Foreign Direct Investment in Southeast Asia, 2023

The United Nations Conference on Trade and Development (UNCTAD) has released the World Investment Report 2024, detailing global Foreign Direct Investment (FDI) inflows for 2023. The report highlights significant developments in Southeast Asia, with Singapore emerging as the leading destination for FDI in the region.

Singapore received the highest FDI value in Southeast Asia, attracting $156.97 million in 2023. This substantial inflow underscores Singapore's position as a key hub for international business and investment, driven by its robust economic policies, strategic location, and conducive business environment.

Following Singapore, Indonesia secured the second-highest FDI in the region with $21.63 million. Indonesia's diverse economy and ongoing reforms to improve the investment climate have contributed to its attractiveness to foreign investors.

Vietnam also showed strong performance, attracting $18.50 million in FDI. Vietnam's growing manufacturing sector, favorable trade agreements, and economic reforms have made it an increasingly popular destination for foreign investment.

In contrast, Brunei Darussalam recorded negative FDI in 2023, with a total of -$51 million. This decline reflects challenges in attracting foreign investment, which may be due to various economic or regulatory factors.

The World Investment Report 2024 by UNCTAD highlights the dynamic nature of FDI inflows in Southeast Asia, showcasing the region's varying levels of success in attracting foreign investment. Singapore's leading position emphasizes its role as a global investment powerhouse, while Indonesia and Vietnam continue to build their profiles as attractive destinations for international investors.