Pandemic disrupts APAC FDI, but prospects remain positive
We believe prospects for FDI inflows into APAC over the medium term remain strong, even though pandemic-driven supply disruptions and uncertainties over the pace of recovery may see some firms rethink their supply chains.
What you will learn from this report:
- We expect China to remain the top destination for FDI given its rapidly growing domestic market. And as supply chains continue to adjust to higher labour costs in China and trade protectionism, we anticipate SEA, notably Vietnam, to be the key beneficiary.
- The region is well established in global supply chains, and its labour dynamics and openness to trade and FDI remain very favourable.
- We rank the advanced Asian economies as some of the least attractive destinations for FDI due to relatively unfavourable labour dynamics. Plus, most have launched tighter screening since the pandemic, dampening FDI. That said, we expect these economies to remain important sources of FDI in the region.”
Tags:
Related Services

Post
Capital catalysts – Funding development when budgets are tight in Africa
In this presentation deck, we grappled with some of the Africa’s most pressing issues for 2024 and beyond. We explored Africa’s alternative funding strategies during challenging times, examined the continent’s growth hotspot, and unpacked South Africa’s political economy in the lead up to the general elections in 2024.
Find Out More
Post
APAC Key themes 2024 – A year of living cautiously
In 2024, the main influence on Asia is likely to be a global slowdown, particularly in China and the US. Moreover, governments have limited policy space to deal with these headwinds. Other negative influences, however, are set to ease further, including domestic inflation, external pressure on interest rates, and softening semiconductor prices. Overall, we expect a bumpy year as issues become more country-specific and policy responses and economic outcomes diverge.
Find Out More