Prospects of Foreign Direct Investment in Bangladesh
Prepared To: Md. Shariful Islam
Fellow (Assistant Professor) Institute of Business Administration (IBA) University of Rajshahi
Prepared By: Md. Hasibur Rahman
ID No. 100043 MBA (Evening) – Major in Finance 9th Batch, 5th Semester Institute of Business Administration (IBA) University of Rajshahi
Institute of Business Administration (IBA)
University of Rajshahi
Date of Submission: May 31, 2012
Letter of Transmittal
May 30, 2012 To Md. Shariful Islam Fellow (Assistant Professor) Institute of Business Administration (IBA) University of Rajshahi
Subject: Submission of the Term Paper on “Prospects of Foreign Direct Investment in Bangladesh”.
Dear Sir I’m very delighted to inform you that, I have completed my term paper on “Prospects of Foreign Direct Investment in Bangladesh” of your course International Financial Management (FIN-704). I enjoyed to preparing this term paper and it helped us to gain knowledge about the Bangladeshi Market. I’m also very grateful for your kind help and advice. Besides, I have finished this task in a friendly environment and the entire team worked very hard while preparing this term paper. I aspire that this study will fulfill your suggestion and expectation. If you need any further assistance to interpret this study, please inform us. It will be our pleasure to clarify your questions.
Md. Hasibur Rahman ID No. 100043 MBA (Evening) – Major in Finance 9th Batch, 5th Semester Institute of Business Administration (IBA) University of Rajshahi
At first I want to thanks our Almighty Allah who gave us energy and patient and also knowledge for making that kind of report. Secondly I want to thanks our course instructor Md. Shariful Islam without whom I must be unable to make it. I’m very happy to participate in this Term Paper. One of the most pleasant parts of writing this paper is the opportunity to thanks those who have contributed to it.
Finally I want to thanks our course mates who helped me for gaining information and complete this Term Paper successfully.
SL. 1.0 1.1 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Introduction
Page No. 1 1 2 3 5 5 6 6 9 9 10 11 12 12
Foreign Direct Investment (FDI) Present FDI Status in Bangladesh FDI Trends Source of FDI Interest of Foreign Investors Competitive Advantages Sectors for Prospective Investment Sponsoring Agencies & Areas of Responsibilities Incentives for the Foreign Investors Factors Affecting FDI in Bangladesh Conclusion Recommendations Reference
Economic supremacy is the foremost feature of the current world. In order to survive, Bangladesh has no other options but to attain economic development. Foreign Direct Investment (FDI) is recognized as a key component for economic growth for Bangladesh. Being one of the Least Developed Countries (LDC) with insufficient domestic savings rate for investment after fulfilling its basic needs, the importance of foreign investment is unquestionable. Foreign Direct Investment (FDI) will create employment, increase efficiency of labor, encourage technology transfer and develop new exportable sector. To attract more and more FDI the government of Bangladesh has been trying to establish private investment friendly environment. A number of opportunities have been given by the Government of Bangladesh (GOB) to attract foreign investors to invest in the country in some prospective sectors. As Bangladesh does not have sufficient domestic savings for investment, foreign investment is the most powerful ingredient for its economic development. In international business FDI has become a significant component for many countries. Nowadays Asian countries have a great influence in the global economy. Though Bangladesh is comparatively lagging behind of them, there are a lot of opportunities to attain...