The Bangladesh Bank attributed the drop to several factors, including difficulties in profit repatriation by foreign companies due to a shortage of US dollars, a volatile domestic forex situation, possible loss of confidence by investors due to the country’s macroeconomic situation and downgrading of the country’s credit rating by international agencies.
Data shows $751 million worth net FDI was received during January-March this year. Of this, $612 million was reinvested earnings, domestic media outlets reported.
Between and January and March this year, FDI in the textile and apparel sector was worth $109 million.
More than $100 million in investment came from the United Kingdom, China and the Netherlands in the first three months this year.
The country received $3.004 billion in FDI last year—a decrease of 14 per cent YoY.
Though FDI contracted by over 7 per cent to $3.2 billion in FY23, the textile sector received the highest FDI of $1,229 million. In FY23, the textile sector received $435 million in FDI from South Korea, followed by Hong Kong ($174 million), China ($112 million) and India ($54 million).
ALCHEMPro News Desk (DS)
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