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FDI inflows into Bangladesh up six per cent

Bangladesh saw a marginal six per cent increase in overall FDI inflows in fiscal 2021. In fiscal 2020, FDI inflows into the textile and apparel sector saw 11 per cent increase. The FDI figure in textile and apparel sector is not as much as expected but is seen as a positive sign for the country when total investment is going through an immobile situation. Foreign investment is seen as an opportunity to grow in high-end products. One reason FDI was much lower than anticipated could be the country’s harsh regulations and bureaucratic complexities. 


In fiscal 2020-21 new investment, or equity capital, did not meet expectations and grew 12.08 per cent. Rather foreign companies operating in Bangladesh mainly reinvested their earnings. Reinvestment grew by 4.63 per cent year-on-year, keeping the country’s FDI trend steady. Bangladesh will invest in synthetic fibers. The country sees this as the future of export-oriented garment sector. Reputed brands and consumers are leaning towards manmade and recycled fiber to achieve sustainability. Buyers are choosing the fabric as a substitute to cotton fiber for sustainability and environmental issues. In keeping with sustainability many well-known brands may stop buying apparels produced from non-recyclable material.