Bangladesh recorded a surge in net foreign direct investment (FDI) during the July-September quarter of 2025, with reinvested earnings emerging as the dominant driver of growth—a development that reflects both investor confidence and limitations in attracting fresh capital.

According to a press release from the Bangladesh Investment Development Authority (Bida), the latest figures from Bangladesh Bank show that net FDI inflow in Q3 stood at $315.09 million, marking a staggering 202 percent year-on-year rise.

Of this total, reinvested earnings alone accounted for $211.47 million, up 190.07 percent from $72.90 million in the previous year.

In contrast, equity investment—typically seen as a more robust indicator of new investor interest—grew modestly by 31.69 percent, from $76.79 million to $101.12 million.

Intra-company loans, meanwhile, turned positive after being in the red last year, but remained marginal at $2.49 million.

The data suggests that while existing foreign investors are showing increased confidence by reinvesting their profits, the country continues to face challenges in drawing substantial new equity flows from overseas.

“Bida’s core work is to improve the business climate and develop a credible pipeline of investment,” said Ashik Chowdhury, executive chairman of Bida.

“It is encouraging to see this pipeline begin to convert into realised inflows. The benchmark remains low, but these back-to-back quarterly gains highlight that investors are placing their trust in Bangladesh.”

Cumulatively, net FDI for January-September 2025 stood at $1.41 billion—an 80 percent rise compared to $780 million in the same period last year.

The growth builds on a strong first half, when net FDI reached $303.27 million in Q2, reflecting an 11.4 percent year-on-year increase.

While the investment pipeline appears strong—surpassing $1.5 billion according to Bida—analysts caution that political uncertainty in the run-up to national elections could slow momentum in Q4.

A post-election rebound is widely expected, but sustaining the trend will require deeper structural reforms and more targeted investor outreach to attract fresh capital inflows beyond reinvestment.