ASEAN Is the Number One Destination for US Investment in Asia
ASEAN member states have increased their investment into the US by over 1,000% from $2.3 billion in 2004 to over $26 billion in 2015. The US receives more investment from ASEAN than from China and India combined.
ASEAN has received almost $274 billion in cumulative investment from the United States, more than the US has directed to China, India, Japan, and South Korea combined. US FDI in ASEAN has increased by an average annual rate of 12% since 2004 and now accounts for over a third of US investment into Asia.
Over 3,000 US companies operate in ASEAN, including 70% of the 130 US multinational enterprises (MNEs) listed in the Global Fortune 500 in 2015. Many US companies use ASEAN as a production platform to export within the region and to other parts of the world, facilitated by ASEAN’s free trade agreements with many other Asia Pacific countries. US companies in ASEAN create significant business linkages involving local suppliers and contractors in the region, and a majority of these companies operate in multiple ASEAN member states.
According to the ASEAN Business Outlook Survey 2017, 87% of US companies expect that their level of trade and investment in ASEAN will increase over the next five years. Survey respondents were very supportive of the ASEAN Economic Community (AEC) that was initiated in 2015, with 93% believing the AEC is important to their companies’ future investment plans, and citing that it will provide greater flexibility and efficiency in managing their regional operations.