Archive · 29 Jun 2025
South-East Asia Defies Global FDI Trends Amidst Decline
Imagine money moving between countries, called foreign direct investment (FDI).
Overall, this money flow went down in 2024.
However, countries in South-East Asia saw their share of FDI grow.
This is because companies are changing where they make things due to trade issues between the US and China.
The digital sector is also growing, and South-East Asia is attracting investment in this area.
China used to invest a lot in other countries, but now it's investing less.
Global foreign direct investment (FDI) fell 11% in 2024, marking its second consecutive decline.
South-East Asia was the only sub-region to grow in FDI in 2024.
The US-China economic rivalry is pushing companies to seek alternative manufacturing locations.
Digital is the fastest-growing FDI segment, with South-East Asia being a top draw.
China has reversed its FDI trend, recording negative net figures since 2022.
- Who
- Investors, multinational companies, and countries.
- What
- Global FDI declined in 2024, but South-East Asia saw growth.
- When
- 2024
- Where
- Globally, with a focus on South-East Asia, China, and the US.
- Why
- Due to factors like US-China economic rivalry, tariff wars, and the digital economy's growth.
Countries Benefitting from FDI
Countries Experiencing Decreased FDI
FDI Recipient Countries
Countries Benefitting from FDI
China benefits from FDI inflows.
Countries Experiencing Decreased FDI
US benefits from FDI inflows.
- FDI Decline
- 11% in 2024
- Largest FDI Recipient in Asia
- Asia (40% share)
- South-East Asia Growth
- Only sub-region to grow in 2024
- Digital FDI Growth
- Increased from 20% (2020) to 28% (2024)
- China's FDI
- Negative net FDI since Q3 2022