Bangladesh’s trillion-dollar future needs more FDI

Bangladesh stands at a defining moment in its economic journey. Having grown into a $510 billion economy, the country now aims to become a $1 trillion economy by 2034. The national budget theme, Economic Democratisation and Decentralisation: Bangladesh in the Trillion-Dollar Economic March, reflects both the scale of that ambition and the need to ensure growth creates opportunities across the country. Achieving this vision will depend on three closely linked priorities: attracting more foreign direct investment (FDI), accelerating digital transformation and deepening financial inclusion.

Bangladesh’s remarkable progress has been built on manufacturing, exports, infrastructure and the resilience of its people. The next phase of growth will increasingly be driven by digital infrastructure, AI, cloud technologies and innovation. Around the world, countries that have reached higher-income status have paired physical infrastructure with strong digital ecosystems. Today, digital connectivity is as important as roads, ports and power in driving competitiveness.

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FDI plays a vital role in this transformation. Beyond capital, it brings technology, innovation, international expertise and access to global markets. These are essential for raising productivity, creating skilled jobs and supporting sustainable growth. Bangladesh’s recent investment performance offers encouraging signs. After slowing between 2022 and 2024 amid global uncertainty and foreign exchange pressures, net FDI rebounded by 39.36 percent in 2025 to $1.77 billion. The next challenge is attracting higher-value investment into sectors that will shape the future economy, including AI, cloud computing and digital services. One promising example is the proposed “Invest in Bangladesh NOW” initiative discussed between Banglalink’s parent company, VEON, and the prime minister. The initiative aims to attract $1 billion in FDI, anchored by VEON’s initial $250 million commitment. It would focus on digital banking, AI, youth skills and connectivity while using VEON’s global network to attract further investment.

Investment also brings valuable expertise. Around the world, digital financial services have transformed financial inclusion. In Kenya, M-Pesa has enabled millions to access payments, savings and credit. In India, the Unified Payments Interface has made secure, low-cost digital payments widely accessible. In Pakistan, JazzCash has expanded access to financial services and supported the shift towards a less cash-based economy. Bangladesh can build on these examples by expanding digital banking, microfinance and microinsurance. Economic democratisation also means ensuring digital opportunities reach every part of Bangladesh. A young entrepreneur in Kurigram, a farmer in Bhola or a student in Bandarban should have the same opportunities as someone in Dhaka. Expanding digital infrastructure, including next-generation technologies such as satellite-enabled direct-to-cell connectivity, can help bridge the digital divide.

Banglalink’s experience over the past two decades shows how sustained investment in connectivity can narrow that divide. As part of the VEON Group, the company continues to expand digital access while introducing services that support education, healthcare, commerce, public services, entertainment and AI-enabled solutions. Drawing on VEON’s fintech expertise, Banglalink also aims to expand digital banking, microfinance and microinsurance, helping more Bangladeshis participate in the formal economy. Together, digital connectivity and financial inclusion can boost productivity and support inclusive growth.

Bangladesh’s greatest competitive advantage remains its people. With a workforce of more than 77 million, the country has the potential to become a leading digital economy. Realising that potential will require continued investment in digital skills, AI and innovation, backed by predictable policies, transparent regulation and close collaboration between government and the private sector. Bangladesh has consistently shown its ability to exceed expectations. Reaching a trillion-dollar economy will require greater investment, world-class digital infrastructure, deeper financial inclusion, skilled workers and strong public-private partnerships. If these priorities advance together, Bangladesh can strengthen its global competitiveness while creating broader prosperity and a better quality of life for all.

The writer is chief executive officer of Banglalink, part of the VEON Group