5 Obstacles Holding Back American Investment in Bangladesh

The United States has identified five key barriers that continue to impede foreign investment in Bangladesh, despite gradual progress in improving the country’s investment climate over the past decade.

The findings were outlined in the US State Department’s 2025 Global Investment Climate Report, released on 26 September.

According to the report, Bangladesh has made steady efforts to ease investment constraints, such as improving access to electricity.

However, foreign investors still face significant challenges, including inadequate infrastructure, limited access to financing, bureaucratic delays, heavy tax burdens on foreign companies, and persistent corruption.

The report also highlighted the country’s turbulent political backdrop. It noted that on 5 August 2024, the Awami League government of former Prime Minister Sheikh Hasina was ousted following weeks of violent crackdowns on student protests.

Since then, Nobel laureate Muhammad Yunus has been leading an interim administration as chief adviser, with a mandate to initiate governance reforms.

Despite this transition, the report observed that much of Bangladesh’s day-to-day regulatory environment remains largely unchanged.