Overall, the Asia-Pacific (APAC) region experienced significant growth in inward Foreign Direct Investment (FDI) for 2024. This growth was primarily focused on sectors such as renewables, communications/media, and electronics, with the United States, United Kingdom, and France identified as major investors. In 2025, increasing trade barriers and geopolitical tensions are altering the landscape of APAC FDI. While protectionist measures and security-driven screening are redirecting some investments, such as semiconductors from Taiwan, towards the United States, resilient markets like India and the Philippines are attracting inflows due to their liberalization policies.
Elevated international trade barriers in 2025 are testing the foundation of economic development frameworks adopted by South Korea, Japan, Taiwan, and many other nations throughout the Asia-Pacific (APAC) region. As global Foreign Direct Investment (FDI) flows slow, economic liberalization and value-chain integration-the two pillars of China’s economic success story-are becoming more geopolitically challenging and costly. For instance, preliminary data shows that Taiwan only recorded 2 announced greenfield FDI projects in Q3 as semiconductor developers look to the US- a strategic decision to circumvent tariffs.
However, select APAC nations show perseverance: India’s economic trajectory continues to attract international attention (and investment), representing the second most popular destination for Greenfield FDI globally, according to the analyst’s Inward FDI Index. The Philippines climbed five places to become the sixth most popular developing market for inward FDI announcements in Q3, capitalizing on China + n tailwinds. Furthermore, China’s far-reaching diplomatic presence means that despite fiscal concerns domestically, outward FDI opportunities are ubiquitous.
Investment as part of China’s Belt and Road Initiative reached $57.1 billion in H1 2025; an approximate 50% YoY increase, according to the Griffith Asai Institute.
India, Indonesia, Malaysia, and the Philippines, have all introduced liberalization policies such as eased equity caps, subsidies, tax deductions, and freer licensing.
Conversely, Japan and Australia have narrowed their scope of exemptions from FDI screening, citing national security.
In terms of announced projects, APAC’s distribution of inward FDI is dramatically skewed in favor of India, boasting 1,160 (announced) inward FDI projects (between 2023 and present-date). Furthermore, 34% of incoming projects in the APAC region are in the renewable and alternative power sector, followed by electronics (15%), communications and media (19%).
Moving forward, The analyst’s FDI team expect that APAC’s strongest markets, particularly China and India, will exaggerate their transitions from inward FDI hotspots (for manufacturing, communications, etc.) to dominant outward FDI players. For instance, to-date in 2025, 77 inward FDI projects have been announced in China, while 325 outward FDI projects have been launched, according to the analyst’s FDI database.
“Hegemonism, unilateralism, and protectionism are getting more and more rampant… At this critical juncture, BRICS countries, standing at the forefront of the Global South, should… jointly defend multilateralism and the multilateral trading system, advance greater BRICS cooperation, and build a community with a shared future for humanity”
Elevated international trade barriers in 2025 are testing the foundation of economic development frameworks adopted by South Korea, Japan, Taiwan, and many other nations throughout the Asia-Pacific (APAC) region. As global Foreign Direct Investment (FDI) flows slow, economic liberalization and value-chain integration-the two pillars of China’s economic success story-are becoming more geopolitically challenging and costly. For instance, preliminary data shows that Taiwan only recorded 2 announced greenfield FDI projects in Q3 as semiconductor developers look to the US- a strategic decision to circumvent tariffs.
However, select APAC nations show perseverance: India’s economic trajectory continues to attract international attention (and investment), representing the second most popular destination for Greenfield FDI globally, according to the analyst’s Inward FDI Index. The Philippines climbed five places to become the sixth most popular developing market for inward FDI announcements in Q3, capitalizing on China + n tailwinds. Furthermore, China’s far-reaching diplomatic presence means that despite fiscal concerns domestically, outward FDI opportunities are ubiquitous.
Investment as part of China’s Belt and Road Initiative reached $57.1 billion in H1 2025; an approximate 50% YoY increase, according to the Griffith Asai Institute.
India, Indonesia, Malaysia, and the Philippines, have all introduced liberalization policies such as eased equity caps, subsidies, tax deductions, and freer licensing.
Conversely, Japan and Australia have narrowed their scope of exemptions from FDI screening, citing national security.
In terms of announced projects, APAC’s distribution of inward FDI is dramatically skewed in favor of India, boasting 1,160 (announced) inward FDI projects (between 2023 and present-date). Furthermore, 34% of incoming projects in the APAC region are in the renewable and alternative power sector, followed by electronics (15%), communications and media (19%).
Moving forward, The analyst’s FDI team expect that APAC’s strongest markets, particularly China and India, will exaggerate their transitions from inward FDI hotspots (for manufacturing, communications, etc.) to dominant outward FDI players. For instance, to-date in 2025, 77 inward FDI projects have been announced in China, while 325 outward FDI projects have been launched, according to the analyst’s FDI database.
“Hegemonism, unilateralism, and protectionism are getting more and more rampant… At this critical juncture, BRICS countries, standing at the forefront of the Global South, should… jointly defend multilateralism and the multilateral trading system, advance greater BRICS cooperation, and build a community with a shared future for humanity”
Report Scope
- This reports provides an overview of FDI trends in Asia-Pacific. The report will also provide The APAC FDI narrative.
Reasons to Buy
- This report will help you to understand the trends of FDI in Asia-Pacic.
- The report will also help in understanding the APAC FDI narrative.
- Identify the top sectors and top inward FDI hotspots in APAC.
Table of Contents
- Executive Summary
- The Global FDI Narrative
- Top Global FDI Hotspots in Q3 2025: Developed vs Developing Markets
- The APAC FDI Narrative
- Inward FDI Hotspots in APAC
- Sectoral Disparities: Unpacking the Realities of Asia-Pacific’s FDI Activity
- Top Investors
- Appendices
- Methodology
- Contact the Publisher
