BIDA creates 'FDI Heatmap' prioritising 19 sectors to boost investment
This initiative aims to strategically highlight sectors and sub-segments where Bangladesh demonstrates a competitive edge and substantial growth potential
The Bangladesh Investment Development Authority (BIDA) has created an FDI Heatmap, prioritising 19 sectors to boost foreign direct investment (FDI), which currently stands at a mere 0.3% of Gross domestic product (GDP).
BIDA unveiled this QR code-based heatmap at a seminar titled "Investment Prospects and Challenges" organised by the Economic Reporters' Forum (ERF) in the capital today (15 January).
The prioritised sectors include Core apparel, Advanced technical textiles, Renewable energy, Leather, Automotive and parts, Pharma, Plastic, Light engineering, Footwear, Electronics, Semiconductor, Agro-processing, Toy, Medical Devices, EV Battery, Information Technology Specialist (IT-ES), Logistics and Application programming interface (API).
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This initiative aims to strategically highlight sectors and sub-segments where Bangladesh demonstrates a competitive edge and substantial growth potential.
"BIDA will also regularly update the FDI Heatmap through consultations with key experts and stakeholders, especially from existing and potential FDI source countries," said BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun.
Abdullah Hil Rakib, managing director of Team Group, said BIDA for its initiative to identify potential sectors for FDI, is a positive move.
"The collaboration needed between government bodies and industry leaders to create a conducive environment for investment."
Rakib urged the government to focus on law and order, noting that extortion in many industrial areas has become a significant challenge for doing business.
"Investors always assess their return on investment (ROI) before committing," he explained. "However, recent government proposals to increase energy prices and hints of further hikes in labour wages are concerning."
"No one will invest when rising energy and labour costs, along with overall production expenses, make it difficult to remain competitive in the market," he added.
According to BIDA, FDI in Bangladesh has declined over the past three years.
In 2021-2022, FDI was $1.7 billion, representing 0.5% of GDP. In 2022-2023, it fell to $1.6 billion, accounting for 0.4% of GDP, and further decreased to $1.5 billion in the 2023-2024 fiscal year, constituting only 0.3% of GDP.
BIDA has revealed that only 45% of the total FDI is direct investment, while the rest comprises intercompany loans or reinvestment.
