More MNCs may come to Asia

More MNCs may come to Asia

UNITED NATIONS (AFP): Developing Asian countries are expected
to be the most likely investment destination for multinational
companies in the next five years, according to a report published
here Monday.

The survey "International Investment: Towards the year 2001,"
whose conclusions were outlined here by French government expert
Fabrice Hatem, was compiled in cooperation with the UN Conference
on Trade and Development (UNCTAD).

It was based on responses from more than 310 transnational
corporations and international experts.

According to the report, while increased investment has mainly
benefited the seven Association of South East Asian Nations
(ASEAN) countries and China, "in a few years it could spread to
countries such as India and Vietnam where conditions for foreign
investment are improving rapidly."

ASEAN comprises Brunei, Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam.

"Huge markets and prospects for rapid growth in demand are
clearly appealing, while at the same time the perceived level of
risk is declining and rules for foreign direct investment are
taking a more favorable turn," the report said.

The survey noted that European and U.S. companies would hold
investment in their home region "while massively increasing that
in developing economies, especially in Asia."

"In contrast, Asian companies will significantly increase
investments in the US, Western and Eastern Europe, but will focus
most of their additional efforts on their home region."

The report said that the Asian companies, by so doing would
"make up for earlier lags."