Dhaka, Bangladesh (BBN) – Net inflow of Foreign Direct Investment (FDI) from China increased by 5.0 per cent in the fiscal year (FY) 2015-16, according to the Bangladesh Bank (BB) statistics.
The inflow FDI from China rose to US$52.37 million in the FY 16 from $49.84 million a year ago.
The central bank statistics also showed that of the total FDI in last fiscal year, $17.37 million came as equity capital or fresh investment. Some $28.70 million came as reinvested earning of the existing Chinese Multinational Enterprises (MNEs) operating in Bangladesh.
Moreover, some $6.30 million of FDI came as intra-company loans.
The FDI from China was very low five years back which started to increase marginally in recent years.
In FY 12, net FDI from China was $14.35 million which increased to $36 million in FY 13 and further jumped to $41.82 million in FY 14.
More than half of Chinese FDI came to apparel and clothing sector followed by leather sector, according to the BB officials.