Bangladesh emerged as the leader in Foreign Direct Investment (FDI) growth among South Asian nations in 2025, with inflows surging by approximately 45 per cent to reach $1.78 billion.
According to the “World Investment Report 2026” released by the United Nations Trade and Development (UNCTAD), the country’s FDI rose from $1.23 billion in 2024.
This growth is seen as a reflection of increasing international investor confidence in the Bangladeshi economy, despite a challenging global investment climate.
The report was published at a time when global investment flows remain uneven due to geopolitical tensions, trade uncertainties, and high financing costs. In this context, Bangladesh’s robust FDI growth is highlighted as particularly significant within the South Asian region.
While the share of FDI in total gross fixed capital formation remains relatively low, the report noted that domestic investment continues to be a primary strength of Bangladesh’s growth model.
On a broader scale, developing Asia maintained its status as the world’s leading investment destination in 2025, attracting $1.6 trillion after two consecutive years of decline. This recovery was largely driven by strategic investments in digital infrastructure, manufacturing, energy transition technologies, and other key sectors.
The UNCTAD report identifies further potential for Bangladesh to attract foreign capital in manufacturing, services, infrastructure, and technology-driven industries. Analysts suggest that the nation’s large domestic market, competitive workforce, strategic geographic location, and ongoing economic reforms provide a strong foundation for future FDI growth.
With a GDP exceeding half a trillion US dollars and steady progress in industrialisation and connectivity, Bangladesh is increasingly recognised in the international arena as a promising destination for long-term investment.
