Net FDI rises 39.36% in 2025 as intra-company loans increase: BB report
Net FDI in the outgoing year stood at nearly $1.77 billion, up from $1.27 billion in 2024.
Foreign direct investment (FDI) in Bangladesh has rebounded once again. In 2025, net FDI increased by 39.36% compared with the previous year.
Net FDI in the outgoing year stood at nearly $1.77 billion, up from $1.27 billion in 2024.
These figures were revealed in Bangladesh Bank's latest report published yesterday (5 May).
Keep updated, follow The Business Standard's Google news channel
According to the report, FDI inflows to Bangladesh had declined over the past three years but rebounded in 2025. Total FDI inflows in 2025 were $4.69 billion, while FDI outflows stood at $2.92 billion.
"The inflows of FDI have contributed significantly to the economic development of Bangladesh. Due to political instability, the inflow of FDI had slowed during the middle two quarters in 2024."
Net FDI refers to the total inflow of foreign direct investment into a country minus the outflows of investment during a specific period.
According to Bangladesh Bank data, growth in new equity investment was comparatively slow. However, reinvested earnings increased and intra-company loan flows rose significantly, contributing to higher net FDI.
The report said equity capital within net FDI increased by only $10 million in 2025.
On the other hand, reinvested earnings rose by $159 million, or 25.68%.
Intra-company loans increased by $330 million, or three times higher than the previous year.
Reinvested earnings are profits retained and reinvested by a foreign-owned firm instead of being distributed as dividends, contributing to business expansion and counted as FDI.
Intra-company loans are financial transactions between a parent company and its foreign affiliate, used for funding operations or investments, and are also considered a component of FDI.
Net FDI inflows in Bangladesh stood at $1.77 billion in 2025.
The highest FDI-attracting sectors were power, food products, textile and clothing, banking, telecommunication, chemicals and pharmaceuticals, trading, agriculture and fishing, leather and leather products, and computer software and IT.
The major country-wise net FDI inflows, arranged in descending order, were the Netherlands, China, Singapore, Republic of Korea, and the United Kingdom.
Overall stock position of FDI
The stock position of FDI reached $20.6 billion at the end of December 2025, increasing by $17.6 billion, or 9.66%, compared with December 2024.
At the end of December 2025, the largest FDI stock holders were the United Kingdom, Singapore, China, Republic of Korea, and the Netherlands.
