The Programme. LUNCHEON KEYNOTE SPEECH BY Dr. Supachai Panitchpakdi, Secretary-General of UNCTAD 12:30-14:00

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1 Changchun, People's Republic of China 3 September 2009

2 The Programme The 6th International Investment Promotion Forum aims at addressing challenges for investment promotion at a time of global economic crisis and opportunities in the forthcoming recovery of the world economy. PRE-CONFERENCE EVENTS 2 September ORGANIZERS UNCTAD Ministry of Commerce, China REGISTRATION, 14:00-18:00 VISIT TO THE 5 TH CHINA JILIN NORTHEAST ASIA INVESTMENT AND TRADE EXPO (optional) WELCOMING RECEPTION, 19:00-20:00 3 September OPENING, 9:00-9:20 KEYNOTE SPEAKERS Senior policy makers Senior representatives of international organizations Heads of IPAs Business Leaders FDI TRENDS & POLICIES: CHALLENGES AND OPPORTUNITIES, 9:20-12:00 The global economic crisis has dramatically changed the key economic & policy determinants of FDI. The immediate and longer term impact of the crisis on FDI, as well as challenges and opportunities in the forthcoming recovery will be highlighted in a plenary session with high-level representatives from governments, the business community and international organizations. LUNCHEON KEYNOTE SPEECH BY Dr. Supachai Panitchpakdi, Secretary-General of UNCTAD 12:30-14:00 Launching of the Investment Guide to the Silk Road, 14:50-15:20 Launching of the Investment Guide to the Region of Great Tumen River, 15:20-15:35 INVESTMENT RETENTION IN TIMES OF CRISIS, 15:45-18:00 The global recession has strong negative impacts on FDI & TNC operations world-wide. This has led to scaling-down, divestment and relocation of business activities, with serious risks of weakening the productive capacity built through joint ventures and forward & backward linkages in host economies. The challenge on how to retain FDI & its related jobs will be addressed in a plenary session that will especially look at the work of investment promotion agencies. CLOSING, 17:00-17:15

3 Report on the Conference The 6 th International Investment Promotion Forum and Great Tumen River Regional Investment Promotion Conference, jointly organized by UNCTAD and the Minister of Commerce of China, was held on 3 September 2009 in Changchun, Jilin Province of China. The event brought together over 300 participants from more than 20 countries, including high level government officials, executives from international investment promotion agencies (IPAs), senior managers from international companies as well as international investment experts. The conference focused on addressing challenges faced by IPAs at a time of global economic crisis and opportunities in the forthcoming recovery of the world economy. The two sessions of the Forum highlighted the immediate and longer term impact of the crisis on foreign direct investment (FDI) and challenges and opportunities related to the crisis and the upcoming recovery, including strategies to retain FDI. The discussions covered policy issues as well as the work of IPAs. Luncheon keynote speech by Dr. Supachai Panitchpakdi, Secretary-General of UNCTAD The event featured a luncheon keynote speech by Dr. Supachai Panitchpakdi, Secretary-General of UNCTAD. In his speech, the Secretary-General noted that, despite the gloomy FDI prospects for 2009, and potentially beyond, there were still some positive trends in the global economy that would create investment opportunities that developing countries could benefit from. He also highlighted the role that IPAs could play to stem the decline in foreign investment and retain FDI and jobs.

4 Abstract from the speech by the UNCTAD Secretary-General Some of the forces at work are difficult to control, but IPAs with their close links to business and government are in a unique position to facilitate business recovery and soften the blow on firms and local communities. Meanwhile, IPAs should look ahead to the recovery phase of the crisis and the challenges of improving the competitiveness of their locations. Additionally, they need to prepare strategies that will attract the right investors to support decent work and sustainable development, and avoid, perhaps through regional cooperation, a detrimental race to the bottom. In a session on global FDI trends and policies and their implications for investment promotion, delegates and experts discussed the continuing decline in global FDI flows since the end of 2008, and its adverse impacts on productive capacity and employment. Despite some recent positives signs, many expected a continuing downward trend in FDI flows in the short term. Participants acclaimed the proactive policies that had been taken by major economies to bolster economic growth and investment, and expressed satisfaction with the recent developments. It was noted that an overwhelming majority of policy measures taken since the start of the crisis were non-restrictive towards FDI. In fact, quite a number were actually facilitating investment. However, delegates remained concerned about the risk of rising protectionism in the wake of the continuation of the crisis and its aftermath. Potential opportunities that may emerge in the recovery phase were also highlighted. Delegates and experts discussed new patterns and trends of world FDI flows that might emerge, and highlighted some positive forces that might favourably affect FDI, such as the decline of asset prices, the opportunities offered by environment related industries or the energy sector (e.g. energy saving, clean energy, etc.), the possibility of larger South-South FDI flows, and increasing demand in some emerging economies. It was also expected that, as the world economy recovers, FDI flows would resume at a strong or even stronger pace for countries that had improved their investment framework during the crisis. Building a more investment friendly environment was thus considered crucial.

5 One entire session was dedicated to investment retention and the role of IPAs in servicing the already established investment communities through aftercare. The economic crisis has given this particular IPA function even more prominence. The importance of investor aftercare practices and techniques as well as experiences were presented. Speakers emphasized that investor aftercare services should not be restricted to times of economic slowdown, but become a permanent practice of IPAs to support foreign affiliates in start-up and continuing development. Participants also expressed their high appreciation for the work that UNCTAD had been doing since the outbreak of the crisis in monitoring the developments in FDI flows and international FDI policy, as well as in the area of investment facilitation. Selected quotes from speakers Efficiency and resource seeking FDI, as well as export oriented investment in developing countries have been negatively affected by the financial and economic crisis. Decline of asset prices, increasing demand from emerging markets, and opportunities offered by environment-related industries will lend momentum to the FDI recovery. In the future, TNCs from emerging economies will play a more important role in global FDI outflows. G-20 commitments to resist protectionism are crucial for the stabilization and growth of the world economy. IPAs can play a key role in softening the impact of the economic crisis through efforts to retain the operations of established investors. During the Forum, the Investment Guide to the Silk Road was launched. The by UNCTAD updated version of the guide provides the latest trends and investment policies in the Silk Road region. The Jilin Provincial Government also presented the Investment Guide to the Region of Great Tumen River, focusing on various investment opportunities in Jilin Province.

6 Launching of the Investment Guide to the Silk Road The Investment Guide to the Silk Road was launched on 3 September The Guide, prepared under the UNCTAD-UNDP Silk Road Initiative, gives a comprehensive overview of the investment climate and opportunities in the Silk Road region, covering Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan and 4 western Provinces of China. The launch of the Guide at the 6 th International Investment Promotion Forum attracted large attention from local and international press.