Bida, Bepza secure nearly $1b investment proposals in 6 months

Bangladesh has received investment proposals worth just over $1 billion from both domestic and foreign companies during December 2024 to May 2025.

The proposals were submitted to the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza), Bangladesh Export Processing Zones Authority (Bepza), and Bangladesh Hi-Tech Park Authority.

About 20% of these proposals have already reached the final stage, which includes contract signing, land lease confirmation, and allocation letters.

Bida's Head of Business Development, Nahian Rahman Rochi, confirmed the figures, saying Bepza has received $320 million in proposals, Bida $630 million, and the remaining roughly $70 million went to other agencies.

"These are investment proposals, not actualised investments," Rochi told The Business Standard. "Each of these proposals will go through the full investment journey, and a portion is expected to be converted into actual investments over time – on average within 1 to 24 months."

He stressed that this caveat is important, as there is usually a significant time lag between an investment proposal and its implementation. "This is a common global trend for large-scale investments. Most proposals begin at the exploratory stage and, with the right support, gradually move towards implementation," Rochi said.

He clarified that 50% of the investment proposals came from foreign entities while the rest were made by domestic companies.

According to Bida sources, around 20% of proposals have already been finalised, while about 60% remain under preliminary scrutiny or feasibility assessment, including feasibility studies, early-stage discussions, and initial project planning.

Bepza officials said between December and May they signed land lease agreements with 17 companies that together plan to invest about $184.46 million.

In response to increasing investor queries and demands for transparency, Md Nazrul Islam, executive member (planning and development) at Beza, said they are developing a Unified Investment Portal. The platform will consolidate data on investment status, zone-specific developments, land availability, and approval timelines.

"Currently, updates are often fragmented across agencies," he explained. "This platform will standardise data-sharing and align decision-making processes across departments."

Bida added that recent months have shown early signs of a revived investment landscape for Bangladesh, with both foreign and local investor confidence gradually strengthening. This has been supported by government-led reforms, improved investor engagement, and a series of major project announcements.

Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bida and Beza, told TBS, "Actual investment is the output, not the input. Our input is to improve the investment environment as much as possible. If investors exploring opportunities are not fully aware, it is our responsibility to raise awareness and help them move towards a final investment decision.

"But investment depends on many external factors. Bida alone cannot ensure it; things like reserve balances and market stability play a huge role. As these indicators have been improving, we've seen significant progress in our economic foundations over the past 10-12 months."

Bangladesh Bank data shows that net FDI reached $864.63 million in the first quarter of 2025 – a remarkable 114.31% increase from $403.44 million in the same period last year, and 76.31% higher than the $490.40 million recorded in October-December 2024. Equity investments also jumped year-on-year, climbing to $304.38 million from $188.43 million.

"Despite major changes, overall investment volumes have not declined significantly," Harun added. "Yes, in the first three months there was a slight dip, but it is now rising again. With initiatives like the FDI heatmap and relationship management teams, I believe we will see a notable improvement starting next year."

According to Bepza sources, the agency has signed land lease agreements with 17 companies who will invest around $184.46 million.

Among them, EPL (Export Link) Accessories Limited from Bangladesh has proposed an $8 million investment at Bepza Economic Zone for manufacturing foam, carton, poly, gum tape, and other accessories. Prime Leaf Processing Company Ltd, with operations in Singapore, UAE, and India, plans to invest $8.84 million at Bepza EZ to process tobacco into cut rags and rolled expanded stem.

Lee's Tobacco Machinery Company Limited from Singapore and UAE plans an $8.32 million investment at Bepza EZ focusing on tobacco and cigarette machinery. Bangladesh Hijintone Hair Products Co Ltd, a China-based venture, plans $3.81 million in Ishwardi EPZ, for wigs and hair-related products. 

Hamza Fibers Ltd of Bangladesh has proposed the largest investment of $16 million in Karnaphuli EPZ, focusing on readymade garments (RMG). Allied Tobacco Company Limited, operating from Singapore and India, plans $9.24 million at Bepza EZ for cigarette stick production. 

KKY Canvas Ltd from Bangladesh intends a $17.51 million investment in Adamjee EPZ, to manufacture garments and garment accessories.