Foreign Direct Investment In Bangladesh: A Case Study On The Textile Sector

Abstract

Textile was declared as a 'Thrust Sector' in 1992 aiming at attracting foreign direct investment in Bangladesh. This stimulating thrust sector is now being threatened by several factors. The textile sector of the country has been facing crisis after a sLump in orders from abroad - especially from the USA since September 11, 2001. Besides, in a quota free and GSP free situation after the year 2005, the countries from where the fabrics are being imported are Likely to emerge Bangladesh's competitors in the internationaL market. However, the time to revitalize the sector is passing by and the Government of Bangladesh aLong with private promoters shouLd take necessary measures immediately in this regard. This study provides a detaiLed description on FDI in Bangladesli with special emphasis on the textiLe sector. A number of recommendations have been made at the end of the paper to take remedial actions in order to regain the sector as well as to enhance FDI in the country.