ASEAN expects FDI to rise<\/p>\n
CHIANG MAI, Thailand (Dow Jones): Ministers and senior
\ninvestment promotion officials of the Association of Southeast
\nAsian Nations (ASEAN) expressed hopes Wednesday foreign direct
\ninvestment flows in region will pick up over the next two years.<\/p>\n
Members of the ASEAN Investment Council, or AIA, discussed
\nways to revive FDI flows into the region's recovering economies
\nas recent numbers point to a slowdown.<\/p>\n
Foreign direct investment in Southeast Asia amounted to
\nUS$16.9 billion in 1999, down from US$19.6 billion in 1998 and a
\nfurther decline is likely in 2000, ASEAN Secretary General
\nRodolfo Severino told reporters after the meeting.<\/p>\n
\"But 2000 is almost gone, so we are looking at 2001 and we are
\nquite optimistic about it,\" Severino told reporters.<\/p>\n
However, foreign direct investment isn't evenly distributed
\nacross the region due to the wide differences in macroeconomic
\ndevelopment among ASEAN members.<\/p>\n
While Singapore and to a lesser extent Thailand, the
\nPhilippines and Malaysia still see growing or at least steady
\nforeign direct investment, Indonesia is suffering a negative
\ninvestment flow, Severino said. Poorer members, such as Myanmar,
\nreceive only a marginal amount of foreign direct investment.<\/p>\n
Severino noted the different degree of development within the
\nblock's members provide potential investors a variety of choices,
\nand \"isn't necessarily an impediment.\"<\/p>\n
However, political instability and violence in some countries,
\nsuch as Indonesia, \"could be a factor\" in investors' decision,
\ndespite the fact \"these are only pockets of trouble,\" he added.<\/p>\n
ASEAN countries will continue to target the three major
\nsources of foreign direct investment in the region, namely the
\nU.S., Europe and Japan, in their bid to attract new investment,
\nsaid Abhisit Vejjajiva, Thailand's Cabinet minister in charge of
\ninvestment promotion.<\/p>",
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