The Association of Southeast Asian Nations (ASEAN) attracted US$243.9 billion in foreign direct investment during 2025, marking a 9.7 percent increase from US$222.3 billion in 2024, according to the UNCTAD World Investment Report 2026. The growth outpaced the wider developing economies sector, which grew by 2.1 percent, and global FDI growth of 6.0 percent, reinforcing the trading bloc’s standing as a primary destination for global capital.
ASEAN FDI Inflows and Regional Performance in 2025
According to UNCTAD data compiled by ASEAN, the region’s total FDI inflows captured 15.0 percent of global FDI flows in 2025, up from 14.5 percent the previous year. ASEAN’s share of FDI flows to developing economies rose from 25.2 percent in 2024 to 27.1 percent in 2025. Singapore remained the dominant recipient in the bloc, drawing US$150.9 billion compared to US$136.2 billion in 2024. Indonesia secured US$21.4 billion, while Viet Nam recorded US$20.4 billion in inflows.
Several member states posted notable percentage gains across the year. Malaysia increased its FDI intake from US$10.2 billion in 2024 to US$15.4 billion in 2025, representing a 50.8 percent jump. Thailand experienced strong growth as foreign direct investment climbed from US$14.7 billion to US$19.1 billion, a 30.3 percent increase, according to official figures.
Thailand Investment Trends and Government Response
Thailand’s Board of Investment (BOI) highlighted the country’s performance alongside broader regional strategies. BOI Secretary-General Narit Therdsteerasukdi stated that Thailand and ASEAN need to accelerate the development of personnel in science, technology, advanced digital fields, and engineering to support emerging industries. Narit noted that initiatives like Skill Bridge and Business Transformation aim to match workforce capabilities with industry needs and help local businesses adopt new technologies.
To retain and attract high-quality investment, the Thai government promoted its Thailand FastPass initiative, which seeks to make approvals and licensing procedures across government agencies 20 to 50 percent faster. Narit emphasized that international participants agree with the Organisation for Economic Co-operation and Development (OECD) that competition for capital must rely on streamlined approvals, clear regulations, robust infrastructure, and skilled personnel rather than tax incentives alone.
Regional Supply Chains and the RIPAP Framework
To foster collective growth, ASEAN member states are advancing the Regional Investment Promotion Action Plan 2025–2030 (RIPAP), developed alongside the United Nations Economic and Social Commission for Asia and the Pacific. The plan positions ASEAN as an integrated investment destination by linking the complementary strengths of individual member countries.
Narit explained that RIPAP encourages investment across complete supply chains, spanning upstream, midstream, and downstream activities. Regional cooperation helps ASEAN connect each country’s specific manufacturing and resource advantages to boost global competitiveness and distribute economic benefits across all member states.
Sectoral Focus and Technology-Driven Inflows
Although announced greenfield investment across the bloc moderated by 10.1 percent to US$105.6 billion in 2025, ASEAN continued to capture high-value projects in semiconductors, electronics, communications, renewable energy, and digital infrastructure. Singapore maintained its status as a primary regional headquarters and financial hub, while Malaysia and Thailand secured major projects in electronics and communications. Indonesia and Viet Nam remained key markets for critical minerals, electric-vehicle value chains, and advanced manufacturing operations.
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