The New Nation - Internet Edition

BUSINESS REPORT

Inflow of Foreign Direct Investment in Bangladesh fell by 16 percent in 2007, compared to the previous year, while global FDI rose by about 30 percent, according to the World Investment Report 2008 published on Wednesday.

The annual report by United Nations Conference on Trade and Development (UNCTAD) said Bangladesh registered FDI worth US$ 666 million in 2007, down from US$ 793 million in 2006.

The Board of Investment launched the UNCTAD report at a press conference on Wednesday at the board's office at Motijheel in the city.

Bangladesh's ranking in inward FDI dropped one point to 121 out of 141 countries in 2006, said the report.

BoI Executive Chairman Kamaluddin Ahmed told the press that foreign investors may have focused elsewhere other than Bangladesh due to infrastructure problems mainly, gas and power.

Replying to queries, he said, "Unless the problem of gas and power is addressed the country's FDI will be affected."

The BoI is now giving priority to sectors that depends less on gas and power including ICT sector, added the BoI chief.

Dr Ismail Hossain of Jahangirnagar University who presented the report said there was political stability in the country during 2007.

"But political uncertainty about the future was a factor deterring investment," he added.

The report says Bangladesh's share in global FDI of US$ 1,833 for the year was only 3.4 percent of the 2007. The share was 4.5 percent and 5.2 percent in 2006 and 2005 respectively.

The US, UK and France received the highest FDI with China and Hong Kong leading among the Asian countries while India made as the FDI leader in South Asia.