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Net FDI Increases in Bangladesh, But New Capital Investments Decline

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Invest Bangladesh & Bangladesh Bank Data

Invest Bangladesh & Bangladesh Bank Data • 19 Oct • 2 min read • 1 views · 1 impressions

 Net FDI Increases in Bangladesh, But New Capital Investments Decline
Economic zones and foreign investment landscape in Bangladesh, Photo: Daily Best News

Although net foreign direct investment (FDI) in Bangladesh increased by 12.78% to reach $346.94 million in the April–June quarter of this year, new capital investments experienced a decline of nearly 5%.

According to the latest statistics from Bangladesh Bank released by Invest Bangladesh, about 75% of this growth—amounting to $260.91 million—came from the reinvestment of profits by foreign companies already operating in the country. Amid global economic uncertainties and geopolitical tensions, new equity investments dropped by 4.77% to $77.42 million, while the net flow of inter-company loans plummeted by 85.17% to $8.61 million.

Meanwhile, while FDI outside export processing zones grew by 20.75%, investments in economic zones fell by 25.33% to $4.51 million. Nahian Rahman Rochy, a member of Invest Bangladesh, noted that while reinvestments by existing investors reflect long-term confidence in the country's business climate, efforts are underway to resolve fundamental investment environment issues and advance $1.3 billion in pipeline projects to attract fresh investments.

— Daily Best News Desk • Fearless in the search for truth

Reported by Invest Bangladesh & Bangladesh Bank Data • Edited by the Daily Best News desk. Send corrections to [email protected].

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