Developing Asia drew about 40% of global foreign direct investment (FDI) in 2025, more than any other developing region, according to United Nations Conference on Trade and Development (UNCTAD).
In its World Investment Report 2026, UNCTAD put the region’s inflows at $644bn, which was more than 70% of flows to developing economies.
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Global FDI rose 6% to $1.6tn, while inflows to developing economies increased 2%.
South-East Asia became the largest recipient subregion.
Inflows declined in East Asia and rose in South Asia, West Asia and Central Asia.
India’s inflows climbed 44% to $39bn, whereas China’s eased from about $116bn to $105bn.
Asia is home to eight of the ten largest recipients among developing economies.
Together, these eight accounted for about 60% of all inflows to developing economies and over 80% of the region’s total.
Announced greenfield investment in five strategic sectors grew from $109bn in 2020 to $576bn in 2025, raising their share of global greenfield investment from 16% to 44%.
The sectors are artificial intelligence (AI) infrastructure, advanced and sensitive technologies, critical minerals, energy-transition technologies and services, and semiconductors.
AI infrastructure drew $341bn in 2025, while semiconductors posted the fastest compound annual growth rate, at 54% between 2020 and 2025.
Announced greenfield manufacturing investment outside these sectors fell 17% between 2015–2019 and 2021–2025.
Manufacturing investment in low-income economies dropped by 70%.
The report said Asian economies’ priority lies in investment facilitation, stronger supplier ecosystems and regional integration instead of additional incentives.
UNCTAD said the recovery remains fragile, with growth concentrated in a few economies and in capital- and technology-intensive sectors.
“Most developing countries can’t match the subsidy programmes of major economies. They need realistic entry points, stronger foundations and regional cooperation to compete and increase investment’s development impact,” the agency said.
UNCTAD acting secretary-general Pedro Manuel Moreno said: “The policy choices made today will determine whether foreign direct investment becomes an engine of shared development or entrenches divergence.”
The World Investment Forum 2026 will be held in Doha, Qatar, from 25 to 27 October under the theme “Investing in the Future”.
