Developing countries in Asia attracted FDI worth $662 bn in 2022: UNCTAD

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New Delhi: Foreign direct investment (FDI) in developing countries in Asia remained flat year-on-year at $662 billion during 2022, despite clocking about half of global inflows, UNCTAD’s World Investment Report 2023 on Wednesday said. FDI inflows were higher in developing countries compared with those in developed economies.

Globally, FDI declined by 12% to $1.3 trillion in 2022 after a strong rebound in 2021 following the steep drop due to the coronavirus pandemic, the report stated. Among the developing countries in Asia, FDI inflow was highly concentrated in a few countries, such as China (and Hong Kong), Singapore, India, and United Arab Emirates (UAE), accounting for about 80% of inflows into the region.

During 2022, FDI inflows to India rose by 10% on an annual basis to $49 billion, while China registered a 5% yearly growth to $189 billion. Singapore and the UAE grew by 8% and 10% to $141 billion and $23 billion, respectively.

"FDI in the member States of the Association of Southeast Asian Nations (ASEAN) grew by 41%, to $222 billion," the report said. "Flows increased also in the Regional Comprehensive Economic Partnership/RCEP (up 42%, to $580 billion), among the countries of the Gulf Cooperation Council (where they more than doubled, to $37 billion) and in member States of the South Asian Association for Regional Cooperation (up 20%, to $56 billion)," it added.

Developing countries, including India, which have attracted FDI in clean energy to the tune of $544 billion in 2022, need renewable energy investments to the tune of $1.7 trillion annually, it said. The report also emphasized that developing countries face an investment gap of $2.2 trillion annually, out of a $4 trillion annual funding gap for the