'We reorganised BIDA around the investor life cycle'

Bangladesh's investment strategy is shifting from ambition to alignment, from broad promises to measurable execution.

In this wide-ranging interview, Ashik Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), outlines how internal reforms, targeted FDI promotion, regulatory streamlining and closer coordination with tax and other authorities are transforming BIDA into a true guide for investment in potential sectors.

The interview was taken by TBS Staff Correspondent Jahir Rayhan.

In your view, which sectors are likely to attract the highest level of investment in Bangladesh in the coming years?

We have deliberately moved away from thinking of Bangladesh simply as a list of sectors. Capital does not move because a country has ambition; it moves when economics, policy and execution align at the same time. One of our first priorities was to bring discipline to that conversation.

Within months of taking office, we published Bangladesh's FDI Heatmap, which identifies 19 priority sectors where foreign capital can realistically combine with local capabilities. These are sectors where investor interest is not speculative but grounded in fundamentals. That is where we expect sustained investment momentum to build in the coming years.

What are the top sectors that BIDA and BEZA are prioritizing, and what comparative advantages does Bangladesh offer in these areas?

We no longer promote everything to everyone. Instead, we focus on sectors where Bangladesh's core strengths intersect with the outward investment priorities of partner countries. That core has been fairly consistent across markets: advanced textiles and apparel, renewable energy, healthcare and medical equipment, the digital economy, electronics, agribusiness, and automotive and auto components.

What varies is emphasis. In East Asia, electronics, EV-linked manufacturing and digital services resonate strongly. In Türkiye and parts of Southeast Asia, consumer manufacturing tends to dominate. At the Bangladesh Investment Summit, investors showed the strongest interest in renewables, healthcare, digital services and higher-value manufacturing.

These sectors share three common traits: strong global demand, an existing or scalable domestic skill base, and sufficient policy space to support competitive local production. Around this core, we remain flexible, adding market-specific opportunities where investor interest is clear and execution is feasible.

Infograph: TBS

Foreign Direct Investment (FDI)

What major policy and regulatory reforms have been undertaken over the past year to improve the investment climate?

We focused on the fundamentals—policy predictability, faster approvals, transparency, and stronger coordination across agencies. Based on investor feedback, we identified 32 priority reform actions addressing both immediate bottlenecks and structural issues. Of these, 24 have been completed, seven are ongoing, and one was discontinued.

On the policy front, reducing uncertainty has been critical. Tax policy stability has improved by limiting mid-year changes without cabinet approval. Foreign loan approvals have been streamlined through fast-track thresholds, quicker amendments, relaxed debt–equity ratios and extended machinery usage periods. Import–export clearance has been accelerated through green channels.

In parallel, a joint BIDA–Bangladesh Bank reform package has been finalized to bring clarity, timelines and consistency to capital repatriation—an issue central to investor confidence and exit planning. We also launched BanglaBiz as a unified digital platform for investor services.

Further reforms are underway, including a proposed 1.25% equity-based incentive for FDI facilitation, additional license simplification, and deeper digital integration across agencies.

Facilitating the partnership between APM Terminals of the Maersk Group and the Chittagong Port Authority to develop the Laldia Container Terminal is itself a reform—combining policy credibility, institutional change and real investment. It brings global operational standards to Bangladesh and represents the largest European equity investment in our history.

We have documented these initiatives transparently in our recently published progress report, and I encourage all stakeholders to engage with it.

What key issues are currently being prioritized to attract more FDI, and what new strategies have you introduced since assuming office?

Our objective was to move investment promotion from broad signaling to disciplined execution. The FDI Heatmap created a unified sector-priority framework across government, replacing fragmented approaches. Priority sectors were assessed with inputs from banks, chambers, consultants, development partners and embassies, based on readiness, growth potential and policy support, and then matched with specific source countries through structured analysis.

We also raised the standard of engagement. Instead of generic roadshows, we now develop country-specific pipelines of high-potential investors, provide structured sector intelligence, and lead coordinated engagements involving tax authorities, zone regulators and relationship managers. The goal is to reduce uncertainty and help investors move from interest to execution.

As a result, between January and November 2025, our targeted promotion and lead-generation efforts built an additional FDI pipeline of around USD 1.5 billion, involving more than 70 investors from 20 countries. This pipeline is concentrated in sectors where Bangladesh has clear execution capacity, including advanced textiles, ICT, agriculture, medical equipment and pharmaceuticals.

Recent Investment Trends

How has the flow of foreign investment performed over the past year?

Foreign investment inflows have shown a clear upward trend. The strongest signal came in the third quarter of 2025 (July–September), when net FDI reached USD 315 million—more than three times the level recorded in the same quarter a year earlier.

This performance built on steady gains earlier in the year. In the first half of 2025, net FDI was already more than 60% higher than in the same period of 2024. By the end of September, cumulative net FDI stood at USD 1.41 billion, representing an 80% year-on-year increase.

The improvement has been broad-based. Equity investment increased, reinvested earnings rose sharply—signaling confidence among existing investors—and intra-company loans returned to positive territory. While some moderation is expected ahead of elections, the sustained quarterly gains suggest that investor confidence is rebuilding and momentum can strengthen further post-election.

Illustration: TBS

How do you assess the gap between proposed and realized investments, and what steps are being taken to improve conversion?

Between January and December, investment proposals worth over USD 3.4 billion were registered across all Investment Promotion Agencies. Consolidating proposal tracking at the IPA level is a significant improvement, providing a clearer system-wide view of the national investment pipeline.

Equally important has been a shift toward more selective proposal acceptance, emphasizing realism, readiness and execution potential rather than headline volumes. This reflects a deliberate move to improve conversion into actual investment.

Beyond registered proposals, targeted outreach has generated an additional USD 1.5 billion in advanced-stage opportunities, which are tracked separately and supported intensively. A structured, funnel-based pipeline management system now monitors progress from lead to execution. Early results are encouraging, and improving conversion remains a central priority.

Internal Reforms at BIDA

What institutional reforms have you initiated within BIDA, and how will they benefit investors?

When we assumed office, BIDA had significant untapped potential but was structured like a conventional government office. That model does not work for an agency whose primary mandate is to serve investors.

We reorganized BIDA around the investor life cycle—from exploration and entry to expansion—aligning each wing with a specific stage of the investment process. Investment promotion was separated from regulatory operations, a dedicated promotion wing was created, and a research wing was established to anchor sector prioritization and policy design.

We introduced relationship managers—experienced bankers—who guide strategic investors through the regulatory system. We expanded co-location of key agencies, including Bangladesh Bank, NBR and environment officials, to reduce friction.

At the system level, we initiated the consolidation of IPAs under a single umbrella with a coherent national investment strategy. This is expected to be finalized and implemented in phases.

We also corrected a capability imbalance by opening executive member positions to merit-based appointments, allowing qualified internal officers and private-sector professionals to compete for leadership roles.

Finally, we invested in the workplace itself—introducing professional daycare services and basic facilities—because institutional performance ultimately depends on how people are supported.

Ease of Doing Business

How effective is BIDA's One Stop Service (OSS), and what improvements are planned?

It is true that starting a business in Bangladesh has historically taken longer than in many peer countries. Fully rationalizing licenses and approvals is a long-term agenda requiring continuity beyond any single administration.

Our immediate focus has been the service experience. From an investor's perspective, multiple "one-stop services" across agencies do not function as a true one stop. Digitalization, standardization and consolidation are essential.

That is why we developed BanglaBiz, in partnership with JICA. Launched in September, BanglaBiz integrates the services of BIDA, BEZA, BEPZA, the Hi-Tech Park Authority, BSCIC and the PPP Authority. By the end of this month, over 30 services will be directly integrated, moving toward a national single window.

The next release introduces a business starter package. Through a single application, investors will be able to obtain name clearance, registration, trade license, TIN and a temporary bank account within three working days, supported by a relationship manager. This is how sustained progress will be achieved—by systematically removing friction.

Data and Market Guidance

How can BIDA guide investors toward sectors with better market potential amid data gaps?

A serious capital does not move blindly. Large investors conduct their own demand studies, cost benchmarking and risk assessments. What they expect from government is clarity—on policy support, constraints and execution feasibility.

We recognized early that investment promotion without credible market intelligence creates noise rather than outcomes. That is why we established a dedicated Research and Policy Wing at BIDA, supported by a specialized Research & Analytics Unit developed with UNDP.

This team conducts evidence-based analysis of FDI trends, comparative policy frameworks, capital repatriation practices and sector-specific potential. These insights feed directly into tools like the FDI Heatmap, allowing us to guide investors toward sectors where demand exists but capacity is underdeveloped.

Going forward, this capability will expand into targeted sectoral studies and market intelligence support. Our objective is not to push investors, but to help them clearly see where opportunity, policy alignment and execution capacity genuinely intersect.

Challenges and Coordination with NBR

How has coordination with NBR improved, particularly on VAT and tax-related concerns?

From discussions with more than 200 investors, several recurring challenges emerge: service gaps, policy unpredictability, corruption risks, limited consultation, and uncertainty around access to key resources. Tax predictability has historically been a major concern.

That said, the National Board of Revenue has been a close and constructive partner. Systematic, high-level coordination has led to tangible reforms, including partial bonded facilities for non-traditional exporters, opening opportunities for sectors such as furniture, electronics, food processing, light engineering, plastics and leather.

We have also seen progress through the Authorized Economic Operator programme, green-channel clearances, greater flexibility in resolving minor HS code mismatches, and the rollout of the National Single Window. Most importantly, tax policy predictability has improved, with mid-year changes now requiring cabinet approval and longer-term tax roadmaps under development.

Our role at BIDA has been to institutionalize this coordination so investor feedback reaches policymakers consistently—and that partnership with NBR has been central to rebuilding confidence.

Vision for 2026

What are your expectations for investment growth in 2026, and how will BIDA position itself going forward?

We see 2026 as a year when investment momentum should strengthen, provided reforms continue and coordination across government remains strong. For investors, this is a moment to enter sectors where demand, skills and policy alignment have improved—ranging from advanced manufacturing and renewables to healthcare, logistics and digital services.

BIDA's role is to be a steady, credible partner throughout that journey—working across government, staying close to the private sector, and resolving issues early so investment decisions can move from interest to execution with greater confidence and predictability.