Bangladesh’s goal of becoming an economic powerhouse hinges on attracting foreign direct investment (FDI), but a new report from the Bangladesh Investment Development Authority (BIDA) reveals that significant gaps remain in how the country promotes investment. While key industries have seen steady growth, there is a clear need for a more structured and strategic approach to investment attraction.
Industry experts highlighted the importance of aligning investment strategies with national priorities, targeting specific sectors, and taking a more focused approach to attract high-quality FDI. According to the report, despite Bangladesh’s growing economic potential, FDI inflows have remained stagnant, contributing just 0.5 percent to the country’s GDP in recent years.
The report also notes that less than half of the FDI inflows (45 percent) qualify as direct foreign investment, with the rest being intercompany loans or reinvestments.
Ashik Chowdhury, executive chairman of BIDA, emphasized that the FDI Heatmap, which provides a data-driven approach, will serve as the foundation for future investor engagements. “This Heatmap isn’t just a plan—it’s the blueprint for every roadshow, bilateral agreement, and policy we implement,” he said.
Nahian Rahman Rochi, head of business development at BIDA, pointed out that despite Bangladesh’s strong economic fundamentals, FDI contributions are still well below the global average of 3 to 4 percent of GDP. He stressed that the Heatmap aims to change this by focusing on high-potential sectors, identifying key markets, and aligning strategies with the country’s development goals.
The report also underscores the need for a solid framework that will attract investments that not only boost the economy but also align with the country’s long-term vision. BIDA has identified 19 priority sectors, including apparel, pharmaceuticals, renewable energy, semiconductors, and electric vehicle batteries, as well as opportunities in advanced textiles and agro-processing. These sectors are seen as key to strengthening Bangladesh’s competitiveness on the global stage.
This initiative reflects the country’s commitment to fostering sustainable growth and economic self-reliance, while creating a more investment-friendly environment.
, but a new report from the Bangladesh Investment Development Authority (BIDA) reveals that significant gaps remain in how the country promotes investment. While key industries have seen steady growth, there is a clear need for a more structured and strategic approach to investment attraction.){kind=link}