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5. Large Jump in Greenfield Investment in 2023 in Developing Asia- UNCTAD
• According to UNCTAD, a significant increase in greenfield foreign direct investment (FDI) is seen in
developing economies in Asia. In 2023, these economies experienced a 44% rise in the overall value
of greenfield investment announcements and a 22% increase in the number of such announcements,
where companies establish or expand their operations overseas.
Figure 8: Developing Asia: announced greenfield projects; By sector, value in bn of $, no. of projects,
growth rate %, 2021-2023
SECTOR/ 2021 2022 2023 Growth Rate
INDUSTRY 2022-2023
Total Value: 171 Value: 313 Value: 451 +44
Number: 3275 Number: 4749 Number: 5798 +22
Primary Value: 0.3 Value: 38 Value: 11 -70
Number: 18 Number: 35 Number: 49 +40
Manufacturing Value: 87 Value: 124 Value: 240 +93
Number: 1308 Number: 1445 Number: 2196 +52
Services Value: 84 Value: 150 Value: 200 +33
Number: 1949 Number: 3269 Number: 3553 +9
Source- World Bank
• The continent, led by East and Southeast Asia, continued to be the world’s largest recipient of FDI,
accounting for nearly half of global inflows.
• Cross-border mergers and acquisitions (M&A), which usually constitute 10% to 15% of foreign
investments in developing Asia, declined by almost $30 billion to $57 billion in 2023. This decline
accounted for about half of the total drop in FDI inflows to the region.
• China and its Hong Kong Special Administrative Region (SAR) continue to be the largest investors in
the region by total FDI stock, followed by the United States, Japan, and Singapore.
• FDI inflows to Southeast Asia remained stable, with an increase in M&A sales. The number of
greenfield announcements surged by 42%, adding $62 billion more in value. However, this gain was
countered by a $64 billion fall in the value of international project finance deals.
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