Categories: Economy

Covid 19 impact: FDI inflow into Bangladesh drops

<p>
Inflow of foreign direct investment (FDI) into Bangladesh has fallen by 11 per cent last year as the Covid 19 pandemic hit the global economy forcing many countries to cancel their orders.</p>
<p>
This took FDI in the country to $2.56 billion in 2020 from $2.87 billion in 2019, Dhaka Tribune said. As of April 2020, the country’s garment manufacturers and exporters association estimated that more than $3 billion worth of exports had been canceled or suspended, it added.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/th-budget-showcases-bangladesh-s-breakout-from-extreme-poverty-92674.html">50th budget showcases Bangladesh's breakout from extreme poverty</a></strong></p>
<p>
According to data portal Santandertrade, China, South Korea, India, Egypt, UK UAE and Malaysia are the top investors in the country. The data portal also said that while the country ranked 168th out of 190 countries in the World Bank’s Ease of Doing Business index, the government has been actively promoting private sector-led growth. The country also has a healthy foreign currency kitty due to remittances, “and the central bank respects the transferability of foreign currency.”</p>
<p>
A number of more developed Asian countries have outsourced their factory production, mainly textile, to the country.</p>
<p>
“The global flow of FDI has decreased due to the disruptions of the pandemic. But the flow of FDI will largely depend on how we improve the ease of doing business, competitiveness, support mechanisms, infrastructure and ports,” Dhaka Tribune quoted Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD) as saying. Rahman also said that special economic zones,one-stop-service for investors, and infrastructure development would facilitate FDI, only if those are properly developed and implemented, the news organisation reported.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/world-news/india-and-bangladesh-likely-to-sign-free-trade-deal-by-year-end-despite-covid-blues-90418.html">India and Bangladesh likely to sign free trade deal by year-end despite Covid blues</a></strong></p>
<p>
Meanwhile, according to the Daily Star the World Bank said that Bangladesh's manufacturing sector risks becoming uncompetitive because of lower productivity and reliance on low labour costs. Wages are rising locally besides the use of labour-saving technologies is also growing globally. The World Bank report also noted that the export-led manufacturing growth model will remain central to Bangladesh's sustained growth and job creation, but continued reliance on low labour costs to maintain the competitive edge is increasingly untenable as the country consolidates its middle-income status and its wage costs rise.</p>

IN Bureau

Recent Posts

India committed to safeguarding interests in Indian Ocean without compromising any nation’s sovereignty: Rajnath Singh

Defence Minister Rajnath Singh on Saturday said that India is committed to protecting the interests…

16 hours ago

India, Sri Lanka sign MoU on defence cooperation; Misri says two countries share commitment to regional security, stability

India and Sri Lanka on Saturday signed an MoU on Defence Cooperation with Foreign Secretary…

16 hours ago

India, Sri Lanka discuss fishermen issue; Colombo to release 11 fishermen imminently: Foreign secy Misri

The issue of fishermen was discussed in considerable detail between India and Sri Lanka, with…

18 hours ago

Human rights activist raises voice against women atrocities, discrimination in Pakistan

Anila Gulzar, a prominent human rights activist from Pakistan, has condemned gender discrimination and atrocities…

21 hours ago

Sri Lanka has special place in India’s Neighbourhood First policy, Vision Mahasagar: PM Modi

Prime Minister Narendra Modi said that Sri Lanka has a special place in India's Neighbourhood…

21 hours ago

Sri Lanka will not permit its territory to be used againnst India: Sri Lanka Pres Dissanayake

Sri Lankan President Anura Kumara Dissanayake on Saturday reaffirmed his government's commitment to India's security…

21 hours ago