Amid volatility, the Association of Southeast Asian Nations (ASEAN) saw foreign direct investments (FDI) increase by 10% in 2024 to log a new record, according to the latest “World Investment Report” released by the United Nations Trade and Development (UNCTAD).
The report, published in June 2025, said FDI inflows to the ASEAN region grew to $225 billion last year from $205 billion in 2023, a new record for the region and the second highest level on record.
The foreign capital expansion was powered by growth in four members of the ASEAN-5—Indonesia, Malaysia, Singapore, and Thailand—and the fast-growing economy of Vietnam.
The Philippines, the fifth member of ASEAN-5, registered net FDI inflows for 2024 of $8.930 billion, up by just 0.1% from $8.925 billion the preceding year, according to Bangko Sentral ng Pilipinas (BSP) data. This broke a two-year streak of annual declines but narrowly missed the BSP’s $9-billion target for the year.
Developing Asia as a whole registered a 3% decline in foreign investments to $605 billion last year, down from $622 billion in 2023.
Despite the dip in value, the region remains the world’s leading destination for inward foreign investment, although trends varied across economies and sectors.
In 2024, developing Asia received 40% of the world’s total FDI and 70% of inflows to developing economies.
A big drag in FDI flows was China, where foreign investments dropped by 29% last year, the country’s second year of decline. FDI flows fell by 2% in India despite a significant increase in announced greenfield projects. Flows to West Asia remained at a high level, mainly because of strong inflows in the United Arab Emirates.
The report showed that foreign investment across the globe remains volatile, fragmented and highly concentrated, with many countries—especially in the Global South—at risk of being left behind.
While developing Asia continues to attract a large share of global FDI, the region’s mixed performance reflected broader global patterns, including declining infrastructure investment, growing digital flows, and rising policy uncertainty.
Developing Asia is home to nearly a third of global greenfield projects by number and over a quarter by value. This type of investment indicates a company is setting up new operations overseas.
In 2024, the number of greenfield projects rose 5% across the region, but total value fell by 23% to $363 billion.
Growth in sectors related to the digital economy and metal production was offset by declines in electricity, gas supply and petroleum processing, which dropped over $70 billion in combined value.
International project finance (IPF), which is crucial to funding infrastructure and public services, fell sharply across developing Asia.
The number of deals in the region was down 27% in 2024, broadly in line with the global average, but the total value dropped by a steeper 43%.
Worldwide, FDI fell by 11% to $1.5 trillion, marking the second consecutive year of decline and confirming a deepening slowdown in productive capital flows.
“The investment landscape in 2024 was shaped by geopolitical tensions, trade fragmentation and intensifying industrial policy competition. These dynamics, combined with elevated financial risk and uncertainty, are redrawing global investment maps and eroding long-term investor confidence,” said the paper.
The decline was largely driven by a 22% drop in FDI to developed economies, including a 58% plunge in Europe. North America bucked the trend with a 23% increase, led by the United States.
