GENEVA — Foreign direct investment has not been a driving force in the vibrant ready-made garment industry of Bangladesh, in contrast to other key apparel-exporting nations such as Cambodia, due to pressure by local firms to restrict FDI in the sector, but greater inflows could boost exports and competitiveness, a survey by a United Nations agency said.
“Domestic firms have dominated the industry and shown resistance to FDI in this industry,” said the Investment Policy Review of Bangladesh compiled by the U.N. Conference on Trade and Development. “No formal restrictions apply anymore in RMG, however, the local sector association has put pressure to restrict FDI.”
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