Foreign direct investment trends and outlook in Asia and the Pacific 2025/2026
While capital investment pledges have continued to decrease in Asia-Pacific, project announcement numbers have not decreased. In fact, since 2015, the January to September period of 2025 stands second only to 2018 where 5147 Greenfield FDI projects had been announced to target Asia-Pacific. With 4637 recorded in the first three quarters of 2025, the year may well be on track to claiming the top spot in terms of project numbers.
? India remained the top destination for Greenfield FDI announcements, with investment pledges totaling US$ 50 billion in the first three quarters of 2025. Australia and the Republic of Korea completed the top three destination markets, with pledges of US$ 30 billion and US$ 25 billion, respectively.
? South-East Asia remained the leading destination for Greenfield FDI in Asia-Pacific, attracting the largest share at US$ 74.4 billion, or 29 per cent of the region’s inflows, despite a 17 per cent decline from 2024. However, North and Central Asia stood out as the only subregion to record growth in Greenfield FDI, surging 11 per cent to US$ 29.8 billion.
? Investment into the services sectors continued to dominate, attracting for the first time over 60 per cent of Greenfield FDI project announcements in 2025, led by communications, renewable energy, and real estate. In manufacturing, metals recorded the strongest rebound, accounting for a 76 per cent increase from last year, and driven by demand for renewable power and advanced technologies.
? Motives for Greenfield FDI announcements targeting Asia-Pacific are increasingly diversified, with most projects citing aspects that are testimony to ecosystem development and overall economic upgrading. During the 2020-24 period, proximity to markets or customers emerged as the most significant investment determinant (52 per cent).
? In 2024, sales, marketing and support was the top business activity Greenfield investors announced to launch in Asia-Pacific.
UNESCAP
2026.02.10