The Foreign Investors’ Chamber of Commerce and Industry in Bangladesh has identified nine interlinked challenges, including regulatory uncertainty, high logistics costs and financial sector fragility, that are limiting investment potential.
It also flagged infrastructure gaps, poor global competitiveness, fragmented institutions, skills shortages, a complex tax regime and transparency concerns.
The chamber recently unveiled the report at its ‘FDI Conference 2026’ and ‘Investors’ Expo’ in Dhaka that was inaugurated by Prime Minister Tarique Rahman.
The report outlined a strategic framework to raise FDI-to-gross domestic product (GDP) ratio from 0.36 per cent to 2.5 per cent by restoring investor confidence.
The report also flagged infrastructure gaps, poor global competitiveness, fragmented institutions, skills shortages, a complex tax regime and concerns over transparency.
To address the challenges, the chamber proposed fast-tracking large investment approvals, simplifying foreign exchange procedures, introducing a digital single window and establishing an Investment ombudsman.
Medium-term reforms should focus on modernising ports and customs, strengthening economic zones, resolving banking sector weaknesses and digitising land administration, it said.
Long-term measures suggested include negotiating free trade agreements and comprehensive economic partnership agreements, expanding technical and vocational education, developing the capital market and strengthening policy stability, according to domestic media outlets.
The report also recommended establishing a National FDI Coordination Council chaired by the prime minister to oversee implementation.
The chamber report estimated that reducing logistics costs by 25 per cent could increase exports by 20 per cent, while a one-point improvement in the corruption perceptions index could raise FDI inflows by 0.5 per cent of GDP.
Fibre2Fashion News Desk (DS)
