UNLOCKING COMPETITIVENESS: BANGLADESH'S NEXT LEAP IN TRADE & INVESTMENT

As Bangladesh stands at the threshold of becoming a middle-income economy, the urgency to enhance its global competitiveness has never been greater. In FY25, exports surpassed USD 48.28 billion with 8.55% year-on-year (YoY) growth, wage remittances reached USD 30.32 billion with 26.80% YoY growth, and foreign direct investment (FDI) inflows stood at around USD 1.5 billion-signaling measurable progress. Yet, to sustain this growth and position itself as a prime destination for trade and investment, strategic reforms are indispensable.

 

A New Chapter in FDI Attraction

 

Bangladesh's commitment to opening its economy is being reinforced by proactive initiatives led by the Bangladesh Investment Development Authority (BIDA). The International Investment Summit 2025, organized by BIDA, drew over 600 foreign investors from 42 countries, with investment intents totaling more than USD 8 billion across sectors like renewable energy, logistics, ICT, healthcare, and agribusiness. Notably, Japanese, Korean, and Gulf-based investors showed strong interest in Bangladesh's Special Economic Zones (SEZs), such as Araihazar and Mirsarai.

 

To translate these intents into actionable outcomes, BIDA has rolled out an improved One Stop Service (OSS) portal offering 56 services from 19 government agencies, expediting licensing, customs clearances, and utility connections. However, achieving meaningful FDI growth will require deeper regulatory reforms and greater policy predictability.

 

FICCI's Role in Driving Reforms

 

Foreign Investors' Chamber of Commerce & Industry (FICCI) has emerged as a powerful platform for advocating reforms and representing the voice of multinational and foreign-invested enterprises in Bangladesh. Comprising over 200 member companies contributing more than 30% of the country's total tax revenue and employing thousands of skilled professionals, FICCI plays a pivotal role in shaping a business-friendly policy environment.

 

FICCI's ongoing dialogue with the Ministry of Commerce, National Board of Revenue (NBR), and Bangladesh Bank has been instrumental in:

 

. Advocating for rationalization of corporate tax and VAT structures;

. Promoting investment protection and contract enforcement reforms;

. Supporting the simplification of cross-border remittance & dividend repatriation with more efficient tax statement.

. Collaborating on sector-specific roadmaps, including healthcare, energy, telecom, and FMCG.

 

Its flagship publication, the FICCI White Paper, has served as a blueprint for actionable policy changes to improve the ease of doing business.

 

Integrating into Global Value Chains

 

Bangladesh's cost-competitive labor and expanding manufacturing base provide an opportunity to shift from a low-cost sourcing destination to a value- added production hub. Beyond RMG, sectors like electronics, pharmaceuticals, automotive parts, and IT-enabled services (ITES) are attracting cross- border interest. For example:

. Export of IT services reached USD 1.9 billion in FY24, with growing markets in the EU, Japan, and the

. Pharmaceutical exports rose by 13.6% year-on-year, driven by demand from Southeast Asia and Africa.

. Leather and light engineering are emerging as anchor sectors under the government's Export Diversification Strategy.

 

Regional Trade and Connectivity

 

Bangladesh's geographic position as a gateway to South and Southeast Asia presents immense potential. Key developments include:

 

· BBIN (Bangladesh-Bhutan-India-Nepal) Motor Vehicle Agreement, which promises seamless regional logistics through the land bordering.

. Participation in India's CEPA (Comprehensive Economic Partnership Agreement) discussions and potential future Free Trade Agreements (FTAs) with ASEAN and China.

. Operationalization of Bay Terminal and Matarbari Deep Sea Port by 2026, which will drastically reduce turnaround time and shipping costs by avoiding mother vessels to reach directly to the loading port.

 

 

 

 

Private Sector Voice & Public-Private Synergy

 

To build lasting investor trust, Bangladesh must foster a dynamic and inclusive ecosystem where the private sector has a clearly structured and meaningful voice in policy formulation. Institutions like the Bangladesh Business Forum, in close collaboration with BIDA, are actively promoting regular, transparent dialogue mechanisms to swiftly identify and effectively address investor concerns and grievances.

 

Foreign Investors' Chamber of Commerce & Industry (FICCI) continues to serve as a vital and credible bridge between foreign investors and policymakers, ensuring that reforms are not only thoughtfully designed but also rigorously and consistently implemented. Its ongoing collaboration with BIDA-and its strong advocacy for sustainable business practices including green financing, ESG integration, and digital governance-resonates deeply with the expectations of responsible global investors.

 

Highly compliant well governance and forward-thinking financial institutions like CBC Bangladesh are also playing an increasingly instrumental role in this agenda by efficiently facilitating transparent, secure cross-border investment processes and providing robust institutional serve foreign investors with excellence.

 

Strengthening Market Access: CBC Bangladesh's Role

 

As a leading partner in the development of Bangladesh's capital market, CBC Bangladesh has taken a proactive role in facilitating cross-border investments. The bank has a fully-fledged Custodian Services Department, establishing itself as a market leader in custodian services and foreign investor onboarding.

 

To date, investors from over 34 countries residing outside Bangladesh have invested in the local capital marketby opening Non-Resident Investor Taka  Accounts (NITAs) through CBC. This reflects the growing global confidence in Bangladesh's financial infrastructure.

 

In a significant recent development, CBC Bangladesh has partnered with Japanese institutions to promoteforeign portfolio investment. With a dedicated Japan Desk,  the bank has already onboarded 200 Japanese investors and is on track to on board substantial amount of new clients within the next six months, leveraging its robust back-office operations, digital account management tools, and  specialized investment advisory team.

 

By offering end-to-end investment solutions-from account opening to trade  settlement-CBC is not only simplifying market access for foreign investors but  also contributing meaningfully to Bangladesh's broader goal of integrating into global financial networks.

 

 

 

 

Closing Remarks

 

As Bangladesh charts its next leap, the choice is clear: reform to compete or risk stagnation. Unlocking competitiveness through targeted reforms, stronger public-private dialogue, better cross-border facilitation, and proactive investor engagement will not only boost FDI and exports but also embed Bangladesh deeper into global value chains. The journey ahead is complex-but with the right vision, partnerships, and execution, Bangladesh can emerge as a serious contender in the global trade and investment arena.