3.4. Common challenges for foreign investors

Foreign investors in Bangladesh face several challenges despite the country’s investment potential. Regulatory hurdles and bureaucratic inefficiencies can slow business registration and approvals. Foreign exchange controls make profit repatriation complex, affecting investor confidence. Infrastructure gaps, including inconsistent power supply and inadequate logistics, increase operational costs. Policy uncertainty and changes in regulations create unpredictability for long-term investments. Corruption and governance issues add to business risks. Land acquisition difficulties and disputes further complicate investments. Additionally, political instability and labor unrest pose challenges. Addressing these issues through reforms and improved governance is essential to restoring investor confidence and attracting sustainable FDI.