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Bangladesh’s foreign direct investment (FDI) stock has climbed to nearly $20 billion, reflecting a remarkable expansion in long-term foreign investment and reinforcing the country’s position as one of the leading investment destinations among the world’s Least Developed Countries (LDCs).
According to the UNCTAD World Investment Report 2026, Bangladesh’s accumulated FDI stock reached $19.63 billion in 2025, up sharply from $2.16 billion in 2000, driven by infrastructure development, rapid industrialisation and sustained growth in the manufacturing sector.
The report also showed a strong rebound in annual FDI inflows, which rose to $1.78 billion in 2025 from $1.23 billion in 2024—the highest level recorded during the 2020–2025 period.
The recovery underscores renewed investor confidence despite recent global economic uncertainties.
UNCTAD said Bangladesh remains one of the most attractive destinations for greenfield investments, with new industrial and corporate projects continuing to flow into the country even as global FDI trends remain subdued.
The report attributed the improved investment climate to a series of policy reforms introduced in 2025, including the easing of foreign exchange restrictions to facilitate multinational business operations and attract long-term capital.
It also noted Bangladesh’s conclusion of an Agreement on Reciprocal Trade with the United States, which includes provisions for exploring an investment screening mechanism, strengthening bilateral economic cooperation, enhancing information sharing and promoting mutual economic security.
Bangladesh’s outward investment also continued to expand, although at a slower pace. The country’s FDI stock abroad increased from $68 million in 2000 to $314 million in 2025, indicating the gradual integration of Bangladeshi companies into global value chains.
Despite the positive momentum, UNCTAD cautioned that Bangladesh faces emerging legal challenges.
The country was among seven LDCs to face new Investor–State Dispute Settlement (ISDS) cases in 2025, highlighting the importance of maintaining a transparent and predictable legal framework to sustain investor confidence.
Overall, the report paints an optimistic outlook for Bangladesh, with strong policy reforms, resilient investment growth and expanding industrial capacity positioning the country for continued foreign investment in the years ahead.
