Foreign Direct Investment in Bangladesh: FDI Blueprint Report

Bangladesh FDI Blueprint: Where Opportunities Meet Global Capital

Bangladesh stands at a critical inflection point in its economic journey. Despite maintaining robust GDP growth over the past decade, job creation has lagged, and the country’s heavy reliance on RMG exports poses long-term structural risks, particularly as it prepares for LDC graduation in 2026.

The Bangladesh FDI Blueprint, developed by LightCastle Partners, highlights the urgent need to attract Foreign Direct Investment in Bangladesh to drive industrial diversification, large-scale employment generation, and export competitiveness.

Key Insights from the Bangladesh FDI Blueprint

Critical Inflection Point: While growth has been steady, Bangladesh must now address the twin challenges of employment generation and export diversification to sustain its momentum beyond LDC graduation.
Low FDI Share: FDI currently accounts for less than 1% of GDP, compared to Vietnam’s 4.2%, underscoring the need for targeted policy and regulatory reform.
Demographic Dividend: With 65% of the population in the working-age group, Bangladesh has a narrow window to harness its labor advantage through investment-driven growth.
Export Diversification: FDI can enable expansion into electronics, agro-processing, pharmaceuticals, renewable energy, healthcare, leather, jute, and semiconductors, reducing overdependence on RMG.
Peer Country Lessons: Experiences from Vietnam, India, and South Korea illustrate how FDI and technology transfer can catalyze industrial transformation.

Strategic Priorities for Attracting Foreign Direct Investment in Bangladesh

Streamlining regulations and ensuring transparent contract enforcement
Building reliable infrastructure and investor-friendly policies
Expanding special economic zones (SEZs) and advancing cross-border trade agreements

Global Investor Outlook

Bangladesh continues to attract interest from key partners including the UK, USA, Netherlands, China, South Korea, and Japan, signaling strong potential for future investment flows. A meaningful increase in FDI could create millions of jobs, strengthen foreign reserves, and position Bangladesh as a diversified global investment hub.

About the Report

The Bangladesh FDI Blueprint maps priority sectors, analyzes lessons from peer economies, and outlines actionable strategies to strengthen resilience, competitiveness, and economic complexity, charting a pathway for Bangladesh to move from growth to transformation.

WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a systemic and data-driven approach to create opportunities for growth and impact. We are an international management consulting firm which creates systemic and data-driven opportunities for growth and impact in emerging markets. By collaborating with development partners and leveraging the power of the private sector, we strive to boost economies, inspire businesses, and change lives at scale.

For further clarifications, contact here: [email protected]

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Bangladesh FDI Blueprint: Where Opportunities Meet Global Capital

Key Insights from the Bangladesh FDI Blueprint