FDI

FDIs in Asia

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According to a report set to be released at the upcoming Dubai Annual Investment Meeting undertaken by the Abu Dhabi Global Market (ADGM), within West Asia, figures for 2015 showed that the most FDI was received by Turkey and then the UAE.  Regarding this, vis-à-vis the UAE, CEO of the ADGM’s Financial Services Regulatory Services, Richard Teng said:

“ADGM is pleased to be part of the AIM 2017 that brings together local and international industry leaders, policy makers, and the investment community to share best practices, discuss industry developments and establish new partnerships. FDI is a key contributor of UAE’s  economic and investment growth.  As an international financial centre, ADGM works actively on efforts and initiatives that enhance UAE’s and Abu Dhabi’s strength as an attractive financial and investment destination for local and international entities.”

Meanwhile in Indonesia FDI figures were not as promising.    There was a significant deceleration in Q4 16.  That could lead to a thorn in the side at efforts being made at bolstering the growth of the economic expansion in the region.  It has been suggested that this might be the backlash of Jakarta’s political tensions due to this month’s regionals and Trump’s presidency and thus are concerned about prospects for emerging markets. Still there was a 2.1 percent increase in FDI in Q4 16 vis-à-vis Q4 15 but that was the smallest increase in the last five years.

Vietnam had better figures.  It encountered a 9 percent FDI increase in 2016, resulting in a record US$15.8 billion for that time frame.  And from the end of 2015, the manufacturing industry encountered a staggering 13.61 percent increase.

So overall FDI in the region is not faring too badly but political climates have to – as always – be handled.

Invest Asia: India Versus Japan

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indiaWhen it comes to investing in Asia, where is the best market? In a recent study, India came out on top for FDIs, out of 110 countries worldwide. America only reached position number 50 and China – traditionally the place to invest in Asia – came in at a poor 65.

The study was the result on a Baseline Profitability Index (BPI), created by Daniel Altman who reported that in 2015:

“India coming out on top, with growth forecasts up, perceptions of corruption down, and investors better protected following the election of a government led by Prime Minister Narendra Modi.”

The BPI is based on: the following levels: the value an asset grows, how that value is preserved while the asset is owned, how easy it is to perpetrate of proceeds from the sale of the assets.

Japan is also not such a place to be sniffed at, when it comes to foreign investment opportunities. In the first quarter of 2015 its GDP increased by an annualized 3.9%, which was its highest it had been since the same quarter back in 2014. While that growth is mainly connected to inside investments, it should still be a factor for potential FDIs. Indeed, profits are increasing and yen is weakening. Japan-based firms like Panasonic and Toyota Motor are taking advantage of this, substantially boosting their global investments.

Ultimately it depends on very much on timing, and corporation. For those looking into Asia investments, it is crucial to investigate how other companies in those industries have fared in each destination.

 

India Investments Encouraged in China

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Beijing Seminar Good for Investment

At a seminar today held in Beijing, India invited Chinese companies to come and make investments in China. The seminar, entitled, ‘India-China Business & Investment Seminar- Opportunities in IT, Engineering & Allied Sectors,’ was organized by Municipal Government of Yangzhou and Confederation of Indian Industry (CII) and Indian Consulate in Shanghai. The aim of the seminar is to encourage Chinese companies to make investments in India while giving them an overview of the country’s “FDI policy, basic tax and business laws, financing options,” facilitating a more informed decision prior to making the investment.

According to an article reporting on the seminar, attendees at the conference included: “Chief Representatives, CEOs and senior executives of Aditya Birla Group, BHEL, ICICI Bank Ltd , Infosys, Jiangsu Sterlite Tongguang Fiber Co Ltd, Elgi Equipments, L&T, MphasiS, Mahindra Satyam, NIIT, PTC Global, SBI, TCS, Tata Steel , Thermax, Wipro Infrastructure Engineering and CII.”

Increased Indian-Chinese Cooperation

It is hoped that there will be further cooperation between the two countries in the following areas: IT and Engineering, and more. According to Vice-Mayor of Municipal Government of Yangzhou Wen Daocai, this “joint initiative [is] offering a unique opportunity to Yangzhou based companies to engage with Indian companies.” New policies will be encouraging Chinese companies through helpful policies, fast approval and financial aid. In addition, through various components like growth, manpower and macro-economic stability to name but a few, India is now able to offer “attractive returns to prospective Chinese investors.”

Anticipated Investments

There are many opportunities these days for Chinese companies to invest in India, especially in the areas of infrastructure, freight, subway and SEZs and currently there is an anticipated trillion dollars worth of such investments. At the seminar, both Indian and Chinese companies were given the opportunity to “forge new business alliances as well as promote two-way investments.”