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BIDA launches FDI Heatmap to propel targeted investment

The Bangladesh Investment Development Authority (BIDA) has unveiled the country’s FDI Heatmap, a data-driven framework designed to attract Foreign Direct Investment (FDI).

The Heatmap focuses on 19 high-potential sectors and serves as a strategic blueprint for future investment promotion and policy development.

ā€œThe FDI Heatmap is more than just a plan; itā€™s the blueprint for all our future touchpoints with investors,ā€ said BIDAā€™s Executive Chairman Ashik Chowdhury during the launch on Sunday. “Every roadshow, bilateral investment treaty, or policy support we provide will be guided by this expert-driven, data-based analysis.”

Despite Bangladeshā€™s robust economic fundamentals, FDI accounts for only 0.5% of the countryā€™s GDP, far below the global average of 3-4%.

ā€œThe Heatmap aims to reverse this trend by offering a structured approach to prioritize sectors, identify high-potential investor markets, and align investment strategies with national goals,ā€ said Nahian Rahman Rochi, Head of Business Development at BIDA.

The development of the FDI Heatmap was made possible through contributions from industry experts, local business chambers, and renowned international agencies.

Nineteen Priority Sectors

The Heatmap identified 19 sectors and categorized them based on three key factors like market readiness & potential, input factors availability and strategic alignment with national goals, including SDG and ESG priorities.

Immediate target sectors with high market readiness, rapid growth, and unique competitive advantages, which are considered top short-term investment targets, fall under category A.

It includes pharmaceuticals (without API), agro processing, it-enabled services (IT-ES), advanced textiles and renewable energy

Sectors like automotive parts, footwear, light engineering and leather with moderate market readiness but strong competitive advantages, requiring streamlined entry processes for investors fall under B category styled as ā€˜quick entryā€™.

Logistics and electronics & assembly have been included in category C that need customised deals to address input challenges and improve competitiveness.

High-potential sectors needing long-term policy support and ecosystem development to unlock growth have falled under category D.

EV battery, medical devices, technical textiles, toys, active pharmaceutical ingredients (API), semiconductor and plastic

The 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 the Heatmap findings at international investment forums and roadshows, and establishing a public-private advisory council to address policy gaps and strengthen sector ecosystems.

Additionally, the Heatmap will be reviewed and updated annually to ensure it remains responsive to evolving market dynamics.

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