Posts Tagged ‘FDI’

Why Invest in Asia NOW?

June 21st, 2017

When we talk about investing in Asia, we are not just referring to the more-commonly discussed FDI-attractive regions like East and Southeast Asia; we’re suggesting investors broaden their horizons and look at investment possibilities spanning as integral as India and as far-removed as the Former Union Republics of the Soviet Union. It is staggering when one looks a little beyond the surface and finds these regions so naively overlooked.

So what does Asia have to offer for investors? First thought: its size. With a world population of less than 8 billion, Asia comprises over half of that with a 4.4 billion headcount. Making an investment in that region is in effect investing in humanity. In addition, the scope of a place makes it a more attractive location for global firms to set up shop there when they expand as they realize that the market there is way bigger for their product/service. This results in higher growth and the stats show that Asia’s FDI has bolstered the region’s larger economies.

Another reason to look to the region for investment purposes – especially NOW – is because the scope of industries is so large that something is bound to appeal. You’d be hard-pressed to find that kind of diversity anywhere else. In other regions it’s very much limited to a type of market; not so with Asia.

And then there is the infrastructure. Replete with private placements, mutual funds, multi-asset funds etc., this makes for a very attractive environment for investors from anywhere around the world.

So these are just some of the reasons why it makes so much sense to invest in Asia right now.

Large Investments in Central Asia

January 18th, 2016

investmentIn 2015, the Central Asian region received a “record amount” of investment from the EBRD (the European Bank for Reconstruction and Development). This was an increase of a staggering 75 percent from €803 million to €1,402.3 million. In total, Central Asia has thus received just over €10 billion from the ERBD.  According to Natalia Khanjenkova, EBRD Managing Director for Central Asia and Turkey:

“The EBRD is ever more dedicated to the market transition of the economies of Central Asia, and last year’s record investment is only one of the areas where the Bank has boosted activity. We are also actively engaged in supporting policy reform on green energy, diversification, the investment climate and the role of the private sector. An upcoming EBRD-FT Central Asia Investment Forum on 18 February in Istanbul will discuss ways of boosting investment in the region even further.”

So what’s the story with 2016? Some experts are predicting that this trend of large investments will continue this year. The ANREV (Association for Investors in Non-listed Real Estate Vehicles) found that for those investing in the Asia Pacific, Sydney and Melbourne will still be most popular. Indeed, over half of those surveyed by the ANREV actually said they would “increase their investments in property in the next two years and are looking at investing in Europe first, then in the US followed by Asia Pacific.” Tokyo has also become a popular destination.

So in terms of investments and FDI’s, look no further than Asia.

Boosting Indonesia’s Economy

September 9th, 2015

hong kongActions by officials in Indonesia are being put in place to help ensure a “massive deregulation” in the country in the hopes of attracting investments. Due to a deceleration in domestic consumption, the economy has been waning. China’s super cheap prices hasn’t helped the country much either.

Some of the actions include: a reshuffle of the governmental economic group, new stimulus package, infrastructure projects (most notably the coal-fired power plant). Regulations are being reviewed to ensure that those which can be eliminated, will.

To get back on the successful bandwagon, Indonesia requires 3,518 trillion rupiah (HK$1.9 trillion) of investment to achieve its economic growth target of 7 percent. This can come from both local and FDIs. If this isn’t achieved, growth will not exceed more than 5 percent, the lowest it has been in the country since 2009.

In more positive news however, Indonesia is the battleground between China and Japan as to which country will get the rights to build its first high speed railway. That will definitely help its economic environment. The competitive spirit is good for everyone. Especially since Indonesia is long overdue for a multi-million dollar overhaul of its antiquated infrastructure.

Asia Investments: Is Vietnam the New China?

February 7th, 2015

vietnam-For so long China has been seen as the region in which to make an Asian investment. But now it appears that Vietnam might just be “the new China” vis-à-vis business. Vietnam has low costs and a government which is eager to please. As well, licensing and operating in Vietnam are substantially easier these days than they are in China. Thus manufacturers are flocking to the region and rejecting China that is increasing costs. Thus it is not all that surprising that economic growth in China dropped to 7.4 percent in 2014 which is a 24-ytear low.

Some examples of successful investments in Vietnam in the manufacturing industry currently include making cars for both Ford and Toyota. The tech industry is also booming there with Samsung Electronics putting $11billion into production in the region.

Although China is still ahead of Vietnam in FDI, the gap is closing. For example, Vietnam’s FDI increased 60% year over year in the2014 fourth quarter, totaling around $8 billion. Given all this data, Beijing officials are thus trying to put together a new FDI law to offer foreign projects “more equal treatment alongside domestic peers,” which could result in the elimination of case-by-case reviews of foreign projects, and provide fewer restrictions.