UNCTAD suggests unified investment policy for Bangladesh

Foreign direct investment (FDI) in Bangladesh has declined over the last five years but is expected to start recovering from 2025.

However, the current volume is about US$1.77 billion, which is still lower than the 2019 level.

Experts say Bangladesh has improved in many investment areas, but it now needs a unified national investment policy to stay competitive with other countries.

These observations were shared at the launch of the Investment Policy Review (IPR) Report 2026, organised by BIDA and UNDP.

The report was prepared by the United Nations Development Programme (UNDP), in partnership with the United Nations Conference on Trade and Development (UNCTAD) and the Bangladesh Investment Development Authority (BIDA).

The programme was held under the Transformative Economic Policy Programme (TEPP), supported by the UK Government.

Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA, said that as Bangladesh prepares for LDC graduation and aims for Vision 2041, attracting quality investment will be key for economic growth, diversification, technology transfer, and job creation.

He stressed the need for coordinated reforms and strong institutions.

He said that although Bangladesh has improved, competitor countries are still ahead.

He also said that without a proper one-stop service for investors, it will be difficult to achieve investment goals.

Sonali Dayaratne, Deputy Resident Representative of UNDP Bangladesh, said that clear and consistent investment policies and strong institutions are essential for responsible investment, job creation, innovation, and sustainable growth, especially before LDC graduation.

The 2026 IPR Implementation Report reviews progress since the 2013 report.

Kiyoshi Adachi, legal officer (investment and enterprise) of UNCTAD, presented the keynote.

It shows key achievements such as the creation of BIDA as the main investment agency and the expansion of digital services.

The report also recommends major reforms, including a unified investment policy, a single investment law, and full digitalisation of procedures to improve competitiveness.

The report shows Bangladesh's FDI was US $ 1.86 in 2019, which gradually shrank and decreased to $ 1.26 in 2024.

It started rebounding from 2025 and reached $1.77 billion.

The report said Bangladesh's FDI to GDP ratio is only 4.0 per cent, which is 11 per cent in Cambodia, 22 per cent in Indonesia and 54 per cent in Vietnam.

The event included a video message from Nan Li Collins of UNCTAD.

A panel discussion, moderated by Owais Parray of UNDP Bangladesh, discussed how to implement the recommendations.

The session was chaired by Md. Humayun Kabir, executive member of BIDA.

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