Bida converts $400m of $1.5b investment pipeline

More than $400 million worth of investments from the Bangladesh Investment Development Authority's (Bida) $1.5 billion investment pipeline have reached the decision and implementation stage, according to the investment promotion agency.

The pipeline, developed in 2025, includes 70 potential investors from 20 countries. Bida said it has achieved a conversion rate of more than 15%, above international benchmarks. The leading source countries are Turkey, China, Singapore, the Netherlands and South Korea.

Among the largest projects, Hong Kong-based Handa Industries Ltd doubled its planned investment from $150 million to $300 million after facilitation by Bida, the Bangladesh Economic Zones Authority (Beza) and the Bangladesh Export Processing Zones Authority (Bepza).

The project is expected to create around 25,000 jobs. Its first phase involves an $80 million garment manufacturing facility at the Mirsarai Bepza Economic Zone. The second phase will establish a $220 million integrated textile and apparel complex in the Keraniganj Economic Zone.

China's Hengli Group, through its subsidiary Lead Bangladesh Textile Technology Co Ltd, is investing nearly $35 million at the Bangladesh Special Economic Zone (BSEZ) in Araihazar to establish an advanced textile manufacturing facility.

According to Bida, the project will introduce advanced textile production capabilities and modern automated manufacturing systems to Bangladesh for the first time. It is also expected to strengthen the country's textile value chain, reduce reliance on imported high-end fabrics and accessories, and enhance the skills of the local workforce.

Meanwhile, China Lesso Group has finalised a $32 million investment to establish a heavy manufacturing plant at the National Special Economic Zone in Chattogram.

The facility will produce PVC and PEX pipes, solar panels, sanitary ware, kitchen equipment, cables, lighting products and other construction materials, with an emphasis on green and sustainable manufacturing.

In the financial sector, Sri Lanka's Softlogic Life Insurance has acquired a 60% stake in Diamond Life Insurance for about $1.9 million. Bida said the investment will introduce AI-based underwriting, digital insurance services and faster claim settlement technologies to Bangladesh's insurance market.

Malaysia's MR.DIY has expanded to more than 17 mega-stands across Dhaka, Chattogram and Rajshahi with regulatory support from Bida and Bangladesh Bank.

Meanwhile, Megarich, a global producer of airline amenity kits, is investing $15 million to manufacture aviation and lifestyle products in Bangladesh, supporting the country's efforts to diversify exports beyond the ready-made garment sector.

Bida Executive Member and Head of Business Development Nahian Rahman Rochi told The Business Standard that more than $400 million of the $1.5 billion investment pipeline had already reached the decision and implementation stage.

"The investment pipeline was created through Bida's investment promotion activities, including the Bangladesh Investment Summit, overseas roadshows, outreach programmes, and promotional activities through our website and other platforms," he said.

Rochi said Bida assigns dedicated relationship managers to facilitate land selection, policy support, tax-related clarifications from the National Board of Revenue (NBR), regulatory approvals and coordination with relevant government agencies.

"So far, more than $400 million has been converted from the $1.5 billion pipeline. We are now working to convert the remaining $1.1 billion into actual investments," he said.

According to Bida, the agency is using a data-driven sector mapping and scoring system to identify and target prospective investors. It also aims to build another $1.5 billion investment pipeline in 2026 through continued investment promotion efforts.

Dr Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), welcomed Bida's shift towards investment facilitation but said sustaining the momentum would require broader institutional reforms.

"We have long argued that Bida should evolve from being merely an investment promotion agency into an investment facilitation agency. Its initiatives to simplify business processes, digitalise services and provide continuous support to investors are positive steps," he told The Business Standard.

He also described Bida's targeted follow-up with potential investors, dedicated sector desks and relationship management approach as encouraging initiatives.

However, Moazzem noted that Bida is transitioning into the broader "Invest Bangladesh" framework, under which Beza, the Public-Private Partnership (PPP) Authority and other investment-related agencies will be brought together.

The success of the initiative, he said, will depend on whether all participating agencies can deliver the same standard of investment facilitation and one-stop services.

He cautioned that Bida's mandate is largely limited to improving the country's "soft infrastructure", including policies, procedures and investor services, while key investment bottlenecks such as gas and electricity shortages, foreign exchange constraints and profit repatriation fall outside its direct authority.

"To attract significantly higher levels of foreign investment, Bangladesh must improve both its soft and hard infrastructure simultaneously," he said.