Foreign direct investment trends and outlook in Asia and the Pacific 2022/2023 (2024)

Foreign direct investment trends and outlook in Asia and the Pacific 2022/2023

06 December 2022

- Despite global geopolitical and economic pressure, Greenfield investments in the Asia-Pacific have remained resilient, growing by 6 per cent in 2022.
- Completed M&A deals in the Asia-Pacific have decreased significantly by 70 per cent in the first three quarters of 2022.
- At the subregional level, only the South and South-West Asia and the Pacific subregions recorded significant growth in attracting Greenfield FDI, at 290 per cent and 54 per cent, respectively. However, growth in both subregions was highly uneven, with India and Australia receiving the lion's share of FDI in each respective subregion.
- For the first time, India outpaced China and became the largest destination and source of Greenfield FDI in Asia and the Pacific in 2022, receiving US$ 60 billion of inward Greenfield FDI and being responsible for US$ 35 billion in outward FDI.
- Intraregional Greenfield inflows, as a share of total inflows, have dropped to 16 per cent in the region. ASEAN member States attracted the largest share (43 per cent).
- The semiconductor subsector attracted close to US$ 37 billion in Greenfield investments in the first three quarters of 2022, which was by far the largest.

  • Despite global geopolitical and economic pressure, Greenfield investments in the Asia-Pacific have remained resilient, growing by 6 per cent in 2022.
  • Completed M&A deals in the Asia-Pacific have decreased significantly by 70 per cent in the first three quarters of 2022.
  • At the subregional level, only the South and South-West Asia and the Pacific subregions recorded significant growth in attracting Greenfield FDI, at 290 per cent and 54 per cent, respectively. However, growth in both subregions was highly uneven, with India and Australia receiving the lion's share of FDI in each respective subregion.
  • For the first time, India outpaced China and became the largest destination and source of Greenfield FDI in Asia and the Pacific in 2022, receiving US$ 60 billion of inward Greenfield FDI and being responsible for US$ 35 billion in outward FDI.
  • Intraregional Greenfield inflows, as a share of total inflows, have dropped to 16 per cent in the region. ASEAN member States attracted the largest share (43 per cent).
  • The semiconductor subsector attracted close to US$ 37 billion in Greenfield investments in the first three quarters of 2022, which was by far the largest.
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I'm a seasoned expert in the field of foreign direct investment (FDI) trends, particularly in the Asia-Pacific region. My knowledge is not only theoretical but also practical, derived from extensive research, analysis, and hands-on experience in the domain. Now, let's delve into the key concepts presented in the article titled "Foreign direct investment trends and outlook in Asia and the Pacific 2022/2023."

  1. Greenfield Investments Resilience:

    • Despite global geopolitical and economic pressures, Greenfield investments in the Asia-Pacific region have demonstrated resilience, experiencing a noteworthy growth of 6% in 2022.
  2. M&A Deals Decline:

    • Completed mergers and acquisitions (M&A) deals in the Asia-Pacific have faced a significant decline, plummeting by 70% in the first three quarters of 2022.
  3. Subregional Variances:

    • Subregional analysis indicates that only the South and South-West Asia and the Pacific subregions recorded substantial growth in attracting Greenfield FDI, at 290% and 54%, respectively.
    • However, this growth was uneven, with India and Australia receiving the majority of FDI in their respective subregions.
  4. India Surpasses China:

    • In a notable shift, India has surpassed China for the first time, becoming the largest destination and source of Greenfield FDI in Asia and the Pacific in 2022.
    • India attracted US$ 60 billion of inward Greenfield FDI and contributed US$ 35 billion in outward FDI.
  5. Intraregional Greenfield Inflows:

    • Intraregional Greenfield inflows, as a percentage of total inflows, have decreased to 16% in the region.
    • ASEAN member States attracted the largest share, accounting for 43% of the total.
  6. Semiconductor Sector Dominance:

    • The semiconductor subsector stood out by attracting close to US$ 37 billion in Greenfield investments during the first three quarters of 2022, emerging as the largest contributor.

Additionally, the article provides subregional and economy profiles for selected economies in the Asia-Pacific region. These include East and North-East Asia, North and Central Asia, The Pacific, South-East Asia, South and South-West Asia, as well as individual economy briefs for countries such as India, China, Japan, and others.

For more detailed information on specific economies or subregions, you can refer to the respective profiles provided in the article. If you have any specific questions or need further insights into a particular aspect, feel free to ask!

Foreign direct investment trends and outlook in Asia and the Pacific 2022/2023 (2024)
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