ASEAN Members Recipients of 10% FDI post 2018

In accordance with France's central bank, members of the Association of Southeast Asian Nations (ASEAN) have garnered more than 10% of worldwide direct investment flows since 2018. They have benefited greatly from the internationalisation of value chains as the global economy's centre of gravity shifts to the Asia-Pacific region, according to the report.

The United States remains the region's top investor, accounting for 19% of the stock of foreign direct investment (FDI) in ASEAN countries, compared to China's 3% (8% if Hong Kong is included), according to the central bank.

ASEAN countries must work together to preserve an investment-friendly climate for foreign investors in order to continue attracting FDI and increasing trade integration. However, these countries differ significantly in terms of their political, institutional, and regulatory systems, according to the report.

Internal political risk reduction is also required for more successful integration. Furthermore, while it is conceivable to relax FDI limits, governments must work together to improve environmental, social, and corporate governance standards, it stated.

The surge in socially responsible investment is another critical problem in which FDI may help, particularly in terms of greening the economy and supporting the climate transition. As a result, data do not yet provide any visible evidence of such a surge.

FDI flows include both greenfield investments and mergers and acquisitions.