Foreign Direct Investment In Bangladesh: A Comparative Study Between Pre Covid And During Covid Period

Sanuar Hossain

This paper attempted to demonstrate the current FDI position as of the end of the financial year 2021 in Bangladesh and to analyze the country and sector-wise foreign direct investment in Bangladesh during Covid-19 and pre-Covid-19 period. The result of chart (3) shows that net inflows of FDI are 2507.31 million U.S.D among which 2254.67 million U.S.D is coming from the EPZ area and the rest are coming from Non-EPZ area from chart (4), there is a positive shift in inflow of FDI by 50.71% in 2019 from 2018 whereas a significant reduction takes place in 2020 which is -39.05% and after that 5.77% increases in 2021 which is not sufficient to offset the loss in 2020. chart (6) represent that power, textile, telecommunication, banking, and petroleum sector bring almost 71% of total net FDI inflow in 2021 while the fertilizer, computer, and leather sectors are lagging behind in generating FDI to the country. Chart (5) represents that, the Netherlands, United Kingdom(UK), United States of America, and Singapore are dominating in contributing to FDI in Bangladesh by providing 357.97, 344.47, 240.2, and 239.67 million (US) dollars. So the govt. of Bangladesh should adopt a monetary policy, fiscal policy, and trade policy in such a way that we can generate more foreign direct investment in the target area by arranging a bilateral or multilateral agreement.

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