Lokman Hossain Miah, Executive Chairman, Bangladesh Investment Development Authority (BIDA) has an experience of almost four decades in administration. Apart from extensive industry experience, he has also served in various top positions like Secretary of Textiles and Jute Ministry, Senior Secretary of Health Services Department under Health Ministry.
Bangladesh’s strategic location as a gateway to both South and Southeast Asia, along with its young, energetic and increasingly skilled workforce, positions it uniquely on the map of emerging markets. Biniyog Bikash or Investment Promotion is a special initiative of the Prime Minister Sheikh Hasina, which has translated to unprecedented improvements in infrastructure, significant reforms and streamlined administrative procedures for ensuring ease of doing business. As apex IPA and lead agency for coordinating business climate
reforms, BIDA is bridging the gap between the Government and the private sector to make sure actions necessary for further unlocking our potential as an investment destination are implemented.
Despite global economic challenges, Bangladesh maintains stability and resilience, garnering confidence from investors. Bangladesh’s long-term outlook is stable, according to Moody’s Investors Service. The dollar exchange rate has stabilised since the start of this year and the Government is working with global partners to introduce practical reforms to ensure lasting macroeconomic stability. Ensuring uninterrupted energy supply for industries is a top priority and Bangladesh has undertaken significant efforts to diversify its energy mix, enhance generation capacity and improve energy efficiency. Additionally, initiatives to increase liquefied natural gas (LNG) imports have been pursued to supplement the existing energy infrastructure. Amidst these efforts, our strong macroeconomic fundamentals and traditional strengths in textiles and garments are consistently attracting investors from various parts of the world. As inflation eases and our growth reaccelerates, we expect that the RMG sector will continue to grow by focusing on market and product diversification, R&D and technology adaptation along with circularity practices to capture more of the global apparel value chain.
Investment from South Korea, Hong Kong and China
We’re witnessing significant ground-level impact. For instance, in the fiscal year 2022-23, our manufacturing sector attracted US $ 1.3 billion or 40.5 per cent of total net FDI inflows, of which Textiles and Wearables got US $ 662.19 million or 20.4 per cent. The Republic of Korea has played a pioneering role in developing Bangladesh’s RMG sector and the country’s highest gross FDI investment in the sector during the last fiscal reflects a growing trend that includes forming partnerships with Bangladeshi manufacturers to leverage the strengths of both countries. During this same period, the sector attracted US $ 174 million from Hong Kong (SAR), US $ 112 million from China and US $ 54 million from India. Investors are increasingly keen on investing in fibres, cotton and non-cotton textiles, elastics, lingerie, accessories, labels etc.
Moreover, Bangladesh’s growing middle-class is set to reach 34 million by 2025, spread over 61 cities. Urbanisation trends and increasing disposable incomes are contributing to rising domestic consumption, making Bangladesh an attractive destination for companies looking to tap into the local market. While RMG sector remains a cornerstone of the economy, growing investments in energy, power, banking, food, NBFI, construction and IT-ITeS are the top sectors attracting FDI, as per Central Bank data. Besides that, agribusiness, cement, pharmaceuticals and chemicals, leather and leather goods are also gaining ground. As many as 900 domestic projects were registered last fiscal, which have invested 30 per cent in services. The other sectors favoured by domestic investors have been chemicals, textiles and agribusiness.
| Investors can also track the status of their applications in real time, ensuring a predictable experience and seamless coordination with different regulators. I encourage all investors, whether they are already operating in Bangladesh or considering entering our market, to utilise BIDA OSS. |
BIDA’s business reforms
The Bangladesh government has demonstrated a strong commitment to improving its global ranking in relation to its business climate through a series of comprehensive reforms and initiatives aimed at enhancing the ease of doing business and attracting foreign investment. Before the suspension of the Ease of Doing Business programme by the World Bank in 2021, Bangladesh was recognised as one of the world’s top 20 reformers in Doing Business 2020 report.
As the lead agency for coordinating business climate reforms, BIDA implemented 44 reforms under the EoDB programme, creating a strong stakeholder network in the process. BIDA is now implementing the Business Investment Climate Improvement (BICI) programme for holistic, country-wide and sector-specific reforms. BICI is aligned with Vision-2041 and has seven pillars, which are Business Entry, Exit and Technology Adoption; Industrial Infrastructure and Logistics; Cross Border Trade and Business; Commercial Dispute Resolution and Labour Regulations; Tax Regime; Financial and Non-financial incentives; and Access to Finance. The reforms under BICI are not based on generic assumptions, but are identified through the Bangladesh Business Climate Index (BBX) and structured private sector feedback.
To ease business entry and operations, BIDA has established and expanded the online One Stop Service (OSS) portal – the country’s first interoperable single window platform, which currently has 123 services of 38 agencies. BIDA OSS has minimised paperwork and enhanced efficiency by digitising and streamlining investment processes. Since its inception in February 2019, over 100,000 digital investor services have been delivered through BIDA OSS; its efficiency in delivering time-bound services is over 95 per cent. It offers services such as company registration, work permits, utility connections and other necessary clearances. It saves time and cost by providing a user-friendly interface that allows investors to complete procedures online, eliminating the need for multiple visits to different government agencies. It ensures transparency and accountability in our governance system as applications are centrally monitored. Investors can also track the status of their applications in real-time, ensuring a predictable experience and seamless coordination with different regulators. I encourage all investors, whether they are already operating in Bangladesh or considering entering our market, to utilise BIDA OSS.
In line with this, BIDA aims to attract investment in Bangladesh through comprehensive strategies, including investment promotion, sector-specific initiatives, policy reforms, digital transformation, capacity building and stakeholder engagement. We’re dedicated to building lasting relationships with global and domestic businesses to create an environment conducive to economic growth, innovation and global competitiveness.
