FDI inflow sets a new benchmark

Bangladesh ranks third among the Sough Asian countries in foreign direct investment (FDI) inflow list for 2008. The country received $1.09 billion in the year.
This is for the first time the country crossed the billion-dollar-mark in terms of FDI inflow, according to the World Investment Report (WIR) 2009, released globally yesterday.
The WIR 2009 shows that Bangladesh received 63 percent more FDI in 2008 than that of 2007. FDI inflow was $666.3 million in 2007.
Prepared by United Nations Conference on Trade and Development (UNCTAD), the report subtitled "Trans-national Cooperation, Agricultural Production and Development" was released by the Board of Investment (BoI) in Bangladesh yesterday.
In 2008 India received $41.56 billion FDI and Pakistan $5.4 billion, making them top two FDI receiving countries in the area. India ranked 13th globally, while the global ranking for Bangladesh was not available.
Despite a worldwide financial crisis, India, Bangladesh, Sri Lanka and Afghanistan have made significant progress in receiving FDI.
But FDI inflow in Pakistan, Nepal and Bhutan declined during the time, while it remained static in the Maldives at $15 million both in 2007 and 2008, the report says.
“The rise in FDI shows that investors prefer Bangladesh for their business,” SA Samad, executive chairman of BoI, told journalists at the report launching programme.
Samad however termed the FDI inflow in the country 'very low' compared to the position of other countries. He said small countries like Taiwan and Singapore received a huge amount of FDI for congenial business environment and adequate infrastructure facilities.
“We are among the worst performers in the global ranking," said the BoI executive chairman.
He said gas, power and infrastructure are some of the lucrative areas that interest the foreign investors.
He also stressed infrastructure development, and branding Bangladesh positively to attract more FDI.
According to the report, telecommunication sector performed the best in 2008 receiving $641.39 million, which was $201.90 million in the previous year.
Textiles and weaving pulled in $126.36 in 2008, while the amount was $102.35 million in 2007.
Banking, the third largest FDI recipient, attracted $141.76 million, which was $79.96 million in 2007.
Food industry received $22.89 million in 2008, agriculture and fisheries $14.43 million and others $139.5 million, while the figures were $9.84 million, $7.33 million and $264.99 million respectively in 2007.
Egypt emerged as the top investor in 2008 with $373.4 million as its telecom company Orascom invested heavily in Bangladesh's mobile phone operator Banglalink. The second largest investor was UK with $130.57 million. Bangladesh received $102.19 million from the United Arab Emirates, $70.72 million from Malaysia, $57.15 million from Japan and $44.64 million from South Korea in the period.
The United States, Hong Kong, Norway and the Netherlands were the other major investors in 2008.
BoI officials at the function said a total of 89 foreign companies registered themselves with the BoI in the first eight months of 2008 till August to invest Tk 4,161 crore, while registration in the same period of 2007 was worth Tk 4,668 crore.
Dr M Ismail Hossain, professor of economics at Jahangirnagar University, presented the report, while Abu Reza Khan, executive member of BoI, also spoke among others.