The policy framework for foreign investment in Bangladesh is based on ‘The Foreign Private Investment (Promotion & Protection) Act 1980 which ensures legal protection to foreign investment in Bangladesh against nationalization and expropriation. It also guarantees non-discriminatory treatment between foreign and local investment, and repatriation of proceeds from sales of shares and profit.
Government of Bangladesh is agreeably helping to provide proper legal facility for the foreign investors. So in the question of legal environment and FDI prospect it can be told that the legal environment is quite sound for the foreign investors.
Political Environment is very crucial for an economy to attract foreign investor or to increase Foreign Direct Investment (FDI). Political situation of Bangladesh are not sound enough to attract investor in a high speed. Political situation is important because the investors are not feeling secure to invest in such country where the country’s political situations are unstable.
It is very harmful for such a developing economy like Bangladesh. If the government wants to increase its FDI performances than political climate obviously have to be sound to attract the investors from the different countries of the world.
Population is another issue in the question of FDI. We have a huge number of population in a ratio with our total lands. Huge population always indicates that the huge amount of demand and which will make the foreign investors interested to invest such country.