Indonesia had 3rd highest FDI in Asia last year<\/p>\n
JAKARTA (JP): Foreign direct investment (FDI) inflows to
\nIndonesia were the third highest in the Asian region last year,
\nalmost doubling to US$8 billion from $4.3 billion in 1995,
\naccording to a new international investment report.<\/p>\n
The report published by the United Nations conference on Trade
\nand Development (UNCTAD) says the amount of inflows follows that
\nof China and Singapore.<\/p>\n
FDI inflows to China were the highest in the region last year,
\nreaching a record $42.3 billion from $35.8 billion in 1995, says
\nWorld Investment Report 1997: Transnational Corporations, Market
\nStructure and Competition Policy.<\/p>\n
Inflows to Singapore, second highest in the region, also
\nreached a record $9.4 billion last year, up from $6.9 billion in
\nthe previous year.<\/p>\n
Malaysia followed Indonesia with $5.3 billion, up from $4.1
\nbillion in 1995.<\/p>\n
The report also notes increasing inflows to India. FDI to
\nIndia surged by 34 percent to $2.6 billion last year, following a
\n47 percent rise to $1.9 billion in the previous year.<\/p>\n
According to the report, FDI inflows to developing South,
\nEast, and Southeast Asia rose 25 percent last year to a record
\nUS$81 billion.<\/p>\n
The report says the amount represents two thirds of all FDI to
\ndeveloping countries.<\/p>\n
At the same time, Asian transnational corporations have become
\na major source of outward investment, with FDI outflows rising by
\n10 percent in 1996 to US$45.7 billion, it says.<\/p>\n
This is about 90 percent of total FDI outflows from all
\ndeveloping countries,<\/p>\n
The report says intraregional investment is the principal
\nsingle component of FDI for the region.<\/p>\n
The report says FDI by major Asian developing economies to
\nother developing economies in the region reached nearly 40
\npercent. The portion is larger than that coming from Europe,
\nJapan or the United States, it says.<\/p>\n
\"To some extent, this reflects the substantial growth of
\nleading transnational corporations headquartered in Asia,\" it
\nsays.<\/p>\n
It says about two-thirds of foreign assets of the 50 largest
\ntransnational corporations in developing countries are accounted
\nfor in Asia.<\/p>\n
According to the report, UNCTAD's top 50 transnational
\ncorporations list, which includes 34 Asian companies, is
\ndominated by those from the South Korea, Mexico, Hong Kong and
\nChina.<\/p>\n
Among these, Daewoo Corporation of South Korea, in 52nd
\nposition, is the highest-ranking transnational corporation from a
\ndeveloping country on the list of the world's 100 largest
\ntransnational corporations.<\/p>\n
The ranking was based on the corporation's foreign assets.<\/p>\n
The report says the world's largest transnational corporations
\ncontinue to dominate FDI flows.<\/p>\n
\"They are boosting their investments into more developing
\ncountries, participating in a rising volume of cross-border
\nmergers and acquisitions, and entering into an expanding total of
\ninternational joint venture agreements,\" the report says.<\/p>\n
Transnational companies from developed countries dominated FDI
\nflows to developing countries.<\/p>\n
Flows of FDI from transnational companies headquartered in
\ndeveloped countries rose slightly to a new record total of $295
\nbillion from $291 billion in 1995.<\/p>\n
FDI inflows to developed countries also rose slightly to $208
\nbillion from $206 billion.<\/p>\n
The report states that the United States absorbed two-fifths
\nof total inflows to developed countries. American transnational
\ncorporations were also by far the largest source of FDI with
\noutlays of $85 billion, it says.<\/p>\n
The report says that market access is the most important
\nmotive, \"rather than the opportunity, for example, to engage low-
\ncost labor\".<\/p>\n
The selection of locations by leading transnational companies
\nfor foreign investment is driven by considerations of market size
\nand growth, and earnings prospects.<\/p>\n
Factors relating to the overall business environment also
\ndetermine the choice of location, it says.<\/p>\n
These include political and social stability, the legal
\nframework, the quality of the work force and infrastructure, and
\nlocal availability of goods and services. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-had-3rd-highest-fdi-in-asia-last-year-1447893297",
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