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Bangladesh textile and apparel sector fetches $377 mn FDI in FY21

Bangladesh textile and apparel fetched $377 million foreign direct investment (FDI) in FY 2021. And the overall FDI inflow marginally increased by 6% year-on-year to $2.51 billion in the FY 2021, according to the data from the Bangladesh Bank (BB).


Whereas, in FY2020, FDI inflows in the textile and apparel sector was amounted to $271 million, with an 11% increase.

The FDI figure in the textile and apparel sector is not as much as expected but trade analysts and industry people labeled it as a positive sign for the country when the country’s total investment is going through an immobile situation.

Textile and apparel sector leaders are welcoming foreign investment in the new segment where there are opportunities to grow mostly in high-end products.


Experts opined that the flow was much lower than anticipated because of the country’s harsh regulations and bureaucratic complexities.

In FY2020-21, new investment, or equity capital, did not meet the expectation. Growing by 12.08% to $816 million.

Rather foreign companies operating in Bangladesh mainly reinvested their earnings. Reinvestment grew by 4.63% year-on-year to $1.58 billion, BB data showed. Keeping the country’s FDI trend steady.

Experts stressed red tape for Bangladesh’s unceasing struggle to attract more FDI.

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