Foreign Direct Investment into ASEAN for the Period 2010-2016

Abstract

Despite the slow recovery of the world and regional economies, the total FDI inflows to ASEAN are still growing. Thus, the expansion of the free trade both inside and outside the area have contributed to the growth of FDI and the developmental benefits of linking and increasing the value of foreign investment to regional countries in economic sectors, creating jobs and contributing to economic development. This is an important opportunity for the Association of Southeast Asian Nations to take advantage of the available resources to promote foreign direct investment. However, the difference in socio-economic status, competitiveness among member countries, investment environment have made the FDI unstable attraction rate over the years in the study period. Therefore, FDI into ASEAN is assessed concretely in the period 2010-2016, proposing some policy implications to promote FDI and technology transfer. It is also important to carefully choose the type of foreign direct investment that is appropriate and beneficial to the particular development of the countries in the region.