4. French multinational retailer having operations in 33
countries.
No. 1 mass retailer in Europe and No. 2 worldwide
€150 billion in sales, incl. tax in 2012-2013
11,535 stores worldwide.
Main product: Textile, Food, Hard Goods, Home Textile,
Plastic goods etc.
Complementary multi format retailers: Hyper Market: 1450,
Supermarket: 2952, Convenience shop: 5059, Cash & Cary:
152
6. Broad Objective:
To assess the problems & benefits of RMG sector in
Bangladesh (FDI intensive): Case of Carrefour Global
Sourcing.
Specific objectives:
To study the importance of FDI in Bangladesh.
To measure the status of FDI inflows in Bangladesh.
To compare the inflows and outflows of FDI.
To identify the major prospects and problems of FDI in
Bangladesh.
To find out FDI in RMG sector of Bangladesh.
To know about the problems faced by RMG
organizations in operations.
7. FDI refers to investment that is made to acquire a lasting
interest in an enterprise operating abroad
FDI is an international financial flow with the intention of
controlling or participating in the management of an
enterprise in a foreign country.
8. The largest sector in Bangladesh
The sector contributes significantly to the GDP
It also provides employment to around 4.2 million people and
increasing.
USA is the largest importer of Bangladeshi RMG products,
followed by Germany, UK, France and other European
countries.
10. No ceiling on investment
100% foreign equity participation allowed
Tax holiday up to 10 years
Allowances of accelerated depreciation in lieu of tax holiday
Tax exemption and duty free importation of capital machinery
and spare parts for 100% export oriented industries
Residency permits for foreign nationals
No restriction on issuing work permit to a foreign national
viii) Capital, profit and dividend repatriation facilities
Term loans and working capital loans from local banks
Avoidance of double taxation on the basis of bilateral
agreement
Tax exemption on the interest of payable to foreign loans and
on royalties and technical know-how fees
11. Open exchange control
Multiple entry visas for investors
Convertibility of Taka for current account transactions
Protection of foreign investment through ‘The Foreign Private
Investment Act-1980’ and Settlement of Investment Dispute
(ICSID), The Multilateral Investment Guarantee (MIGA), and
World Intellectual Property Organization (WIPO).
Adequate protection is available for intellectual property
rights such as patents, designs, trademarks and copyrights.
12. In Bangladesh Carrefour started their business in
1999
Carrefour yearly business from Bangladesh
around 170 million USD (as per 2012-2013) and
every year it’s increasing.
In RMG sector, Carrefour enlisted 37 factories
from Dhaka and Chittagong.
14. Secondary data collection: Only used secondary data was
Bangladesh bank Report
EXIM bank report
BGMEA annual report
Journal by : ASA University, Muhammad Amir Hossain
(National University)
Primary data collection was qualitative FGD (Focus Group
Discussion) among top five managers of Carrefour Global
Sourcing.
15. Benefits Problems
For FDI the foreign countries are investing to the
home country
Sometimes foreign investors are not thinking about
the home country and only try to imply their rules
which may conflict the local government rules.
The home country is getting more foreign
investment.
It might hamper local manufacturer with same
product.
Increase GDP. Sometime government is manipulated by foreign
investors.
FDI creates employment
For FDI sometimes it improves the living standard of
the country people.
Improves all backward and forward linkage related to
the RMG sector or any other sector.
Not only related sectors are developing also other
sectors are improving like for foreign investor more
luxury hotels, shops, transport facilities etc.
Improves country image world-wide.
More economic growth because of Influx of capital
and increased tax revenues for the host or home
country.
16. As a full time employee the belonged
responsibility was crucial enough.
The confidentiality of sensitive data had to be
ensured.
Some data to be presented was chopped down
due to confidentiality.
17. Quality of bureaucracy and governance
Improvement of law and order situation
Development of infrastructure and human resources
Improvement of port services
Privatization and further reforms
Modernization of business law
Setting up of new EPZs
Improving the country’s image abroad
