The region remains central to the evolving investment landscape, attracting $644 billion in foreign investment in 2025 - more than 70% of total flows to the developing world.

Developing Asia remained the world's largest destination for foreign direct investment (FDI) among developing regions in 2025. But increasingly, the region's story isn't just about how much it attracts, it's about where within Asia that capital is landing.

According to the World Investment Report 2026 by UN Trade and Development (UNCTAD), developing Asia received $644 billion in FDI in 2025, about 40% of global FDI and more than 70% of flows to developing economies worldwide - a dominant share of a pool that, as a whole, grew just 2% in 2025 against 11% growth in developed economies.

China remained one of the world's largest recipients despite inflows easing from about $116 billion to $105 billion, continuing to draw commitments in higher value-added activities, research and development and pharmaceutical manufacturing.

South-East Asia gains ground

In 2025, South-East Asia became the largest FDI recipient subregion in Asia. Elsewhere, inflows declined in East Asia but rose in South Asia, West Asia and Central Asia.

India recorded a 44% increase in inflows, helping drive that growth across South Asia.

Concentration remains high even so: eight of the ten largest developing-economy FDI recipients are in Asia, together taking in about 60% of all developing-economy inflows and more than 80% of the region's own total.

The shift lines up with a wider global pattern. Sectors linked to semiconductors, digital infrastructure, AI, advanced manufacturing and energy-transition technologies accounted for 44% of global greenfield investment in 2025, up from 16% five years earlier.

Many Asian economies enter this period with real advantages: established manufacturing capacity, supplier networks, large consumer markets and deep integration into regional production.

But those advantages are uneven, and the report is clear the priority now isn't more incentives, but investment facilitation, stronger supplier ecosystems and regional integration that lets smaller economies connect to larger production networks.

World Investment Forum 2026

Looking ahead, the World Investment Forum 2026 2026 will take place in Doha, Qatar, from 25 to 27 October under the theme "Investing in the Future".

The forum’s Investment Promotion and Special Economic Zones track, built around partnerships for "the industries of tomorrow, from digital to energy transitions," speaks directly to the competitive repositioning now underway across Asia.

The forum also features an “Investing in AI track”, focusing on strategic investments in the digital economy and an Entrepreneurship and SMEs track session on building resilient, future-ready business models.

Explore the programme and register to attend on the forum’s official website.