FDI in Bangladesh textile sector rises 11% in FY16

02 Nov '16

1 min read

There was a surge of 11 per cent foreign direct investment (FDI) in the fiscal year 2016 (FY16) in Bangladesh textile and clothing sector, according to the central bank of Bangladesh. Net inflow of FDI into textile sector for FY16 was $396 million against $351.62 million in FY15. However, this is less than the record FDI inflow of $445.82 million in FY14.

Bangladesh is the second largest apparel exporter in the world after China. It also enjoys tariff-free market access in EU, Canada, Australia and other developed countries of the world, except the US.

Of the total foreign investment in textile and clothing in FY16, around $222.86 million was introduced as reinvested earnings of the current companies operating in Bangladesh.

South Korean firms, mostly in the export processing zones, invested $111.61 million. This is almost one-third of the FDI in textile sector. Hong Kong firms invested $89.07 million.

Overall, there was 9.27 per cent rise in foreign investment during the fiscal. Textile, telecom, banking, gas and petroleum and power sectors together accounted for 73 per cent of the FDI inflows in Bangladesh. (RR)

Fibre2Fashion News Desk – India

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