Bangladesh’s aspiration to emerge as an economic hub hinges on attracting foreign direct investment (FDI), yet FDI inflows remain stagnant at just 0.5% of GDP, far below the global average of 3-4%, according to a Bangladesh Investment Development Authority (BIDA) report.

Only 45% of these investments qualify as direct FDI, the rest being intercompany loans or reinvestments.

The report introduces the “FDI Heatmap,” a strategic blueprint to guide investment efforts through prioritization, sector alignment, and data-driven analysis. BIDA’s Executive Chairman Ashik Chowdhury emphasized its role in shaping investment strategies, including roadshows, treaties, and policy support.

To reverse the stagnant trend, BIDA has identified 19 priority sectors, ranging from traditional strengths like apparel and pharmaceuticals to emerging industries such as renewable energy, semiconductors, and electric vehicle batteries. Advanced textiles and agro-processing are also highlighted for their innovation potential.

Industry experts stress the need for a framework to attract quality investments aligned with national goals.