ASEAN countries are poised to sustain the momentum with their favorable investment climate, continued regional integration and stable GDP growth, a joint report prepared under a technical assistance programme supported by UN Trade and Development (UNCTAD) shows. ASEAN – the Association of Southeast Asian Nations – represents more than 650 million people across a combined market size of $3.8 trillion. The bloc currently comprises 10 member countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
Surge in foreign investments
ASEAN has seen a significant surge in FDI inflows over the past decade. Annual inflows averaged $170 billion since 2016, nearly double the figure of $92 billion recorded between 2006 and 2015. Between 2021 and 2023, foreign investments averaged an impressive $220 billion per year. By 2023, ASEAN's share of global FDI soared to 17%, a leap from an average of 6% between 2006 and 2015. This rapid influx has driven FDI stock in the region to $3.9 trillion by 2023, up from $1.7 trillion in 2015.
Emerging investment trends
The report highlights emerging trends, such as increasing financial flows into renewable energy, manufacturing, and strong investment growth from major economies such as China, the United States and the European Union. Additionally, increasing production networks and supply chain activities among firms also help strengthen the industrial ecosystem, which in turn boosts FDI.
Policy-driven success
The report attributes ASEAN’s strong performance to deeper regional integration, an improved investment climate, expanding opportunities and more positive sentiment among investors and business associations. The ASEAN Economic Community Blueprint 2025 also plays a pivotal role in improving the investment policy environment across the region. Besides, numerous national investment policy measures and multilateral partnerships were adopted to promote and facilitate FDI.
