In many developing nations, Foreign Direct Investment (FDI) is a crucial source of financing for economic growth, especially among ASEAN countries. Limited domestic economic capacity compels these countries to rely on FDI as an essential alternative funding method. This study aims to identify and analyze the factors influencing FDI inflows into ASEAN between 2018 and 2022. Employing a quantitative approach and panel data regression analysis, the investigation focuses on factors such as Gross Domestic Product (GDP), population growth, political stability, tax burden, and inflation. Data for the analysis are drawn from a five-year time series (2018–2022) across ASEAN countries. The results reveal that GDP positively influences FDI inflows; in other words, the observed positive relationship between GDP and FDI supports the argument that robust economic growth, enhanced infrastructure, strong market potential, and other favorable business conditions attract foreign investment. Conversely, factors such as inflation, population growth, tax burden, and political stability exhibit minimal effects on FDI inflows among ASEAN states. These findings highlight key drivers of FDI attraction in the region and offer valuable insights for policy initiatives aimed at increasing foreign investment appeal. Ultimately, the study’s outcomes can help policymakers design more effective economic strategies and ensure the sustainable flow of FDI to promote regional economic growth.