18 October, 2009
Md. Shahidul Islam Zahid
Department of Banking
Faculty of Business Studies
University of Dhaka.
Subject: Submission of report on “Problems and Prospects of Foreign Direct Investment in Bangladesh”.
We, the students of the Dept. of Banking (13th batch) of University of Dhaka, are pleasure to submit our report on “Problems and Prospects of Foreign Direct Investment in Bangladesh” under “International Business & Banking (B-303)” that emphasis on performance evaluation as a part of our B.B.A. program.
We have tried our best to gather relevant materials for preparing a complete report. Without the sincere and proper guidance from you, it was impossible for us to complete it. For this kind of greatness, we are grateful to you. This is not free from mistake due to some limitation. We hope you accept it with gracious consideration.
Name ID Signature
Sonjib Talukder 17
Mithun Kumar Biswas 43
Dulal Chandra Pattak 57
Table of contents
S.N. Topics Page
01 Introduction 7
02 Foreign Direct Investment 8
03 Bangladesh, a suitable place for FDI 9
04 Foreign Direct Investment in Bangladesh 10-14
05 FDI inflow sets a new benchmark 15
06 Present Scenario 16-20
07 Board of Investment in Bangladesh 21-24
08 Advantages of foreign direct investment 25
09 Disadvantages of foreign direct investment 25
10 Prospects of Foreign Direct Investment in Bangladesh 26-27 11 Problems of foreign direct investment 28
12 Reasons behind fluctuating FDI 28-29
13 Competitive Strength of Bangladesh for Investment 30
14 Initiative of the Bangladesh Bank: 31
15 Inflow of FDI in Bangladesh 32
16 Factors of Export & Import 33-34
17 Reasons behind the fluctuation of export of Bangladesh 35-36 18 Reasons behind the fluctuation of import of our country 37 19 Recommendation 38
20 Conclusion 39
First of all, we remember Almighty God for making us enabled to prepare our report. In case of preparing the report, we have found assistant from various persons and we provide special thanks to all and we are grateful to all of them. We also give our special thanks to our honorable course teacher Md. Shahidul Islam Zahid. His assistance and cooperation has made us successful to complete the report because his bold instructions have made us to know and inform about the Foreign Direct Investment in context to our country.
Bangladesh offers generous opportunities for investment under its liberalised Industrial Policy and export-oriented, private sector-led growth strategy. All but four sectors (i.e. (1) arms and ammunition and other defence equipment and machinery, (2) forest plantation and mechanised extraction within the bounds of reserved forests, (3) production of nuclear energy, and (4) security printing and mining) are open for private investment in Bangladesh.Private investment from overseas sources is welcome in all areas of the economy with the exception of only five industrial sectors (reserved for public sector) as mentioned earlier. In addition, FDI strengthens ties with developed countries that may yield cost advantages in the form of advanced technology transfers and resulting positive externalities. These reasons also increase the effort of the Government of Bangladesh in trying to make the country an attractive destination for FDI which in itself has several advantages. The result has validated a reinforced incentive to educate and train the population to make Bangladesh’s labor force more competitive through higher national education expenditure. The objective of this study is to conduct a historical and statistical analysis of the relationship between foreign investment inflows and sustainable economic growth.
Objective of the Study
The major objective of this study is to analysis the trend of FDI in Bangladesh and its impact on economic development of the country.