Netherlands has become Bangladesh鈥檚 largest foreign investor in the financial year 2024-25, contributing $453.65 million in net foreign direct investment (FDI), which accounts for 26.9 per cent of total inflows, according to Bangladesh Bank鈥檚 latest Foreign Exchange and FDI report.
The Dutch investment surged sharply from just $23.2 million in FY24 and $72.11 million in FY23.
The surge in Dutch investment displaced the United Kingdom, which contributed $300.32 million, to second place, followed by China ($274.17 million), South Korea ($215.97 million), Singapore ($160 million), and India ($105 million).
In terms of cumulative FDI stock, the Netherlands also climbed to third position with $1.77 billion, up from $1.27 billion the previous year, after the UK ($3.18 billion) and Singapore ($2.07 billion).
BB data showed that the Netherlands鈥� investment was heavily concentrated in the food and energy sectors.
Dutch investors injected $364.97 million in the food industry and $66.77 million in power generation. Other sectors that received smaller but notable amounts include textiles ($9.57 million), trading ($7.55 million), and transport and communication ($3.3 million).
The investment pattern highlights the growing interest of Dutch companies in Bangladesh鈥檚 agribusiness and renewable energy markets, areas that align with the聽 Netherlands鈥� global expertise.
Out of its total $1,768.57 million net investment in Bangladesh, majority of $805 million in food sector, $388 million in power sector and $121 million in trading.
The central bank report showed that overall FDI inflows rose by 19.13 per cent in FY25 to $1.69 billion, up from $1.42 billion in FY24.
However, the rise was driven mainly by intra-company loans, which jumped by 180.66 per cent, and reinvested earnings, which rose 23.3 per cent.
In contrast, fresh equity capital fell 16.9 per cent to $554.77 million 鈥� a signal of investor caution toward new projects.
Experts interpreted this as a sign of investor caution toward new long-term projects, with existing multinational companies preferring to reinvest profits and use internal loans rather than bring in fresh capital amid global and domestic uncertainties.
Most investments came into non-Export Processing Zone (non-EPZ) areas, which absorbed 80 per cent ($1.35 billion) of total inflows, while EPZs saw a 23.6 per cent drop in their share.
It suggests that investors prefer more flexible domestic environments over tightly regulated industrial zones, possibly reflecting inefficiencies or delays in EPZ operations.
By sector, textiles and wearing apparel continued to lead with $403.69 million, followed by food products ($379.36 million), banking ($319.58 million), and power generation ($292.24 million).
Telecommunications suffered a steep fall, with inflows dropping to $34.04 million from over $103 million a year earlier.
