Developing Asia tops FDI inflows in 2025 as Southeast Asia leads subregions

Developing Asia attracted $644b in FDI, or 40% of global inflows.

Developing Asia remained the world's largest recipient of foreign direct investment (FDI) amongst developing regions in 2025, whilst Southeast Asia overtook East Asia as the region's largest recipient subregion.

The UN Trade and Development (UNCTAD) said in its World Investment Report 2026 that developing Asia attracted $644b in FDI during 2025, accounting for about 40% of global FDI and more than 70% of flows to developing economies.

FDI inflows to developing Asia rose 3% year on year from $623b. Developing economies received $901b in FDI, up 2% from 2024.

UNCTAD said investment increased in Southeast Asia, South Asia, West Asia, and Central Asia, whilst inflows declined in East Asia.

India recorded a 44% increase in FDI inflows, helping drive growth across South Asia.

China remained one of the world's largest FDI recipients despite a decline in inflows to about $105b from about $116b.

The report said the country continued to “attract commitments in higher value-added activities, research and development and pharmaceutical manufacturing.”

UNCTAD said FDI remained concentrated across the region, with eight of the 10 largest developing-economy recipients located in Asia.

Those economies accounted for about 60% of total FDI inflows to developing economies and more than 80% of inflows into developing Asia.

The report said the subregional shift reflected changes in global investment as companies reassessed supply chains, governments competed for new industries and investors sought growth opportunities.

It said sectors linked to semiconductors, digital infrastructure, artificial intelligence, advanced manufacturing, and energy-transition technologies and services accounted for 44% of global greenfield investment in 2025, up from 16% five years earlier.

“The next phase will depend on which economies can connect foreign investment to industrial upgrading, jobs, supplier networks, and broader regional development,” UNCTAD added.