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Paragraph : Prospects of Foreign Investment in Bangladesh

Prospects of Foreign Investment in Bangladesh

Like most other developing and least developed countries, Bangladesh considers FDI as an important resource for development. In order to attract more and more FDI, the country undertook a massive liberalization of its investment programme. It can influence our trade, commerce and industrial sector for quick development. The opportunities for investment in Bangladesh can be gained in two aspects. One is the resource advantages like gas, agro-products, including fisheries and low-cost labour and the other is the development of power, telecommunication and transportation sectors. Bangladesh is not self-sufficient in the energy sector. There is already growing interested among international oil companies in contracts for exploration in this field. The gas sector has by now drawn large amounts of foreign investment. It has to be assumed that FDI is increasingly becoming a significant source for financing domestic investment in Bangladesh. But unlike in Sri Lanka and some other countries in the region, the FDI is focused on export-oriented activities in Bangladesh. The administrative system for FDI needs to be effective in dealing with foreign investors and their needs Economic conditions conducive to foreign investment are the key determinants but they rely more on political stability and recognized dissemination of facts.

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