Netherlands emerges as top foreign investor in Bangladesh in 2025

The Netherlands emerged as the leading source of net foreign direct investment (FDI) in Bangladesh in 2025, contributing $544.61 million, or 30.76 percent of total inflows, according to a Bangladesh Bank report.

The country in northwestern Europe invested the highest amount—$405.46 million—in the food products category and more than $72 million in the power sector.

Meanwhile, China, the second-largest investor in Bangladesh in 2025, directed most of its investment—$215 million out of $321 million—into the power sector.

The central bank's Foreign Direct Investment and External Debt report showed that the top FDI contributing countries, including China, Singapore, South Korea and the United Kingdom, accounted for most of the total net FDI inflows, which rebounded to $1.77 billion in 2025 from $1.27 billion in 2024.

"Due to political instability, the inflow of FDI slowed during the middle two quarters of 2024," BB said, noting that inflows had declined over the previous three years.

However, the central bank said overall net inflows grew by $500.02 million, or 39.36 percent, in 2025, driven by a $330.31 million rise in net intra-company loans and a $159.71 million increase in net reinvested earnings.

Net FDI is the total amount of foreign capital entering a country minus any capital repatriation, loan repayments, or disinvestment by foreign investors during the same period.

China followed the Netherlands as the second-largest contributor during the period, bringing in $321.15 million, or 18.13 percent. Singapore ranked third, providing $192.43 million, or 10.86 percent of the total inflows.

South Korea and the United Kingdom registered $171.70 million, or 9.69 percent, and $169.41 million, or 9.57 percent, respectively.

Hong Kong accounted for $122.76 million, or 6.93 percent; India, $88.10 million, or 4.98 percent; Sri Lanka, $67.64 million, or 3.82 percent; Malaysia, $56.24 million, or 3.18 percent; and the United Arab Emirates (UAE), $35.09 million, or 1.98 percent.

Among the sectors, power attracted the highest investment at $448.18 million. The top 10 sectors accounted for 99.12 percent of total net inflows.

Both domestic and foreign investment are equally important, the central bank noted in the report.

BB added that domestic investment can lead to the creation of savings, consumption, and employment, while foreign investment can help narrow the savings gap.