FE REPORT
The Bangladesh Investment Development Authority (BIDA) has launched an FDI heatmap, which is a data-driven framework to attract foreign direct investment in 19 high-potential sectors.
The heatmap provides a strategic blueprint for all future strategies and promotion of the country in courting foreign investment.
"FDI heatmap is more than a plan. It's a blueprint for all our future touchpoints with investors," said BIDA executive chairman Ashik Chowdhury.
"Every roadshow we plan, bilateral investment treaty we negotiate or policy support we provide will follow this data-driven analysis from the experts."
"Despite Bangladesh's strong economic fundamentals, FDI contributions remain at only 0.5 per cent of GDP, which is far below the global average of 3.0-4.0 per cent," said Nahian Rahman Rochi, BIDA head of business development.
The heatmap aims to reverse this trend by leveraging a structured approach to prioritise sectors, identify high-potential investor markets and align investment strategies with national goals."
The development of the heatmap was made possible through key contributions of industry experts, including Standard Chartered Bank, HSBC, PricewaterhouseCoopers, Ernst & Young, Boston Consulting Group, International Finance Corporation, IDLC Finance PLC, LightCastle Partners, Inspira Advisory & Consulting Limited, Foreign Investors' Chamber of Commerce and Industry, Dhaka Chamber of Commerce and Industry, Japan International Cooperation Agency, Japan External Trade Organisation, and Korea Trade-Investment Promotion Agency.
19 Priority Sectors
The heatmap identified 19 sectors and categorised them based on three key factors-market readiness & potential, input factors availability and strategic alignment-with national goals, including SDG and ESG (environmental, social and governance) priorities.
Category A: Immediate Targets
Sectors with high market readiness, rapid growth, and unique competitive advantages make them top short-term investment targets. They are core apparel, pharmaceuticals (without API), agro-processing, IT-enabled services, advanced textiles and renewable energy.
Category B: Enable Quick Entry
Sectors with moderate market readiness but strong competitive advantages require streamlined entry processes for investors. They are automotive parts, footwear, light engineering and leather.
Category C: Customised Deals
Sectors with growth potential need customised deals to address input challenges and improve competitiveness. They are logistics, and electronics & assembly.
Category D: Policy & Capacity Development
High-potential sectors need long-term policy support and ecosystem development to unlock growth. They are EV battery, medical devices, technical textiles, toys, active pharmaceutical ingredients, semiconductor and plastic.
BIDA plans to operationalise the heatmap through a series of focused activities aimed at maximising its impact.
These include identifying target markets and lead investors aligned with the priority sectors, showcasing heatmap findings at international investment forums and roadshows, and establishing a public-private advisory council to address policy gaps and strengthen sector ecosystems.
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