Bangladesh’s investment landscape slowly recovering: UNCTAD report

Dhaka, Bangladesh || Tuesday, 28 April 2026 || 15 Boishakh 1433

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Bangladesh’s investment landscape slowly recovering: UNCTAD report

Published : Tuesday, 28 April, 2026 at 4:04 PM, Count : 28

Bangladesh’s investment landscape slowly recovering: UNCTAD report

A new report by the United Nations Conference on Trade and Development (UNCTAD) says Bangladesh’s investment landscape, though complex, is gradually recovering amid domestic and global economic pressures.

The report notes that while Bangladesh has made progress in improving its investment climate, urgent structural reforms remain essential as the country prepares for its scheduled graduation from Least Developed Country (LDC) status in November 2026.

It also evaluates the implementation of the 2013 Investment Policy Review (IPR), according to a press release issued by UNDP.

The United Nations Development Programme (UNDP), in partnership with UNCTAD and the Bangladesh Investment Development Authority (BIDA), on Monday launched the UNCTAD Investment Policy Review (IPR) Implementation Report for Bangladesh in the city.

The high-level dialogue brought together senior government officials, private sector representatives, and development partners to discuss the country’s investment framework as it prepares for LDC graduation.

According to the report, Foreign Direct Investment (FDI) inflows into Bangladesh declined after peaking at over US$1.8 billion in 2019, falling by nearly one-third by 2024 due to macroeconomic challenges and global disruptions.

However, early indicators from 2025 suggest a rebound in FDI, supported by increased reinvested earnings and intracompany loans as economic conditions begin to stabilise.

The textiles, financial services, and power sectors continue to dominate investment activity, collectively accounting for 58% of total inward FDI stock by the end of 2024.

At the same time, the digital economy is gaining traction, with telecommunications and IT services attracting growing investor interest through joint ventures and hardware manufacturing initiatives.

It emphasises that longer-term structural improvements are still required to ensure a smooth transition following LDC graduation.

Several persistent bottlenecks were identified, including land scarcity, weak infrastructure integration, a complex tax regime, and institutional fragmentation, all of which continue to constrain investment potential.

At the report launch, Chowdhury Ashik Mahmud Bin Harun, executive chairman of BIDA, underscored the importance of attracting sustainable and quality investment to support economic transformation, diversification, technology transfer, and employment generation in the post-LDC period. He emphasised the need for coordinated reforms and stronger institutions aligned with national priorities.

Sonali Dayaratne, deputy resident representative of UNDP Bangladesh, said that coherent investment policies and strong institutional capacity are essential to ensure responsible and impactful investment that creates decent jobs, supports innovation, and promotes inclusive and sustainable growth, particularly as Bangladesh approaches LDC graduation.

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