Regulatory Barriers in Bangladesh’s Foreign Direct Investment Framework: Analysis of Legal Gap and Reform Proposals

Professor Deng Lie and Dr. Manjurul Alam
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Professor Deng Lie: Professor, School of Law, Huazhong University of Science and Technology, Wuhan
Dr. Manjurul Alam: Senior researcher, School of Law, Zhongnan University of Economic and Law, Wuhan

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 507-519

Abstract: The article analyses the regulatory barriers affecting Bangladesh’s foreign direct investment (FDI) by methodically examining the current legal environment. Notwithstanding Bangladesh’s significant achievements in attracting foreign direct investment, ongoing regulatory obstacles consistently hinder investment potential. The study employs a mixed-methods approach, combining academic legal analysis with empirical data collected through stakeholder research and comparative case studies of effective foreign direct investment (FDI) frameworks in similar countries. Our findings reveal three significant regulatory deficiencies: inadequate protection of property rights, complex bureaucratic processes for investment approval, and inconsistent dispute resolution mechanisms. The research outlines the essential legal requirements for an amendment, particularly in relation to the Foreign Private Investment Act and the Bangladesh Investment Development Authority Act. We suggest specific legislative modifications, including expedited investment approval procedures, strengthened intellectual property safeguards, and the establishment of a dedicated investment dispute resolution tribunal. These recommendations aim to harmonize Bangladesh’s FDI framework with worldwide best practices while ensuring adequate oversight from regulatory bodies. This research contributes to the academic literature and informs policy development by providing evidence-based reform ideas to enhance Bangladesh’s FDI regulatory framework.

Date: 2025
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