The Bangladesh Investment Development Authority (BIDA) has launched an FDI Heatmap prioritizing 19 key sectors to attract foreign direct investment (FDI) and bolster economic growth. Despite its potential, Bangladesh’s FDI currently accounts for a mere 0.3% of the country’s gross domestic product (GDP), underscoring the need for strategic initiatives to drive investment, in a report.
BIDA introduced this QR code-based heatmap at a seminar titled “Investment Prospects and Challenges,” organized by the Economic Reporters’ Forum (ERF) in Dhaka on 15 January. The initiative identifies sectors where Bangladesh holds a competitive advantage and significant growth potential.
The FDI Heatmap highlights the following 19 sectors as priorities for investment:
- Core apparel
- Advanced technical textiles
- Renewable energy
- Leather
- Automotive and parts
- Pharmaceuticals
- Plastics
- Light engineering
- Footwear
- Electronics
- Semiconductors
- Agro-processing
- Toys
- Medical devices
- EV batteries
- Information Technology Enabled Services (IT-ES)
- Logistics
- Application Programming Interface (API)
These sectors have been chosen based on their competitive edge and potential for substantial growth in the global market.
Bangladesh’s FDI inflows have been on a downward trajectory over the past three fiscal years. In 2021-22, FDI reached $1.7 billion, representing 0.5% of GDP. This figure declined to $1.6 billion in 2022-23 (0.4% of GDP) and further dropped to $1.5 billion in 2023-24, constituting just 0.3% of GDP.
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According to BIDA, only 45% of the total FDI during this period comprised direct investments. The remaining 55% consisted of intercompany loans and reinvestments.
The launch of the FDI Heatmap is part of BIDA’s broader efforts to reverse this decline by strategically promoting the prioritised sectors. The heatmap leverages QR code technology to provide stakeholders with detailed insights into these sectors, enabling targeted engagement with potential investors.
This initiative underscores BIDA’s commitment to positioning Bangladesh as a more attractive destination for foreign investment while fostering economic diversification and sustainable growth.
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