The Evolving Role of Southeast Asia in Global FDI Flows
This paper traces the evolution of FDI in ASEAN and discusses future prospects for the region as a host - and increasingly home - to FDI.
Southeast Asia has long been a focal point for FDI by OECD-based firms. In the 1990s Southeast Asia was collectively among the world's largest recipients of FDI. Attention shifted away from the region following the regional economic collapse of 1997-1998 and the slow recovery that ensued. Nevertheless, policy reforms implemented at the national level after the Asian crisis have made many ASEAN states much more resilient against shocks. Compared to the trends in the 1980s and 1990s, recent FDI flows are increasingly more diversified in terms of host and source countries. This study also looks at the emerging tendency of Southeast Asian countries to become sources of capital, initially on a regional basis but ultimately to the rest of the world.
Available in:
Regions and themes
ISBN / ISSN
Share
Download the full analysis
This page contains only a summary of our work. If you would like to have access to all the information from our research on the subject, you can download the full version in PDF format.
The Evolving Role of Southeast Asia in Global FDI Flows
Author(s)
Related centers and programs
Discover our other research centers and programs
Center for Asian Studies
Asia is a nerve center for multiple global economic, political and security challenges. The Center for Asian Studies provides documented expertise and a platform for discussion on Asian issues to accompany decision makers and explain and contextualize developments in the region for the sake of a larger public dialogue.
The Center's research is organized along two major axes: relations between Asia's major powers and the rest of the world; and internal economic and social dynamics of Asian countries. The Center's research focuses primarily on China, Japan, India, Taiwan and the Indo-Pacific, but also covers Southeast Asia, the Korean peninsula and the Pacific Islands.
The Centre for Asian Studies maintains close institutional links with counterpart research institutes in Europe and Asia, and its researchers regularly carry out fieldwork in the region.
The Center organizes closed-door roundtables, expert-level seminars and a number of public events, including an Annual Conference, that welcome experts from Asia, Europe and the United States. The work of Center’s researchers, as well as that of their partners, is regularly published in the Center’s electronic journal Asie.Visions.
Find out more
Discover all our analyses
Crisis in the Strait of Hormuz. A Stress Test for Taiwan with Global Implications
The large-scale military operation carried out by the United States (US) and Israel against Iran triggered an Iranian retaliation that resulted in the partial destruction of natural gas liquefaction infrastructure and severe disruption of maritime traffic in the Strait of Hormuz. The economies of East Asia—South Korea, Japan, and Taiwan in particular—are highly exposed to this crisis due to their reliance on liquefied natural gas (LNG) imports for electricity generation.
Emmanuel Macron in Japan and South Korea: A Historic Opportunity for Euro-Asian Rapprochement
President Emmanuel Macron is touring Japan and South Korea at a time when the interests of these three countries have never been more aligned, and more broadly between Europe and East Asian democracies.
Afghanistan-Pakistan: The Overlooked War at the Margins of the Middle East Conflict
Pakistan has historically maintained the closest ties to the Taliban movement and initially viewed its return to power in Afghanistan in the summer of 2021 with considerable optimism. The bilateral relationship has since deteriorated, and the two neighbors have been caught in a cycle of escalation since last fall. In October 2025, Pakistan launched its first airstrikes on Kabul. For three weeks in February–March 2026, Afghanistan intensified ground assaults on the Pakistani side of the border as well as drone attacks on Islamabad and Rawalpindi. Pakistan, for its part, has intensified airstrikes on Afghan border areas, as well as on Kabul and Kandahar. Given the dynamics at play at the bilateral and regional levels, the prospects for a sustained return to stability appear limited.
European Union-India: Lasting Rapprochement or Partnership of Convenience?
The partnership between the European Union (EU) and India has long been limited to economic exchanges. Its political dimension has gradually developed, culminating in its elevation to the status of a “strategic partnership” in 2004. However, the failure of negotiations for a free-trade agreement in 2013 slowed this momentum. Since the early 2020s, in an uncertain geopolitical context, bilateral rapprochement has gained new momentum.