BIDA unveils FDI Heatmap to attract investment in 19 high-potential sectors

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

Focusing on 19 high-potential sectors, the Heatmap offers a strategic blueprint for guiding future investment strategies and promotion efforts.

“The FDI Heatmap is more than a plan, it is the blueprint for all our future touchpoints with investors,” said Ashik Chowdhury, Executive Chairman of BIDA. “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 - far below the global average of 3-4 per cent. 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,” said Nahian Rahman Rochi, Head of Business Development, BIDA.

The development of the FDI Heatmap was made possible through the contributions of industry experts, including Standard Chartered Bank, HSBC, PricewaterhouseCoopers (PwC), Ernst & Young (EY), The Boston Consulting Group (BCG), International Finance Corporation (IFC), IDLC Finance PLC, LightCastle Partners, Inspira Advisory & Consulting Limited, the Foreign Investors’ Chamber of Commerce and Industry (FICCI), Dhaka Chamber of Commerce and Industry (DCCI), Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO), and Korea Trade-Investment Promotion Agency (KOTRA).

19 Priority Sectors

The Heatmap identifies 19 sectors, categorising them based on three key factors: Market Readiness and Potential, Input Factors Availability, and Strategic Alignment with national goals, including SDG and ESG priorities.

Category A: Immediate Targets
These sectors have high market readiness, rapid growth, and unique competitive advantages, making them prime short-term investment targets:

• Core Apparel
• Pharmaceuticals (without API)
• Agro Processing
• IT-Enabled Services (IT-ES)
• Advanced Textiles
• Renewable Energy

Category B: Enable Quick Entry
These sectors have moderate market readiness but strong competitive advantages, requiring streamlined entry processes for investors:

• Automotive Parts
• Footwear
• Light Engineering
• Leather

Category C: Customised Deals
These sectors show growth potential but require customized deals to address input challenges and boost competitiveness:

• Logistics
• Electronics & Assembly

Category D: Policy & Capacity Development
These high-potential sectors need long-term policy support and ecosystem development to unlock growth:

• EV Battery
• Medical Devices
• Technical Textiles
• Toys
• Active Pharmaceutical Ingredients (API)
• Semiconductor
• Plastic

BIDA plans to operationalise the Heatmap through a series of targeted 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.

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