Media Release

BIDA unveils FDI Heatmap to drive targeted investment across 19 sectors

Jan 19, 2025

The Bangladesh Investment Development Authority (BIDA) has launched Bangladesh’s FDI Heatmap, a data-driven framework to attract Foreign Direct Investment (FDI). Focusing on 19 high-potential sectors, the Heatmap provides a strategic blueprint for all future strategies and promotion.

“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% of GDP - far below the global average of 3 - 4%. The Heatmap aims to reverse this trend by leveraging a structured approach to prioritize 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 key 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), Korea Trade-Investment Promotion Agency (KOTRA).

Download the FDI Heatmap

19 Priority Sectors

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

Category A: Immediate Targets

Sectors with high market readiness, rapid growth, and unique competitive advantages, making them top 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

Sectors with moderate market readiness but strong competitive advantages, requiring streamlined entry processes for investors.

• Automotive Parts
• Footwear
• Light Engineering
• Leather
  
  

Category C: Customized Deals

Sectors with growth potential that need customized deals to address input challenges and improve competitiveness.

• Logistics
• Electronics & Assembly
  
  

Category D: Policy & Capacity Development

High-potential sectors needing 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 operationalize the Heatmap through a series of focused activities aimed at maximizing 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. Additionally, the Heatmap will be reviewed and updated annually to ensure it remains responsive to evolving market dynamics.