Country's net FDI jumps 39.36% to $1.77 billion in 2025, says BIDA

Net foreign direct investment (FDI) inflows into the country rose by 39.36 percent in 2025, reaching $1.77 billion compared to $1.27 billion in 2024, according to the latest Bangladesh Bank survey cited by the Bangladesh Investment Development Authority (BIDA) on Thursday (May 14).

Officials said the increase was largely driven by higher reinvested earnings and intra-company loans, while fresh equity investment showed only marginal growth, indicating continued weakness in new foreign investment inflows.

Reinvested earnings surged by 318.25 percent to $434.10 million in 2025 from $103.79 million a year earlier. Intra-company loans also rose by 25.68 percent to $781.68 million, up from $621.96 million in 2024. Equity capital increased modestly by 1.84 percent to $554.64 million.

BIDA noted that while global greenfield investment project announcements declined by 16 percent in 2025, Bangladesh still recorded higher FDI inflows, reflecting sustained investor engagement despite global economic uncertainty, foreign exchange pressures and domestic challenges.

The authority described the trend as a sign of resilience in Bangladesh’s investment climate, though it stressed that the country is still operating below its full potential in attracting fresh foreign capital.

BIDA Executive Chairman Ashik Chowdhury said the 39.36 percent growth is a “positive signal” in a difficult global environment where developing economies have been under pressure from slowing investment flows.

“While the absolute volume remains below potential, the direction is encouraging, particularly in a post-transition period,” he said, adding that global uncertainty continues to affect new project announcements.

He further said the government is working to improve the investment climate through regulatory reforms, investment facilitation and infrastructure development.

According to BIDA, a joint 180-day action plan is being implemented with the Bangladesh Economic Zones Authority, the Maheshkhali Integrated Development Authority and the PPP Authority to streamline investment procedures and enhance business conditions.

Officials said the plan focuses on infrastructure development, faster investment facilitation and broader improvements in the overall business environment to attract larger foreign investments in the coming years.

AM