It’s already been a while that FDI has been thriving in Asia. But now the question is, what part of Asia does this refer to most?
According to a recent Economist study, fast forward five years to the year 2020 and the Asian expansion will be most focused in China, India and Malaysia. If you look even further ahead – to the next 35 years – factories and offices are likely to open up in Myanmar, Thailand and Vietnam.
Much of this expansion and planned expansion is connected to the liberalization of “intra-regional trade and investment” which is in the program of various Asian governments over the next few years. But perhaps just as importantly, the fact that there is in existence, greater economic integration between companies in the area.
China unfortunately might be losing some FDI given its significant increase in labor and overhead costs. Those that would have bought their investments to China are instead choosing countries in the ASEAN region like Indonesia and Vietnam – places that don’t have such crippling prices.