BM Desk: Ashiq Chowdhury, Executive Chairman of Bangladesh Investment Development Authority (BIDA) is expressing hope that foreign investment will increase greatly from next year in Bangladesh.

In an interview given to Nikkei Asia during his recent visit to Japan, he said that foreign investment in Bangladesh could increase greatly in the next one or two years.

According to the BIDA Executive Chairman, foreign direct investment (FDI) in Bangladesh could reach about 4 percent of its gross domestic product (GDP) in the next three to five years, up from just 0.3 percent in 2023. This rate is much lower than the global average of 0.8 percent.

Ashiq Chowdhury also said that the government of Bangladesh has undertaken several reforms to create an investment-friendly environment. These include simplifying approval and customs procedures and combating corruption.

He said that BIDA has already held discussions with more than 200 domestic and foreign companies for these reforms. Although there has been no major change in foreign investment in the current year, it will increase drastically from next year.

Bida Executive Chairman also said that the economy of Bangladesh is mainly dependent on the ready-made garment industry. However, the government’s goal is now to find new opportunities outside of garments. He believes that leather goods can be the first step in this transformation.

Ashik Chowdhury is optimistic about the trade relations between Bangladesh and the United States. Bangladesh has a trade surplus of US$ 4.2 billion in 2023 and US is the destination of 20 percent of Bangladesh’s total exports.

In addition, Ashiq Chowdhury also commented on the tariff policy of US President Donald Trump. He said that Bangladesh has not yet heard about imposing any tariffs from Trump. Rather, the tariffs imposed on China may be advantageous for Bangladesh.