$800m FDI Received in 2005, BOI Executive Chairman tells FICCI meet
Declaring a bright prospect of foreign direct investment and higher economic growth in the country, Board of Investment Executive Chairman Mahmudur Rahman yesterday said an increased amount of US$ 800 million was received in FDI.
"In 2005, the provisional FDI inflow was 800 million US dollars while the amounts were US$ 460 million and US$ 268 million in 2004 and 2003," he told the monthly luncheon meeting of Foreign Investors' Chamber of Commerce and Industry (FICCI) in Dhaka.
The BOI chief executive also mentioned that every year the country is getting a significant amount of FDI for energy sector. Investment promotion is a long-term process, he observed.
Describing a positive result of the growing amount of foreign capital investment in productive sectors, Rahman said as per Bangladesh Bank statistics, in the first three months of this fiscal year, the manufacturing and industrial growth was more than 10 percent and nearly 10 percent.
He stressed the need for first-class government infrastructure as essential one for attracting more FDI.
"Impartial administration, dynamic and credible public institutions and transparent policy are the main elements for first-class investment-friendly government infrastructure. Investment decision is not a simple decision for the investors, it is related to many things," he said.
Describing present condition of the country as the best for FDI, he said there are three excellent elements now the country has got--energy resources, excellent bunch of people as workforce and market access.
"But we have to work together irrespective of party affiliation. FDI is not a matter of BNP, AL, JP or any other party--it is a matter of the country," he told his business audience, adding that the country now needs physical infrastructure, government infrastructure and aggressive promotion around the world for attracting investment.
Replying to the criticisms by some economists about the FDI, he said, "They did not come up with statistics, and statement without statistics is political."
The FICCI president said although the investment climate in the country is favorable compared with most South Asian countries, particularly in terms of its competitive labor costs and flexible labor laws, the cost of doing business in Bangladesh is perceived to be high.
"High costs are reflections of corruption, weak law-and-order, inadequate infrastructure and services and distressed financial markets", he said.
He pointed out the imposition of 10 percent tax at source on royalty, technical know-how fees and technical assistance fees in excess of 2.5 percent of profits by Income Tax authorities created "discontent of foreign investors".
Declaring a bright prospect of foreign direct investment and higher economic growth in the country, Board of Investment Executive Chairman Mahmudur Rahman yesterday said an increased amount of US$ 800 million was received in FDI.
"In 2005, the provisional FDI inflow was 800 million US dollars while the amounts were US$ 460 million and US$ 268 million in 2004 and 2003," he told the monthly luncheon meeting of Foreign Investors' Chamber of Commerce and Industry (FICCI) in Dhaka.
The BOI chief executive also mentioned that every year the country is getting a significant amount of FDI for energy sector. Investment promotion is a long-term process, he observed.
Describing a positive result of the growing amount of foreign capital investment in productive sectors, Rahman said as per Bangladesh Bank statistics, in the first three months of this fiscal year, the manufacturing and industrial growth was more than 10 percent and nearly 10 percent.
He stressed the need for first-class government infrastructure as essential one for attracting more FDI.
"Impartial administration, dynamic and credible public institutions and transparent policy are the main elements for first-class investment-friendly government infrastructure. Investment decision is not a simple decision for the investors, it is related to many things," he said.
Describing present condition of the country as the best for FDI, he said there are three excellent elements now the country has got--energy resources, excellent bunch of people as workforce and market access.
"But we have to work together irrespective of party affiliation. FDI is not a matter of BNP, AL, JP or any other party--it is a matter of the country," he told his business audience, adding that the country now needs physical infrastructure, government infrastructure and aggressive promotion around the world for attracting investment.
Replying to the criticisms by some economists about the FDI, he said, "They did not come up with statistics, and statement without statistics is political."
The FICCI president said although the investment climate in the country is favorable compared with most South Asian countries, particularly in terms of its competitive labor costs and flexible labor laws, the cost of doing business in Bangladesh is perceived to be high.
"High costs are reflections of corruption, weak law-and-order, inadequate infrastructure and services and distressed financial markets", he said.
He pointed out the imposition of 10 percent tax at source on royalty, technical know-how fees and technical assistance fees in excess of 2.5 percent of profits by Income Tax authorities created "discontent of foreign investors".
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