Textiles & apparel lures max FDI during Jan-Mar ‘18
Textiles and apparel sector lured the maximum amount of foreign direct investment (FDI) during the first four months of 2018, continuing the trend of a sharp rise in the inflow of foreign funding throughout the year 2017.
According to data released by the Bangladesh Bank recently, the gross FDI inflow during the January-March 2018 in the textiles and apparel sector amounted to over US $167 million. This occupied over 24 per cent of the total FDI flowing in to Bangladesh – over US $695 million – over the same period of time.
In the calendar year 2017, Bangladesh witnessed over US $421 million in FDI in its textile and apparel sector – which was a sharp nearly 16 per cent rise from the US $364 million back in 2016. Experts and stakeholders attributed the rise to various steps taken by the government to entertain foreign investors.
Back to the latest data, South Korea was the number one investor in this sector – putting over US $48 million in FDI, followed by Hong Kong with US $31 million and British Virgin Islands with US $14 million. India had an investment of over US $5.8 million.
It is to be noted that Bangladesh’s Planning Minister AHM Mustafa Kamal is very optimistic on 2018 – in the prospect of drawing FDI; after Bangladesh has knocked on the doors of Singapore, India, Japan, China, Thailand and other countries to invest.
Speaking at a press briefing at his ministry office on August 13, 2018, Minister Kamal said Bangladesh is expecting an FDI inflow of about US $7 billion during the fiscal of 2017-18. This is a huge jump, considering that the highest Bangladesh received in recent years is US $2 billion.
Additionally, this can be attributed to the development of 100 Economic Zones by the Government of Bangladesh. The country has spent most of the last half drumming about the Economic Zones and seeking investment from other countries.
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