Foreign direct investment (FDI) is one of the most important indicators of how well an economy is doing. Aside from helping us grow, FDI also indicates the favourability and competitive position of an economy when placed in the global context. As such, the fact that the country’s FDI rose by 39% to $4.7 billion in fiscal year 2021-22 compared to $3.38bn in the previous year is good news indeed.
The fact that the FDI increased in the past fiscal year at the same time when global economic activities started returning to normal as a result of recovering from the pandemic is a testament to both the resilience of our country and to our ability to keep up with the biggest economic players in the global scene. Not only that, but the fact that we are also beginning to attract more and more foreign investors in the country -- the recent explosion of FDI in our various economic zones -- is a testament for our ability for adoption.
Foreign investors remain apprehensive of investing in Bangladesh, but this is a situation that continues to improve. The various laws and regulations we have have historically been unfriendly for both business and entrepreneurs, which makes foreign investors hesitant from stepping inside the market.
Yet, the fact that our FDI has grown, however, indicates that the recent steps we have taken to alleviate these concerns have been effective. While we have a lot to do before Bangladesh can become investment havens like Singapore, the recent trend in our FDI growth shows that we are on the right path.
The government needs to sit down with both local and international stakeholders to continuously improve the business environment of the country. Given the coming economic downturn both home and abroad, the authorities have to do everything they can to be two steps ahead of the game and ensure that the people in the country don’t fall through the cracks of an economic depression.
To reiterate, FDI is one of the most important indicators of how well an economy is doing. We must do everything we can to maintain our upward trajectory.
