Bangladesh will allow foreign direct investment (FDI) in the garment industry outside the export-processing zones (EPZs). The aim is to boost apparel exports. Certificates will be issued to foreign-owned garment factories outside the EPZs. Foreign investors have to invest only in producing high-fashioned, non-traditional and costly garment items.

Earlier there was a strong feeling, foreign investment would pose a threat to local entrepreneurs. But now there is optimism about a significant boost to country's exports both to traditional and the comparatively new markets across the globe as a result of the move to open the sector to foreigners.

Also, the country hopes to strengthen its capability and longevity since workers will be trained in making high-end garment products. Foreign investment is expected to also help in technology transfer. As of now Bangladesh has only 6.09 per cent stake in the global apparel trade, which means huge opportunities are still lying untapped.

At present, nearly 140 foreign companies have invested in Bangladesh's garment sector.  They are operating factories in eight EPZs across the country.  Their aggregate investment in the factories amounts to around $1.5 billion. Around 10 other foreign companies are also in operation outside the EPZs under a joint venture agreement with local entrepreneurs.