Investors from both local and foreign have intended to invest about Tk 1,626 crore in fabour of 291 industries during first three months of the year 2020 but mostly new sectors.
The major trends of the proposed industries are about 50 per cent entrepreneurs wiling to set new types of industries instead of traditional sectors, according to a press statement issued by Bangladesh Investment Development Authority (BIDA) said.
“In the three months under the report, the highest numbers of investment proposals were found in various industries category, both local and foreign, which accounted for 47 per cent of the total investment. In addition, 21 per cent investment was made in the service industry, 14 per cent in the chemical industry, 6 per cent in the textile industry, 6 per cent in the engineering industry, 5 per cent in the agro-based industry and .95 per cent in the food and allied industries.,” the release said.
In the last three months of October-December, 2019, the proposed investment of 319 industrial units registered with the Bangladesh Investment Development Authority was Tk. 2649 crore.
During the period (January-March, 2020), the total number of registered industrial enterprises has decreased by 26, the total investment proposal has decreased by 36.21 percent.
Among the total 239 industrial units registered for full local investment in the three months under consideration worth Tk 9242 crore proposal.
According to statement, during January-March, 2020, the number of registrations of local industrial enterprises decreased by 16 percent and the number of local investment proposals decreased by 41 percent. Compared to the same period last year (January-March), local investment has decreased by 35 percent.
At the same time, a total of 52 registered industrial units for 33 per cent foreign and 19 joint ventures, ie foreign investment proposal worth Tk 60,20 crore is Tk 3641 crore less than the October-December, 2019 period.
According to statistics, during January-March, 2020, the number of registrations of joint ventures and foreign enterprises decreased by 10, while foreign investment proposals decreased by 31.23 percent.
Foreign firms proposed such an investment size during their registration. In many cases, it surpassed and in many cases, it did not.
The government has initiated to promote FDI, including 5-15 years’ tax holiday, depreciation allowance, incentive on exports, bond facility for raw materials and machinery and 100-per cent profit repatriation.
The BIDA has already introduced one-stop service to make investment hassle-free and it is currently offering 14 online services to investors.
By 2020, the minister said, about 150 services will come under the one-stop service facility that will help reduce hassles facing the investors.