The Bangladesh Bank attributed the drop to several factors, including difficulties in profit repatriation by foreign companies due to a shortage of US dollars, a volatile domestic forex situation, possible loss of confidence by investors due to the country’s macroeconomic situation and downgrading of the country’s credit rating by international agencies.
Bangladesh’s net FDI inflow dropped by 8.37 per cent YoY in the first nine months of FY24 to $2.21 billion; 79 per cent of that was reinvested earnings.
The drop was attributed to several factors, including difficulties in profit repatriation by foreign firms, a volatile domestic forex situation, loss of confidence by investors and downgraded credit ratings.
Data shows $751 million worth net FDI was received during January-March this year. Of this, $612 million was reinvested earnings, domestic media outlets reported.
Between and January and March this year, FDI in the textile and apparel sector was worth $109 million.
More than $100 million in investment came from the United Kingdom, China and the Netherlands in the first three months this year.
The country received $3.004 billion in FDI last year—a decrease of 14 per cent YoY.
Though FDI contracted by over 7 per cent to $3.2 billion in FY23, the textile sector received the highest FDI of $1,229 million. In FY23, the textile sector received $435 million in FDI from South Korea, followed by Hong Kong ($174 million), China ($112 million) and India ($54 million).
Fibre2Fashion News Desk (DS)
