A free and open regime is essential in enhancing ASEAN’s competitiveness in attracting foreign direct investment (FDI) as well as intra-ASEAN investment. Global FDI flows into ASEAN as a share of global FDI have been on the decline due to increasing competition from other countries and regions. However, intra-ASEAN investment has been increasing and ASEAN wishes to re-examine its investment strategy to identify mechanisms to enhance such flows within the region. This study will analyse the nature of current FDI flows, identify factors influencing investment decisions and impediments to FDI flows, and assess current investment policies and programs in ASEAN.
This project will enhance the knowledge and understanding of Investment Agencies (IAs) in ASEAN Member States of investment trends and influencing factors and equip them with tools to reformulate investment policies and programs. Recommendations proposed from this study will lead to possible follow-on AADCP II projects in the investment sector.