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Shifting FDI inflows from Europe to Southeast Asia

Updated on: January 10, 2026

Shifting FDI inflows from Europe to Southeast Asia

According to the latest report of the World Economic Forum (WEF), FDI inflows from regions such as Europe and North America are tending to shift strongly to Southeast Asia, especially Vietnam and Indonesia.

Core Causes

Geopolitical upheavals in the old continent, combined with escalating energy costs, are suffocating n profits of large-scale manufacturing corporations. Southeast Asia, with its strategic location, young workforce, and multilateral free trade agreements (FTAs), is emerging as a Safe Haven destination.

IBF Vietnam - Singapore said that this is a golden opportunity in the next 10-year cycle for Vietnamese enterprises to catch the wave of M&A capital from foreign funds.