Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income or appreciation of the value of the instrument.

Bangladesh is a large homogenous society

It enjoys broad non-partisan political support

Bangladesh is endowed with abundant supply of

natural resources.

It has a large number of population

A large homogenous society

It enjoys broad non-partisan political support

Bangladesh is endowed with abundant supply of natural resources.

It has a large number of population

Since independence, Bangladesh is trying to be a suitable location for FDI.

In 1972 FDI inflow was 0.090 million US$, and after 33 years, in 2005 annual FDI reached to 845.30 million.

Year FDI Inflow

2000 578.9

2001 354.5

2002 328.5

2003 354.2

2004 460.6

2005 845.6

2006 989

Country No of Proposal Proposed Investment

Canada 2 370 cores 95 LacksIndia 3 19 cores 70 LacksJapan 4 4 cores 80 Lacks

Italy 1 2 cores 90 Lacks

Republic of Korea 1 1 cores

Turkey 2 2 cores 97 Lacks

The increasing trend of FDI in recent years is a good sign for Bangladesh . FDI has been made towards power and energy, manufacturing (especially in ready made garments) and telecommunications, whereas agricultural, industrial and trade and commerce have been neglected.

Bangladesh generally, depends on 36 countries across the globe for FDI.

Among the sources, 21 countries belong to the developing and transition economies

A sovereign credit rating is the credit rating of a sovereign entity.

The sovereign credit rating indicates the risk level of the investing environment of a country.

Infrastructure Economic Environment Governance International integration Political stability Human resources

Complicated Bureaucracy Political Unrest Corruption Absence of Autonomous Regulator

Bodies

Differential TreatmentInsufficient Power Supply

Inconsistent Policy Implementation Tax Authority’s Discretion Lack of effective cooperation of

Board of Investment (BOI)

Differential TreatmentInsufficient Power Supply

Inconsistent Policy Implementation Tax Authority’s Discretion Lack of effective cooperation of

Board of Investment (BOI)

Incentives for foreign investment

Tax exemption: Generally 5 to 7 years. However, for power generation exemption is allowed for 15years

Duty : No import duty for export oriented industry.

Tax law: Double taxation can be avoided in case of foreign investors on the Basis of bilateral agreements

Remittance : Facilities for full repatriation of invested capital, profit and dividend.

Ownership : Foreign investor can set up ventures either wholly owned on in joint collaboration with local partner

location: Geographic location of the country is ideal for global trades with very convenient Access to international sea and air route

Natural Resources: Bangladesh is endowed with abundant supply of natural gas, water and its soil is very fertile.

Human Resources: We have a population of more than 138.8 million who are hard working and generally intelligent.

Social Stability: Bangladesh is a liberal democracy and mostly a one race and one religion country.

Market Access: Bangladesh products enjoy duty free and quota free access to almost all the developed countries.

GSP Facility: Bangladesh apparel has

successfully taken up a better position in US market and experiencing substantial growth.

To develop infrastructure facilities Political stability Anticorruption step Improve law and order situation Having accountability and transparency Good relation with the other countries Utilization of natural resource

Last but not the least, we can change our overall economic condition , if we rationally good ahead with the local and foreign investment .all concerned parties should come forward to help in this regard.