Macro Analysis

FDI capital flow shifting from Europe to Southeast Asian markets

Updated: April 10, 2026

FDI capital flow shifting from Europe to Southeast Asian markets

According to the latest report by the World Economic Forum (WEF), FDI flows from regions like Europe and North America are trending strongly towards Southeast Asia, especially Vietnam and Indonesia.

Core reasons

Geopolitical volatilities in the old continent, combined with escalating energy costs, are squeezing the profit margins of large-scale manufacturing corporations. Southeast Asia, with its strategic location, young workforce, and multilateral free trade agreements (FTAs), is emerging as an absolute Safe Haven.

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