Bangladesh rank 114th in attracting FDI: Report 2011

Bangladesh's position has been upgraded to 114 from 119 among 141 countries in terms of Foreign Direct Investment (FDI), according to the World Investment Report (WIR). In 2010, inflows to Bangladesh, an increasingly important low-cost production location in South Asia, jumped by 30 per cent to $913 million, according to World Investment Report 2011 which titled as 'Non-Equity Modes of International Production and Development'.

Foreign Direct Investment (FDI) overview (million of Dollars)

FDI Flows	1995-2004 (Annual Avg)	2005-07 (Annual Avg)	2008	2009	2010
Inward	386	768	1086	700	913
Outward	6	9	09	29	15

FDI Stocks	1995	2000	2008	2009	2010
Inward	600	2162	4816	5279	6072
Outward	48	69	80	119	100

Source: UNCTAD, World Investment Report 2011; www.unctad.org/wir or www.unctad.org/fdistatistics.

Bangladesh is becoming a major low-cost production location in South Asia. The rapid growth of the garment industry in countries such as Bangladesh, Cambodia, China and Viet Nam owes much to the participation of foreign contract manufacturing firms producing locally for international clients, at least initially (UNIDO, 2009; McNamara, 2008), said in the report. In Bangladesh and Cambodia the garment industry accounted for some 70–80 per cent of total national exports in 2008–2009.

The use of micro-franchising as a distribution channel to the poor or low-income segments of a market is common in developing countries, with telecom services a widespread example, e.g. in Ghana, India, Indonesia, Senegal or Thailand; while in some countries like Bangladesh and Peru a similar franchising model is used to broaden internet access.
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