Annual FDI inflow estimated at 0.8pc of country's GDP
Friday, 10 August 2007
Sarwar Zahan
The annual inflow of foreign direct investment (FDI) into the country during 2000-05 period has been estimated at 0.8 per cent of the Gross Domestic Product (GDP) on an annual average.
The United Nations Conference on Trade and Development (UNCTAD) in its latest report on least developed countries (LDCs) has revealed this.
The report noted that the garments sector played an important role in drawing the FDI into the country.
The report said among the Asian LDCs only Bangladesh has the textile sector that covers spinning, weaving, dyeing, printing and finishing firms. But it has no domestic brand names to be sold in major markets.
The annual average inflow of FDI during the period was $461 million on an average and FDI per capita stood at $ 3.40 in the period.
The highest inflow of FDI was in the tertiary sector that absorbed around 68 per cent of the total foreign investment inflow. The secondary sector received 25.30 per cent, while the inflow of FDI in the primary sector was only 6.20 per cent, the report said.
The report noted that the garment-manufacturing sector in Bangladesh has been the main destination of FDI since the mid-1990s.
Garments manufacturing remains the most promising sector for attracting FDI in wider range as a consequence of the industry's flexibility in adjusting to unskilled labour. The FDI has brought scarce capital with superior access to export markets and links with buyers driving value chain, the report said.
The rapid expansion of garments exports from the country suggests that the industry could act as a good platform to generate jobs, foreign exchange and technological learning to support development, the report said.
The report observed that high lead-time was a constraint to the competitiveness of garments sector in world market. Poor logistic coordination and heavy dependence on imports are major reasons why delivery time is high.
The lead-time is 90-120 days for woven garments and 60-80 days for knitwear in the country, the report noted.
The annual inflow of foreign direct investment (FDI) into the country during 2000-05 period has been estimated at 0.8 per cent of the Gross Domestic Product (GDP) on an annual average.
The United Nations Conference on Trade and Development (UNCTAD) in its latest report on least developed countries (LDCs) has revealed this.
The report noted that the garments sector played an important role in drawing the FDI into the country.
The report said among the Asian LDCs only Bangladesh has the textile sector that covers spinning, weaving, dyeing, printing and finishing firms. But it has no domestic brand names to be sold in major markets.
The annual average inflow of FDI during the period was $461 million on an average and FDI per capita stood at $ 3.40 in the period.
The highest inflow of FDI was in the tertiary sector that absorbed around 68 per cent of the total foreign investment inflow. The secondary sector received 25.30 per cent, while the inflow of FDI in the primary sector was only 6.20 per cent, the report said.
The report noted that the garment-manufacturing sector in Bangladesh has been the main destination of FDI since the mid-1990s.
Garments manufacturing remains the most promising sector for attracting FDI in wider range as a consequence of the industry's flexibility in adjusting to unskilled labour. The FDI has brought scarce capital with superior access to export markets and links with buyers driving value chain, the report said.
The rapid expansion of garments exports from the country suggests that the industry could act as a good platform to generate jobs, foreign exchange and technological learning to support development, the report said.
The report observed that high lead-time was a constraint to the competitiveness of garments sector in world market. Poor logistic coordination and heavy dependence on imports are major reasons why delivery time is high.
The lead-time is 90-120 days for woven garments and 60-80 days for knitwear in the country, the report noted.