2009-8-17 Presentation on FDI

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    Welcome!

    PROSPECTS OF FDI IN BANGLADESH ECONOMY

    Presented by: Md. Tanvir Hasan

    ID. 091051019MBA, Summer 2009

    Presentation on-

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    ..When you go there you realize that their industrial

    policy is more open than Indias.

    - Ratan N Tata

    Source: Business World, 24 January 2005

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    Defining FDI

    FDI stands for Foreign Direct Investment, a componentof a countrys national financial accounts. Foreign DirectInvestment is investment of foreign assets into domesticstructures, equipment, and organizations. It does notinclude foreign investment into the share markets.

    Source: Economy Watch

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    FDI Status

    Total:

    US$ 845.30m

    Telecommunication:

    US$ 281.90m

    Manufacturing Industries:

    US$ 219.30m

    Agriculture & Fisheries:

    US$ 2.3m

    Sector-wise allocation of FDI in 2005

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    FDI Inflow trends

    1995:

    US$ 92.30m

    1997:

    US$ 575.00m

    1999:

    US$ 309.10m

    2006:

    US$ 989.00m

    FDI inflow trend from 1995-2006

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    Source of FDI FDI inflow share in 2005Source/Regions FDI inflow % of share

    Developed Economies

    Western Europe- 245.90mEuropean Union- 243.60mSwitzerland- 2.30m

    North America- 142.50mOther developed economics- 46.50m

    435.90 51.45

    Developing Economies

    Africa- 48.40mAsia and the Pacific- 317m

    365.40 48.55

    OthersADB- 12.70mIFC- 31.70m

    Others- 0.60m

    45.00 5.32

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    Competitive Advantages

    Location

    Natural Resources

    Human Resources

    GSP Facility

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    Potential Sectors

    Textile

    Frozen Food

    Leather

    Agro-based Industry

    Information Technology

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    Incentives

    Tax Exemptions

    Duty

    Tax Law

    Remittance

    Exit

    Ownership

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    Factors Affecting FDI

    Bureaucracy

    Weak Infrastructure

    Political Unrest

    Lack of Good Governance

    Ineffective Judiciary System

    Lack of Adequate Information

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    Recommendations

    Political reformation ensure good governance;

    Ensure power and energy supply;

    Developing diplomatic relations and devoting efforts toshift FDI track.

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    Questions?

    Thank you all!