Bangladesh's textile sector receives highest FDI of $1,229 mn in FY23

20 Oct '23

2 min read

Pic: Adobe Stock

Insights

Though FDI into Bangladesh shrank by over 7 per cent to $3.2 billion in fiscal 2022-23, the textile sector received the highest FDI of $1,229 million—$435 million from South Korea, $174 million from Hong Kong, $112 million from China and $54 million from India.
The highest overall FDI came from the UK ($622 million), followed by South Korea ($603 million).

Though foreign direct investment (FDI) into Bangladesh contracted by over 7 per cent to $3.2 billion in fiscal 2022-23 (FY23), the textile sector received the highest FDI of $1,229 million, according to central bank data released recently.

The textile sector received $435 million in FDI from South Korea, followed by Hong Kong ($174 million), China ($112 million) and India ($54 million).

The highest overall FDI came from the United Kingdom ($622 million), followed by South Korea ($603 million).

Other major contributors included the Netherlands ($512 million), Hong Kong ($371 million), the United States ($347.2 million), Singapore ($330.62 million) and China ($232 million).

The country’s energy sector received $340 million in FDI, including $111 million from the Netherlands and $202 million from the United States, according to domestic media reports.

Disinvestment witnessed an uptick in the fiscal, and was attributed to potential fund withdrawals. Equity investment plummeted by 40.91 per cent, while intra-company loans falling by 40.14 per cent during the fiscal, the Bangladesh Bank's recent report noted.

Reinvestment by existing foreign-owned companies, however, saw a surge of nearly 16 per cent during the fiscal.

FDI in Bangladesh primarily focuses on three areas: economic zones (EZ), export processing zones (EPZ) and non-export processing zones (non-EPZ).

In FY23, non-EPZ areas attracted the highest net FDI inflows of around $2.8 billion, while EPZs received $406 million. The EZ areas received nearly $4.2 million.

Fibre2Fashion News Desk (DS)

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