further underscored the need for reducing business cost to attract more FDI in the country.
