DHAKA, Sept 29: Bangladesh attracted 72 per cent more foreign direct investment in 2004 than it did the year before, recording a significant improvement in the global investment index, reveals the UNCTAD’s World Investment Report 2005, released in Dhaka on Thursday.

Gross inflow of foreign direct investment amounted to $460 million in 2004, up from $268 million in 2003, the report says.

Net foreign investment stood at $456 million after deducting an outflow of $4 million.

The United Nations Information Centre and the Board of Investment jointly launched the report.

The report also mentioned that Bangladesh advanced in the FDI performance index by 11 places from last year and ranked 112th but slipped in FDI potential index by two places to 115th among 196 countries.

“The report proved that Bangladesh is successfully attracting good amounts of FDI and in 2004, posted the second highest growth in South Asia followed by Pakistan,” said Mahmudur Rhaman, executive chairman of the investment board, analysing the investment figures.

Quoting the report, Mr Mahmud said Bangladesh had been placed in the same league as China, India, South Korea, Pakistan, Qatar, Mongolia, Singapore, Syria and Vietnam that saw record growth in investment inflow.

He ruled out the results of the Global Competitiveness Report 2005, released on Wednesday by the World Economic Forum, which claimed that business competitiveness in Bangladesh had deteriorated.

“There is a difference between perception and reality,” Mahmud said, referring to the report, which was based on perception of company executives. “There is something grossly wrong with the competitiveness report. It may be in the methodology. It may also be that our executives are not reporting the true scenario.”

The UNDP resident representative in Bangladesh, Jorgen Lissner, said despite having potentials, Bangladesh could not emerge as an Asian tiger in the real sense due to non-economic factors like strikes, corruption and poor law and order. “The growth in investment inflow and export are good news, but one should not feel complacent.”