Bangladesh posts South Asia’s fastest foreign investment growth
United Nations report says foreign investment into Bangladesh surged 45% in 2025 despite global economic uncertainty, outpacing every South Asian economy
DHAKA, Bangladesh (MNTV) — Bangladesh recorded the fastest growth in foreign direct investment among South Asian economies in 2025, as inflows rose by about 45% from a year earlier, underscoring growing investor confidence despite a difficult global investment climate.
According to the World Investment Report 2026 released by the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) into Bangladesh increased from $1.23 billion in 2024 to $1.78 billion in 2025.
The report comes as global investment continues to face pressure from geopolitical tensions, trade disputes and high borrowing costs.
The sharp increase made Bangladesh the fastest-growing destination for FDI in South Asia during 2025, highlighting the country’s resilience at a time when many economies struggled to attract new international investment.
UNCTAD said global FDI flows rose 6% to $1.6 trillion in 2025, ending two consecutive years of decline. The recovery was driven largely by investment in digital infrastructure, advanced manufacturing, renewable energy technologies and other strategic industries.
Developing Asia remained the world’s largest destination for foreign investment among developing regions, attracting $644 billion in FDI during the year. Bangladesh’s performance reflects continued investor interest in Asian economies, even as investment patterns become increasingly selective.
The report noted that foreign investment still accounts for a relatively modest share of Bangladesh’s overall fixed capital formation, indicating that the country’s economic growth continues to be supported primarily by domestic investment.
Economists have long viewed Bangladesh’s strong domestic investment base as one of the country’s economic strengths, helping reduce dependence on foreign capital.
UNCTAD said Bangladesh has considerable potential to attract larger volumes of foreign investment in sectors such as manufacturing, infrastructure, services and technology, particularly as global companies diversify their supply chains and seek new production hubs.
Analysts cited in the report said Bangladesh’s large consumer market, competitive labor force, strategic location between South and Southeast Asia, and ongoing economic reforms continue to strengthen its appeal to international investors.
With an economy now exceeding $500 billion and continued investment in industrialization, logistics and connectivity, Bangladesh is increasingly being viewed as a long-term investment destination with significant room for future growth, the report said.
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