The number of greenfield foreign direct investment (FDI) projects opened in the Asia-Pacific (APAC) region grew by 23% in 2024, totalling 3,644 projects, according to a new report. However, preliminary data indicates a 9% decline in project numbers in 2025.
According to GlobalData's FDI Trends in APAC (2025) report, "elevated international trade barriers" are challenging the economic development strategies of major players in the region, such as South Korea and Taiwan. The latter only recorded two greenfield projects in the third quarter of the year, as semiconductor developers looked to the US to circumvent tariffs.
India remains APAC's top FDI destination
India remained the region's top FDI destination with 1,160 announced projects from 2023 to 2025, year to date. In 2024, the country's FDI intake saw increased gross inflows, driven by strong economic growth, policy reforms and strategic diplomatic relations. The biggest projects in the region were in the renewable energy, software and electronics sectors.
Following India, China was the second most popular FDI destination in the region. While the country had a strong year-on-year (YoY) performance in 2024, it lagged behind India in terms of project volume. Announced inward FDI projects totalled 374 (from 2023 to 2025), reflecting its continued attractiveness as a destination for foreign investment despite recent economic challenges.
Other notable nations included Vietnam (360 projects), Australia (323 projects) and Malaysia (257 projects), all of which demonstrated significant FDI activity.
US and Western Europe are key source markets for APAC FDI
The US and Western European countries were the dominant source markets for FDI into the APAC region from 2023 to 2025. US-based companies created more than 1,000 FDI projects in the region during this period. The UK, France and Germany were the next most significant source markets, creating 331, 176 and 168 projects, respectively.
In terms of intracontinental FDI, China, Japan and South Korea were the top contributors. All three countries exhibited an increase in their investment levels compared to previous years.
Looking ahead, GlobalData's FDI team expects the regions' two major players, China and India, to continue transitioning from being inward FDI hot spots to dominant outward FDI players.
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