INSIGHT
ASEAN FDI Outlook 2026
From volume to strategic investment: how foreign direct investment is reshaping ASEAN
ASEAN’s FDI is entering a new phase. This outlook examines the latest trends, key drivers and future opportunities ─ and what they mean for investors, institutions and businesses.
September 20, 2026 ∙ 12 min read
INTRODUCTION
Foreign direct investment has entered a new phase in Southeast Asia. ASEAN in no longer a destination for low-cost manufacturing seeking access to global markets. Over the past several years, the region has increasingly attracted investment associated with supply-chain diversification, electronics and semiconductors, electric vehicles, digital infrastructure, renewable energy and high-value services.
ASEAN FDI inflows reached approximately US$226 billion in 2024, an 8% increase despite an 11% decline in global FDI. Since 2021, annual inflows have remained above US$ 200 billion, substantially above the regional average of less than US$130 billion over the preceding decade.
The latest OECD review, published in September 2026, places the 2024 inflows at US$ 225 billion and estimates that ASEAN represented approximately 15% of global FDI. It also identifies a structural shift: between 2021 and 2025, roughly one-third of greenfield investment went to medium-and-high-technology manufacturing, while more than half of greenfield investment was directed towards digital-related activities.
The central issue of the next phase is therefore the transition from FDI attraction to FDI quality and ecosystem development.
ASEAN FDI at a glance
US$226 bn.
FDI inflows in 2024 (+8% vs. 2023)
15%
Share of global FDI (2024)
12x
Increase in FDI stock (2003-2024)
>50%
Greenfield investment in digital activities (2021-2025)
KEY INSIGHTS
1
FDI remains strong, despite global headvinds
ASEAN inflows reached US$226 billion in 2024, up 8% year-on-year, even as global FDI fell.
2
Investment is more diversified
The region is attracting a wider range of investors and a growing share of intra-ASEAN capital.
3
Manufacturing and digital are now central
Manufacturing FDI rose nearly 150% to US$ 44 billion in 2024, with clear shift towards higher-technology sectors and digital activities.
4
The green transition is creating new opportunities
Renewable energy accounted for ~40% of energy-related greenfield investment over the past decade.
5
Quality, not just quantity, will define the next phase
Success will depend on ecosystem capabilities, institutional predictability and the ability to connect investment to domestic value chains.
CONCLUSION
ASEAN’S FDI story is evolving. The region’s competitive advantage is no longer just cost and market access, but its ability to offer integrated ecosystems for high-value, sustainable and technology-driven investment. The next phase will be defined by how effectively ASEAN can turn capital into productive capacity and long-term economic value.
“The next phase of ASEAN FDI will not simply be about attracting capital. It will be about connecting capital to the capabilities that can turn it into productive capacity.”
Why it matters?
FDI can bring capital, technology, employment and access to global markets. Its wider development impact depends on the surrounding ecosystem: infrastructure, institutions, suppliers, skills, finance and regulation.
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REFERENCES
This insight is based on peer-reviewed academic research and institutional sources. See the full bibliography in the PDF above.
THE BIG PICTURE
More than capital. It’s about interconnections.
ASEAN’s opportunity lies in turning investment into integrated value chains, stronger industries and sustainable growth across the region.