The Bangladesh Investment Development Authority (BIDA) has unveiled an innovative ‘FDI Heatmap’ aimed at boosting foreign direct investment (FDI) in the country, particularly focusing on the ready-made garments (RMG) sector and its related industries. Currently, FDI in Bangladesh is a mere 0.3 per cent of the Gross Domestic Product (GDP).
At a seminar titled Investment Prospects and Challenges, organisedd by the Economic Reporters’ Forum (ERF) on Wednesday, BIDA presented the QR code-based heatmap highlighting 19 key sectors for investment. Among these, core apparel, advanced technical textiles, and leather are especially significant as they relate to the RMG industry, which is a cornerstone of Bangladesh’s economy.
BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun emphasised that the heatmap aims to strategically showcase sectors where Bangladesh has a competitive edge and substantial growth potential. The prioritization of core apparel and advanced textiles reflects the government’s commitment to enhancing the RMG sector, which has been vital for the country’s export earnings.
In addition to apparel, the heatmap also highlights sectors such as automotive and parts, pharma, and agro-processing, which can complement and support the RMG industry. Abdullah Hil Rakib, managing director of Team Group, praised BIDA’s initiative, noting the need for collaboration between government bodies and industry leaders to create a conducive environment for investment.
However, concerns were raised regarding the current business climate. Rakib pointed out that law and order issues, including extortion in industrial areas, pose significant challenges for investors. He emphasised the importance of assessing return on investment (ROI) and expressed worries over recent government proposals to increase energy prices and potential hikes in labor wages, which could hinder competitiveness in the market.
BIDA reported a decline in FDI over the past three years, with figures dropping from US $ 1.7 billion in 2021-2022 to US $ 1.5 billion in 2023-2024. Of the total FDI, only 45 per cent is direct investment, while the remainder consists of intercompany loans or reinvestments.
As BIDA continues to update the FDI Heatmap through consultations with experts and stakeholders, the focus on the RMG sector and related industries could play a crucial role in revitalizing foreign investment in Bangladesh.
