Enhancing FDI through Investment Policy Reform

The average annual FDI inflow in Bangladesh is significantly lower than comparable economies.Over the past decade (2007 to 2017), inflows have averaged at 0.9 percent of GDP in Bangladeshcompared with 3.0 percent in China, 5.5 percent in Ethiopia,...

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Main Author:	World Bank
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	FOREIGN DIRECT INVESTMENT BUSINESS ENVIRONMENT INVESTMENT PROMOTION INVESTMENT BARRIERS INVESTMENT CLIMATE SERVICE DELIVERY PREFERENTIAL TRADE AGREEMENTS TECHNOLOGY TRANSFER CONTRACT LAW REGULATION EXPORT PROCESSING ZONE SPECIAL ECONOMIC ZONES PUBLIC-PRIVATE PARTNERSHIPS
Online Access:	http://documents.worldbank.org/curated/en/270301537422462536/Bangladesh-Policy-Note-Enhancing-FDI-through-Investment-Policy-Reform http://hdl.handle.net/10986/30557

id	okr-10986-30557
recordtype	oai_dc
spelling	okr-10986-305572021-05-25T09:18:56Z Enhancing FDI through Investment Policy Reform World Bank FOREIGN DIRECT INVESTMENT BUSINESS ENVIRONMENT INVESTMENT PROMOTION INVESTMENT BARRIERS INVESTMENT CLIMATE SERVICE DELIVERY PREFERENTIAL TRADE AGREEMENTS TECHNOLOGY TRANSFER CONTRACT LAW REGULATION EXPORT PROCESSING ZONE SPECIAL ECONOMIC ZONES PUBLIC-PRIVATE PARTNERSHIPS The average annual FDI inflow in Bangladesh is significantly lower than comparable economies.Over the past decade (2007 to 2017), inflows have averaged at 0.9 percent of GDP in Bangladeshcompared with 3.0 percent in China, 5.5 percent in Ethiopia, 2.6 percent in The Philippines, 6.6 percent in Vietnam, 4.6 percent in Malaysia, and 2.1 percent in India. In 2017, the sectoral distribution of FDI was concentrated in businesses like telecom (24 percent), power and energy (20 percent), and banking and trading (11 percent). Inflows are primarily from the UK, USA, Norway, Singapore and South Korea which constitute about 65 percent of FDI inflows. The country’s export diversification strategy calls for an efficiency-seeking FDI policy regime with instruments for firm linkages, investment incentives, preferential trade agreements, and efficient services provided by investor promotion agencies (IPA). The absence of such a policy regime is one of the factors restraining FDI inflows into the country. FDI in Bangladesh is primarily reinvestment of retained earnings, reflecting investor confidence but also some constraints. More than 50 percent of FDI in Bangladesh are reinvestments. This shows confidence in the economy among the existing investors, However, the low levels of FDI and absence of new investors indicates problems related to greenfield entry barriers, valuation challenges, and repatriation restrictions. The dearth of enabling policies such as easy business entry, access to serviced land, and investor aftercare, limits the potential for investment in greenfield and expansion projects which are more likely to create new jobs. 2018-10-11T18:56:00Z 2018-10-11T18:56:00Z 2018-09-19 Report http://documents.worldbank.org/curated/en/270301537422462536/Bangladesh-Policy-Note-Enhancing-FDI-through-Investment-Policy-Reform http://hdl.handle.net/10986/30557 English Bangladesh Policy Notes; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Notes Economic & Sector Work South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FOREIGN DIRECT INVESTMENT BUSINESS ENVIRONMENT INVESTMENT PROMOTION INVESTMENT BARRIERS INVESTMENT CLIMATE SERVICE DELIVERY PREFERENTIAL TRADE AGREEMENTS TECHNOLOGY TRANSFER CONTRACT LAW REGULATION EXPORT PROCESSING ZONE SPECIAL ECONOMIC ZONES PUBLIC-PRIVATE PARTNERSHIPS
spellingShingle	FOREIGN DIRECT INVESTMENT BUSINESS ENVIRONMENT INVESTMENT PROMOTION INVESTMENT BARRIERS INVESTMENT CLIMATE SERVICE DELIVERY PREFERENTIAL TRADE AGREEMENTS TECHNOLOGY TRANSFER CONTRACT LAW REGULATION EXPORT PROCESSING ZONE SPECIAL ECONOMIC ZONES PUBLIC-PRIVATE PARTNERSHIPS World Bank Enhancing FDI through Investment Policy Reform
geographic_facet	South Asia Bangladesh
relation	Bangladesh Policy Notes;
description	The average annual FDI inflow in Bangladesh is significantly lower than comparable economies.Over the past decade (2007 to 2017), inflows have averaged at 0.9 percent of GDP in Bangladeshcompared with 3.0 percent in China, 5.5 percent in Ethiopia, 2.6 percent in The Philippines, 6.6 percent in Vietnam, 4.6 percent in Malaysia, and 2.1 percent in India. In 2017, the sectoral distribution of FDI was concentrated in businesses like telecom (24 percent), power and energy (20 percent), and banking and trading (11 percent). Inflows are primarily from the UK, USA, Norway, Singapore and South Korea which constitute about 65 percent of FDI inflows. The country’s export diversification strategy calls for an efficiency-seeking FDI policy regime with instruments for firm linkages, investment incentives, preferential trade agreements, and efficient services provided by investor promotion agencies (IPA). The absence of such a policy regime is one of the factors restraining FDI inflows into the country. FDI in Bangladesh is primarily reinvestment of retained earnings, reflecting investor confidence but also some constraints. More than 50 percent of FDI in Bangladesh are reinvestments. This shows confidence in the economy among the existing investors, However, the low levels of FDI and absence of new investors indicates problems related to greenfield entry barriers, valuation challenges, and repatriation restrictions. The dearth of enabling policies such as easy business entry, access to serviced land, and investor aftercare, limits the potential for investment in greenfield and expansion projects which are more likely to create new jobs.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Enhancing FDI through Investment Policy Reform
title_short	Enhancing FDI through Investment Policy Reform
title_full	Enhancing FDI through Investment Policy Reform
title_fullStr	Enhancing FDI through Investment Policy Reform
title_full_unstemmed	Enhancing FDI through Investment Policy Reform
title_sort	enhancing fdi through investment policy reform
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/270301537422462536/Bangladesh-Policy-Note-Enhancing-FDI-through-Investment-Policy-Reform http://hdl.handle.net/10986/30557
_version_	1764472341664890880

Enhancing FDI through Investment Policy Reform

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