The Bangladesh Investment Summit 2025, held from April 7 to 10 in Dhaka, aimed to position the country as a prime destination for global investors. However, the event unfolded against a backdrop of escalating political unrest, widespread protests, and economic instability, raising concerns about the nation’s investment climate.
Summit Highlights and Investor Concerns: The summit showcased Bangladesh’s ambition to attract foreign capital, with discussions focusing on policy reforms, infrastructure development, and economic opportunities. Yet, participants expressed apprehensions about policy inconsistency, political uncertainty, bureaucratic delays, and utility concerns, which they raised directly with policymakers and stakeholders. The interim government, led by Nobel laureate Muhammad Yunus since August 2024, has been striving to restore democracy and implement reforms following the ouster of former Prime Minister Sheikh Hasina. Despite these efforts, the law and order situation remains precarious, with rampant crime and rising Islamist influence. Economic Impact of Political Turmoil:
The ongoing political unrest has taken a toll on Bangladesh’s economy. The Asian Development Bank projects a slowdown in GDP growth to 3.9% for the fiscal year 2025, attributing it to the political instability and its effects on business confidence. Moreover, the economy is reportedly losing Tk 6,500 crores (approximately $610 million) daily due to hartals and blockades, as per the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
International Relations and Trade Challenges: Bangladesh’s trade relations have also been affected. India recently revoked a transshipment facility that allowed Bangladeshi exports to third countries via its land borders, a move expected to impact Bangladesh’s trade, especially in readymade garments, and increase logistical costs. Additionally, the United States has imposed a 37% tariff on Bangladeshi exports, particularly affecting the garments industry, leading to halted orders from US buyers. While the Investment Summit 2025 highlighted Bangladesh’s potential and reformist zeal, the prevailing political and economic challenges underscore the need for stability and consistent policies to attract and retain foreign investment.
Over 450 domestic and international investors attended the four-day event, engaging in networking, policy dialogues, and signing landmark agreements. The event showcased Bangladesh’s development roadmap up to 2035, with a focus on youth, digital infrastructure, green energy, and industrial transformation. The summit, organized with the support of the Bangladesh Investment Development Authority (BIDA), delivered not just a platform for engagement but tangible results: investment pledges across diverse sectors, international partnerships, and renewed commitments from development institutions and foreign governments.
A Surge in Investor Interest: The summit featured a vibrant mix of keynote addresses, industry-specific sessions, and exhibition booths designed to highlight Bangladesh’s investment potential. From advanced manufacturing and renewable energy to digital startups and healthcare, the breadth of interest reflected Bangladesh’s strategic pivot to becoming a middle-income, knowledge-based economy.
China’s Handa Industries pledged $150 million, including $100 million in textile and dyeing under the economic zone initiative and $50 million for garments in the export processing zone. The investment is expected to create jobs for 15,000 people. This investment alone reinforced the growing reputation of Bangladesh as a reliable sourcing hub in global apparel supply chains.
Swedish company Nilorn committed $13 million in the Bangladesh Special Economic Zone (BSEZ), while the New Development Bank (NDB)-a multilateral institution created by BRICS nations-announced intentions to invest $1 billion this year in infrastructure and development projects across the country.
Moreover, Inditex (parent company of Zara), LafargeHolcim, and DP World expressed concrete plans to expand operations or explore new avenues in Bangladesh. Spain’s Inditex and China’s Handa highlighted Bangladesh’s low-cost labor advantage and improving logistics as key reasons for scaling up investment.
The United Arab Emirates also made its mark with two separate MoUs signed by UAE-based firms pledging over $100 million in the health sector, including the construction of a state-of-the-art cancer hospital.
A Pipeline of Investments: At the closing ceremony on April 10, BIDA’s Business Development Chief Nahian Rahman Rochi declared that a pipeline of foreign investment had been formed as a result of the summit. “Our goal was to give investors a realistic idea of Bangladesh’s investment environment, introduce them to sectoral opportunities, and establish matchmaking arrangements,” he said.
Importantly, BIDA announced plans to draft an 18-24-month roadmap for post-summit engagement. “Investors usually take between 18 to 24 months to go from proposal to actual investment. We will maintain active communication with all investors who have expressed interest,” Rochi explained during a press briefing at Hotel Intercontinental.
Rochi also emphasized that the summit was not just about immediate investment inflows but about branding Bangladesh as a destination with long-term potential. “This conference has allowed us to present a new narrative of Bangladesh-resilient, youthful, and ready for inclusive growth.”
Major Agreements and Strategic Partnerships: A host of significant memorandums of understanding (MoUs) were signed over the four days. Among them was a landmark agreement between Bangladesh and NASA, which will see increased cooperation in space research and satellite technology. This positions Bangladesh to accelerate its ambition in digital and remote sensing technologies, especially in disaster management, agriculture, and telecommunication.
In a move that symbolizes the country’s green transition, H&M signed an MoU with PRAN-RFL Group and the International Finance Corporation (IFC) to generate 100 megawatts of electricity through sustainable energy initiatives. The partnership underscores a rising interest among global brands to decarbonize supply chains originating from Bangladesh.
Meanwhile, Quest Water Global Inc., a U.S.-based company, inked a deal with BIDA to set up drinking water treatment plants across cities including Dhaka. This initiative is expected to ease the water scarcity problem in densely populated urban areas and improve access to clean water for millions.
Five MoUs signed by Hasan Mohin Chartered Accountants with firms including Universal Medical College Hospital and Beacon Pharmaceuticals will help spur innovation and capacity-building in the healthcare and financial technology sectors. The agreements open new doors for both foreign and domestic capital to support Bangladesh’s transformation into a knowledge-based economy.
Strong Commitments from Governments and Institutions: Foreign governments also made their presence felt. UK Trade Envoy Baroness Rosie Winterton emphasized long-term cooperation in education and healthcare, with particular interest in training and technology exchange. Her remarks signal the UK’s growing confidence in Bangladesh’s evolving regulatory and business landscape.
In a powerful show of bilateral interest, China’s Commerce Minister announced plans to return to Bangladesh next month with a delegation of 200 investors. Multiple Chinese companies expressed intent to invest in renewable energy-including wind turbines, electric vehicles, lithium-ion battery manufacturing, and offshore photovoltaic solar projects.
Bangladesh also saw renewed diplomatic engagement with the UAE, BRICS nations, and European institutions. These partnerships are expected to bear fruit in infrastructure, connectivity, digital transformation, and human capital development.
A Coordinated National Response: The Bangladeshi government, including ministries of commerce, finance, industries, and energy, played an active role in hosting the summit. Prime Minister Sheikh Hasina inaugurated the event, underlining her administration’s commitment to making Bangladesh one of the top investment destinations in Asia. As part of its response, Bangladesh Bank announced the creation of a special Tk 1,200 crore fund to support new entrepreneurs. This initiative is part of a broader effort to boost the startup ecosystem and create opportunities for youth-led innovation.
The government’s proactive stance has drawn praise. According to BIDA officials, the Summit’s success is evidence that the public sector is increasingly capable of hosting global-scale events and managing complex investor relations. Domestic conglomerates such as Incepta Group, which announced a $1 million investment to promote startups, also contributed to the Summit’s collaborative atmosphere. This blending of foreign and local investment signals a maturing economy prepared to absorb and sustain long-term capital.
Acknowledging Investor Concerns: While the overall tone of the conference was optimistic, BIDA acknowledged that investors had raised some critical concerns. Nahian Rahman Rochi outlined four key challenges cited by investors: availability of resources, policy consistency, bureaucratic complexity, and corruption. “Efforts are being made, especially with the revenue department, to improve coordination. Yes, bureaucratic complexity exists, and we are actively working to resolve it,” Rochi said. He further acknowledged that investors had expressed the need for greater policy predictability, particularly in sectors like tax and customs. Officials at the summit emphasized that learning from these concerns is crucial to improving Bangladesh’s investment climate. As part of post-conference follow-up, BIDA and the relevant ministries plan to conduct quarterly check-ins with interested investors, identify roadblocks, and offer assistance in coordination, licensing, and infrastructure support.
Roadmap to 2035: Youth, Green Growth, and Digitalization: A key highlight of the Investment Summit was the unveiling of Bangladesh’s “Vision 2035 Investment Roadmap.” Designed with the youth demographic in mind, the roadmap focuses on sectors likely to define the future-green energy, artificial intelligence, biotech, electric mobility, digital commerce, and smart agriculture.
Government officials stressed that investments would be aligned with the Sustainable Development Goals (SDGs), and that upcoming policy framework would be tailored to support inclusive and resilient economic growth. BIDA also introduced a digital investor facilitation portal, streamlining the process of setting up businesses in Bangladesh. The portal includes services for company registration, land acquisition, environmental clearance, and post-investment support. “We’re embracing a proactive, tech-driven approach to reduce delays, improve transparency, and cut down on red tape,” said a BIDA spokesperson. “Digital transformation is no longer an option-it’s the future of investment governance.”
A New Narrative for Bangladesh: The summit’s real achievement may lie not just in signed MoUs or pledged billions, but in the new story it tells about Bangladesh-a story of resilience, ambition, and transformation. For decades, Bangladesh has been seen through the lens of garments and remittances. But the Investment Summit 2025 presented a different image: that of a country aiming for green growth, regional connectivity, digital inclusion, and global relevance. Experts and economists attending the summit agree that if the momentum is sustained, Bangladesh could soon become a hub for South and Southeast Asian investment, offering a strategic location, competitive costs, and a large, youthful workforce.
However, achieving this vision will depend on whether the country can reform institutions, improve infrastructure, and deliver on policy stability. Investors are willing to bet on Bangladesh-but they want guarantees, not just promises.The Road Ahead: With over two dozen agreements signed, multi-billion-dollar pledges made, and hundreds of investors engaged, the Investment Summit 2025 has set a high bar. Bangladesh has responded with vigor, showing seriousness not only in showcasing its strengths but also in recognizing and addressing its weaknesses. The next two years will be crucial. As BIDA drafts its post-summit roadmap, the focus must remain on execution. Ensuring that MoUs translate into real factories, offices, and jobs will be the ultimate test of the Summit’s success.
