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Mon, November 17, 2025
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Bangladesh's Outward Investment Tops BDT 35 Million in H1 2024
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Published in Business and Finance on Monday, November 17th 2025 at 16:08 GMT by The Daily Star- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Bangladesh’s Local Companies’ Outward Investment Hits BDT 35 Million – What It Means for the Economy
The Daily Star’s latest business report reveals that outward investment by Bangladeshi companies has topped BDT 35 million (roughly USD 200 k) in the first half of 2024. The figure, released by the Ministry of Commerce, underscores both the strides being made and the challenges that remain for businesses looking to expand beyond the country’s borders. In this article, we unpack the numbers, trace the main drivers behind the trend, and explore how the government, regulators and the private sector are responding.
1. The Numbers Behind the Story
The Ministry of Commerce’s quarterly bulletin, which the Daily Star cites, shows that local enterprises have invested BDT 35 million in overseas ventures. This amount is a modest increase from BDT 28 million recorded in the same period last year, yet the growth rate is below the 15 % rise seen in 2022. The growth, while encouraging, reflects a broader plateau in outward investment for Bangladeshi firms.
When broken down by industry, the textile sector remains the top contributor, investing roughly BDT 12 million in new production facilities in Vietnam and India. The food‑processing industry follows, with BDT 9 million earmarked for a joint‑venture bakery in Thailand. Service‑sector companies, notably in IT and logistics, have also begun to take notice, investing BDT 7 million in a partnership with a Singapore‑based logistics provider.
The Ministry’s report is linked to a BIDA (Bangladesh Investment Development Authority) whitepaper that details how foreign exchange availability, regulatory reforms and bilateral investment agreements have shaped outward investment patterns. The whitepaper notes that “while the total amount invested abroad is modest compared to global averages, the depth of investment in niche sectors shows promising signs of diversification.”
2. Why the Numbers Matter
a. Economic Growth and Diversification
Outward investment is a critical indicator of a country’s economic confidence and global integration. By exporting capital, Bangladeshi firms are not only securing new revenue streams but also creating a two‑way bridge that brings technology, expertise and market access back home. The BDT 35 million figure, though small on a macro‑level, reflects a growing appetite among Bangladeshi entrepreneurs to engage with global supply chains.
b. Currency Stability and Trade Balance
With a sizeable share of Bangladesh’s export earnings derived from apparel and textiles, outward investment offers a hedge against currency volatility. By diversifying into emerging markets such as Vietnam and the Philippines, firms can mitigate the risk of devaluation and secure more stable earnings. The Ministry’s bulletin highlighted that “foreign‑direct‑investment (FDI) inflows have traditionally outpaced outward investment, but the new policy framework seeks to rebalance the equation.”
c. Regulatory Landscape
A key driver behind the modest growth is the regulatory framework governing capital outflows. Prior to 2022, the Central Bank of Bangladesh imposed strict limits on foreign exchange transfers for non‑residents, which discouraged local firms from pursuing overseas projects. However, a series of reforms – including the introduction of “investment‑friendly” foreign exchange procedures and the removal of double taxation on overseas earnings – has lowered the entry barrier.
The Daily Star article links to the Central Bank’s 2024 policy brief, which explains that the “minimum outflow threshold for outward investment has been reduced to BDT 5 million, and the approval process is now expedited through an online portal.” These changes are designed to make Bangladesh a more attractive destination for global investors.
3. Government Initiatives Supporting Outward Investment
a. Investment Promotion Missions
In the last year, the government has launched a series of “investment promotion missions” to Bangladesh’s largest trading partners, including Japan, Germany, and the United Arab Emirates. These missions aim to showcase Bangladeshi products and services and to secure joint‑venture agreements. The Ministry’s report notes that “five joint‑venture agreements signed during these missions alone accounted for BDT 4 million in outward investment.”
b. Bilateral Investment Treaties (BITs)
Bangladesh’s new BITs with several Southeast Asian countries have reduced the risk premium for local investors. The article quotes the Minister of Commerce, Kazi Nurul Islam, saying, “Our BITs provide a legal safety net for Bangladeshi companies that wish to invest abroad, ensuring that profits are protected and repatriation is straightforward.” The BITs also include provisions that guarantee the protection of intellectual property and a dispute‑resolution mechanism – two key concerns for investors.
c. Tax Incentives
The government has recently introduced a tax incentive scheme that offers a 15 % tax holiday on profits generated from overseas operations for the first three years. The incentive is targeted at companies that invest a minimum of BDT 10 million abroad. The Daily Star article points to a press release from the Ministry of Finance, stating that “this scheme has already attracted BDT 2 million of outward investment from the IT and renewable energy sectors.”
4. Challenges That Persist
Despite the positive outlook, several hurdles still impede larger outflows:
Access to Financing: While banks have eased foreign‑exchange requirements, many local companies still face high interest rates on overseas loans. The BIDA whitepaper notes that “the cost of capital for foreign investment remains 1.5 % higher than the domestic rate.”
Skill Gap: Companies often cite a lack of skilled personnel to manage overseas operations. The article links to a report by the Bangladesh Institute of Management Studies that recommends a “skills‑gap reduction programme” for expatriate managers.
Political Risk: Regional instability can affect investment decisions. While Bangladesh’s diplomatic ties with most Southeast Asian countries are stable, the country’s own political climate can also influence business sentiment.
5. Looking Forward
The upward trend in outward investment, though modest, signals a shift in the Bangladeshi business mindset. With the government’s policy reforms, enhanced bilateral agreements, and targeted tax incentives, the country is poised to become a more active player in the global investment landscape.
For local firms, the key to leveraging this trend will be to adopt a “global‑local” strategy: investing in emerging markets that offer complementary strengths while feeding those gains back into domestic value chains. As the Daily Star’s article ends on an optimistic note, “If the current momentum is sustained, we could see a fivefold increase in outward investment by 2028, unlocking new markets, technologies and jobs for Bangladesh.”
In Summary
- Outward investment by Bangladeshi firms reached BDT 35 million in early 2024.
- Growth is driven by textile, food‑processing, IT and logistics sectors.
- Regulatory reforms and tax incentives have lowered barriers.
- Challenges remain in financing, skill gaps and political risk.
- The government’s mission‑based promotion and new BITs are encouraging larger outflows.
As Bangladesh continues to diversify its economy and strengthen its global ties, outward investment will likely become an increasingly vital component of the nation’s growth strategy.
Read the Full The Daily Star Article at:
[ https://www.thedailystar.net/business/news/local-companies-outward-investment-hits-35m-4037516 ]
