UNCTAD: ASEAN's Thriving Foreign Investment Climate Amidst Global Uncertainty
- APAC Foreign Investment Brief
- Oct 14, 2024
- 1 min read
Despite global economic uncertainties, ASEAN has experienced a significant surge in FDI inflows over the past decade, averaging $220 billion annually between 2021 and 2023. The region's share of global FDI has risen to 17% by 2023, driven by deeper regional integration, an improved investment climate, and positive sentiment among investors and business associations.
The report highlights emerging investment trends, including increased financial flows into renewable energy and manufacturing, as well as significant investment growth from major economies like China, the United States, and the European Union. It underscores the role of the ASEAN Economic Community Blueprint 2025 in enhancing the investment policy environment.
Looking ahead, the report remains optimistic about ASEAN’s investment prospects beyond 2025. It emphasizes the need to further strengthen ASEAN’s investment facilitation framework, leverage intraregional investments, and attract greater investment in sustainable development sectors. Key recommendations include deeper regional cooperation, investment in skills development, and advancing public-private partnerships.
The latest ASEAN Investment Report 2024, was unveiled on 9 October at the bloc’s Business and Investment Summit in Vientiane, Lao PDR, presents a comprehensive analysis of foreign direct investment trends in the region. Themed “ASEAN Economic Community 2025 and Foreign Direct Investment,” the report is a product of a technical assistance programme supported by the UN Trade and Development (UNCTAD).
