Business Report :
The country’s net foreign direct investment (FDI) witnessed an upward trend in the just-concluded financial year increased by 20 percent compared to the previous fiscal year reached $1.71 billion.
Bangladesh received $1.27 billion in net FDI in 2024, a 13.25 percent drop from $1.46 billion in 2023.
Experts welcomed the recovery as a sign of renewed investor confidence. However, they warned that the overall volume remains far below what is needed to support the country’s long-term development ambitions.
Furthermore, the net inflow still below the than the countries with same potentials as Pakistan fetched FDI amounted to $2.457 billion during July-June of FY25 as against $2.347 billion in the same period of last fiscal year (FY24).
Vietnam attracted around $36 billion in FDI commitments in 2024, while India secured more than $28 billion.
Even smaller Southeast Asian economies like Cambodia have often outpaced Bangladesh in winning large greenfield projects.
India’s FDI overall FDI equity inflows for FY25 rose by 13percent to $50 billion.
Bangladesh needs at least $8 billion in FDI annually to increase our GDP growth by 1 percent every year But inflows have remained between $1.5 billion and $3 billion.
Experts suggest Bangladesh must urgently adopt a strategic, reform-driven foreign direct investment (FDI) policy by removing existing barriers to attract and retain investment to remain competitive in the region.
The landscape for foreign direct investment (FDI) in Bangladesh is hindered by several significant challenges that restrict its ability to attract considerable capital. A primary hurdle is the inefficiency within bureaucratic processes, which complicates the business climate, they expressed.
Additionally, fostering collaborations between universities and industries will help align academic programs with market demands, thereby creating a consistent supply of skilled labour, they added.
Meanwhile, global FDI increased by 4 percent in 2024 to reach US$1.5 trillion. However, this rise was driven in part by volatile financial flows through several European economies, which often act as investment transit hubs according to UN Trade and Development (UNCTAD) published on June this year.
