FDI contributes just 0.5pc to GDP
Staff Reporter :
Foreign direct investment (FDI) is critical to Bangladesh’s ambition of becoming an economic hub, but a report released by the Bangladesh Investment Development Authority (BIDA) highlights significant deficiencies in organised investment promotion.
Industry experts emphasised the need for strategic alignment, prioritisation, and targeted interventions to unlock the country’s full potential, according to the report published on Sunday.
The report revealed that FDI inflows have remained stagnant, contributing only 0.5 per cent to the GDP in recent years. Of these inflows, only 45 per cent qualify as direct FDI, with the remainder consisting of intercompany loans or reinvestments, according to a Bida press release.
“The FDI Heatmap is more than a plan; it is the blueprint for all our future engagements with investors,” said Ashik Chowdhury, executive chairman of Bida. “Every roadshow we organise, bilateral investment treaty we negotiate, or policy support we provide will be guided by this data-driven analysis.”
Despite Bangladesh’s strong economic fundamentals, FDI contributions remain at only 0.5 per cent of GDP – well below the global average of 3-4 per cent, according to Nahian Rahman Rochi, head of business development at Bida.
He explained that the Heatmap is designed to reverse this trend by employing a structured approach to prioritise sectors, identify high-potential investor markets, and align investment strategies with national objectives.
The report underscores the urgent need for a robust framework to attract quality investments aligned with national priorities.
Bida has identified 19 priority sectors to drive economic growth and boost FDI. These include traditional strengths such as apparel and pharmaceuticals, alongside emerging industries like renewable energy, semiconductors, and electric vehicle batteries.
The focus also extends to advanced textiles and agro-processing, highlighting diverse opportunities for innovation and development. By prioritising these sectors, Bangladesh aims to enhance its global competitiveness, Bida stated.