Bangladesh is often deemed a promising but complex market, full of potential yet constrained by red tape. Investors have long seen opportunities, but accessing them has been another story. We are now ensuring that is no longer the case.

I took on the job of executive chairman of the Bangladesh Investment Development Authority (Bida) and Bangladesh Economic Zones Authority (Beza)  four months ago, and within weeks I met more than 200 foreign and local CEOs and investors. They affirmed Bangladesh’s fundamentals: namely, having the world’s eighth-largest population, high growth, and a young, rapidly urbanizing workforce, but made clear that they needed greater policy predictability, government-to-business service efficiency, and a level playing field. The depth of this understanding among my own Bida officials was striking. They knew what needed to change, but couldn’t act. 

Last year, a youth-led movement reshaped Bangladesh, putting in place an interim government led by economist and Nobel laureate Muhammad Yunus. Since then, we’ve broken new ground to ease the path for FDI into the country.   

No investor should feel lost

Investor confidence is measurable. And despite the concerns you may hear about us, the numbers speak for themselves. Data tracked by fDi Markets shows that greenfield FDI announcements in Bangladesh hit a record last year. A survey by the Japan External Trade Organization last August and September found that 58% of Japanese firms plan to expand in Bangladesh this year, ranking it second only to India across Asia-Pacific.

This confidence is well-placed. Bangladesh’s caretaker government is operating as a coordinated unit, ensuring departments work together rather than in isolation. Banking reforms are tackling bad loans and improving the ease of capital repatriation. The goal is simple: no investor should feel lost in Bangladesh. 

Last October, we launched the Project Ambassador initiative which assigns each investor a dedicated point of contact within Bida to streamline government processes in everything from licensing to expansion. 

We have also resized our economic zone strategy, moving away from an unsustainable 100-zone development plan to focusing on five high-impact zones. An inter-ministerial investment advisory board now guides policy and resolves concerns, ensuring continuity and responsiveness. The government has also settled a decades-old land dispute regarding the Korean Export Processing Zone, by facilitating the land transfer to its developer Seoul-headquartered Youngone Corporation. It’s a clear sign that execution, not discussion, defines our approach.

New sectors, new strategies

This same energy is driving opportunities in high-potential industries. We are working with a newly-launched national semiconductor taskforce to enhance our chip design industry and create capabilities in assembly and packaging. It is perhaps the country’s first investment policy body built on an equal footing between various stakeholders. The taskforce brings industry leaders, non-resident Bangladeshis from Silicon Valley, policy-makers and academia together at the same table, giving each an equal say. We have not harnessed our strengths like this before, and it is shaping how we move forward.

Bangladesh now offers a data-driven FDI heatmap, which identifies 19 sectors based on their market readiness and strategic value. These include areas primed for rapid growth such as advanced textiles and renewable energy, those with quick entry potential such as automotive parts and light engineering, and those that will receive sustained policy support such as electric vehicle batteries and semiconductors. Every roadshow we plan, bilateral investment treaty we negotiate and policy support we provide will follow this analysis.

Irreversible change

But strategy alone isn’t enough. We want investors to experience these changes first-hand, including at the Bangladesh Investment Summit this April which will feature deep dives into high-growth sectors and business networking. The event’s focus is on building lasting ties, not just showcasing the country. 

As with any rapidly growing economy, especially in the wake of political transition and upcoming elections, questions over Bangladesh’s investment landscape will remain. Change brings disruption, but in a country built on strong fundamentals, stability is sure to follow. Moreover, Bangladesh’s bar for investment facilitation has now been raised, irreversibly. The changes set in motion are not tied to any single administration but to a broader shift in how the country engages with investors. 

A new level of transparency, inclusivity, and execution has now become the national standard. Future governments will inherit a system in which investors expect clarity, consistency, and a government that listens, and that will drive forward an FDI framework for years to come. 

Author: Ashik Chowdhury

_{Source: FDI Intelligence}