BIDA unveils master plan for attracting FDI to key sectors

The Bangladesh Investment Development Authority (BIDA) has launched “FDI Heatmap,” a data-driven strategic blueprint for attracting foreign direct investment (FDI) to 19 priority and high-potential sectors.

“The FDI Heatmap is more than a plan, it is the blueprint for all our future touchpoints with investors,” said Ashik Chowdhury, executive chairman of BIDA.

“Every [future] roadshow we will plan, bilateral investment treaty we negotiate or policy support we provide will follow this data-driven analysis done by the experts.”

“Despite Bangladesh’s strong economic fundamentals, FDI contributions remain at only 0.5% of GDP – far below the global average of 3%-4%. The Heatmap aims to reverse this trend by leveraging a structured approach to prioritise sectors, identify high-potential investor markets, and align investment strategies with national goals,” said Nahian Rahman Rochi, head of business development, BIDA.

The development of the FDI Heatmap was made possible through the key contributions of industry experts including Standard Chartered Bank, HSBC, PricewaterhouseCoopers (PwC), Ernst & Young (EY), The Boston Consulting Group (BCG), International Finance Corporation (IFC), IDLC Finance PLC, LightCastle Partners, Inspira Advisory and Consulting Limited, the Foreign Investors’ Chamber of Commerce and Industry (FICCI), Dhaka Chamber of Commerce and Industry (DCCI), Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO) and Korea Trade-Investment Promotion Agency (KOTRA).

BIDA plans to operationalise the Heatmap through a series of focused activities aimed at maximising the plan’s impact.

These include identifying target markets and lead investors aligned with the priority sectors, showcasing the Heatmap findings at international investment forums and roadshows, and establishing a public-private advisory council to address policy gaps and strengthen sector ecosystems. Additionally, the Heatmap will be reviewed and updated annually to ensure it remains responsive to evolving market dynamics.

The selected 19 priority sectors were selected based on three key factors: 1) market readiness and potential, 2) input factors availability, and 3) strategic alignment with national goals, including SDG and ESG priorities. The priority sectors have been categorized into the following groups:

Category A: Immediate Targets

Sectors with high market readiness, rapid growth, and unique competitive advantages, making them top short-term investment targets

• Core Apparel

• Pharmaceuticals (without API)

• Agro Processing

• IT-Enabled Services (IT-ES)

• Advanced Textiles

• Renewable Energy

Category B: Enable Quick Entry

Sectors with moderate market readiness but strong competitive advantages, requiring streamlined entry processes for investors.

• Automotive Parts

• Footwear

• Light Engineering

• Leather

Category C: Customised Deals

Sectors with growth potential that need customised deals to address input challenges and improve competitiveness.

• Logistics

• Electronics & Assembly

Category D: Policy and Capacity Development

High-potential sectors needing long-term policy support and ecosystem development to unlock growth.

• EV Battery

• Medical Devices

• Technical Textiles

• Toys

• Active Pharmaceutical Ingredients (API)

• Semiconductor

• Plastic