EPA Negotiations with Japan Set to Begin

At a Chattogram meeting, local business leaders and politicians urged the government to prioritize domestic investment support alongside its foreign direct investment (FDI) push. The Bangladesh Investment Development Authority (Bida) Chairman announced a $3 billion FDI target for three port projects, including Laldia Container Terminal and two Bay Terminal expansions, with agreements expected by September.

Bangladesh has formed a national committee, led by the commerce adviser and Beza’s executive chairman, to evaluate the feasibility of establishing Free Trade Zones (FTZs), as announced on April 21, 2025. This move follows the Bangladesh Investment Summit (April 7–10), where attracting foreign investment, boosting exports, and creating jobs were key topics.

In 2024, net foreign direct investment (FDI) in Bangladesh fell to a five-year low at $1.27 billion, extending a downward trend that began after the 2021 post-pandemic surge. The drop—a 13.25% decrease from 2023—was highlighted by declining equity inflows and a sharp fall in reinvested earnings.

Bangladesh is drawing increasing interest from foreign investors, especially in technology and digital services, according to Mike Orgill, Uber’s Asia-Pacific head of public policy. He credits this to the government’s openness, proactive engagement with international businesses, and improvements in the investment climate. The recent Bangladesh Investment Summit attracted significant investment proposals and signaled the country’s eagerness to foster global partnerships.

Bangladesh and the European Union (EU) held the first round of negotiations on the Partnership and Cooperation Agreement (PCA) on April 10, 2025, in Brussels, aiming to finalize the agreement by 2026. The PCA seeks to establish a comprehensive framework for enhancing cooperation in areas like trade, investment, climate action, digital transformation, migration, human rights, and security.

The Asian Development Bank (ADB) has urged Bangladesh to simplify its licensing system and regulatory procedures to attract higher levels of foreign direct investment (FDI), which averaged only 0.8% of GDP from 2013–2023—far below Cambodia (9.4%), Vietnam (4.6%), and Indonesia (1.9%).