Uncertainty in Global Trade Environment Grows... Overseas Direct Investment Plunges 13.4% in Q2

Total Investment Reaches $14.15 Billion
Sharp Decline in Information and Communications, Real Estate Sectors
"Monitoring Trade Risks"

Amid growing uncertainty in the global trade environment, overseas direct investment continued its downward trend in the second quarter of this year. Despite an increase in financial and insurance industry investments, overall volume shrank as investments in key sectors such as manufacturing, information and communications, and real estate declined.

According to the "Trends in Overseas Direct Investment for the Second Quarter of 2025" released by the Ministry of Economy and Finance on September 19, the total amount of overseas direct investment in the second quarter of this year was recorded at 14.15 billion dollars. This represents a 13.4% decrease compared to the same period last year (16.34 billion dollars). Compared to the previous quarter (15.74 billion dollars), it also fell by 10.1%, although the rate of decline has somewhat moderated.

Last year, overseas direct investment fluctuated from quarter to quarter. It increased by 1.4% in the second quarter of last year, then decreased by 3.2% in the third quarter, and rebounded by 10.3% in the fourth quarter. This year, there was a 5.3% decrease in the first quarter, followed by a double-digit decline in the second quarter.

By industry, investment in the financial and insurance sector rose by 18.9% year-on-year to 6.63 billion dollars. However, investments in key sectors such as manufacturing (3.53 billion dollars, down 9.1%), information and communications (750 million dollars, down 43.6%), and real estate (710 million dollars, down 37.8%) saw significant declines. The wholesale and retail sector recorded 660 million dollars, up 1.8% from the previous year, showing a slight increase.

By region, investment amounts were highest in North America (5.54 billion dollars), followed by Asia (3.17 billion dollars) and Europe (3.11 billion dollars). Investments decreased in most regions except Europe, driving the overall decline. In particular, investments in Oceania and Africa plummeted by 74.7% and 70.6%, respectively.

By country, the United States led with 5.23 billion dollars, followed by the Cayman Islands (1.53 billion dollars), Luxembourg (1.28 billion dollars), and Vietnam (700 million dollars). Investment in the United States fell by 14.2% year-on-year, with manufacturing investment remaining at last year's level, but a significant contraction in financial and insurance investment having a major impact.

A Ministry of Economy and Finance official analyzed, "The decrease in overseas direct investment in the second quarter is the result of growing uncertainty in the investment environment due to the prolonged U.S. tariff negotiations, the expansion of fiscal deficits in major countries, and concerns over inflation leading to a high-interest rate trend."

The official added, "With the global economy contracting due to changes in trade policy, financial market volatility, and geopolitical risks, the government will closely monitor trade and financial risks to ensure that companies expanding overseas can operate stably, and will strengthen cooperation with major investment destinations."

This content was produced with the assistance of AI translation services.