Developing Asia remained the world's largest destination for foreign direct investment (FDI) among developing regions in 2025. According to the World Investment Report 2026 by UN Trade and Development (UNCTAD), developing Asia received $ 644 billion (b) in FDI in 2025. This represented about 40% of global FDI and more than 70% of flows to developing economies.

At the same time, investment patterns within the region continued to shift as companies reassessed supply chains, governments competed for new industries and investors looked for growth opportunities in an increasingly uncertain global economy.

China remained one of the world’s largest FDI recipients, despite a decline in inflows from about $ 116 b to $ 105 b, while continuing to attract commitments in higher value-added activities, research and development and pharmaceutical manufacturing.

One of the most notable developments in 2025 was the rise of South-East Asia as the largest recipient subregion in developing Asia.

While inflows declined in East Asia, investment increased in South-East Asia, South Asia, West Asia and Central Asia. India played a major role in that shift, recording a 44% increase in FDI inflows and helping drive growth across South Asia.

At the country level, concentration remains high: eight of the ten largest developing-economy recipients of FDI are in Asia, together accounting for about 60% of total inflows to developing economies and more than 80% of regional inflows.

Around the world, investment is increasingly flowing into sectors linked to semiconductors, digital infrastructure, artificial intelligence, advanced manufacturing and energy-transition technologies and services. Together, these industries accounted for 44% of global greenfield investment in 2025, up from 16% five years earlier.

Many Asian economies enter this period with important advantages, including established manufacturing capacity, supplier networks, large consumer markets, growing industrial ecosystems and deep integration into regional production networks. But these advantages are uneven and not all economies can compete for the same projects.

These strengths have helped the region to benefit from changes in global investment patterns, even as competition for capital becomes more intense.