FDI or Foreign Direct Investment in Bangladesh

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FDI Meaning

Foreign Direct Investment  (FDI) is the practice of first or investing in businesses in different foreign countries. For example, If a Chinas multinational firm opens up operation in India or Pakistan either by opening up it’s self premises or by partnering with a local business organization, that investment would be count part of Foreign direct investment (FDI). To increase the countries economic growth the FDI is great contributor and all above are the meaning of FDI. After the 1971 liberation war in Bangladesh FDI was prioritized as a powerful instrument to develop the state economic growth. After a short journey in the year of 1980 Bangladesh enacted the Foreign Private investment Act to encourage FDI in Bangladesh.

Importance of FDI in economic growth

Many countries investigated about the FDI and give result for economic growth in negative and some are positive. FDI is the independent variable only. After the independent of Bangladesh mainly three sector are highly invested by foreign company. After the FDI, the economic growth of Bangladesh is highly increase and the people of Bangladesh get proper service. So, If we ,measure economic or multi site benefit the importance of FDI is too important. In this time Bangladesh positively encourage to the Foreign Direct investment. According to the international Law and treaty the state should give properly the business investment treatment. A survey of The world Bank  now in Bangladesh most of the GDP growth in last five years by the foreign direct investment. Many of the job seeker in Bangladesh now established in different foreign company in Bangladesh. So, we see that the job sector also can healty by foreign direct investment.

Responsibility of Bangladesh in FDI

Bilateral Investment treaties

In the general eye many of the situations involving commercial relations between states and private companies fall within the framework of bilateral agreements. These game plans are planned to energize interest in a manner that secures the fundamental interests of both the capital-trading and capital-bringing in states. Bangladesh has duties to give wellbeing of reciprocal venture.


It has been argued that non-discrimination is a requirement for a valid and lawful expropriation. Although it is not mentioned in the 1962 resolution, the arbitrator in the Limco case strongly argued that a discriminatory nationalization would be unlawful. All things considered it was held that Libya’s activity against certain oil organizations was pointed toward safeguarding it’s responsibility for oil and was non-biased. Undoubtedly, the authority noticed that the political thought process itself was not the transcendent intention in nationalization and would not essentially comprise adequate confirmation of an absolutely oppressive measure. When the discrimination factor would certainly be a relevant factor to be considered, it would in practice often be extremely difficult to prove in concrete cases.


The foreign direct investment (FDI) and the balancing of the interest of the Bangladesh concerned is provided by the convention establishing the multilateral investment guarantee agency 1985 which came into force in 1988. Now Bangladesh has proper foreign investment treatment to encourage the more foreign trade. The GDP of Bangladesh highly increasing by the FDI process.  As per Bangladesh perspective if we conclude it the FDI or Foreign Direct Investment is most important for us.

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Shipta Baruahttps://legalhome.org
Shipta Barua has been Completed LL.B(Hon's) from Cox's Bazar International University and completed LL.M on Human Rights at Southern University. Writing and discussion about the critical and important topics of law in his choice. For primary Legal support and enrich to the general people legal knowledge he working in the Legal Home.
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