$21b investment proposals since Covid outbreak

Bangladesh has received investment proposals totaling $21.17 billion since the coronavirus pandemic struck the world nearly two years ago, said a top official. 

The Bangladesh Investment Development Authority (Bida), has got proposals involving $14.77 billion, the Bangladesh Economic Zones Authority $5 billion, the Bangladesh Export Processing Zones Authority $1.35 billion, and the Bangladesh Hi-Tech Park Authority $5.5 billion.

The proposals were received by the four investment promotion agencies between January 2020 and December 20 this year, and the figures were disclosed at the ongoing Dubai Expo 2020.

"It was the outcome of combined efforts of the four investment promotion authorities," Md Sirazul Islam, executive chairman of the Bida, told The Daily Star yesterday, confirming the investment proposals. 

"Bangladesh is an ideal destination for foreign investors as the government is creating an investment-friendly atmosphere with necessary infrastructures," he said, adding that the country had received the proposals amidst the challenging coronavirus pandemic.

In 2020, the Bida attracted $7.12 billion worth investment proposals. Of the sum, $4.85 billion came from local investors and $2.26 billion from foreign investors and the joint ventures set up by local and foreign investors.

The agency wooed $7.65 billion worth of investment proposals as of December 20 this year. Proposals worth $6.85 billion came from local investors and $806.27 million from foreign investors and the joint ventures of local and foreign firms.

Islam said the domestic market had also become lucrative for investors apart from offering export potential from Bangladesh.

"The expanding middle-class of Bangladesh is becoming the potential consumers."

It remains to be seen how much of the proposals translate into actual investment since foreign direct investment (FDI) flow to Bangladesh has been far lower than expected because of strict regulations and bureaucratic complexities.

FDI to Bangladesh stood at $2.51 billion in the last fiscal year, whereas countries such as Vietnam usually mobilised $8-10 billion in FDI per year, according to an analyst.

Bangladesh had targeted to attract $32 billion in FDI during the seventh five-year plan period stretching from the fiscal year of 2015-16 to 2019-20. But, the country had managed to receive less than $10 billion.