Top Industries for Investment in Bangladesh

Over the past decade, Bangladesh has emerged as one of South Asia’s most dynamic and resilient economies. What was once a largely agricultural and textile-driven landscape has now evolved into a diverse and increasingly sophisticated market, attracting attention from investors around the world.

With consistent GDP growth, a youthful population, rising consumer demand and steady improvements in infrastructure and digital connectivity, the country is positioning itself as a serious contender in the regional investment scene.

Government reforms aimed at improving ease of business and boosting foreign direct investment have also gone a long way in strengthening the country’s economic outlook. And, as the economy matures, certain industries are starting to stand out – not just for their current performance, but for their long-term potential.

From tech and manufacturing to emerging sectors aligned with global trends, the opportunities are both varied and compelling. For anyone considering where to focus their investment efforts in Bangladesh, a few sectors are clearly leading the way.

 

The State of the Bangladeshi Economy and Investment Landscape

 

As of 2025, Bangladesh’s economy continues to show impressive resilience and momentum. Despite global economic uncertainty and regional challenges, the country has maintained steady GDP growth – sitting at around 6-7% – driven by strong domestic demand, rising exports and government-backed infrastructure development, according to the World Bank. Once dominated by the ready-made garment (RMG) sector, the economy is now far more diverse, with technology, agriculture, energy, logistics and light manufacturing all gaining ground in recent years

The investment landscape has also evolved significantly. Bangladesh is increasingly seen as a “next frontier” market, particularly for investors looking to tap into a youthful, urbanising population of over 170 million. The government has stepped up its support for both foreign and local investors, introducing policy reforms, tax incentives and special economic zones aimed at reducing barriers to entry. Digitalisation of public services, including company registration and import-export processes, has improved ease of doing business, although bureaucratic delays and infrastructure bottlenecks can still be concerns.

Foreign direct investment (FDI) is gradually rising, with notable inflows from China, Japan, India, and Gulf countries, especially in energy, transport, and technology sectors. Startups are also gaining traction, particularly in fintech, e-commerce, and agri-tech, thanks to a growing digital economy and increasing mobile penetration.

However, somewhat unsurprisingly, challenges remain – currency volatility, inconsistent policy implementation and occasional political instability can complicate investment decisions. But still, the long-term fundamentals remain strong, which is a promising sign for the country’s future.

The Top 5 Industries for Investment in Bangladesh

 

Here are the top five industries in Bangladesh that are primed for investment in 2025.

Ready-Made Garments (RMG) and Textiles

 

The RMG sector remains Bangladesh’s economic backbone, accounting for over 80% of export earnings. Despite global headwinds, the industry continues to expand, driven by increased demand from Europe, the US and new markets in Asia.

Government investment in green factories and digital compliance systems is making the sector more attractive to ESG-conscious investors. With improvements in worker safety, automation and sustainable practices, the industry is evolving beyond low-cost production into higher-value apparel manufacturing. Investors can explore opportunities in value-added textiles, vertical integration and smart supply chain technologies, all of which are gaining traction across the sector.

 

Tech and Startups

 

Bangladesh’s startup ecosystem is growing rapidly, thanks to widespread mobile usage, government support and a young, tech-savvy population. Fintech, healthtech, agri-tech and logistics platforms are attracting both local and international venture capital. The ICT sector is a priority under Vision 2041, with tax breaks and export incentives for tech companies.

Startup accelerators and government-backed funds like Startup Bangladesh are also really fuelling innovation. Dhaka’s emerging role as a regional tech hub offers promising returns for early-stage investors. With digital payments, e-commerce and B2B SaaS scaling fast, this is one of the most exciting and future-forward sectors to watch in 2025.

 

Renewable Energy and Green Infrastructure

 

Energy demand in Bangladesh is rising sharply, and the government is increasingly prioritising clean alternatives to meet climate commitments and reduce reliance on imported fossil fuels. Solar, wind and waste-to-energy projects are being actively promoted through incentives and public-private partnerships.

International lenders, including the World Bank and ADB, are funding large-scale green infrastructure projects. With favourable land costs, growing electricity needs and support for grid integration, the renewable sector offers high-impact investment opportunities. As the country targets 40% of its energy from renewables by 2041, early investment in clean tech, energy storage, and smart grids could prove highly rewarding.

 

Agribusiness and Food Processing

 

Agriculture still employs a significant portion of Bangladesh’s population, and the shift from subsistence to commercial farming is opening up opportunities in agri-tech, cold chain logistics, and food processing. Rising incomes, urbanisation and export potential are boosting demand for packaged, high-quality food products.

Government support includes tax incentives, export promotion and investment in agricultural technology. Foreign and domestic investors are entering segments like fish and poultry farming, organic produce and value-added processing. With climate-smart agriculture becoming a priority, investment in irrigation, storage, and mechanisation also presents strong potential for returns and sustainable impact in rural communities.

 

Pharmaceuticals and Healthcare

 

Bangladesh’s pharmaceutical industry is one of the most mature and self-sufficient in the region, exporting to over 150 countries. The sector benefits from strong regulatory frameworks, low production costs and a skilled workforce. As healthcare demand rises – both domestically and internationally – the government is supporting the expansion of API (active pharmaceutical ingredient) production and R&D facilities.

There’s also a growing market for digital health platforms, diagnostics and private healthcare services in urban areas. With medical tourism slowly developing and public-private health initiatives increasing, this sector offers long-term, scalable investment opportunities across manufacturing, technology integration and health infrastructure development.