Problems and Opportunities of Direct Foreign Investment

Executive Summary

The thesis investigates the performance of problems and opportunities of Direct Foreign Investment in Bangladesh. It also identifies the overall direct foreign investment system in Bangladesh. Problems and opportunities of direct investment in Bangladesh follow the rules and regulation prescribed by the investment forum for schedule countries on companies. The functions of the country or company cover a wide range of investment and functional activities to individual, firms, corporate bodies and other multinational agencies. It is very important to the national economy as a whole because the expansion and condition of the company or firm affect the level of business activity through their effect on the nation’s money supply. The direct foreign investment extended its credit facilities to different sectors to diversify its credit portfolio in compliance with credit policies of direct investment of the foreign country such as Industrial, Housing, Contract work, Working capital for trades, manufacturing processing plants and export oriented industries and other business.


This Century is” Century of Globalization of trade and economy”. The world is facing competition in marketing of the products in global market. In this circumstance the companies goes to investment, those has available capital to invest out side the country where they can get competitive advantages in terms of cost, Expansion of market, Raw materials.

The countries have available work force, Natural resource or agro-products, expertise to attract the foreign investors, is offering various types of packages to the foreign investors, especially country like Bangladesh.

Bangladesh is one of Least developed Countries (LDC) and , there is available work forces in low cast compare to many countries and have expertise in some area of work such as , woven and Readymade Garments(RMG), Jute and jute products. Have production capability is seafood’s (Shrimp) and Tea. There is other area, which can very attractive to the foreign investors like, Leather, Plastic products and Information Technology or software development.

To differentiate the word ‘Investment’ there is three types of investment…

1. Consumer Investment: Consumer Investment refers to the purchase of durable, goods by consumers.

2. Business or Economic Investment: Business or Economic Investment refers to the purchase of business assets to produce income that is adequate composition for the risks involved in the venture.

Business or economic investment, the business enterprise is thoroughly willing to purchase productive assets to earn profit and is aware of risks involved. In other sense, it is investment in new productive facilities, which is actually profit seeking direct foreign investment.

Economic or business investment is the investment in real assets that brings about the production of goods and services for the purpose of maximizing the value of owner’s equity.

In this report “the problems and Prospects of direct foreign investment in Bangladesh” discussed the business or economical investment by foreign companies in Bangladesh.

In Bangladesh, Industrialization is emerging and capital market is not in the ideal situation to invest in securities market by the foreign investors. So, these areas in investment are not highlighting in this report.

Why a company goes to direct foreign investment?

If the management of any company can develop a competitive advantage that is suitable for exploitation abroad, the company will decide to go Foreign Direct Investment (FDI). Than need to decide where to produce to satisfy the demand for its product it could produce at home and export or it could produce abroad. Producing abroad could be accomplished through a licensing agreement or management can treat these as per rules and regulation of foreign investment of the invested country. Invest in business in abroad, the control on invested assets established through “Join venture” and “Wholly owned affiliate”.

“Wholly owned affiliate (also called FDI) could be either a ‘Greenfield investment’ or Acquisition of foreign enterprise”. Greenfield investment is a project that starts with the base ground and builds up from there.

FDI decision sequence provides a roadmap to explain the FDI decision sequence, Deciding whether to invest abroad management first determines that whether men has sine sustainable competitive advantage. It should be firm-specify, transferable, and powerful enough to compensate the firm for the potential disadvantages of operating abroad such as political risks, foreign exchange risks and in charge of agency costs.

Direct foreign investment is purchase of physical assets such as plant and equipment in a foreign country, which to be managed by the Parent. Corporation FDI is in contradistinction to foreign portfolio investment.

Strategy motives of any MNE to invest abroad which can be summarized as follows

• Markets to satisfy local demand or to export

• Raw materials to extract raw materials wherever it can be found

• Production efficiency where one or more of the factors of production are under prices relative to their productivity

• Knowledge to gain access to technology or managerial expertise

• Political safety to require or establish new operations in countries that which are considered unlikely to expropriate or interfere with private enterprise

The above are not strategically rights to invest abroad. For invest in Bangladesh industry to industry the strategy motives will be different. Another thing is important to understand that in industries characterized by world with oligopoly market competition each of these strategic motives should be sub classified into proactive and defensive investment.

Objectives of the study

The strategic motives drive the decision to invest to abroad. In this study mainly the situation analysis of Bangladesh for foreign investment. In tried to high lights all the current offers and conditions of Bangladesh where these are attractive or unattractive for invest by the multinational enterprises (MNE). It is discuses the economical situation, labor and skill, competitiveness of production efficiency etc. through analysis of data and information

In this study, the main objectives are to find the present structure for direct foreign investment and the government various programs to attract the foreign investors to invent Bangladesh. It is discussed about the incentive declared by the government, the political and legal situations, the labor cost, currency inflation and other related meter to analysis the problems and prospect of foreign investment in Bangladesh.

Short history of the country:

Recorded history traceable to 4th centre BC with evidence of civilization consisting of the centre palaces temples forts seats of the learning’s and monasteries; 17th century a time of economic well being; 1757 beginning of British colonial rule; 1947 departure of British from Indian sub continent and present Bangladesh becomes East Pakistan as a part of Pakistan; 1971 emergence of Bangladesh as a sovereign state through a liberation war.

Heritage of education, legal and business culture of Bangladesh

Bangladesh has a long heritage of education, legal and business culture. The country and century old laws indicate the countries long legal tradition. The laws amended according to the need of changes of the socio economic conditions of the county and the world.

• College established from 19th century.
• Dhaka university established in 1921, thus university is one of the best university of the Asia and pacific.
• Bangladesh university of Engineering & technology (BUET) established in 1960. BUET is the recognized university of all over the world.
• Space research and remote sensing organization (SPARSO) set up in 1960.
• First chamber of commerce and industries established in 1904.

Centuries old laws of the countries:

• Admiralty Act, 1861
• Laws of contract,1872
• Transfer of property Act,1882
• Patent and design act, 1911
• Companies Act, 1913
Industrial policy of Bangladesh

To attract the industrialization of the country, Bangladesh introduces industrial policy. According to the industrial policy, 1999 there is some special clause to give privilege to the private investors including foreign investors. These are;
• All private investment, including domestic and foreign, outside export processing zone to be register with board of investment.
• 15 thrust sectors identify to provide special incentive and supportive measures. Foreign investment in thrust sectors given priority.

The thrust sectors are
1. Agro-based industries
2. Information technology and computer industries
3. Electronic, oil and gas
4. Infrastructure- telecom, power generation, roads and highways, port, airport etc.
5. textile
6. Jewelry and diamond cutting and polishing
7. frozen foods
8. Leather
9. Floriculture
10. Artificial flower making
11. Gift items
12. Jute goods
13. Stuffed toys
14. Sericulture and silk industries
15. Tourism

Due to the national defense and security, environmental protection, the private investment from overseas sources is welcome with the exception of some industries. The industries which are not permitted for the overseas investors are follows:
• Arms and ammunition and other defense equipment and machinery
• Forest plantation and mechanized extraction with the bounds reserved forests
• Production of nuclear energy
• Security printing (Currency Notes) and minting.

Protection for direct foreign investment by Bangladesh Government

When a company goes to invest foreign country, the company should analysis the political risk for the company’s investment. Nationalization and expropriation is one of the most important issues to assess before any kind of investment in a certain country.

To attract the foreign investment in Bangladesh, Bangladesh government has legal safeguard for the foreign investors those mentioned as below;

1. Direct foreign investment in Bangladesh is secured by law against nationalization and expropriation; foreign and private investment (Promotion and protection act.) 1980.

2. Protection is available for intellectual property rights such as patents, trademarks designs and copyrights.

3. Guarantees through multilateral agencies
• Multilateral investment guarantee agency (MIGA) of the World Bank group.
• Overseas private investment corporation.

4. Bangladesh is signatories and member of

• International center of investment disputes (ICSID)
• World association of investment promotion agencies (WAIPA)
• World intellectual property organization (WIPO)

5. Investment Treaty in between Bangladesh and the following 20 countries have been conducted

• Asia: china, Iran, Indonesia, republic of Korea, Malaysia, Pakistan, Philippines, Japan and Thailand.

• Europe: Belgium, France, Germany, Italy, Netherlands, Poland, Romania, Switzerland, Turkey and United Kingdom.

• North America: United States of America.

Other than the above countries negotiation are going for investment treaty are going with the following countries:

India, Oman, Maldives, Democratic republic of Korea, Uzbekistan, Hungary, Austria, Egypt, Mauritius etc

6. Bilateral agreements for avoidance of double taxation with Bangladesh and other countries. Bilateral agreements have been concluded by the peoples republic of Bangladesh with the following 20 countries for avoidance of double taxation:

Singapore,Belgium,denmark,Canada,China,France,Germany,India,Italy,Japan,Malaysia, Netherlands, Pakistan, Poland, Romania, South Korea, Sri Lanka, Sweden, Thailand, United Kingdom.

Negotiations are going on with Australia, Cyprus, Finland, Indonesia, Iran, Nepal, Norway, Philippines, Qatar, Spain, Turkey and United State of America.

Facilities and incentives provided to foreign investors by Bangladesh Government

To attract the direct foreign investment in Bangladesh, The government provided incentives and facilities to the foreign investors. These incentives arte tax exemptions and free import of capital machinery for export oriented etc.
The list of facilities and incentives provided by the government of Bangladesh given below;

1. Tax holiday:

Tax holiday for 05 years to the industries located in Dhaka, sylhet and chittagong divisions (Excluding 03 hill district) and 07 years to the industries located in other areas, from the date of commercial production. It is 10 years in EPZ and 15 years for private power generation companies.

2. Corporate Tax:

Corporate tax is 35 % for publicity treaded companies and 40 % for not publicly treaded and all other companies. Branch tax is 40% and capital
Gains tax is 25 %.

3. Tax exemption:

Tax exemption are allowed on royalties, Technical know how, technical assistance fees, interest on foreign loans, capital gains from the transfer of shares, income of private sector power generation company for 15 years from the date of production.

4. Other facilities and incentives:

Other facilities and incentives are provided to the foreign investors are :re investment of reportable dividends treaded as new investment, 100% duty free import of capital machinery, Bangladeshi currency taka (BDT)
Has been made convertible for current account transitions, Full repartition of invested capital, Profit and dividends allowed, No obligation to sales shares through public issue irrespective of the amount of paid-up capital, Exemption of income tax up to 03 years for foreign technician, remittance of up to 50% of salary of foreigners employed in Bangladesh and liberal work permit policy to foreign national etc.

Facilities to non-resident Bangladeshis NRB

Bangladesh government has provided facilities and incentives to the non-residential Bangladeshi investors to encourage the investment.

The facilities and incentives are

• Non resident Bangladeshi investors enjoy facilities similar to foreign investors.
• Allowed to buy newly issued shares/debentures of Bangladeshi companies
• Quota of 10% reserved for non resident Bangladeshi in initial public offers
• Foreign currency deposits in non resident foreign currency deposits (NFCD) account
• Invest in industrial development bond of nationalized Agrani Bank
• Transact securities through investment accounts operated by themselves or by nominees.
• Remit sale proceeds and dividends in foreign exchange.
• Operate foreign currency (FC) account up to 05 years after returning.
• Take securities outside Bangladesh.

Part 3

Bangladesh Review of Export, Import and Currency Inflation:

The socio-economic of a developing country like Bangladesh on its industrialization and creating the employment for the unemployed peoples and increase the purchasing power of the people. In this part of the report presented a statistical analysis of the area of direct foreign investment and the information, which seemed to be important for this terminal report.

Bangladesh is the seven largest country in terms of population and thirty fifth countries in term of purchasing power parity. The investment in industries in Bangladesh last 20 years increasing for 100% export oriented products. Beside this, the import is still high compare to export. In this part of the report , the comparative study been done on export, import And the currency inflation.

ADP contribution: Domestic and External resources:

Contribution to annual development program (ADP) in Bangladesh stills dependability on foreign resources. The domestic resources contribution to annual development program is increasing from last 10 years but ADP of the country cannot move with out external resources.

This chart presented the ratio of resources for the ADP in Bangladesh from external and Internal or domestic resources. It observed that the contribution to ADP from domestic or internal resources increasing as under:

In annual development program, increasing the contribution of domestic resources is betokening the success of the internal collection of Bangladesh. Of Bangladesh can continue the process of increasing the domestic resources contribution to ADP, the economic and development stability will make an ideal atmosphere for new investment infrastructure.

To maintain the BOP buy central bank of Bangladesh and to meet the import bill the devaluation of BDT is a regular practice. In other side, the central bank o f Bangladesh has no choice to encourage the export and remittance earning through devaluation of the currency.

Therefore, it is best to the exporters for invest Bangladesh to take the competitive price advantages to global market Arena. The devaluation practice will give the investors such advantages those investors want to take the global advantages to beat the competitors through offering the low to the customers.

Part 4

Export Processing Zone

In order to stimulate rapid economic growth of Bangladesh, Particularly through industrialization, the government of Bangladesh has adopted a policy to attract foreign investment to Bangladesh. The government calls this policy as “open Door policy”

The Bangladesh Export processing Zone Authority (BEPZA) is the official organ of the Bangladesh Government to promote, attract and facilitate foreign investment in export processing Zone (EPZ).


The primary objectives of EPZ, is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures.

Numbers of EPZ in Bangladesh

There are two operating EPZ one in chittagong and the other near Dhaka have already attracted a wide range of investors. Another four EPZ one at Mongla, A southern port city of Bangladesh, one at commia, suited in an unique place between Dhaka and chittagong, one At Ishurdi and the fourth one at Nilphamari-Sayedpur named Uttra EPZ have already started operation.

Mode of direct foreign investment

Investment is convertible foreign currencies by foreign investors. Option to established public/private limited companies or sole proprietorship or partnership concerns

Production oriented labor law
Bangladesh offer substantial manpower reserves skilled, semiskilled and unskilled. Bangladesh export processing zone authority vested with responsibility to administer labor matters for all enterprises in EPZs.

Minimum monthly Wages

Particulars Minimum wages monthly US $
Apprentice/Trainee 30.00
Unskilled 38.00
Semi Skilled 55.00
Skilled 70.00

Other benefits include conveyance allowance, House rent, Medical allowance and festival bonus (Yearly two times equivalent to monthly basic Wages).
Source: Bangladesh EPZA and EPZ Dhaka.

Working Hours
06 working days weekly
In a factory weekly 48 hours
In an office weekly 39 hours

Employee Leave

10 days casual leaves in an economic year
17 days annual leaves in an economic year

Facilities in export processing zone

The facilities provided by the Bangladesh export processing zone authorities in their industrial zone to attract the investors to setup industries as follows:
• Land and Building are available on rental basis.
• The zone authority provided electricity, tele-communications, gas and water.
• Import and export permits issued by EPZ with in 24 hours.
• Work permit for the foreign export issued by Bangladesh export processing zone authority.
• EPZ is a very secured and protected area. Availability of foodstuff and beverages on payment of nominal tax for foreigners working in EPZ areas.
• Potential investors are required to deal with BEPZA for investment and all other operational purposes.
• Permanent resident ship to a foreign citizen investing a minimum of US $ 75,000 or Equivalent amount. Similarly Citizen ship to any foreign citizen investing US $ 500,000 or transferring US $ 1,000,000 to any recognized Bangladeshi financial institution both non reportable

Incentives to investors for investment EPZs

To attract the investors in EPZ there has been allowed special incentives to the investors. The incentives are

Fiscal incentives:

Tax exemption:

• Tax holidays for 10 years.
• Exemption of income tax on interest on borrowed capital.
• Relief from double taxation subject to bilateral agreement.
• Complete exemption from dividend tax for tax holiday period for foreign nationals.
• Exemption of income tax on salaries of foreign technician for 3 years subject to certain condition.

Duty free import and export

• Duty free import of machineries, equipment and raw materials,
• Duty free import of three motor vehicles for use of the enterprise in export processing zones under certain condition
• Duty free import of materials for construction of factory buildings in the zones
• Duty free export of goods produced in the export to USA, European countries and Japan
• Export from Bangladesh to USA enjoys most favorable nation status (MFN) status.

Non fiscal incentives:


• All foreign investments secured by law
• No ceiling on extent of foreign investment
• Full repatriation of profit and capital permissible
• Repatriation of investment including capital gains, if any permissible
• Remittance allowed in following cases

Project financing and banking:

• Offshore banking facilities available
• Local and international banking facilities also wide open


• Freedom from national policy restrictions
• Import of raw materials also allowed on documentary acceptance (DA) basis
• Advantage of opening back to back LC types of industries for import of raw materials
• Import of goods from the domestic tariff (DTA) permissible
• Enterprises can sell their 10 % of the products to the DTA on Payment of Duties and taxes under certain conditions

Project implementation:

• Re location of existing industries from aborted allowed
• Relocation of industries from one zone to another zone with in the country permissible


• Sub contracting within EPZ allowed
• Inter zone and intra zone export permitted
• All customer formalities done at the gate site of the respective factory building within the zone
• Permission for export import given at the same day
• Repairing and maintenance of machine and capital equipment from domestic tariff area allowed


• Liberal employment of foreign technician/experts allowed
• A foreigner employed in zone area enjoys same and equal rights similar to those of Bangladesh Nationals

Support service:

• Custom office, Post office, Medical center, Fire station. Police stations are available in the zone area
• E-mail/ Internet, Telex, Fax and ISD service are available in zone area

How to apply:

• Collect a project proposal format from Bangladesh Export Processing Zone Authority on payment BDT 1000.00 only
• Submits application along with the required documents mentioned in the project proposal format

Export earning from EPZ

Export earning from EPZ of Bangladesh over 01 (one) billion US $ in 2000-2001. the export earnings from three operating export processing zones is US $ 1.065 billion. This earning comes from three EPZ –Chittagong EPZ, Dhaka EPZ and Mongla EPZ.

The exportable include garments, textiles, terry towels, electronics and electrical goods, fishing and golf equipment, Metal and plastic products, leather goods, paper products, caps, tents, rope and betel nuts.
Meanwhile, South Korea is the single largest investors in the EPZ. Three are 48 industries in CEPOZ, and DEPZ owned by South Koreans. Among other major investors are 31 Bangladeshi, 18 japanies, 17 Hong Kong and 8 British. The three EPZ have created employment opportunity for about 1, 12,937 workers till now.

Problem of direct foreign investmentin Bangladesh

Bangladesh is an over populated under develop country of the world. The peoples of Bangladesh are mostly unskilled and depend in Agriculture. The political situation of the country still depends on some groups but the people’s participation on democratic process is becoming very effective process id becoming very effective. Now the investors are facing some problems to run their business in this country. The most of the problems are not attending by the Government due to their administrative inefficiency and lack off political commitments. The problems which creating problems to the investors are;

o Low and order conditions

o Government bureaucracy

o Port situations

o General strikes and political activity to shut the economic activities

o Power, Communication and other utility services

o Trade union activities outside the EPZ areas

o Rivalry between main political parties

o Shortage of skill human resources

The above problem is present in Bangladesh. The peoples need still to investment by the foreigners. The last 10 to 15 years the Government takes many programs to accelerate the foreign investments in Bangladesh.

The area of Telecommunication developed rapidly in last few year and three is still some problems to be attending, and privatization in this industry in very remarkable particularly in cellular telephone.

Power generation sectors are open to foreign and private investors to eliminate the bureaucracy and monopoly of Government owned powers authority. The government relaxed rules and regulation to installed power station or gas generators for industrial use

Port facility still not full fills the requirements of the exporters and importers. In this situation government decided to give permission to establish private ports in Chittagong which is under negotiation.

The political situation also improving and last 03 governments take after an acceptable electoral process which is a symbol of improvement in domestic process in Bangladesh. The hopes are near to the reality to eliminate the political rivalry between the main political parties. Boycotting the parliament is bed sign for our democratic process, the good thing is that the people realizing. The role of the parliament should be as a canter of all political debates.

The role of civil society becomes effective to create pressure on political government to move in favors of public interest. To make people comments in this regard, the role of media also important. In last one decade the freedom in media improved, and printed media are enjoying a very good atmosphere than last decade. Electronic is the media which enjoying freedom at specific area of government authorization.

Development of human resources is not up to the mark as per requirements of the country. To complete in global market a well as participation in countries internal development activities, the development of Human resource is very essential. Government, Local and international development agencies take part to develop the human resources of the country. The 50% of the population of the country is female, so the activities by the local and international Non Government organization emphasis to develop them. This is a good sign for develop Human resources of the country.

Law and order situation if the country is very poor. The faith in law enforcement authority is very low and it hears to believe by the people that the law enforcement authority could do their job according to requirement of the people. The government main political party also realizes it, and the pressure is increasing continuously. The optimistic believed that the situation will be changed.

Trade union activity if the country basically revolves in government owned enterprise and the activated in private enterprise in an acceptable condition except in transport industries and jute mills in Bangladesh. Most of the multinational enterprise trade union activity now in a quite and peace full. The law protects the trade union activity in export processing zone area; the government has established privatization board to privatization the government owned enterprise. Through successful privatization will make the enterprise profitable and it is assumed that the good management can reduce the labor dissatisfaction

Finding from the study

While preparing this report some new experience has been gathered after collecting and analyzing data, the following point have been mention:

a) In aspects of eliminated the poverty and as a part of decrease unemployment in Bangladesh, industrialization is very essential. Through direct foreign investment, Bangladesh has a great opportunity to create employment and as well as increase the per capital income in Bangladesh.

b) From the study it has been found that Bangladesh economy widely depending on agriculture. The countries annual development program ADP still depends on external resources. The people’s income is not enough to think Bangladesh internal market potential. The country has very little natural resources and is eighth largest country in terms of population. A large portion of Bangladesh GDP comes from Agriculture and the contribution from industrialization is increasing.

c) Government’s policy and reforms activity continuing for industrialization and government already has very good packages for foreign investors. Democratic process also developed and the major political party of Bangladesh has no significant deference regarding direct foreign investment and democratic process. Therefore, it is clear that there is no political risk to foreign investors.

d) Infrastructure development of Bangladesh is a most important issue to government as well as development of Human resources. Many NGO’s are working to development the HR and other social issue. There is no hard nose regulation to involve such activity in Bangladesh.

e) Export processing Zone is one if success story industrialization process in Bangladesh. There is some vary attractive offer to invest EPZs for 100% export oriented industry. The growth is very high so, Now Bangladesh has establish 06 EPZs

f) Law and other situation and corruption in administration and bureaucracy increasing and it is mostly effected the growth of direct foreign investment in Bangladesh. Transparency international in his last report declared most corrupted country of the world. There are debates about the position of the list, but no corruption culture in administration.

g) Bangladesh has a long heritage in culture, education, ethic friendship, and had very good geographical location to establish the country as a business centre of South Asia

h) At present the environment on EPZs is very good to establish 100% export oriented industries. EPZs are fete from trade union, has available utility service and relaxed from tax other rules as well as back to back LC facilities.

i) Devaluation of Bangladesh currency (BDT) against US $ also favoring export oriented industries. Average wages if labor is very low which attractive to export oriented industries. The living status of the people is increasing and internal market of the country becomes larger from recent tear. Therefore, there is increasing opportunity to direct foreign investment in Bangladesh.

Suggestion and Conclusion

Bangladesh is a virtually located as a land bridge between the growing emerging markets if South Asia and fastest growing markets if south East Asia and the ASEAN countries. The proposed concept of Bay of Bengal Growth Triangle has its apex in Bangladesh, extending South-West via Madras to Colombo and the eastern arm extends through Myanmar and Thailand to Penning, Malaysia, with the third arm to Sri Lanka, attracting greater attention from the investment world. Bangladesh is a possible entry port, a potential Singapore for servicing the region covering Bangladesh, Nepal, Bhutan, seven North East Indian states and also for the resource –rich northern Myanmar, a land locked region, Bangladesh has a market for approximate 130 million people, and a potential regional market if more than 200 million.

Bangladesh is a poor and over population country. The country facing various problems which need immediate attention to makes country economic growth upward. In this situation, the country want to release the dependability in agriculture based economy. Moreover, the country has to create huge employment every year, Industrialization can make that opportunity, in this regard the government offered very attractive proposals to the investors as well as direct foreign investment in Bangladesh.

The foreign investors, those have a very good market globally can invest in Bangladesh. It is truth, the problems discussed in this report are very important to the foreign investors to make investment sustainable. The foreign investors must look the situation of the EPZs. There are clashes between the main political party, and this can not creating ethnic crisis in the country. Situation of the EPZ areas is ideal to invest. In such condition, foreign investors can invest in EPZ to meet demand o f their global market, Low wages and the exchange rate of BDT against US $ also favoring the export-oriented industry. The lower rate of wages and the exchange rate can give the investors cost advantages.

The investors those can invest for sale the product in Bangladesh can invest to develop the infrastructure industries. There are vary good opportunities to invest in the Industries like Telecommunication, Power generation, Road and railway construction and investment in Human resource development.

The government of Bangladesh should make a good and honest administration, idea law and order and order situation and establish a peaceful political environment as well as trade union activities, to attract the foreign investors. Of the political parties can create a good political atmosphere to make parliament as a centre of all political debates, the foreign investors must think to invest their capital in Bangladesh, Otherwise, All attractive packages, which offering to the direct foreign investment will be unattractive.


This report was aimed at evaluating the performance of “problems and Opportunities of direct foreign investment in Bangladesh” the performance of the investment forums has been evaluated with respect to different performance dimensions such as Profitability, risk, possibility, operating efficiency etc. as part of the evaluation, the strategies followed by the different countries investors have also been analyzed. After the evaluation is completed comments have been made on the performance of the direct foreign investors in the country to country on the basis of the result found in the analysis.