Inviting Foreign Direct Investment
...direct investment is welcome:
Since the beginning of the 1990s, Bangladesh has adopted a number of policies to facilitate the expansion of the private sector and increase the inflow of foreign investment. The private sector is recognized as the engine of growth. Although the transition process from an agrarian to an industrial economy has only started, there is a consensus among the political parties on promoting a market-oriented economic policy. Foreign companies are welcome. In fact, a recent assessment showed that the country offers perhaps the most liberal FDI regime in South Asia, with no prior approval requirements or limits on equity participation or restrictions on the repatriation of profits and income.
Significant investment opportunities:
Notwithstanding the obstacles that face foreign investors in countries with low levels of economic development, Bangladesh offers important investment opportunities for foreign companies. These opportunities are reflected in the inflows of foreign direct investment (FDI), which increased from virtually zero in the 1980s to over $300 million in the late 1990s. The international investor may consider investing in Bangladesh to access a growing market, low-cost production facilities or abundant natural resources.
With its nearly 130 million inhabitants, Bangladesh is one of the most populous countries of the world and potentially a sizeable market. Thanks to relatively high growth rates in recent years, there is a growing middle class with increasing purchasing power and a growing demand for various products and services. In terms of GDP, when adjusted for purchasing power, the Bangladesh economy amounts to over $170 billion. Besides representing a potential market in itself (and potential access to the much larger South Asian market) Bangladesh also offers considerable potential as a base for...
View Full Essay
