Bangladesh Leads South Asia in FDI Growth: UNCTAD

The report shows that Bangladesh's FDI inflows increased significantly from US$1.23 billion in 2024 to $1.78 billion in 2025, reflecting growing international investor confidence in the country's economy despite a challenging global investment environment.

The report comes at a time when global investment flows remain uneven due to geopolitical tensions, trade uncertainties, and high financing costs.

Against this backdrop, Bangladesh's strong growth rate stands out within the South Asian region.

Although FDI accounted for a relatively small share of total fixed capital formation, the report suggests that the country continues to rely heavily on domestic investment, which remains a key strength of Bangladesh's growth model.

UNCTAD highlighted that developing Asia retained its position as the world's leading investment destination among developing regions, attracting $644 billion in FDI during 2025. 

Bangladesh's performance places it within a broader regional trend of continued investor interest in Asian economies.

Globally, FDI increased by 6% to $1.6 trillion in 2025, ending two consecutive years of decline. 

The recovery was led by investment in digital infrastructure, advanced manufacturing, energy transition technologies, and other strategic sectors.

The report indicates that Bangladesh has substantial room for further expansion in attracting foreign investment, particularly in manufacturing, services, infrastructure, and technology-related industries. 

Analysts say the country's large domestic market, competitive workforce, strategic geographic location, and ongoing economic reforms provide a strong foundation for future FDI growth.

With a GDP exceeding half a trillion dollars and continued progress in industrialisation and connectivity, Bangladesh is increasingly viewed as a long-term investment destination with significant untapped potential.