BIDA FDI Heatmap Overview
The FDI Heatmap published by BIDA (Bangladesh Investment Development Authority) visualizes Bangladesh's foreign direct investment by country, sector, and region. As of 2023, Bangladesh recorded FDI inflows of around $3.6 billion, ranking third in South Asia after India and Pakistan. This analysis identifies Korea-Bangladesh FDI status and investment concentration, then derives sectors with strong future potential.
$360M
FDI Inflows
as of 2023
$2.1B
FDI Stock
cumulative
45
Source Countries
major sources
$420M
Korean FDI
cumulative
8th
Korea Rank
among source countries
6
Promising Fields
recommended by BIDA
FDI by Source Country
Top 10 Cumulative FDI Sources in Bangladesh
| Rank | Country | Cumulative FDI | Share | Key Sectors |
|---|---|---|---|---|
| 1 | United Kingdom | $3.5B | 17% | telecom, finance |
| 2 | United States | $2.8B | 13% | energy, IT |
| 3 | China | $2.5B | 12% | power, textile |
| 4 | Netherlands | $2.0B | 10% | oil and gas |
| 5 | Singapore | $1.8B | 9% | finance, real estate |
| 6 | India | $1.5B | 7% | pharma, IT |
| 7 | Japan | $1.2B | 6% | manufacturing, EPZ |
| 8 | Korea | $420M | 2% | apparel, EPZ |
| 9 | Hong Kong | $400M | 2% | apparel, real estate |
| 10 | Malaysia | $350M | 2% | construction, energy |
Sectoral and Regional Distribution
FDI by Sector
Power and energy35% ($740M)
Telecom18% ($380M)
Textiles and apparel15% ($320M)
Finance and services12% ($250M)
FDI Regional Concentration
Dhaka55% (finance, IT, services)
Chattogram25% (EPZ, port logistics)
Khulna8% (energy, agriculture)
Others12% (SEZ, emerging areas)
01
Korea FDI Status
The cumulative Korea-Bangladesh FDI of $420M ranks 8th among source countries and is under-deployed relative to Korea's overall potential. Korean investment is 85% concentrated in apparel and textiles around KEPZ and the Dhaka EPZ, while manufacturing, ICT, and energy investments remain limited. Compared with Japan at $1.2B (6th), the gap is roughly threefold, making diversification a critical priority.
02
Promising Sectors Suggested by BIDA
BIDA's FDI Heatmap identifies six promising sectors: (1) lightweight manufacturing (electronics and automotive components), (2) ICT and BPO, (3) pharmaceuticals and medical devices, (4) renewable energy (solar and wind), (5) agrifood processing, and (6) tourism and hospitality. Korean firms have room to compete in lightweight manufacturing such as CKD, as well as in ICT and medical devices.
03
EPZ/SEZ Investment Incentives
Bangladesh EPZ and SEZ provide strong incentives for foreign investors: (1) 10-year tax holiday for EPZ and 12 years for SEZ, (2) 100% foreign ownership, (3) full repatriation of profit and capital, (4) exemption from import duty and VAT, and (5) 200% enhanced depreciation. BSMSN, Bangladesh's largest SEZ at about 30,000 acres, is actively promoting Korean investor recruitment.
04
Expansion Strategy for Korean Companies
(1) Diversify investments beyond apparel toward ICT, manufacturing, and energy. (2) Use SEZ strategy: create Korean clusters in BSMSN and Mirsarai SEZ. (3) Link projects with EDCF finance through KIND/KEXIM and private co-investment. (4) Apply JV structures with strong local players such as Walton, PRAN, and Biman. (5) Enter in phases: trading -> representative office -> local entity -> production investment.
Investment Process
BIDA Consultation
OSS one-stop service
→↓
Investment Registration
online application
→↓
Incorporation
company registration at RJSC
→↓
Incentive Setup
apply for EPZ/SEZ status
→↓
Project Launch
start implementation
→↓
FDI Reporting
annual filing
PwC Tax Briefing on DT/IDTTax system analysis
KIND/KEXIM Project SeminarsDevelopment finance entry strategy
The BIDA FDI Heatmap presents the full picture of foreign direct investment in Bangladesh. Korean FDI of $420M and 8th rank are concentrated in apparel, suggesting that growth potential is still underutilized. Structured expansion toward ICT, lightweight manufacturing, and medical devices, with systematic use of EPZ/SEZ incentives and BIDA OSS, is essential.
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