Where to invest next year? An overview for ASEAN and China environments
Over the last two years, the Asian region kept attracting capital from abroad. If foreign direct investments (FDIs) decreased 16% at global level in 2017, Asian countries remained stable. This trend is due to a variety of reasons, among which we can identify the development of infrastructures and technology, the raising investment capacity of intra-Asian countries, the disruption of supply chain among countries (global supply chain), and an increasingly skilled labor force. As the region confirms being attractive, more and more multinational companies (MNC) and small and medium enterprises (SMEs) should consider doing business in Asia.
S.J. Grand accompanies you in the Asian region business environment, offering an outlook of recent FDIs. To learn more about investment opportunities in Asia, do not hesitate to contact us.
FDIs Inflows to Asia in 2017: a brief economic outlook
Even if in 2017 FDIs decreased worldwide, developing Asia registered the largest inbound quota. According to a report published by UNCTAD, FDIs in Asia were expected to grow 15% in 2017 (up to USD 515 billion). It should be noted beforehand that we refer to Asia, and developing Asia, mainly considering China, Hong Kong, and South-East Asia (Viet Nam, Philippines, Cambodia, Thailand, Singapore, Indonesia, and Malaysia).
As reported by the Asian Development Bank (ADB), Asia remains the global economic leader in terms of FDIs attraction. Once again, last year, the leader country in the region was China due to both its shift into a consumer-driven economy and the investment strategies most Chinese companies implemented. In parallel, South-East Asia’s GDP grew, positively closing 2017 Q4 (4.8% GDP growth in 2017).
In 2016, FDIs inflows to China amounted at USD 118 billion; while in 2017, the number reached USD 144 billion. Last year, the P.R.C. ranked second, just after the U.S.A., in the world’s top investment recipients. Hong Kong ranked third and Singapore upgraded at the eighth place, becoming the top recipient in South-East Asia. Other countries in Southern Asia performed well: Indonesia registered USD 22 billion of inbound FDIs and the Philippines reached USD 8 billion. The graph below summarizes FDIs quota per country.