Middle-class growth, infrastructure, and high returns make Bangladesh attractive for FDI: Experts at Bangladesh Investment Summit

A vibrant and expanding middle class, high returns on investment, and substantial infrastructure development are the key factors drawing foreign investments into Bangladesh, experts observed at the BIDA’s Bangladesh Investment Summit 2025 on Thursday.

During the session on Agriculture and Agro-Processing, part of the four-day summit organised by the Bangladesh Investment Development Authority (BIDA), several strategic insights and commitments were unveiled to enhance Bangladesh’s investment arena.

Two Memorandums of Understanding (MoUs) were signed between Bangladeshi and Dutch private sector entities aimed at developing the agriculture and agro-processing sectors in Bangladesh.

Presenting a keynote paper, Md Ariful Haque from BIDA said that Bangladesh has one of the most lucrative geographic locations, situated between China, ASEAN and the Middle East, with direct trade routes to over 3.0 billion consumers.

"Our port connectivity projects are ongoing, and after their completion, we could get a one-third reduction in export lead time.

We also have duty-free access to the EU and China and have the potential to sustain a 7.0 per cent GDP growth rate for the next half-decade.

The country’s middle and affluent class has now exceeded the total population of Malaysia,” he said.

“By 2040, Bangladesh’s economy is expected to triple in size, growing at a compound annual growth rate (CAGR) of 10 per cent. The investment environment will remain secure and promising,” Mr Haque said.

He said that widespread regulatory reforms are already underway.

“We are open to reviewing and amending any regulations that investors find problematic. This is just the beginning — the opportunities are abundant,” he emphasised.

He also called for stronger support in post-harvest loss management through agro-processing innovations.

Nuria López, representing the EU Chamber of Commerce in Bangladesh, said Bangladesh’s fertile soil, favourable climate, and strong rural foundation are some key factors that would make Bangladesh a promising hub for agricultural investment and agro-processing development.

“Agriculture in Bangladesh has the potential to rival the garment and service sectors in job creation,” she said.

She said that 35 million members of the country’s growing middle class demand safe, high-quality food, placing a premium on products that meet EU standards. “There is high investment potential in premium and traceable food segments,” she said.

However, López also stressed the need for a faster, more transparent, and investor-friendly system in Bangladesh. Among her recommendations were provisional licensing to enable investors to begin operations within a month.

She also demands genuine one-stop service facilities, digitisation and automation to reduce delays and human involvement, protection of intellectual property and plant breeders’ rights, stronger phytosanitary certification processes, extending benefits beyond EPZs and EZs, and locating factories within agricultural production zones.

She also put emphasis on the importance of aligning growth with sustainability, social business models, and rural value chain development.

The Netherlands' ambassador to Bangladesh reaffirmed the country's strategic partnership with Bangladesh in diversifying, modernising, and commercialising agriculture.

“The demand is huge, and the opportunity in agro-processing is even greater,” he said.

He emphasised climate-smart approaches in the seed sector and called for deeper engagement in areas such as land access and tax policies.

“This summit has offered a platform for open dialogue — precisely what a true investment conference should be,” he said.

He said, “We’re proud to be a trusted partner in Bangladesh’s journey across horticulture, agriculture, fisheries, and sustainability. This partnership is dynamic and transformational — encompassing cutting-edge machinery, smart farming tools, productivity gains, and stronger global competitiveness."

He also called for urgent policy updates in areas such as seed regulation, climate resilience, food safety compliance, environmental requirements, and value chain enhancement.

“The ultimate goal is joint rural employment generation and global elevation of Bangladesh’s agri-food sector,” he said.

A major collaboration was also announced between the Netherlands-based Green House Delta and Bangladesh’s ACI Limited, with both sides signing an MoU to establish a 20,000-square-foot greenhouse in Mauna, Gazipur.

Dr FH Ansarey, Head of Agribusiness at ACI, told The FE, “The new facility will allow local entrepreneurs to access greenhouse fabrication services, use locally sourced glass, reduce overall costs, and receive training support.”

“We’ve been able to reduce the cost of producing cherry and big tomatoes by a factor of ten in greenhouses. Our target is to make the facility operational by 2025,” he said.

Another agreement was signed between the Bangladesh Seed Association and the Dutch entity SeedNL to develop climate-smart, environment-friendly seed technologies.

Among others, Agriculture Secretary Dr Mohammad Emdad Ullah Mian, NBR Member Mima Akhter, Commerce Joint Secretary MS Nargis, Agriculture Joint Secretary Kamrul Hasan, and Bangladesh Bank Director Debashish Sarker also spoke at the session.

tonmoy.wardad@gmail.com