FDI is sensitive issue because no investor wants to incur losses. To start FDI the investors extremely explore the environment and considers loss-profit and facilities given by the government. Bangladesh faces several challenges to attract foreign in investors for FDI. The challenges are;
Limited capacity to supply gas and electricity in industries: Constraint gas supply and under produced electricity turn back to attract FDI because industrial industries depend on gas and electricity for production. Sufficient supply of gas and electricity may in foreign investors to invest.
Absence of physical infrastructure: Physical infrastructure is not planned and well decorated in Bangladesh results shrinking export and import of raw materials and machinery. Well developed physical infrastructure may be good issue in increasing FDI.
Bureaucratic complexity: To start over an industry in Bangladesh by an any investor necessitates permission from bureaucracy body, which is more time consuming, having permission, thus discouraging the investor. To overcome kinked process there should ascertain a particular institution that issues all permissions.
Absence of investment promoting agency: There is no investment promoting agency in Bangladesh that may induce FDI investors. An agency is dire need to promote investment.
Lack of professionals and sector specific trained man power: Bangladesh possesses a vast manpower but the fact is that lack of skilled labor of particular sector basis; in such situation either Bangladesh hires trained manpower or invertors lose their interest to invest. Merely proper training to labor for being skilled on particular sector can solve this problem.
Poor imposition of intellectual property law: Property law does not enforce in prospective way; that the rich are having more properties without any consideration. A well-definite enforcement law can bring the FDI.
Political unrest and blockades: Instable political activity narrows economic development and frequent changes of government alters the economic law that’s why invertors incur loses.
Absence of technology infrastructure: Heavy machinery lacks in Bangladesh so the foreign investors have to import from abroad which is costly and becomes difficult in case there is no sea port.
Corruption: Corruption is not only unethical activities done by man but all innate disease in the perspective of Bangladesh. The investors fear to invest due to extravagant corruption. By controlling corruption, the FDI could increase in upcoming days.