In Bangladesh textile and apparel sector lured the maximum amount of foreign direct investment during the first three months of 2018. Gross FDI inflow during January-March 2018 in the textile and apparel sector was over 24 per cent of the total FDI flowing into country over the same period. In 2017, FDI in Bangladesh’s textile and apparel sector rose 16 per cent over 2016.
South Korea was the number one investor in this sector followed by Hong Kong and British Virgin Islands. Bangladesh is seeking FDI from Singapore, India, Japan, China, Thailand and other countries. The country is expecting an FDI inflow of about $7 billion in fiscal 2017-18. This is a huge jump, considering the highest Bangladesh has received in recent years is $2 billion. This can be partly attributed to the development of 100 economic zones in Bangladesh.
Since the garment sector is growing fast in Bangladesh, foreign investors choose the country as an investment destination in the textile sector. The available workforce at a reasonable wage, duty-free market access to major export destination, preferential location in the heart of the Asia-Pacific region and policy support have acted as a catalyst to attract foreign investment in the textile and apparel industry.