The ASEAN Investment Report 2025 reaffirms that foreign direct investment (FDI) continues to be a core driver of ASEAN’s supply chain development, particularly in major industries such as semiconductors, automotive, apparel, and e-commerce/digital economy.

From 2021 to 2024, new investments in supply chain–related industries increased from US$34 billion to US$41 billion, with the number of projects doubling during this period. The semiconductor sector alone accounted for around 12% of global investment flows, with nearly all of the world’s top 30 semiconductor corporations operating production facilities in at least two ASEAN Member States. The main production hubs include Singapore, Malaysia, Viet Nam, the Philippines, and Thailand.

The automotive and electric vehicle (EV) industries also experienced rapid growth, with over 25 global manufacturers investing in ASEAN. FDI in these sectors is helping to develop complex supply chain networks and accelerate the region’s shift toward EV and battery component production.

Beyond manufacturing, FDI has also played an important role in upgrading logistics infrastructure, port facilities, special economic zones (SEZs), and digital transformation, making ASEAN’s supply chains more efficient and sustainable. Investment in the digital economy has tripled, reaching US$20 billion in 2024, while committed capital to SEZs rose by 44%, totaling US$13 billion.

To sustain this positive momentum, the report recommends that ASEAN continue to remove barriers to trade and investment, develop a high-skilled workforce, promote renewable energy, and implement environmental, social, and governance (ESG) standards in investment activities.

Through these collective efforts, ASEAN is reinforcing its position as a sustainable and inclusive global supply chain hub, contributing significantly to the realization of the ASEAN Community Vision 2045.