Bangladesh's ambition to become an economic hub depends on attracting foreign direct investment (FDI), but a report by the Bangladesh Investment Development Authority (Bida) highlights significant gaps in structured investment promotion, despite steady growth in key industries.

Industry experts stressed the importance of strategic alignment, prioritisation, and targeted interventions to unlock the country's full potential, according to the report released today.

The report reveals that FDI inflows have remained stagnant, contributing only 0.5 percent to the GDP in recent years. 

Also, just 45 percent of these investments qualify as direct FDI, with the remainder comprising intercompany loans or reinvestments, according to a press release by Bida. 

"The FDI Heatmap is more than a plan; it is the blueprint for all our future touchpoints with investors," said Ashik Chowdhury, executive chairman of Bida. 

"Every roadshow we plan, bilateral investment treaty we negotiate, or policy support we provide will follow this data-driven analysis from the experts."

"Despite Bangladesh's strong economic fundamentals, FDI contributions remain at only 0.5 percent of GDP—far below the global average of 3 to 4 percent," said Nahian Rahman Rochi, head of business development at Bida.

He also said the Heatmap aims to reverse this trend by using a structured approach to prioritise sectors, identify high-potential investor markets, and align investment strategies with national goals. 

This scenario points out the urgent need for a robust framework to attract quality investments that align with national priorities, the report noted.

Bida has identified 19 priority sectors to drive economic growth and attract FDI. These sectors include traditional strengths such as apparel and pharmaceuticals, along with emerging industries like renewable energy, semiconductors, and electric vehicle batteries.

The focus extends to advanced textiles and agro-processing, showcasing diverse opportunities for innovation and development. By prioritizing these sectors, Bangladesh aims to enhance its competitiveness in the global market, Bida said.

This initiative aligns with the nation's vision for sustainable growth and economic self-reliance, the report added.