ASEAN Investment Report 2018: Foreign Direct Investment and the Digital Economy in ASEAN

ASEAN Investment Report 2018: Foreign Direct Investment and the Digital Economy in ASEAN

On its 50^th founding anniversary in 2017, ASEAN has shown that it remains an investment destination of choice. FDI flows in the region reached an all-time high of $137 billion, up by 11.38% from 2016.  The more robust inflows also increased ASEAN’s share of global FDI to developing economies. Wholesale and retail trade emerged as the largest industry recipient, overtaking finance and manufacturing sectors, which are traditionally the major FDI recipients. There is also growing interest in health care, research and development activities and e-commerce, including fintech.

The ASEAN Investment Report 2018 examined ASEAN’s rapidly growing digital economy backed by fast expanding digital networks. Internet transactions, estimated to be worth $50 billion in 2017, may potentially reach $200 billion by 2025.  The digital revolution is disrupting and transforming industries and businesses as well as the way goods and services are delivered. Establishing enabling policy and regulatory environments remains challenging but the digital economy has also generated opportunities to accelerate development by increasing business efficiency and productivity, widening access to existing or new markets, and facilitating participation in GVCs.

This latest AIR offering features the growing Australia FDI in the region as a key ASEAN partner.

The ASEAN Investment Report is prepared under a technical cooperation arrangement between the ASEAN Secretariat and the United Nations Conference on Trade and Development (UNCTAD), with inputs from members of the ASEAN Coordinating Committee on Investment (CCI) and supported by the ASEAN-Australia Development Cooperation Program Phase II (AADCP II).

The ASEAN Investment Report 2018 can be downloaded here