Special Correspondent ; DHAKA – A persistent foreign exchange crisis, currency devaluation, and political uncertainty have significantly weakened investor confidence in Bangladesh, causing a sharp decline in Foreign Direct Investment (FDI).
According to a new report by the United Nations Conference on Trade and Development (UNCTAD), Bangladesh is now trailing far behind its regional competitors in attracting global capital.
The “Implementation Gap”
The report, titled “Investment Policy Review (IPR) Implementation Report for Bangladesh 2026,” was launched on Monday, April 27, 2026, at the BIDA building in Agargaon.
It highlights a critical disconnect between the government’s ambitious plans and their actual execution on the ground.
Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), addressed the ceremony with a blunt assessment:
“We have many plans and beautiful reports are released. But the challenge lies in the lack of implementation. If we have been running in second gear so far, we must shift to fifth gear now to compete with our rival nations.”
Stark Comparison: Bangladesh vs. Rivals
The report reveals that Bangladesh’s total FDI stock in 2024 stood at $18.29 billion. In contrast, regional competitors are miles ahead:
-
Vietnam: $249.14 billion (13 times higher than Bangladesh)
-
Indonesia: $305.67 billion (17 times higher than Bangladesh)
-
Cambodia: $52.67 billion (nearly 3 times higher than Bangladesh)
Furthermore, FDI inflows, which peaked at over $1.8 billion in 2019, plummeted to nearly one-third of that value by 2024.
During this same five-year period, Bangladesh’s GDP growth halved from 8% to 4%, while inflation surged from 5.5% to nearly 10%.
The Path to Recovery
The UNCTAD report suggests that macroeconomic and political stability are prerequisites for restoring investor faith. To make the investment climate more competitive, the report recommends:
-
Unified National Investment Policy: Consolidating fragmented laws into a single, cohesive framework.
-
Full Digitalization: Eliminating bureaucratic red tape through automated digital investment procedures.
-
Institutional Coordination: Ensuring all government agencies work in sync to support investors.
As Bangladesh prepares to graduate from Least Developed Country (LDC) status in November 2026, the report warns that structural reforms are no longer optional but a survival necessity for the economy.
FDI Stock Comparison (2024 Data)
| Country | FDI Stock (Billion USD) | Ratio vs. Bangladesh |
| Bangladesh | $18.29 | 1x |
| Cambodia | $52.67 | ~3x |
| Vietnam | $249.14 | 13x |
| Indonesia | $305.67 | 17x |