GENEVA / RankWire.AI / – Developing Asia attracted $644 billion in foreign direct investment in 2025, up from $623 billion a year earlier, United Nations Trade and Development said in its World Investment Report 2026. The gain kept the region as the largest FDI recipient among developing regions. The increase came as global FDI rose 6 percent to $1.6 trillion. Developing economies recorded a smaller 2 percent rise.
Digital infrastructure and manufacturing shape Asia’s FDI landscape.
The regional total showed sharp differences within Asia. South-East Asia drew $244 billion, up from $222 billion in 2024, and became the largest recipient subregion in developing Asia. East Asia fell to $238 billion from $270 billion. West Asia increased to $111 billion from $92 billion. South Asia rose to $46 billion from $34 billion, while Central Asia reached $5 billion.
Eight of the top 10 developing-economy FDI recipients were in developing Asia in 2025. Together, they accounted for about 60 percent of inflows to developing economies. They also drew more than 80 percent of the region’s total. The figures showed the scale of investment concentration across major Asian markets, even as regional flows rose only 3 percent from 2024.
South-East Asia takes lead
China remained one of the world’s largest FDI recipients, although inflows declined to about $105 billion from about $116 billion. Hong Kong accounted for 18 percent of regional inflows. The East Asia decline came alongside continuing investment in higher-value activities. The report cited research, development and pharmaceutical manufacturing among areas that still drew major commitments.
South-East Asia’s rise reflected gains across several major host economies. The subregion’s $244 billion total put it ahead of East Asia for 2025. Investment also remained concentrated in communications, semiconductors, digital infrastructure and energy transition sectors. Manufacturing continued to play a central role, especially in electronics, automobiles and machinery.
Digital projects shape flows
Digital infrastructure and services expanded across developing Asia in 2025. Alphabet announced a $14.5 billion data centre project in India, the largest greenfield project listed for the region. East Hope announced a $12 billion metals project in Kazakhstan. Rana Group announced a $10 billion automotive project in the United Arab Emirates. Micron Technology announced a $7 billion semiconductor project in Singapore.
Developing Asia also remained a major source of global investment. The region accounted for more than one third of global FDI outflows in 2025. Four of the world’s top 10 FDI home economies were in Asia, including China, Hong Kong, Singapore and Japan. Intraregional investment continued to support production networks across manufacturing, infrastructure and services.