Dhaka: Despite facing numerous domestic challenges after the changeover of power last year, Bangladesh has witnessed a substantial increase in Foreign Direct Investment (FDI), attributed to the government’s dedicated efforts to foster an investment-friendly environment.
According to Bangladesh Sangbad Sangstha, data from Bangladesh Bank (BB) reveal that net FDI to Bangladesh surged to $864.63 million in the first quarter (January-March) of 2025, despite the volatile political and economic situation globally. This figure represents a 114.31 percent increase from $403.44 million in the same period of 2024. The recent investment was also 76.31 percent higher than the net amount of $490.40 million received in the October-December period of 2024.
The inflow of equity investments rose significantly year-on-year to $304.38 million during January-March 2025, up from $188.43 million in the same period of the previous year. Experts and economists note that these figures indicate a significant ‘vote of confidence’ in Bangladesh’s investment potential, despite ongoing macroeconomic challenges such as a volatile currency, high inflation, and rising external debt.
Discussing the current investment scenario, Planning Adviser Dr. Wahiduddin Mahmud remarked to BSS that while the necessary investment in both the public and private sectors remains below expectations, finding a quick solution is challenging. Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of Bangladesh Investment Development Authority (BIDA) and Bangladesh Economic Zones Authority (BEZA), emphasized their focus on four main priorities: fast-tracking high-impact investment projects, improving One-Stop Services, resolving issues faced by investors, and building a strong investment pipeline.
Significant efforts are being made to ensure investors receive comprehensive support and assurance that their investments in Bangladesh will be secure and profitable. The BIDA chief highlighted the achievements of the Bangladesh Investment Summit 2025, which took place from April 7 to 10, attended by 415 foreign delegates from 50 countries, with investment proposals worth Taka 3,100 crore announced.
BEZA is maintaining follow-up communication with attendees to ensure progress along the investment pipeline. To encourage balanced industrialization, employment generation, and sustainable infrastructure development, BEZA is formulating a ‘National Master Plan’ with a comprehensive three-phase implementation strategy to develop economic zones nationwide.
The National Master Plan of Economic Zones prioritizes establishing 20 economic zones by 2046, strategically phasing implementation for resource optimization and attracting local and foreign investments. The phased approach, supported by World Bank financing, helps mitigate challenges related to land acquisition, infrastructure readiness, and investor confidence, with the first phase focusing on zones already under development or at an advanced planning stage from FY25 to FY30.
To further attract investment, BIDA has launched a newly designed website that plays a crucial role in facilitating Bangladesh’s investment infrastructure. The platform highlights potential investment sectors identified in BIDA’s FDI heatmap and provides updated services for investors, policy guidelines, and information on focal points of various ministries and investment-related organizations. BIDA’s logo has also been redesigned.
Additionally, BIDA has revamped its One-Stop Service (OSS) portal to enhance service delivery for both domestic and foreign investors. Initially launched on February 24, 2019, at www.bidaquickserv.org, the OSS portal now offers over 133 services for business organizations, integrating services from 35 government agencies, 12 banks, and 5 chamber associations.
General Economics Division (GED) Member of the Planning Commission Dr. Monzur Hossain indicated that if political and economic stability improves in the coming months, investment is likely to continue rising. Md. Hafizur Rahman, Administrator to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), noted that BIDA and BEZA have organized successful events to attract more investment, while the National Board of Revenue (NBR) endeavors to simplify the taxation system further.
In the Fiscal Year 2024-25, BEPZA Executive Director Abu Sayeed Md Anwar Parvez reported that enterprises within BEPZA’s EPZs and Economic Zone invested $292.77 million in capital machinery, construction materials, and other fixed assets (excluding working capital). The signing of 33 new investment agreements in FY 2024-25 marks a significant milestone for BEPZA.
Parvez mentioned that investors from countries including China, South Korea, the United Kingdom, Ireland, the British Virgin Islands, Singapore, India, the United Arab Emirates, and Bangladesh have entered agreements to establish industrial units. The total proposed investment under these agreements is $497.48 million, with an estimated employment potential of 59,408 Bangladeshi nationals. These enterprises will produce a range of goods, including readymade garments, electronics, agro-based products, footwear, leather goods, packaging materials, tents, wigs, light engineering products, toys, and composite items.
He added that once operational, these investments are expected to accelerate actual investment inflow in the current fiscal year (FY26).