Saturday, April 13, 2024

FDI or Foreign Direct Investment in Bangladesh


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Foreign Direct Investment is the practice of first or investing in businesses in different foreign countries.

For example, If a Chinese multinational firm opens up an operation in India or Pakistan either by opening up its self premises or by partnering with a local business organization, that investment would be counted as part of Foreign Direct Investment.

To increase the countries economic growth the FDI is a great contributor and all above is the meaning of FDI.

After the 1971 liberation war in Bangladesh Foreign Direct Investment was prioritized as a powerful instrument to develop the state economic growth.

After a short journey in the year, 1980 Bangladesh enacted the Foreign Private investment Act to encourage FDI in Bangladesh.

Importance of FDI in economic growth

Many countries investigated the FDI and give results for economic growth in negative and some are positive. FDI is the independent variable only.

After the independence of Bangladesh mainly three-sector are highly invested by foreign companies.

After the FDI, the economic growth of Bangladesh is highly increased 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 encourages 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 fdi.

Many of the job seekers in Bangladesh are now established in different foreign companies in Bangladesh.

So, we see that the job sector also can be healthy.

Responsibility of Bangladesh in Foreign Direct Investment

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 the reciprocal venture.


It has been argued that non-discrimination is a requirement for valid and lawful expropriation.

Evidentiary Values of FIR (First Information Report)

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 its 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.


FDI and the balancing of the interest of Bangladesh concerned are 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 more foreign trade. The GDP of Bangladesh is highly increased by the FDI process.

As per Bangladesh’s perspective if we conclude it Foreign Direct Investment is most important for us.

Advocate Shipta Barua
Advocate Shipta Barua
Shipta Barua has been Completed LL.B(Hon's) from Cox's Bazar International University and completed LL.M in Human Rights at Southern University Bangladesh. 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 & Advocate at the District & Session Judge Court, Cox's Bazar.


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