Bangladesh secures less than 5% of South Asia’s logistics FDI: Report

Bangladesh drew $1.8 billion in greenfield foreign direct investment (FDI) in the logistics sector between 2019 and 2024—representing just 4.9% of South Asia’s total inflows—according to a joint study by the International Finance Corporation (IFC) and GlobalData. The report, released in June and posted on the Bangladesh Investment Development Authority (BIDA) website, highlights the country’s modest performance in attracting logistics-related investments despite its growing trade potential.

During the five-year period, Bangladesh recorded 10 FDI projects in logistics and warehousing, in addition to $185.6 million in investments linked to sales and administrative operations within the sector.

Among the notable projects, Abu Dhabi Ports announced plans to invest $1 billion in developing a multipurpose terminal under the Bay Terminal project at Chattogram Port, while A.P. Moller–Maersk pledged $400 million to establish a new container terminal at Laldia, Chattogram.

However, when compared regionally, Bangladesh’s share remains far smaller than that of India, which accounted for 85% of South Asia’s 258 logistics FDI projects over the same period.

The report observed that the global logistics landscape is being reshaped by geopolitical shifts, technological advances, and evolving policy frameworks, and urged Bangladesh to adopt a strategic approach to strengthen its competitiveness.

It recommended that the government prioritize logistics and infrastructure development capable of serving both international trade and the domestic market, while promoting green logistics solutions to align with sustainability-driven investment trends.

To address inefficiencies, the study emphasized fostering smart logistics systems that leverage digital technologies to reduce documentation, improve time management, and minimize waste—key to resolving the “just-in-time versus just-in-case” supply chain challenge.

Targeted investment promotion should focus on sectors with high project volumes and capital intensity, including core logistics players, e-commerce, food, and textiles, the latter identified as a segment where Bangladesh enjoys strong regional competitiveness.

Finally, the report advised the government to design an attractive incentive package to draw global logistics firms, noting that investment incentives have become a critical factor in FDI decisions. It also called for targeted outreach to key source markets and major multinational logistics companies to help Bangladesh position itself as a regional logistics hub.