Fresh foreign investment declines by 16pcStaff Correspondent
Fresh foreign direct investment in the country declined by 16 per cent to $43.18 crore in last year, according to World Investment Report 2012 of the United Nations Conference on Trade and Development.
The green field or FDI investment was $51.99 crore in 2010.
The total FDI hit a record high of $113.63 crore last year which was $91.33 crore in 2010.
The amount is 24.42 per cent higher from the figure of the previous year, the report said, adding that the average FDI growth rate in the world was 23 per cent in the same period.
Out of the total, the highest amount $48.96 crore was received through reinvested earnings by the foreign companies already operating in Bangladesh. The amount of reinvested earnings was $36.46 crore in 2010.
An amount of $21.49 crore of foreign investment was received through intra-company loans last year which was $2.87 crore in 2010, the UNCTAD report said.
‘Despite all the odds, we received a record amount of FDI last year,’ Board of Investment executive chairman MA Samad said while releasing the report on Thursday.
‘The sudden shift in the government’s tax policies was a major barrier to attracting foreign investors despite their keen interest,’ he said.
He also said the branding of the country for attracting investment should be more precise.
Garments sectors received the highest FDI last year amounting to $27.20 crore. Banking sector received $24.93 crore, fuel and power sector $23.82 crore and telecommunication received $1.80 crore last year.
M Ismail Hossain, an economics teacher at Jahangirnagar University, presented the Bangladesh part of the report at the launching ceremony.
‘I don’t think the power or land shortage was the reason for declining equity investment,’ he said replying to a question whether the lack of infrastructure and political instability were reasons behind the fall in fresh FDI inflow.
‘The overall performance of FDI is remarkable,’ he said.
Egypt was the top investor in Bangladesh last year with investment worth $15.23 crore, followed by United States that invested $11.77 crore.
The Netherlands invested $11.67 crore, United Kingdom $11.67 crore and South Korea invested $11.30 crore.
Foreign investment from other countries declined sharply to $19.94 crore in 2011 which was $48.11 crore in the year before.
Prime minister’s energy advisor Taufiq-e-Elahi Chowdhury and American Chamber of Commerce in Bangladesh president Aftb Ul Islam, among others, were present at the function to release the UNCTAD investment report.
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