No More Bureaucratic Hassles for Foreign Investors: BIDA

Bureaucratic red tape is no longer a major obstacle for foreign investors in Bangladesh, according to Nahian Rahman, Head of Business Development at the Bangladesh Investment Development Authority (BIDA).

Speaking at a press briefing on the fourth day of the Investment Summit at Hotel InterContinental in Dhaka on Thursday, Nahian said that the government has identified and is actively addressing the top five challenges raised by foreign investors—particularly those linked to the National Board of Revenue (NBR).

“When we engaged with over 200 foreign investors, a recurring concern was the complexity and delay in securing clearances from various government agencies, especially the NBR,” he said. “That’s now a top priority for us—to simplify and streamline these processes.”

Nahian highlighted several steps taken to ease the process, including the introduction of a green channel, the Authorized Economic Operator (AEO) system, and an operational Single Window platform. “The focus now is on how the NBR can accelerate the rollout and effectiveness of these reforms,” he added.

Investors Eyeing High-Potential Sectors

BIDA Chairman noted growing foreign interest in Bangladesh’s consumer market, textile and RMG sectors, pharmaceuticals, light engineering, and renewable energy. This was echoed throughout the summit, which saw the participation of 400–450 foreign delegates.

Lessons from Vietnam: Productivity and Value Addition

During a session on the RMG and Textile sector, Youngone Corporation Chairman Kihak Sung remarked that while Vietnam's labor costs are 30% higher than Bangladesh's, companies still see better profit margins there due to higher worker productivity and focus on value-added products.

Nahian acknowledged the concern, saying, “Mr. Sung’s assessment is accurate. Vietnam has made significant strides in synthetic and value-added garments, giving them an edge. Bangladesh historically lagged in this segment, partly due to earlier challenges faced by pioneers like Youngone.”

He noted that Youngone has recently launched a new synthetic garment production line in the Korean EPZ, which is expected to be profitable. “That marks a turning point,” he said.

Just a day earlier, BIDA facilitated a major agreement with Chinese firm Handa for a large-scale investment in synthetic garments. “If we can attract just a few more high-value anchor investors, it will create a ripple effect across the industry,” Nahian added.

Streamlining Governance

Addressing concerns over bureaucratic delays, Nahian said that recent government restructuring has already led to tangible improvements. “Previously, decision-making was spread across nearly 70 ministers and state ministers. Now, with a leaner team of about 25–26 key advisors, decisions are faster and more centralized. Investors are noticing the difference.”

Summit Yields Results

On outcomes from the summit, Nahian confirmed several significant deals, including a $150 million investment from Handa and a Tk 110 crore investment secured by local startup ShopUp.

“These successes are not overnight achievements—they’re the result of sustained, collaborative efforts,” he said.

He also emphasized this year’s summit’s emphasis on mobilizing the private sector. “The International Labour Organisation (ILO) played a key role. The idea is not to rely on a single institution but to create synergy among stakeholders to push the investment pipeline forward.”

BIDA Executive Member Shah Mohammad Mahbub and Deputy Press Secretary to the Chief Adviser, Abul Kalam Azad Majumdar, were also present at the briefing.