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Investment banking current scenario and future prospect in bangladesh

August 20, 2015 Accepted date: September 01, 2015 Published date: September 06, 2015 Citation: Abdin J 2015 Investment Climate in Bangladesh: Int J Econ Manag Sci 4: This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

The government of Bangladesh declared Vision 2021 to be a higher middle income country by the year 2021. There are many other challenges in front of it like; about 31. A huge amount of new investment is required to increase GDP growth and employment rate up to the desired level. There are options to increase local investment as well as go for foreign direct investment but preparations shall be taken in time. Otherwise Vision 2021 may not be achieved even by the year 2031.

Investment Climate in Bangladesh: Performance and Possibilities

Current investment attraction tools using by the government of Bangladesh could be rechecked and initiate effective corrective measures as, when and where required.

Goldman Sachs investment bank described Bangladesh as one of the Next-11 countries N-11 due to its prompt growth potentials [ 1 ]. Present government aimed to reach into the status of middle income country by 2021 and graduate from the list of LDC.

  • GDP growth rate was 6;
  • We would like to depends upon a popular market analysis tools namely ITC Investment Map to get international data;
  • Scope of the work Analyzing current performance of the selected countries in attracting foreign investment based on available secondary data sources like ITC investment map.

To transform Bangladesh into a middle income country we must have to attain few targets like; achieve and sustained annual rate of GDP at 10 per cent by 2021, substantially eradicate poverty by bringing down the number of people living below the poverty line to 15 percent of the population estimated at no more than 25 million, change the sectorial composition of output with the shares of agriculture, industry, and services approximating 15 percent, 38 percent, and 47 percent respectively by 2021.

We have to reduce the unemployment rate to 15 per cent; change the shares of agriculture, industry, and services in employment to 30 per cent, 25 per cent, and 45 per cent respectively by 2021. To achieve this change in the economy Bangladesh has to generate 11,500 MW electricity by 2015, and make provisions to meet the expected demand for power of 20,000 MW by 2021 [ 2 ].

On the other hand about 31. Providing employment opportunity to such a huge population is quite difficult task for the government as well as for the local private sector. Therefore government has to go for foreign investment into Bangladesh to facilitate employment opportunity, foster economic growth and poverty alleviation.

To achieve all of the above mentioned targets by 2021 Bangladesh has only one option i. GDP growth rate was 6. Investment banking current scenario and future prospect in bangladesh means we have to invest about 5.

Investing such a huge amount may not be possible from internal sources only. Problem statement and research question Bangladesh has to be higher middle income country within the year 2021. But a significant amount of its population is living below poverty line with a major unemployment figure.

  • We would like to know investment trend into Bangladesh during last ten years;
  • Limitation of this study The whole study is conducted based on secondary literature, data and information;
  • Government published data in case of availability shall get priority to reflect the actual scenario;
  • The government of Bangladesh declared Vision 2021 to be a higher middle income country by the year 2021.

Number of educated job seekers is increasing day by day. There is a little effort to divert these jobseekers into entrepreneurship development or self-employment creation process by the government. Local and foreign investment has to be raised to increase GDP growth into double digit. The Board of Investment is organizing international road shows to attract foreign investment but its response is not satisfactory level till now.

How the competitor countries like Vietnam are attracting foreign investment? What types of new initiative could be taken to increase local and foreign investment in Bangladesh? Objective of this study Main objective of this study is to know about the investment attraction packages offering by Bangladesh for the local and foreign investors.

How much local and foreign investment Bangladesh has received during last ten years? How its competitor countries are doing in terms of local and foreign investment attractions? We would like to know about the challenges and recommend ways forward to increase investment into Bangladesh.

Methodology To conduct this study the researcher would like to go through investment relevant law, acts, incentive packages offered by the government of Bangladesh and other relevant agencies. We would like to know investment trend into Bangladesh during last ten years.

Identifying the sectors received maximum foreign investment in last ten years. We would like to compare FDI attraction performance of few selected South and Southeast Asian countries along with the origin of investment.

We would like to depends upon a popular market analysis tools namely ITC Investment Map to get international data. At the same time government published data and referred journals could get priority in terms of acceptability of data and information to be used in this study. Scope of the work Analyzing current performance of the selected countries in attracting foreign investment based on available secondary data sources like ITC investment map. Government published data in case of availability shall get priority to reflect the actual scenario.

International standard of citation will be strictly followed by the author to maintain high professionalism and acceptability of the study.

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Looking after the challenges and recommending ways forward could be a major part of this study. Limitation of this study The whole study is conducted based on secondary literature, data and information. This is one of the major limitations of this study.

This study could be more effective if adequate number of stakeholders could be interviewed from each country and incorporate their experience driven opinions in it. A broad based primary study could give it a new dimension in terms of efficiency and effectiveness of the recommendations.

Literature review Bangladesh is a rapidly growing economy in South Asia. It is a market of 160 million populations and their purchasing power is rising day by day. It is offering 56. All the factors of production are cheaper in Bangladesh than that of the other South and Southeast Asian countries.

Bangladesh enjoys tariff free market access to the European, Canadian, Australian and Japanizes markets.

Bangladesh received its credit ratings BB- and Ba3 in 2010. The Government of Bangladesh has taken a number of steps to create a facilitating environment for the private sector so that it plays its due role as an effective economic agent and makes substantial contribution to the overall economic development of the country.

Bangladesh changed its socialist mentality and successfully adopted global free market economy in late 90s. Major industrial sectors of Bangladesh includes textiles, readymade garment, telecommunication, ICT, energy and gas, infrastructure development, leather goods, plastic goods, jut goods, light engineering, ceramics, agro-processing, and ship building etc.

Muttakin and Ahmed [ 1213 ] identified complex bureaucracy, weak infrastructure, political unrest, and absence of good governance, lack of entrepreneurship development initiative, absence of effective judiciary, poor capital market, and lack of adequate information, complex approval procedures and poor industrial base as major barrier to attract FDI into Bangladesh. Current Trend of Investment in Bangladesh Local investment From the statistics of last ten years 2005-06 Base year it is quite clear that, private sector is leading the trend of investment in Bangladesh Table 1.