MD NURUL HAQUE

In an unprecedented leap, the Bangladesh Investment Development Authority (BIDA) has recently concluded the Investment Summit 2025 that would set the tone for the economic prospects of the country. Scheduled to be held over four days between April 7 and 10, the summit attracted significant interest from public servants, policymakers, as well as local and foreign investors. With over 450 foreign investors in attendance, the summit showcased the investment potential of Bangladesh and the urgent need on the part of policymakers for stability and security to facilitate FDI investment.

In the context of Bangladesh now, investments are not limited to capital inflow. Employment generation, technology transfer, quality product and service development, and access to global markets are now all included in it. For the benefits to accrue, the ecology of political and social tolerance must be nurtured, along with a secure and investor-friendly milieu. A more recent and unprecedented legislation article suggested a “Brand Protection Scheme” which would allow government-backed risk-security services to foreign brands for a nominal fee. The enhancement of diplomatic relations and communication is also pivotal for improving investors' morale.

The summit aims to promote reforms undertaken since the July Revolution and create a long-term pipeline of investment that will allow sustainable growth. Investors, business leaders, and policymakers hailed sectoral prospects, including ready garments, the digital economy, healthcare, semiconductors, agriculture, and agro-processing. It would also become a networking opportunity, connecting local entrepreneurs with their international counterparts.

The other big deal signed during the week was the Chinese garment manufacturer Hyundai Industries Limited, which pledged an investment of $150 million and will create 15,000 jobs in the next two years. Bangladeshi startup ShopUp also raised $110 million in foreign funding. The world-famous port operator DP World has expressed interest in investing in the New Mooring Container Terminal in Chittagong and a free trade zone near the Matarbari deep seaport.

A special highlight was the honorary citizenship bestowed on Korean investor Kihak Sang, Chairman of Youngwon Corporation, for his decades-long contribution to Bangladesh's industrial sector. Organizers said that gesture  was intended to inspire other foreign investors to do the same.

Delegations from various countries, such as one from the UK led by Trade Envoy Baroness Rosie Winterton and a large Chinese delegation of 200 people expected next month, have expressed interest in partnerships around healthcare, education, and developing infrastructure.

Despite the boost, investors raised red flags about Bangladesh’s investment climate. According to BIDA, the most common questions related to policy continuity and business security. Other burning issues were political instability, bureaucracy, corruption, complicated tax and customs systems, and a lack of infrastructure, especially in the fields of gas, electricity, and transportation.

In response to these challenges, BIDA’s Executive Chairman, Ashiq Chowdhury, said that reviving and addressing these factors is the government’s priority. We are working on a roadmap for following up with investors, simplifying approval procedures, and providing one-stop services. The government is also looking at tax benefits and regulatory streamlining to make it easier for investors.

Its summit stressed that political stability is a prerequisite for investment to take root. The meetings included unprecedented conversations between investors and representatives of the country’s three main political parties, providing investors with meaningful visibility into future policy directions. Analysts said such engagement will lead to greater trust and transparency among stakeholders.

Among the challenges are not just domestic policy and governance issues but also external threats, including the global economic downturn, high raw material costs spurred by the Russia-Ukraine conflict, and climate risks such as flooding and rising sea levels. Bangladesh’s FDI-to-GDP ratio also offers a tantalizing picture, just at 0.4 percent, illustrating the enormous potential yet to be tapped.

To capitalize on that potential, the summit identified several opportunity areas. Those are renewable energy generation, growing startup and IT industries, upgradation of the textile industry, and growth of the medical and pharmaceutical industries. Developing ports like Payra and Chittagong and enhancing regional connectivity could also facilitate trade with South Asia and investment corridors to Myanmar and beyond.

At the policy level, the government has to look at systemic issues—namely, red tape, corruption, infrastructure constraints, and land acquisition delays. Bangladesh is also grappling with a financial crisis owing to high-interest loans, non-performing assets, and pressures on foreign exchange reserves. The aversion will need to be taken care of to keep up the interest of the investors and the growth.

Conversely, investors were advised to embrace a long-term horizon, local partnerships, and tech-focused solutions to mitigate risk. BIDA is committed to continuing communication with all stakeholders who made investment commitments during the summit.

More importantly, the conference demonstrated a common vision for the future. The plan “Bangladesh 2035,” unveiled at the event, speaks to a framework for policy continuity that engages major political parties. That would secure a steadier investment environment over the next decade.

Bangladesh has a window of opportunity in the form of a demographic dividend. There is a big pyramid of unemployed youth, so more work gets done. But making this vision a reality would require policy change and a concerted national effort—one grounded in foresight, inclusion, and resilience.

Finally, the Investment Summit 2025 has set the stage for a Transformation Era. To overcome the identified challenges and leverage the momentum generated, Bangladesh can well become a mid-size investment destination in South Asia. If you turn the commitments and declarations agreed to at the summit into reality, the pathway to a better, secure, and inclusive future is within reach.

The writer is an Assistant Professor of English at IUBAT and a PhD candidate at UPM.