Fdi in Bangladesh

Topics: Macroeconomics, Investment, Foreign direct investment Pages: 21 (5315 words) Published: September 19, 2013
Chapter -1
Proponents of Foreign Direct Investment argue that it brings prosperity to the recipient countries through technological transfer, increasing volume of exports, enhancing job opportunities and increasing government revenue. Foreign Direct Investment (FDI) increases the volume of domestic capital to finance new development projects in the country and simultaneously provides access to new technology, managerial and marketing know-how. But the inflows of FDI are not praiseworthy though it has an increasing trend. According to UNCTAD in 2003 Bangladesh achieved only 0.05 percent of total FDI while the proportion was 0.9 percent in India, 0.52 percent in Vietnam, 10.2 percent in Indonesia and 70 percent in China (The Daily Star-November 7, 2004 Issue). Even FDI inflows in Bangladesh declined from 2000 to 2001, which were US$ 578.6 to US$ 354.5 million respectively. Foreign Direct Investment (FDI) inflows during January-December 2004 were US$460 million whereas the target was US$600 million (Robin, A.I. 2006, United Nation’s Report 2005-2006). The inflow of FDI is being restricted in the country by infrastructural, bureau cratic and environmental complicacy (Mian, M. E. Alam, Q. 2006). However, Bangladesh is not full of hindrances for FDI but some opportunities are also hidden in this host country and it could be the most next preferable destination for FDI. So, it is required to explore the issues of FDI regarding its inflow, restrictions and potentiality.

1.2Objective Of The Study
Core object :
To explore the foreign direct investment in Bangladesh and suggest possible remedies. Specific objectives :
i.To know the present status of the foreign direct investment in Bangladesh ii.To find out the scope of foreign direct investment in Bangladesh iii.To find out the problems of foreign direct investment in Bangladesh iv.To find out the possible remedies

v.Identify the prospects of the foreign direct investment

1.3Scope :
This research paper evaluates the current foreign direct investment situation in Bangladesh comparing it with some other Asian countries and identifies the scope and the problems. Possible remedial measures to reduce the problems is then followed by the prospects of foreign investment in future.

1.4Research Method:
I have collected data from secondary sources Due to short period of time in stead of primary data I have deepened on secondary sources such as books, journals, periodicals, web sites, etc have also being dependent on valuable advice from my supervisor and other NAEM faculties, The credit for this term paper data collection also goes for my supervisor Tahsina Akter, Assistant Director, NAEM and Other Faculties of NAEM.

1.5Definition of Terms :
The terms used in the title of the research work has been defined below:
Trend the possibility that will happen in the future .
Foreign investment it stands for the money or thing that are an invested by other countries not own country.
Bangladesh Covering the whole area of Bangladesh.
1.6Limitations :
Now a days the foreign investment is very much important for the development of Bangladesh. We have a lot of scope for foreign investment. A lot of seminars occurred in this regard. New policies to adapt to improve it. To prepare this term paper I mainly faced the following issues.

iLimited Time the time of preparing the paper was really limited.
iiLack of knowledge to present such a life-size issue in a small term paper is a great problems to prepare such a life size issue in a small term paper.
iiiShort of availability of documents in this topic was another problem
ivShortage of opportunity to visit to the respected fields
Chapter – 2
2. Current Foreign Investment Situation
2.1 Foreign Direct Investment (FDI) :
Foreign Direct Investment the acquisition of managerial control by a citizen or corporation of a home nation over a corporation of some other...

Bibliography: News paper-The Daily Star Web Edition, www.thedailystar.net/2005/09/30/d5093001022.htm
Prospects Brighten for Foreign Investment in Asia –Mergers and acquisitions on the rise, 2003, UNCTAD Gupta, A.D, 2003,
DI in South Asia: Challenges and Prospect, 2003, www.sawtee.org
Board of Investment, Bangladesh, News and Events, ww.boi.gov.bd/invest_stat.php
Kumar, N., 2001 infrastructural Availability, Foreign Direct Investment and Their Exports: A Cross Country-Exploration, Research and Information System for Developing Countries, India, Version 1.2, 20 November, 2001.
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