Asia is an ever-developing market, which attracts many investors that are looking to diversify their portfolios. The region offers growth potential and attractive income sources. Corporations from all over the United States have continuously been attracted to invest in Asia and are actively working with governments to pave the way towards easing regulatory barriers for public-private partnerships.
In 2019, the total FDI inflows in Asia reached $474 billion. The foreign direct investment in ASEAN countries in 2019 increased by 11.5% compared to 2018, reaching the amount of $155 billion. FDI is expected to continue growing in the ASEAN region. East Asia had a total FDI inflow of $233 billion. The regions that reached the lowest total FDI in 2019 were South Asia, with a total of $57 billion and West Asia, with a total of $28 billion.
The U.S. invested in 3,883 new projects in Vietnam, with a total registered capital of $362.5 billion in 2019. The investments in manufacturing and processing were the highest, reaching $24.56 billion. In 2019, the United States foreign direct investment in Vietnam increased by 7.2% compared to 2017, reaching a total of $38.2 billion.
The United States foreign direct investment in India reached approximately $49.97 billion in 2019. The service sector had the highest FDI, of $7.85 billion. Important U.S. corporations plan to invest in India in the future. Zoom, a U.S. company that offers a popular video conferencing app, has expressed its plans for significant investments in India and for hiring more people in the region. Google plans to invest $10 billion in India in the next five to seven years. Foxconn, an Apple supplier, has revealed its plan to invest $1 billion to develop a factory in India, where Apple iPhones will be assembled.
In 2018, the United States foreign direct investment in Pakistan reached a total of $386 million. U.S. corporations have invested over $1.5 billion over the past year and a half. Over 60 companies contribute over $1 billion in taxes to the country’s government. The U.S. exports to Pakistan in 2019 exceeded $4 billion. In 2019, the U.S. has developed 12 wind projects that will bring over $750 million new investments in Pakistan by 2021.
Over 20% of Singapore’s FDIs of $244 billion were brought by U.S. companies. Almost 50% of the FDI in Singapore’s manufacturing sector was invested by the U.S. Also, the U.S. invested 60% more than the EU in the financial and insurance sector in Singapore. There are 4,500 U.S. companies in Singapore, which employ almost 200,000 employees.