INTRODUCTION:

Performance Analysis of Board of Investment (BOI) Bangladesh

Introduction

The Board of Investment (BOI) was established in 1989 by the Investment Board Act to encourage investment in private sector, to identify the hindrance of investment and provide necessary facilities and assistance in the establishment of industries. The wide range of services BOI provides includes investment promotion and facilitation covering support, suggestion and aftercare support to the investors. The prime vision of BOI is to promote domestic and foreign investment as well to enhance international competitiveness of Bangladesh and contribute to overall social and economic development of Bangladesh.

Rational of the StudyForeign and local investment carries enormous significance in a developing country like Bangladesh. Realizing the importance of foreign investment Bangladesh formulated its first industrial investment policy in 1973, revised it again in 1974, 1975, and in 1978. Foreign private investment (Promotion and protection) act, 1980 and the Bangladesh Export Processing Zones authority act 1980 were enacted. To make the foreign investment more attractive new industrial policy was announced in 1982. However, the industrial policy 1999 is by far the most comprehensive document. Bangladesh has ever made for investment including foreign investment.

With the passage of time Bangladesh reform its regulatory structure in regard to the FDI to open up the new avenue and to dislodge the compliances related to the FDI and now it is all controlled by board of investment (BOI). But the effort of this structural progress has back warded by sudden and unexpected political influence and changes. The situation becomes worse one in the September attack on US. Bangladesh had also severely affected by that unwanted changes in the world scenario. Before going for in depth analysis the flow of FDI in Bangladesh we have the privilege to have a look on the regional and worldwide flow of FDI in the recent period.Objective of the studyThis study is conducted with the objective to get an overall insight the performance of Bangladesh board of investment and their operations in the flow of FDI and local investment in Bangladesh. The total objective is decomposed into several parts to get idea about BOI and those the factors affecting the flow of FDI and also the process of FDI in Bangladesh. The specific objectives of this study are: To give an overview of Bangladesh and its investment opportunity.

To give an organization structure of BOI.

To analysis the operation, incentives, facilities of BOI.

To give an insight into the theoretical issues relating to FDI.

To highlight the role of multinational corporation in FDI. To give an overview of local investment. How FDI held in Bangladesh the process. To evaluate the status of FDI in Bangladesh. To identify the problem of FDI & prescribe some issues for their solution.Scope of the studyThe primary scope of this paper is to get acquainted with the flow of foreign direct investment and local investment and the evaluation of performance of BOI. The study will cover the scenario of FDI and current situation and opportunity of investment in Bangladesh. Comparative analysis of statement of sector wise distribution of FDI in Bangladesh and sources of FDI has been presented. The findings will be strictly structured upon the data provided by the Directorate of Board of Investment (BOI).Sources of InformationThroughout the report I presented historical background of the flow of FDI and to get insight about the possible changes in the coming years. I have gathered information and data relevant to this analysis from several sources. The collected data are highlighted in the tabular analysis and trend analysis. This analysis helps me to know about the movement of FDI flow over the year. I also tried to find out the possible causes and factors that shaped the trend line of the flow. In a particular year the flow is upward moving at another time this is downward moving. So what is the reason behind that is the objective of the study as a whole. The analysis of the report is supported by some theoretical arguments that enhance the overall findings and guide towards a reasonable recommendation.Limitations of the studyAlthough I tried to find and set the causes that determine the shape of the flow of FDI, I believe Im not at the best peak. I have relied extensively on published data and other secondary sources to precede the report. But some of those sources were not approachable and we lacked from data of that sources. In analyzing the report I have presented some factors that determine the shape of the flow of FDI. But these are not surely the only factors and many important factors may be omitted from the analysis. And another thing is that the underlying factors are mostly in qualitative factors in nature and therefore cannot be measured in numerical way. The consequences are that we failed to provide absolute guideline about restructuring policy and some other decisions. The finding of the report is based on some assumed scenario and changes on those scenarios may reshape the future flow of FDI. That is the analysis is situation and time based. The biggest problem we faced in the reporting period is the paradoxical data set. I have three sets of data in regard to the FDI, but all that provides us contradictory result. Board of Investment does not confirm what the Bangladesh bank published and vice versa. On the other hand the recording of FDI data is almost a new concept in our country. Why Invest in Bangladesh? From the inception of the independence Bangladesh has been in the centre of economic investment incentive for many countries and institutional bodies of the world. With the passage of time Bangladesh reform its regulatory structure in regard to the FDI to open up the new avenue and to dislodge the compliances related to the FDI. But the effort of this structural progress has back warded by sudden and unexpected political influence and changes. The situation becomes worse one in the September attack on US. During this period flow of FDI all over the world shrunken at a greater extend. Bangladesh had also severely affected by that unwanted changes in the world scenario. Before going for in depth analysis the status of Bangladesh from different aspects are discussed. Bangladesh could be an attractive place of FDI. It is located between the growing markets of south Asia.

Economic Status: The macroeconomic situation of the country is by large, stable, characterized by a manageable fiscal deficit and low current account deficit. In external trade, it has steady export growth. Foreign Exchange reserve is not bad. Political Status: Bangladesh is a developing country having a republic type democratic government. It has British style parliamentary system. After liberation in 1971 the then government nationalized all the key industries. As a result, aid from western world remains as the means of survival. But development of Bangladesh through aid seems to have failed. We see hat Bangladesh is still poverty-ridden. As the effectiveness of aid declined very much demand arose about market access to the developed countries of the product & services of developing countries. But the market access of developed countries is faced with several problems of which politics seems to be prominent. A free trade policy otherwise called globalization is seen as a lively remedy to solve both the problems of developed and developing countries.

Investment Status: The present democratic government concentrates on more local & foreign investments in oil, gas, cement, infrastructure, textile sectors of Bangladesh to face the challenges of the twenty first century. Though prospects are there in Bangladesh, due to insufficiency of capital & technology greater investment is no taking place. However the recent trends o administrative, banking and infrastructure reform process, low rate of inflation compared to the neighboring countries( in Pakistan 11.2%, in India 8.5%, Srilanka 16.7 % and Bangladesh 5%) and separate export processing zones are some of the indicators of the countries development process. That may help in attracting local and foreign investors from developed countries.

Besides, the most important tasks is to revive the rural economy so that the migration of rural people will come down, because a country like Bangladesh has poor resources to meet the bargaining demand of the citizens already settled in the urban areas.

Strategic Location of Bangladesh

Photo: Bangladesh on the world mapChina and India between them have vast and increasingly prosperous populations, which are projected to grow to three billion by 2050. Bangladesh is well situated in every sense to take advantage of this opportunity. With improving education, technology and economic growth, Bangladeshs own market of 146.6 m people is becoming increasingly attractive to business and foreign investors. The cost of doing business in Bangladesh has significantly and visibly decreased in recent times.Advantageous Trading Agreements All Bangladeshi products (other than armaments) enjoy complete duty and quota free access to EU, Japan, Canada, Australia and most other developed countries.

Bangladesh is a signatory to the Multilateral Investment Guarantee Agency (MIGA); Overseas Private Investment Corporation (OPIC), USA; International Center for Settlement of Investment Disputes (ICSID); World Intellectual Property Organization (WIPO).

Bilateral agreements to avoid double taxation have been signed with 28 countries with a further nine countries under negotiation.Attractive Business and Investment Climate

Bangladesh inherits a largely homogeneous society, in which people live in harmony and peace, irrespective of race and religion. It is a democratic country, providing broad and non-partisan political support for market-oriented reforms and for active encouragement of foreign investors.

The Foreign Private Investment (Promotion & Protection) Act 1980 provides protection for investments made in Bangladesh.Bangladesh is Youth and AmbitionUnlike older industrialized societies with growing legions of ageing dependents, Bangladesh has a very youthful demographic.

59.3 % of the population are economically active (15 years and over).

The country is young too,40 years old.

Improving Education and Skills

Bangladesh has 31 public universities, 54 private universities, 60 teacher training colleges and 1,143 technical and vocational institutions.

Typical of the sub-continent, vocational training and professional qualifications are highly respected.

Thousands of Bangladeshis who have wide work experience abroad add to the national reservoir of skill.

English Widely Spoken

The national language is Bengali or Bangla.

Yet our second language, English, is widely spoken, understood and written.

More than 90% of staff at management level is fluent in English.

Source: Bangladesh Bureau of Educational Information And Statistics, Bangladesh Technical education BoardBangladesh Export Competitiveness

Bangladesh, despite being a least developed economy, has a proven record in export competitiveness. Here is a summary of the facts. From 2003 to 2007 Bangladesh achieved annual export value growth of 19.6%, a testimony to its export competitiveness. Whilst not wishing to be complacent, and being mindful of difficult global trade conditions in 2008-2010, these positive trade differentials are likely to be with Bangladesh well into the future. Manufacturing output has seen steady growth, recently in double figures. Bangladesh provides significant benefits to exporters.

Bangladesh offers a most liberal FDI regime in South Asia, with no prior approval requirements or limits on equity participation and repatriation of profits and income in most sectors.

Bangladesh enjoys tariff-free access to the EU, Canada, Australia and Japan. Bangladesh is the top manufactured products exporter to the least developed countries as well as to Europe, with more than 50% market share.

Competitive Cost Base

In January 2010, JETRO conducted a comparative survey of investment-related costs in 29 major cities and regions in Asia. The following comparison is based on that survey with some selected cities. Bangladesh offers a truly low competitive cost base. Wages and salaries are still lowest in the region, a strong business advantage. Yet this is an increasingly well educated, adaptive and peaceful population with many skilled workers. Dhaka's skilled labor cost base is still less than the other major cities. Dhaka's management grades are 2-3 times less than in Singapore, Shanghai, and Bangkok. Industrial estate rent in Dhaka is cost effective than Shanghai, Jakarta, Bangkok Office rents are also very competitive with other international cities. Dhaka's housing rent for foreigners are less expensive than Singapore, Mumbai, Karachi, Hanoi. Cost of diesel in Dhaka is found to be more competitively priced than most other large cities.Fiscal and Non-Fiscal Incentives

Bangladesh offers some of the worlds most competitive fiscal non-fiscal incentives. BOI can advise further on this matter.

In summary and in most cases, these amount to the following: Remittance of royalty, technical know-how and technical assistance fees.

Repatriation facilities of dividend and capital at exit.

Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000.

Tax holidays : In the Dhaka & Chittagong Divisions: 100% in first two years: 50% in the year three and four: and 25% in the year five.

In the Rajshahi, Khulna, Sylhet, Barisal Divisions and three Chittagong Hilly Districts: 100% for first three years, 50% for next three years, 25% for year seven.

Depreciation allowances : Accelerated depreciation for new industries is available at the rate of 50%, 30% and 20% for the first, second and third years respectively, on the cost of plant and machinery.

Cash and added incentives to exporting industries : Businesses exporting 80% or more of goods or services qualify for duty free import of machinery and spares, bonded warehousing.

90% loans against letters of credit and funds for export promotion.

Export credit guarantee scheme.

Domestic market sales of up to 20% is allowed to export oriented business located outside an EPZ on payment of relevant duties.

Cash incentives and export subsidies are granted on the FOB value of selected exports ranging from 5% to 20% on selected products.

About Board of Investment (BOI)Board of Investment (BOI) was established by the investment board Act 1989 to promote and facilitated investment in the private sectors both from domestic and overseas sources with a view to contribute to the social economic development of Bangladesh. It is headed by the Prime Minister and is a part of the Prime ministers office. Its membership included representatives (at the highest level) of the relevant ministries- industry finance, planning, textiles, foreign, commerce, telecommunications, energy power, science and information & communication technology etc. and other autonomous body, such as Governor of Bangladesh Bank, precedents of FBCCI and BCI. Broadly, the objective of BOI is to encourage and promote investment in the private sector both from domestic and overseas sources and to provide necessary facilities and assistance in the establishment of industrial sectors with a view to contribute to the socio-economic development of Bangladesh.

BOIs Major Functions

Investment Promotion

Country promotion. Sector/industry promotions. Publications on business processes.Investment Facilitation Pre-investment information and counselling service.

Investor welcome service (faster immigration).

Registration/approval of foreign, joint-venture and local project.

Registration/approval of branch/liaison/representative offices.

Approving work permit for the foreign nationals.

Facilitating utility connections (electricity, gas, water & sewerage, telecom etc.).

Assistance in obtaining industrial plots.

Approving remittance of royalty, technical know-how and technical assistance fees.

Facilitating import of capital machinery & raw materials.

Approving foreign loan suppliers' credit, PAYE scheme etc.Policy Advocacy Advocating policy suggestions to the government.

Assisting the government in framing new policies for private sector development.

Assisting the National Taskforce on investment climate facilitation.Organization StructureSl.PositionName and Designation

1.ChairpersonSheikh Hasina Honble Prime Minister

2.Vice ChairpersonDilip BaruaHonble Minister

Ministry of Industries

3.MemberAbul Maal Abdul MuhitHonble Minister

Ministry of Finance

4.MemberAbdul Latif SiddiquiHonble Minister

Ministry of Textiles & Jute

5.MemberAir Vice Marshal (Retd) A K KhondkerHonble Minister

Ministry of Planning

6.MemberAdvocate Shahara KhatunHonble Minister

Ministry of Post and Telecommunications

7.MemberEngineer Khandaker Mosharraf HossainHonble Minister

Ministry of Expatriates Welfare and Overseas Employment

8.MemberCol. (Retd) Faruk KhanHonble Minister

Ministry of Civil Aviation and Tourism

9.MemberDr. Dipu MoniHonble Minister

Ministry of Foreign Affairs

10.MemberArchitect Yeafesh OsmanHonble State Minister

Ministry of Science and Information & Communication Technology

11.MemberBrig Gen (Retd) Muhammad Enamul HuqHonble State Minister

Ministry of Power, Energy & Mineral Resources

12.MemberDr. Atiur RahmanGovernor

Bangladesh Bank

13.MemberMohammad Moinuddin Abdullah Secretary

Ministry of Industries

14.MemberFazle KabirSecretary

Ministry of Finance

15.MemberMd. Ghulam HussainSecretary-in-Charge

Internal Resources Division

16.MemberKazi Akram Uddin AhmedPresident, The Federation of Bangladesh

Chambers of Commerce and Industry (FBCCI)

17.MemberA. T. M. WaziullahPresident

Bangladesh Chamber of Industries (BCI)

18.Member-SecretaryDr. Syed A SamadExecutive Chairman

Board of Investment

Performance of BOI Bangladesh1. Industrious Low-Cost WorkforceBangladesh offers a well-educated, highly adaptive and industrious workforce with the lowest wages and salaries in the region. 57.3% of the population is under 25, providing a youthful group for recruitment. The country has consistently developed a skilled workforce catering to investors needs. English is widely spoken, making communication easy.

2. Strategic Location, Regional Connectivity and Worldwide AccessBangladesh is strategically located next to India, China and ASEAN markets. As the South Asian Free Trade Area (SAFTA) comes into force, investors in Bangladesh will enjoy duty-free access to India and other member countries 3. Strong Local Market and GrowthBangladesh has proved to be an attractive investment location with its 146.6 million populations and consistent economic growth leading to strong and growing domestic demand.

4. Low Cost of EnergyEnergy prices in Bangladesh are the most competitive in the region. Transportation on green compressed natural gas is less than 20% of the diesel price.

5. Proven Export CompetitivenessBangladesh enjoys tariff-free access to the European Union, Canada, Australia and Japan. In Europe, Bangladesh enjoys 60% of the market share and is the top manufacturing exporter amongst 50 least developed countries.

6. Competitive IncentivesBangladesh offers the most liberal FDI regime in South Asia, allowing 100% foreign equity with unrestricted exit policy, easy remittance of royalty, and repatriation of profits and incomes.

7. Positive ClimateA largely homogeneous society with people living in harmony irrespective of race and religion, Bangladesh is a democratic country enjoying broad bi-partisan political support for private investment. The legal and policy framework for business is conducive to foreign investment. For detailed about legal infrastructure of Bangladesh please visit Business Laws.

Export Processing Zones (EPZ)Export Processing Zones (EPZs) are export oriented industrial enclaves which provide the infrastructures, the facilities, administrative and support services for a wide variety of enterprises. Bangladeshs highly successful EPZs in Dhaka and Chittagong are now complemented by new EPZ developments and other valuable real estate developments around the country.

The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, and location free from cumbersome procedures. Businesses from 32 countries have so far invested in the existing zones.

There are currently eight zones with others due to open in the next few years.

1. EPZ-Adamjee2. EPZ-Chittagong 3. EPZ-Dhaka 4. EPZ-Mongla5. EPZ-Uttara6. EPZ-Ishwardi 7. EPZ-Comilla8. EPZ-KarnaphuliIf you are interested in setting up your business in an EPZ, the Board of Investment will be pleased to advise you and introduce you to BEPZA.

Incentives & Facilities

Fiscal Incentives1. 10 years tax holiday for the Industries to be established before 1st January, 2012 and Industries to set up after 31st December, 2011 tax holiday period will be:

Tax exemption periodRate of tax exemption

First 02 years (1st and 2nd Year)100%

Next 02 years (3rd and 4th Year)50%

Next 01 years (5th Year)25%

2. Duty free import of construction materials.

3. Duty free import of machineries, office equipment & spare parts etc.

4. Duty free import and export of raw materials and finished goods.

5. Relief from double taxation.

6. Exemption from divident tax.

7. GSP facility available.

8. Accelerated depreciation on machinery or plant allowed.

9. Remittance of royalty, technical and consultancy fees allowed.

10. Duty & quota free access to EU, Canada, Norway, Australia etc. Non Fiscal Incentives1. 100% foreign ownership permissible.

2. Enjoy MFN (most favored nation) status.

3. No ceiling on foreign and local investment.

4. Full repatriation of capital & dividend.

5. Foreign Currency loan from abroad under direct automatic route.

6. Non-resident Foreign Currency Deposit (NFCD) Account permitted.

7. Operation of FC account by 'B' and 'C' type Industries allowed.

Facilities 1. No UD, IRC, ERC and renewal of Bond license.

2. Work permits issued by BEPZA.

3. Secured and protected bonded area.

4. Off-Shore banking available.

5. Import on Documentary Acceptance (DA) basic allowed.

6. Bank of Back L/C.

7. Import and Export on CM basis allowed.

8. Import from DTA (Domestic Tariff Area).

9. 10% sale to DTA (Domestic Tariff Area).

10. Customs clearance at factory site.

11. Simplified sanction procedure.

12. Sub-contracting with export oriented Industries inside and outside EPZ allowed.

13. Relocation of foreign industries allowed.

14. Accords Residentship and Cityzenship.

15. One Window same day service and simplified procedure.

Foreign Direct Investment (FDI)Foreign Direct Investment is one of the vital forces to boost up the economy. In this project report I would like to draw a current scenario of Foreign Direct Investment in Bangladesh. In this regard I present the most updated data, avoid the uncompleted data and use the best judgment at the time of presenting the data to better knowing the current trend about the Foreign Direct Investment in Bangladesh. Foreign Direct Investment (FDI) has played a key role in the modernisation of the Bangladesh economy for the last 15 years. Foreign Direct Investment (FDI) is the acquisition of managerial control by a citizen or corporation of a home nation over a corporation of some other host nation. Corporations that widely engage in FDI are called multinational companies, multinational enterprises, or multinational corporations. FDI traditionally implies export of real capital from home to the host nation, but even when economic investment results from FDI, capital may not be transferred from the home nation to the host one. Rather, multinational corporation may acquire/utilize real capital from local (or a third-nation) sources foreign capital means capital invested in Bangladesh in any industrial undertaking by a citizen of any foreign country or by a company incorporated outside Bangladesh. In the form of foreign exchange, imported machinery and equipment, or in such other form as the government may approve for the purpose of such investment; Bangladesh invites FDI for industrial growth, in particular welcoming establishment of manufacturing firms and service sector enterprises that would sell their products within the country and also export outside it.Factors Affecting FDIBecause Foreign Direct Investment can significantly affect a countrys economy, the most influential factors are:

i. Impact of Inflation:If a countrys inflation rate increases relative to the countries with which it invests, its capital account would be expected to decrease, other things being equal. Consumer and corporations in that country will most likely purchase more goods or invest more in overseas (due to high local inflation), while the countrys exports to other countries & flow of investment from foreign will decline.

ii. Impact of National Income:

If a countrys income level (national income) increases by a higher percentage than those of other countries, its capital account is expected to decrease, other things being equal. As the real income level (adjusted for inflation) raises does consumption of goods. A percentage of that increase in consumption will most likely reflect an increased demand for foreign investment.

iii. Impact of Government Restrictions:

A countrys Government can prevent or discourage investment from other countries. By imposing such restrictions, the Government disrupts investment flows. Among the most commonly used investment restriction are bureaucratic tangles, projection of intellectual property right and f\fiscal policy changes. In addition to these, a Government can reduce its countrys investment by enforcing laws, or a maximum limit that can be invested.

iv. Impact of Exchange Rates:

Each countrys currency is valued in terms of other currencies through the use of exchanges rates, so that currencies can be exchanged to facilitate international transaction. The values of most currencies can fluctuate over time because of market and government forces. If a countrys currency begins to rise in value against other currencies, its capital account balance should decrease, other things being equal. As the currency strengthens, Investment by that country will become more expensive than the receiving countries.

Necessity of FDIThe world has seen a spectacular wave of global corporate activity particularly during the second half of the last decade. This has been facilitated by advances made in the information technology. This trend, strengthened with the direction toward border less-Economies, is drawing more and more TNCs (Trans National Corporation) into the global operation. FDI is no longer only a strategic option of corporations; it also plays a key role in the national economic development strategies. Various countries are attempting to attract foreign investors through a variety of measures, i.e. liberalization of investment environment, fiscal reforms and a package of incentive offers. FDI can transform a countrys economic scenario within shortest possible time. It is not merely access to fund, but also provide transfer of technical know-how and management expertise. It is also a stabilizing factor in any economy, because once TNCs have made an asset-based direct investment, they can not simply pull out overnight like in the case of portfolio investment. Normally the benefits accruable from FDI are inclusive of

(a) Transfer of technology to individual firms and technological spill-over to the wider economy,

(b) Increased productive efficiency due to competition from multinational subsidiaries.(c) Improvement in the quality of the factors of production including management in other firms, not just the host firm.(d) Benefits to the balance of payments through inflow of investment funds.(e) Increase in exports.(f) Increase in savings and investment and.(g) Faster growth and employment.

Thus, foreign direct investment is viewed as a major stimulus to economic growth in developing countries. Its ability to deal with two major obstacles, namely, shortages of financial resources and technology and skills, has made it the centre of attention for policy-makers in low-income countries in particular.

Foreign Investment OpportunityPrivate investment from overseas sources is welcome in all areas of the economy with the exemption of five industrial sectors (arms, production of nuclear energy, forest plantation and mechanized extraction within the bounds of reserved forests, security Printing and minting, air transportation and railways) reserved for public sector. Such investments can be made either indecently or through joint venture on mutually beneficial terms and conditions. In other words, 100% foreign direct investment as well as joint venture both with local private sponsor and with public sector is allowed. Foreign investment, however, is specially desired in the following categories: export-oriented industries;( industries in the Export Processing Zones;( high technology products that will be either import-substitute or export-oriented;( undertaking in which more diversified use of indigenous natural resources is possible;( basic industries based mainly only on local raw materials;( investment towards improvement of quality and marketing of goods( manufactured and/or increase of production capacities of existing industries; and Labour intensive/technology intensive/capital intensive industries.(Inflows of FDIThere was an inflow of $666m foreign direct investment in 2007 which raised significantly in 2008 to $1086m. As of 2011, inflows of foreign direct investment recorded to $1136.38m.

Foreign and Joint Venture Investment

In the year 2009-10 (February), there were 89 new foreign and joint venture investment projects registered to BOI which amount to $590m. The projects were invested to mainly in the service, engineering, clothing and agricultural sectors.

Country wise foreign and joint venture investment during 2009-2010 CountryNo. of ProjectsProposed Investment (US$ m)

Saudi Arabia3478.652

Australia42.036

USA52.990

Finland23.023

India98.451

South Korea1233.768

Malaysia33.056

Netherlands58.544

China1221.000

United Kingdom53.507

Pakistan20.990

Japan82.624

Denmark11.217

Sri Lanka20.646

Canada21.017

Taiwan10.502

Singapore41.929

Turkey10.150

Greece10.156

Italy21.039

Hong Kong514.805

Total89590.102

Source: Bangladesh Economic Review-2011 (Bangla version), Ministry of FinanceFDI Magazine's rankings

FDI Magazine of The Financial Times in March 2010 conducted a competition entitled Global Ranking Competition of Economics Zones based on the following nine categories of ranking:

Best Overall Global Special Economic Zone

Best Economic Potential

Best Cost Effectiveness

Best Facilities

Best Transportation Link

Best Incentives

Best Promotion

Best Airport

Best Port

In the competition out of 700 Economic Zones globally 200 participated in the competition. All the zones were evaluated on a 10 point scale on the basis of some set criteria. Among the top 10 of the two categories Chittagong Export Processing Zone, Bangladesh scored 3rd position in the Best Cost Effectiveness and also 4th position in the Best Economic Potential for 2010-2011.Future of FDI in Bangladesh According to a recent study, FDI inflows are projected to average about $900 million annually from 2000-2010, as compared to $620 million annually during 1992-2000. Outflows in this case would rise, on an annual basis, from a mere $129 million during 1996-2000, to almost $600 million during 2001-2005, and $1.2 billion during 2006-2010.

The energy sector has been the principal recipient of the inflows but, if current trends continue, foreign investment in telecom, manufacturing, and services could overtake energy by 2006. All these expected trends in FDI depend on several factors. The regulatory body like Board of Investment and other government and non-government institution should take proper step to remove the obstacles in the way of foreign direct investment.

Despite substantial changes in government policy, Bangladesh has failed to attract satisfactory levels of FDI and reasons for this failure can be identified quite easily. Government policy is obviously an important factor influencing inflows of FDI. But, there are other, equally important factors. So far as the investment related policies of the government are concerned, these are fine in spirit, but their actual implementation continues to create obstacles for both local and foreign investors. An inefficient and not-too honest bureaucratic system is primarily responsible for this problem. All the administrative barriers are in fact generated from this non-investment-friendly bureaucratic system.Major findings from the study of FDIFour major conclusions can be drawn from the study: Bangladesh has experienced a more stable (less vulnerable) form of capital inflow, with FDI making up about 85-90 percent of the total inflows so far.

Both FDI and private debt inflows in Bangladesh have largely financed imports of machinery and equipment a sign that Bangladesh is only in the preliminary phase of FDI flows.

FDI and debt inflows have not helped in augmenting foreign exchange reserves so far and are not expected to do so over the next 10 years. In fact, as inflows grow so do outflows in the medium- to long-term.

The benefits of FDI are many and worth harnessing. But the downside risks must not be overlooked. The growing repayment obligation presents the prospects of net negative transfers in the future and poses major challenges requiring the country to search for new avenues of earning (or saving) additional foreign exchange. The benefits of FDI in terms of physical capital formation, transfer of technology, and know-how are sufficient to justify sustaining these flows. Capital controls are not the answer to a rising flow of FDI. To ensure that resulting payments liabilities remain within the country s debt-servicing capacity, it is essential to develop an effective non-intrusive reporting and monitoring system the main ingredients of which are presented in the study.FDI Process in BangladeshImplementing a 100% foreign-owned or joint venture industrial project in Bangladesh is a rather simplified process. The entire process is divided into 5 (five) major steps as presented the following diagram

1. Information Search

Board of Investment (BOI):

The most reliable information source of the Government of Bangladesh regarding investment.

Government of Bangladesh Agencies:

Other sources of the Government of Bangladesh like Ministries and trade related offices. Chambers:

Chambers can provide real experiences of the existing investors. Among other chambers following are some helpful chambers helpful to the foreign investors: The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI)

Foreign Investors Chamber of Commerce & Industry (FICCI)

The Dhaka Chamber of Commerce & Industry (DCCI)

Metropolitan Chamber of Commerce & Industry (MCCI)

International Chamber of Commerce in Bangladesh (ICCB)

Associations:

Business associations of the country could also provide specific information related to the respective industry.

International Organizations:

UN bodies like World Bank, UNCTAD, UNDP, WTO, IFC, MIGA, FIAS etc. and other international organizations could also be a trustworthy source.

Consultants:

Independent business consulting firms and consultants provide professional services and assistance.

Websites:

A number of independent websites on Bangladesh hosted in different locations of the world could be surfed from the Web. The keyword searching by 'Bangladesh Investment', 'Bangladesh Business', 'Bangladesh Profile', 'FDI Bangladesh' etc. would provide numerous results. To have more results, please search in different search engines like Google, Yahoo and Lycos etc.2. Physical VerificationUpon analysis of the collected information and initial decision to move forward, the investor requires to visit Bangladesh to have physical verification. He could either visit independently or ask LEIC or the partner to arrange the visit.Immigration Procedures

Business travellers may request for visas with year duration and multiple entries. Bangladesh issues following categories of business visas:

Single-entry for three months

Single-entry for six months

Multiple-entry for six months

Multiple-entry for one year

Multiple-entry for five year

Multiple-entry for work period

Extensions of each of the above are also permitted

Landing Permit (LP)/Visa on Arrival (VOA)

The foreign investors and businesspersons could avail LP/VOA from Zia International Airport for maximum 30 days under the following conditions:

The foreign investors are identified on the basis of certification from Board of Investment (BOI)/ BEPZA / Ministry of Industries. Officials from the BOI are on duty round-the-clock to facilitate certification of the relevant documents to get VOA/LP.

The foreign businesspersons who are directly associated with import of Bangladeshi products are identified on the basis of the certificate by the relevant associations of export-oriented commercial/industrial organizations or the FBCCI or the BGMEA. The certificate shall include Tax Identification Number (TIN) of the respective local commercial/industrial organizations.

The conditions of issuing LP/VOA include following:

The period of LP/VOA can not be extended.

The LP/VOA applicant shall have endorsement of US$500 in the passport / in cash.

The LP/VOA Fee will be determined on Reciprocity Policy with the respective countries.

The applicant shall have Return Air Ticket.

The applicant shall utilize same port for entry and departure.

Various Types of Companies in BangladeshBusiness in Bangladesh may be carried on by a company formed and incorporated locally or by a company incorporated abroad but registered in Bangladesh. The incorporation or registration is done by the Registrar of Joint Stock Companies and Firms (RJSC&F) under the provisions of the Company's Act 1994. Companies could be classified in following categories:

Limited Companies:

Company Limited by Shares

Private Limited Company

Public Limited Company

Company Limited by Guarantees

Unlimited Companies: unlimited companies and companies limited by guarantees may or may not have share capital.

Private Limited Company

Restricts the rights to transfer the shares

Limits the number of its members to minimum 2 and maximum 50 excluding the persons employed in the company

Prohibits any invitation to the public to subscribe for the shares or debentures of the company

Entitles to commence business from the date of its incorporation

Public Limited Company May issue invitation to the members of the public to subscribe the shares and debentures of the company through a prospectus which complies with the requirements of the Companies' Act 1994 and the Securities and Exchange Commission Act 1993 as amended from time to time

Has minimum 7 members, but there is no maximum limit

Has at least 3 Directors

May a private company converted into a public company

Incorporation Options for Foreign InvestorsForeign investors can incorporate following types of companies:

Setting up a 100% foreign-owned company in Bangladesh

Setting up a Joint Venture with Bangladeshi company/investor

Establishing the Company's Place of Business in Bangladesh

Setting up a branch or a subsidiary of a foreign company in Bangladesh

Setting up a Bangladeshi Company or participate in a Bangladeshi Company already formed.Company Formation Procedure

To register a company with the Registrar of Joint Stock Companies and Firms (RJSC&F), promoters have to undertake activities in following steps:Step 1: Selection of the Company Name

Step 2: Memorandum of Association (MOA)

Step 3: Articles of Association (AOA)

Step 4: Registration Application. The application should include:

Application Form. Duly filled in, signed and stamped

MOA Duly signed and stamped

AOA Duly signed and stamped

Registration Fees

Stamp Duty for MOA

Stamp Duty for AOA Private Companies (also require)

Form I: Declaration on Registration of Company

Form XI: Notice of situation of registered office or any change therein

Form VI: Consent of Director to Act

Form X: List of Persons Consenting to be Directors

Form XII: Particulars of Directors, Managers and Managing Agents and any change therein.Public Companies (also required)

Form XI: Agreement to take Qualification Share of the Propose Company

Form XIV: Declaration before commencing business in case of the company filling a Statement in lieu of Prospectus upon complete submission of the above, registration is given by the RJSCF.

Establishing Place of Business

In establishing a place of business of a foreign company, the company has to be registered with the Registrar of Joint Stock Companies as the place of business. Such registration is required in respect of capital issue and obtaining clearance from the central bank i.e. Bangladesh Bank.

Documentary Requirements Include:

Prescribed Application Form. Duly filled in, signed and stamped.

Copies of Charter, statutes or MOA and AOA or other similar instrument. Duly certified by Oath Commissioner or Notary Public and authenticated by Bangladesh Embassy in the respective country.

List of Company Directors and Secretary.

Complete address of the Registered or Principal Office in the country of origin.

Opening of Liaison/Branch/Representative Office

To open or seek extension of Liaison/Branch/Representative Office of a foreign company, the company has to submit in prescribe application form to Board of Investment along with following documents:

Prescribed Application Form. Duly filled in, signed and stamped. MOA and AOA of the Principal Company. Certificate of Incorporation. Name and Nationalities of the Directors/Promoters of the Principal Company . Board Resolution to open a Branch/Liaison/Representative Office in Bangladesh. Audited Accounts of the last financial year. Proposed organogram of the office. List of activities of the proposed office

All papers/documents must be attested by the Bangladesh Embassy/High Commission of the country of origin. Embassy/High Commission of the applicant's country of origin or Apex Chamber of Commerce of the country of origin. The Trade License has to be secured from the local government office like City Corporation or Municipality or Union Parishad, as applicable.Securing Trade LicenseJoint Venture and 100% Foreign Investment proposal in the Private Sector

Entrepreneur/investors are advised to apply for registration to Board of Investment (BOI) in order to avail of facilities and the institutional support services provided by the Government.

Prescribed application form has to be collected from BOI Office or downloaded from BOI website. Documents to be enclosed with the application are:

Application in prescribed Form duly filled in. 2 (two) copies.

Certificate of incorporation along with Memorandum & Articles of Association in case of Public/Private Limited Company. In case of Joint Venture Project (JVP), JVP Agreement duly signed in by both the parties. 2 (two) copies.

Attested copies of Deeds/Documents in support of project land (in case of own land, Purchase Deed and in case of lease / rental premises, Deed of Agreement). 2 (two) copies.

If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile 2 (two) copies.

Background of the Promoters in official letterhead pad describing Name, Permanent and Mailing Address, Position and Nationality. 7 (seven) copies.

List of machinery indicating quantity and price. 7 (seven) copies.

In case the project is financed by loan, copy of relevant documents in support of loan. 2 (two) copies.

Pay order / bank draft amounting required amount in favor of "EXECUTIVE CHAIRMAN AND MEMBER-SECRETARY, BOARD OF INVESTMENT". After receiving the application duly filled in, signed and required documents enclosed, BOI reviews the application and, if found suitable, Registration Certificate is issued by 7 days.3. Plant Setup

BOI registration makes the company eligible to avail the incentives and facilities provided by the Government.The entrepreneurs of such projects are to fill up a simple prescribed application form and submit to BOI for registration. After a first hand scrutiny of the information, BOI issues registration letter.

Application in prescribed Form duly filled in. 2 (two) copies.

Certificate of incorporation along with Memorandum & Articles of Association in case of Public/Private Limited Company. In case of Partnership Project, Partnership Agreement duly signed in by both the parties. 2 (two) copies.

Attested copies of Deeds/Documents in support of project land (in case of own land, Purchase Deed and in case of lease / rental premises, Deed of Agreement). 2 (two) copies.

If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile. 2 (two) copies.

Pay order / bank draft amounting required amount in favor of "EXECUTIVE CHAIRMAN AND MEMBER-SECRETARY, BOARD OF INVESTMENT".

Entrepreneur/investors are advised to apply for registration to BOI in order to avail facilities and the institutional support services provided by the Government.

Prescribed application form has to be collected from BOI Office. Documents to be enclosed with the application are:

After receiving the application duly filled in, signed and required documents enclosed, BOI reviews the application and, if found suitable, Registration Certificate is issued by 7 days.

BOI registration makes the company eligible to avail the incentives and facilities provided by the Government.

Any individual entrepreneur either local or foreign can set up an industry with Public Sector Corporation. Such joint venture is required to be registered with the BOI if the private sectors contribution is more than 50% of the project cost and in such case it is treated as private sector project. For any public sector which makes contribution out of its own fund needs approval of the concerned ministry. The public sector project is processed by the concerned Ministry for approval of the Planning Commission.

Government promotes rapid privatization of the state-owned enterprises (SOEs).

Infrastructure and high involvement projects like power have been encouraged for public-private joint venture.Obtaining Industrial Plot

Entrepreneurs requiring industrial plot for setting up of industry in any industrial areas/estates apart form BEPZA and BSCIC, may apply to BOI as following with a view to justifying actual requirement:

Mentioning of the size of plot required

Copies of sanction / registration letter and

Industrial Layout Plan

After receiving the application, BOI provides assistance to get the industrial plot.

Most of the industrial areas/ estates are owned / controlled by city development authorities in three divisional head quarters. RAJUK in Dhaka, CDA in Chittagong and KDA in Khulna. Besides, a few industrial estates are owned and controlled by some other government agencies namely (a) Public Works Department and (b) Housing and Settlement Directorate.Registration/Approval for Foreign Loan, Suppliers Credit, PAY Scheme etc.

Entrepreneurs in the private industrial sector arranging foreign credit in the form of loan, suppliers' credit, PAVE scheme etc. are required to obtain prior approval from the Scrutiny Committee headed by the Governor of Bangladesh Bank. However, all necessary processes are completed at BOI. Representatives from Bangladesh Bank provide technical assistance to the applicants.

Obtaining Utility Connection Providers

Electricity: Power Development Board (PDB), Dhaka Electric Supply Authority (DESA), Dhaka Electric Supply Company (DESCO) and Rural Electrification Board (REB).

Gas: Gas:Titas Gas Transmission & Distribution Company Ltd. (TGTDCL), Bakhrabad Gas System Ltd. (BGSL) and Jalalabad Gas Transmission & Distribution System Ltd. (JGTDSL).Telephone: Bangladesh Telegraph and Telephone Board (BTTB) for Land phone Grameenphone, Citycell, AKTEL, Bangladesh Telecom, Bangladesh Rural Telecom Authority, Sheba Telecom, TMI etc. for cellular phone service.

Water: WASA or Self Generated.Sewerage: WASA or Self Serviced.Deep Tube well Licensing: WASA.Obtaining Work PermitWork permit for foreign nationals is required for employment in Bangladesh. Private sector industrial enterprises (outside EPZ), branch/liaison/representative office of foreign origin and also local commercial enterprises desiring to employ foreign nationals are required to apply in the prescribed form obtainable from BOI. For expatriate employment the guidelines are as follows:

Nationals of the countries recognized by Bangladesh are considered for employment.

Employment of expatriate personnel is considered only in industrial establishments and commercial enterprises duty sanctioned / registered by the appropriate authority.

Employment of foreign nationals is normally considered for the job for which local experts / technicians are not available and persons below 18 years of age are not eligible for employment.

Decision of the Board of Directors of the concerned company for new employment/ extension has to be furnished.

Initially employment of any foreign national is considered for a team of one year which may be extended on the basis of merit of the case.

Necessary security clearance has to be obtained from the Ministry of Home Affairs after issuance of work Permit and the duration of visa should be extended upto the period of Work Permit.

For obtaining new Work Permit, the expatriate investors and employee must arrive in Bangladesh with PI and E types visa respectively obtainable from concerned Bangladesh Mission in abroad.

Application for Expatriate Work Permit must be submitted (List annexed in the Appendix) to BOI within 15 (fifteen) days from the date of arrival.

Number of the expatriate employees in an industrial enterprise should not exceed 1:20 (foreign: local) ratio at any time during regular production and the ratio for commercial enterprises be 1:5 (foreign: local).

Registering with Factoring Act

In order to regulate working conditions and to ensure safety in the factory, any manufacturing company employing ten or more workers is required to be registered under the Factories Act, 1965 along with the office of the Chief Inspector of Factories and Establishment (CIF&F).

The act is primarily to regulate working conditions and to ensure safety in the factory.

Prescribed Application Form has to be collected from the office of the Chief Inspector of Factories and Establishment, filled in and submitted with requirements. The CI&E office issues registration within the stipulated period.

Registering with Environmental Legislation

Environment Conservation Act 1995 made it mandatory to all industrial projects to obtained Environmental Clearance Certificate from the Department of Environment.

The main criteria for obtaining clearance are set out in the Environment Conservation Rules 1997 which was established under the Act.

Different levels of assessment are required depending on the particular industry concerned.

Investors may apply in prescribed forms for Environmental Clearance Certificate to BOI Utility Service cell (USC) enclosing required documents. The USC arranges necessary clearances from the DOE within the stipulated period.

Remittance of Royalty, Technical Know-How and technical Assistance Fees

No prior permission of BOI is required for entering into agreements for remitting fees for the purpose of royalty, technical know how and technical assistance if the total fees and other expenses connected with technology transfer are within the following prescribes limit:

For new projects, such fees and other expenses should not exceed an aggregate limit of 6% of the C&F value of imported machinery.

Recurrent annual fees for royalties and other expenses such as fees for technical know-how, technical assistance, operational services, marketing of products etc. should not exceed an aggregate limit of 6% of the previous years sales of the firms as declared in the tax return.

Once the technical transfer agreement s falling within the above limits are signed, these are required to be furnished to BOI for registration.

Proposals which are not covered under the prescribed limits require prior approval of BOI for which application has to be submitted along with necessary documents and copy of relevant agreement.

Prior approval/registration should be required from BOI for remitting any technical fees by industrial concern registered with the BOI.4. Commercial Operation After completion of the setup, the plant goes into trial production.

Successful trial production leads to commercial production.

The investor is required to submit half-yearly performance report to BOI on production and employment in the project.

Any changes in information provided in the registration letter have to be informed and made approved by BOI immediately.Local InvestmentSince the establishment of the Privatization Board in 1993 and thereafter the Privatization Commission in 2000, 74 state owned enterprises (SOEs) have been privatized. 54 were privatized through outright sale and 20 through offloading of shares. The major sectors for privatization are jute, textiles, steel, engineering, sugar and food, banking and financial institutions, fisheries and livestock, environment and forestry, chemicals, telecommunications and tourism.Current Privatization Program

Preparations are now on track to dispose off SOEs to private investors. Non-financial public enterprises in the country have been categorized into seven sectors, namely:

Industry

Power, gas and water

Transport and communications

Trade

Agriculture

Construction

Services

As of January 2010, 22 SOEs have been included in the Commissions current programs for privatization. These are

1. Procurement & Sales Organization, Kaptai, Rangamati;

2. Lumber Processing Complex, Kaptai, Rangamati;

3. Karnafuli Timber Extruction Unit, Kaptai, Rangamati;

4. Arco Industries Ltd., Chittagong;

5. SAF Industries Ltd., Noapara, Jessore;

6. Rangamati Textiles Mills Ltd., Ghagra, Rangamati;

7. Tangail Cotton Mills Ltd., Gorai, Tangail;

8. Magura Textile Mills Ltd., Magura;

9. Rajshahi Silk Factory, Rajshahi;

10. Thakurgaon Silk Factory, Thakurgaon;

11. Dhaka Leather Company Ltd., Nayarhat, Savar, Dhaka;

12. North Bengal Paper Mills Ltd., Pakshi, Pabna;

13. Chittagong Chemical Complax,Chittagong;

14. Karnafuli Rayon & Chemical Ltd., Kaptai, Rangamati;

15. Bangladesh Can Company Ltd., Chittagong;

16. Monowar Jute Mills Ltd., Siddirganj, narayanganj;

17. Aroma Tea Ltd., Fauzdarhat, Chittagong;

18. Handloom Facilities Center (HFC), Raypura, Narsingdi;

19. Fish Landin Center & Wholesale Fish Market, Daburghat, Sunamganj;

20. Dhaka Match Factory;

21. Salatin Syndicate, Dhaka;

22. Tiger Wire Products;

Source: Privatization Commission, BangladeshPrivate Investment Statistics

Year Proposed Local Investment Proposed Foreign Investment Total Proposed Investment Growth %

Project BDT Project BDT Project BDT

2005-200617541837013524986188943356124.62

2006-200719301965819111925212131583-27.15

2007-20081615195531435433175824986-20.89

2008-20091336171171321474914683186727.54

2009-201014702741416062611630336785.67

2010-20111298399761482693514466691298.71

2011-201216044970782093389101813835989212

Source: Bangladesh Economic Review-2011 (Bangla version), Ministry of FinanceRegistration of Local Company

Required Supporting Documents:1. A valid Trade License (in case of existing industries).2. Two copies of application in prescribed form duly filled in.3. Two attested copies of deeds of the proposed land (if the land is owned by the entrepreneur, then attach copies of original deed or copy of loan agreement for rented building).4. Memorandum & Articles copy. (If Limited Company).5. Certificate of Incorporation copy. (If Limited Company).6. Two attested copies of Partnership Deeds ( if partnership farm).7. Membership Certificate from local chamber of commerce or trade association (Only for an existing enterprise).8. Bank Solvency Certificate.9. Two copies of project profile if the cost of project if exceeds Taka 5 Crore.10. A pay order/bank draft for registration fees, (from any scheduled bank) in favour of "Executive Chairman and Member-Secretary, Board of Investment".Remarks: After submission of a completed application, BOI will issue a Registration letter along with a photocopy of all of letter submitted, and duly signed by a Director of BOI. Entrepreneurs are issued a registration letter having a registration number.

RecommendationOvercoming the barriers one can now look for the ways to overcoming the barriers to FDI as we have mentioned above. Here, we would recommend following measures that the authorities concerned might consider:

1. Ensuring good governance

Good governance denotes a desirable state of affairs and so is the key to success of all the reforms. Political and bureaucratic accountability are the two principal components of good governance, and without ensuring them, good governance is not possible. Securing progress on this front is the highest priority as continued difficulties pose a serious threat to the sustainability of even the development achieved already. 2. Accountability and transparencyAccountability and transparency continue to remain the twin elusive prerequisites for the overall development of the country. Private sector investment and FDI inflow are severely hindered by the administrative barriers that arise out of a lack of transparency and accountability, which logically leads to inefficiency and corruption. Competence and efficiency, which are both appallingly, lacking in the bureaucracy, will both become achievable goals with the infusion of transparency in decision-making and governance. 3. Co-ordination among state agenciesWithout reducing the utter lack of co-ordination among the state agencies, the services and functionaries cannot be efficient. Assuring proper co-ordination among ministries, departments, regulatory bodies, and faster decision-making in the implementation process will enhance the flow of investment.

4. Strengthening the regulatory authorityGovernment agencies responsible for facilitating investment need to be more active. In this regard, full autonomy to the agencies like the central bank, investment promotion agencies, telecom regulatory authority, energy regulatory authority, securities and exchange commissions etc., is a prerequisite.

5. Rightsizing the governmentThe size of the state organs is quite large and thus mostly inefficient, unproductive and hazardous. So, rightsizing the government is important. By reducing the number of officials in the decision making process in various state organs, transparency and accountability of bureaucracy can be established. Offering a reasonable compensation package to the officials retained is also one of the key factors in ensuring transparency and accountability.

6. Judicial and legal reformsA sound judicial system, which is a must for good governance, is possible when the judiciary can exercise its authority independently. In this regard, separation of the judiciary from executive branch of the government is essential as influence of the executive on the lower judiciary continues to be exercised. There is need for capacity building in the judicial system in order to ensure speedy disposal of cases7. Tackling corruptionTackling corruption in banking, power, other state-owned enterprises and tax administration ought to be an urgent priority. A comprehensive resolution of the corruption problem in banking, power and other state-owned enterprises will require privatization along with independent regulatory bodies functioning in the public sector.8. Fiscal reform

Regarding tax administration, reform option includes establishing an autonomous tax institution with proper incentive and accountability. Countries of the region can learn from the international experience of a number of countries including the Internal Revenue Service of the USA.

9. Infrastructure reform

The main policy challenge is to redefine the role of public sector in infrastructure development by gradually allowing the private sector to play a bigger role. Public sectors role should be restricted to regulatory functions only. Mention may be made here that, Bangladeshs existing Industrial Policy includes infrastructure as a thrust sector acknowledging a lead role of the private sector supported by special incentives and the Finance Minister of Bangladesh, in his 2002 budget speech, stressed the need for more private sector participation in infrastructure development of the country.Conclusion

In conclusion, it could be said that experiences referred to as above are based on the same encountered in Bangladesh. But, these are more or less the same in other countries of the region. If the respective governments do not take appropriate measures, it would be difficult to attract the expected level of FDI. The policy regarding the foreign direct investment should be clear and flexible and should contain some lucrative options for foreign investors. This will certainly boast up the health of FDI in our country. Our country is very much underdeveloped. In the context of an underdeveloped country the role of FDI is very vital and essential. We do not have sufficient internal resources to meet up the growing demand of increasing population at different aspect. As a result we have to rely greatly on FDI to accelerate our economic growth and to meet up the demand.

Another point is credible and must have to note is the necessity of common census of foreign direct investment. Only few months back the BOI and BB have provided contradictory result regarding the FDI in our country. But there should not be any discrepancy in regard to this. This figure represents the condition of the country and should be accurate in nature.

References

1. http://www.assignmentpoint.com/business/finance/report-on-foreign-direct-investment-in-bangladesh.html2. http://www.youngconsultants-bd.org/fdi_policy.php3. http://www.boi.gov.bd/4. http://www.pc.gov.bd/5. http://www.epzbangladesh.org.bd/6. http://www.betelco.com/bd/bdsbus/investmt.html7. http://www.sdnbd.org/sdi/statisticapocketbook/Chap01/0114.htm8. http://www.thaibizbangladesh.net/investors_guide.php9. http://www.bonshai.com/local_industry_permission.html10. http://profilebd.blogspot.com/2012/11/investment-in-bangladesh-through-boi-bd.html

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