Bida gears up to woo foreign investors in upcoming summit amid Trump tariffs
The Bida and the Bangladesh Economic Zones Authority (Beza) will co-host the four-day summit at Hotel InterContinental Dhaka
Highlights:
- The four-day investment summit will be held on 7-10 April at Hotel InterContinental
- Potential investment sectors: renewable energy, digital economy, textiles & apparel, healthcare & pharma, and agro-processing
- US tariffs will not have an immediate effect, but investors will closely observe Bangladesh's response, organisers say
- Bangladesh is working on a reduced tariff structure to attract investors
As the world reels from Trump's tariffs, the Bangladesh Investment Development Authority (Bida) is gearing up to host a major investment summit on 7-10 April, aimed at attracting job-creating foreign investments in five key sectors – renewable energy, digital economy, textile and apparel, healthcare and pharma, and agro-processing.
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Organisers said that in response to the US imposing a 37% tariff on Bangladeshi goods, the government is already working on a reduced tariff structure to attract international investors at the Bangladesh Investment Summit 2025.
The Bida and the Bangladesh Economic Zones Authority (Beza) will co-host the four-day summit at Hotel InterContinental Dhaka.
Asked if the newly imposed tariffs will have any impact, Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bida and Beza, told TBS, "It will not have an immediate impact. Those [investors] who are set to attend will still come, but they will observe how we respond."
"Investors will closely monitor the steps the Bangladesh government takes and how it negotiates this issue at the policy level. There will definitely be discussions on this at the summit," he said.
"We are hoping to develop a guideline on how to tackle the tariff issue before the main event of the summit on 9 April," Ashik said.
"The government is reviewing the tariffs on imported US goods and will hold talks with the US on this issue. We are consulting with the private sector and government agencies in phases. We will engage with the US Embassy as well to find a sustainable solution," he said, adding that the tariffs will be challenging for garment exporters as the US is a major market.
"All countries have been affected by tariffs, including our competitor nations. So, investors considering Bangladesh will closely observe the situation," he said.
The organisers said they aim to make the summit a milestone, highlighting Bangladesh's investment potential and post-revolution economic reforms to create sustainable investment pipelines. It has already attracted over 2,300 registered participants from 50 countries, including more than 550 foreign investors.
"We have received a positive response from both local and foreign investors for participation in the summit. We may not be able to accommodate everyone who registers. Priority is being given to international participants," Chowdhury Ashik added.
Tariff rationalisation efforts underway
After the US announced its tariff plan, Chief Adviser's Press Secretary Shafiqul Alam stated in a Facebook post on Thursday that Bangladesh is reviewing tariffs on US imports to find ways to rationalise them.
Investors will closely monitor the steps Bangladesh takes and how it negotiates this [tarrif] issue at the policy level. There will definitely be discussions on this at the summit.
Chief Adviser's Special Assistant Faiz Ahmed Taiyeb also wrote on Facebook that Bangladesh is preparing a reduced tariff structure to attract international investors.
He added that in economic processing zones (EPZs), special EPZs, and high-tech parks, Bangladesh will offer streamlined registration, export incentives, secure land, reliable electricity, high-speed internet, and flexible infrastructure, including data centers, cloud policies, and IT facilities for both local and foreign investors.
"To offset any declined apparel export, we are planning to boost technology and ICT exports," he told The Business Standard on Friday.
"By more direct imports from the US, we can reduce the trade deficit with the country and push for reduction of the reciprocal tariff," he said.
The Bida and Beza will take some participating investors on visits to the Korean Export Processing Zone in Chattogram's Anwara upazila, the National Special Economic Zone in Chattogram's Mirsharai upazila and the Bangladesh Special Economic Zone in Narayanganj's Araihazar upazila.
What investment professionals say
Since the tariff is hurting the competitor countries too, and the interim government is showing achievements in strengthening the macroeconomic scenario, Bangladesh's investment potential is not going to deteriorate, said Md Moniruzzaman, a chartered financial analyst and managing director of Prime Bank Securities.
"However, the aftermath of the US tariff on the world will definitely shake investors' confidence as there emerged a risk of global slowdown, even a recession," he said.
"Just like every other crisis, this event will also create opportunities for Bangladesh to position itself into an advantageous position," he added.
Bangladesh could engage with the US through frameworks like the Trade and Investment Cooperation Forum Agreement (Ticfa), negotiating lower tariffs on US imports such as cotton while seeking reciprocal reductions in the 37% tariff on RMG or duty-free access for garments made with US cotton, Moniruzzaman said.
He suggested exploring food grain and petroleum imports from the US to address trade imbalances. While the tariff hike poses challenges, Bangladesh's position as a low-cost RMG leader and global slowdown-driven lower import costs may cushion the impact.
Moniruzzaman noted that Bangladesh's investment appeal remains strong, as factory relocations take time and buyers carefully assess country risk before making strategic shifts.
Asif Khan, president of the largest community of the investment professionals CFA Society Bangladesh, said it is too early to say. Things will depend on how the rest of the world reacts to the major event.
Other countries may opt for equal protectionism, or they may prefer boosting trade among themselves. If the latter one comes true, manufacturing in Bangladesh and exporting to the trade partners will remain a good option for companies, he said.
"Bangladesh's home market is also a big opportunity for investors," Asif said, adding that Bangladesh must address the investment barriers everyone has long been talking about.
Agricultural economist Jahangir Alam told TBS, "Bangladesh is a leading global agricultural producer, but its agro-processing industry, especially for fruits and vegetables, remains underdeveloped. Showcasing this potential at the Investment Summit could attract both buyers and investors."
He added, "Our agro-processed products reach global markets, not just the US. While the new tariffs may impact investment, strong demand for our quality, affordable products could still draw investors. Bangladesh offers a vast market, abundant labor, and diversification opportunities."
