FDI in Bangladesh Declines by 8.8% in FY24

The equity market in Bangladesh has seen a surge in foreign investment since the political transition in August 2024. Foreign portfolio transactions on the Dhaka Stock Exchange rose to Tk 13.91 billion in July-September 2024, doubling the figure from the same period last year. Net portfolio investment by foreign investors also soared to $49 million in July-August FY25, compared to $3 million in the previous year.

Austrian companies are showing interest in investing in Bangladesh as part of efforts to enhance bilateral economic ties, according to Austria's non-resident ambassador, who visited Dhaka on November 18, 2024. During a meeting with the Chief Adviser, the envoy highlighted Austria's willingness to support Bangladesh's interim government in implementing sweeping reforms.

Austrian Ambassador Katharina Wieser expressed interest in boosting economic ties with Bangladesh, highlighting Austrian companies' plans to invest, including a technical school near Dhaka. She assured support for Bangladesh's reforms, while Chief Adviser Prof Muhammad Yunus pledged cooperation and discussed migration, counterterrorism, and climate change. Wieser emphasized promoting legal migration, as Bangladeshis are Austria's sixth-largest migrant community.

The interim government’s reforms targeting renewable energy, ICT, pharmaceuticals, and semiconductors are expected to boost foreign direct investment (FDI) in Bangladesh. Experts at the "Bay of Bengal Conversation" emphasized investment-friendly policies, such as reducing bureaucratic hurdles and aligning the education system with market needs, while addressing challenges like infrastructure and financing.

Chinese firms are exploring partnerships to establish lithium battery and solar panel production in Bangladesh, following discussions with the Bangladesh Investment Development Authority (BIDA). Representatives from Wellbe Communication Technology Ltd and Beijing Hairun Haoshen Technology Ltd emphasized Bangladesh’s need for advanced battery solutions, especially as electric vehicle demand rises.