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Southeast Asia has long been a focal point for FDI by OECD-based firms. In the 1990s Southeast Asia was collectively among the world's largest recipients of FDI. Attention shifted away from the region following the regional economic collapse of 1997-1998 and the slow recovery that ensued. Nevertheless, policy reforms implemented at the national level after the Asian crisis have made many ASEAN states much more resilient against shocks. Compared to the trends in the 1980s and 1990s, recent FDI flows are increasingly more diversified in terms of host and source countries. This study also looks at the emerging tendency of Southeast Asian countries to become sources of capital, initially on a regional basis but ultimately to the rest of the world.