Bangladesh has entered an important new phase in its economic journey with the launch of Invest Bangladesh, the country’s apex investment promotion agency.
Created by bringing together the Bangladesh Investment Development Authority, Bangladesh Economic Zones Authority and Public-Private Partnership Authority, the new institution promises to make investment services simpler, faster and better coordinated.
This timely reform deserves appreciation. The government’s decision to consolidate investment promotion, economic zone development and public-private partnerships demonstrates its commitment to creating a more investor-friendly environment.
Recent initiatives, including the digitalisation of regulatory services, development of economic zones, sector-specific incentives and greater engagement with international investors, collectively send a positive message about Bangladesh’s economic direction.
Bangladesh has already grown into an economy of approximately $510 billion and aims to become a $1 trillion economy by 2034. Achieving that ambition will require the country to nearly double its economic output within eight years.
Domestic investment will remain the foundation of this journey, but significantly higher foreign direct investment will be necessary to bring additional capital, advanced technology, management expertise, skilled employment and access to global markets.
Bangladesh’s net FDI increased by more than 39 per cent in 2025 to approximately $1.77 billion. The rebound is encouraging, particularly amid intense global competition for capital. However, FDI remains equivalent to only around 0.4 per cent of GDP, suggesting that the country has considerable untapped potential.
According to the FICCI FDI Report 2026, Bangladesh needs to attract about $15 billion in annual FDI by 2030 to support sustainable growth, meet infrastructure requirements and strengthen global competitiveness.
Invest Bangladesh can play a defining role in closing this gap. An investor should be able to receive coordinated support for business registration, industrial land, utilities, tax and customs matters, work permits, incentives and import-export services through a single institutional platform.
This would reduce delays and duplication while creating clearer accountability throughout the investment lifecycle.
The integration of public-private partnership functions is also significant. Bangladesh requires substantial investment in energy, transport, logistics, ports, digital infrastructure and urban services.
By developing credible and bankable projects, allocating risks transparently and engaging international investors early, Invest Bangladesh can help mobilise private capital for national infrastructure priorities without placing the entire burden on public resources.
Experiences elsewhere in South Asia demonstrate the value of focused investment facilitation. Invest India works with central ministries and state governments through sector-specific teams and dedicated investor support. India attracted a record $94.53 billion in total FDI during FY2025–26, representing annual growth of 17 per cent.
Sri Lanka’s Board of Investment provides another relevant example. It acts as a central facilitation agency for investors and supports project establishment and expansion.
Sri Lanka reportedly attracted more than $1 billion in FDI in 2025, an increase of 72 per cent from the previous year. Pakistan has similarly established the Special Investment Facilitation Council to coordinate investment across priority sectors and help address regulatory bottlenecks.
These examples show that an empowered investment authority can amplify a country’s advantages, although no agency can succeed alone. Its effectiveness depends on cooperation across ministries, regulators and service providers, alongside policy predictability and reliable infrastructure.
Bangladesh already has a compelling proposition. It offers a domestic market of more than 170 million people, a competitive workforce, a proven manufacturing base and a strategic location connecting South and Southeast Asia.
Opportunities extend beyond ready-made garments to pharmaceuticals, agro-processing, electronics, renewable energy, digital services, healthcare, logistics, financial services, light engineering and semiconductor-related industries.
Invest Bangladesh should translate these opportunities into investor-ready propositions supported by suitable land, reliable energy, efficient logistics, skilled workers and local supplier networks.
Strategic projects could be assigned dedicated relationship managers to coordinate approvals and resolve operational challenges. Supporting existing foreign investors will be equally important, as successful reinvestment can generate new capital while strengthening Bangladesh’s reputation internationally.
The focus should also be on the quality of FDI, not only its volume. Investments that diversify exports, transfer technology, develop local suppliers, create skilled jobs and support environmental sustainability will contribute more meaningfully to the country’s long-term competitiveness.
Success should ultimately be measured through realised investment, jobs created, exports generated, approval times, regional distribution and investor satisfaction, not announcements alone.
The government has created a promising institutional foundation for investment-led growth. If Invest Bangladesh can establish a consistent standard of speed, transparency and coordination across government, it can become a trusted partner for investors and a powerful catalyst for realising Bangladesh’s trillion-dollar economic vision.
The writer is a corporate affairs professional. Views expressed are solely those of the author.
