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Bangladesh Tops South Asia in FDI Growth in 2025: UNCTAD Report

Bangladesh recorded the fastest growth in foreign direct investment (FDI) among South Asian economies in 2025, with inflows rising around 45 percent year-on-year to US$1.78 billion, according to the World Investment Report 2026 by UNCTAD.

By Staff Correspondent
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Bangladesh registers South Asia's fastest FDI growth in 2025: UNCTAD | News Flash
BSS

Bangladesh recorded the fastest growth in foreign direct investment (FDI) among South Asian economies in 2025, with inflows rising around 45 percent year-on-year to US$1.78 billion, according to the World Investment Report 2026 released by the United Nations Conference on Trade and Development (UNCTAD). The report shows that Bangladesh's FDI inflows increased significantly from US$1.23 billion in 2024 to US$1.78 billion in 2025, reflecting growing international investor confidence in the country's economy despite a challenging global investment environment.

Global Context and Regional Performance

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

Domestic Investment and Future Potential

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

Driving Factors and Future Prospects

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 industrialization and connectivity, Bangladesh is increasingly viewed as a long-term investment destination with significant untapped potential.

Global FDI Trends

Globally, FDI increased by 6 percent to US$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.

Source: BSS

FAQ

What was the FDI inflow to Bangladesh in 2025?
The FDI inflow to Bangladesh in 2025 was US$1.78 billion.
How did Bangladesh's FDI growth compare to other South Asian countries?
Bangladesh recorded the fastest FDI growth among South Asian economies in 2025.
What sectors are expected to attract more FDI in Bangladesh?
Manufacturing, services, infrastructure, and technology-related industries are expected to attract more FDI in Bangladesh.

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