This paper is concerned with the foreign direct investment (FDI) inflow and its determinant in ASEAN 5. The analysis is based on the data over the years 1986 to 2012 using the Vector Auto Regression (VAR) Technique. The objective was to analyze the relationship of (FDI) inflow and interest rates (IR). The findings suggest that the interest rates of Thailand, Indonesia, and Malaysia have a negative relation with foreign direct investment (FDI) inflow. No evidence was found that interest rates play any role in attracting the FDI inflow for Singapore ...