Australia. IFDI Stock Australia. IFDI Flow Australia. OFDI Flow Australia. OFDI Stock Australia

Transcription

1 Australia Australia's robust FDI stock growth is attributable to continued investment from the US, the UK and Japan. FDI from Japan remains minimal. FDI from Singapore, China and the Republic of Korea account for an even smaller portion at 7.8% of Australia s total FDI stock. Year Australia Australia Australia Australia 1

2 Australia) Macro)Data:) Key)Indicators) Ranking) within)apec) GDP $1,564,565.96M (6) GDPperCapita $68,265.95M (1) GDPasashareofAPECtotal 3.81% GDPGrowth 3.4% (11) FDIInward $56,958.94M (4) FDIInwardasa%ofGDP 3.64% (7) FDIOutward $16,141.1M (12) FDIOutwardasa%ofGDP 1.3% (14) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (7) (7) BusinessEnvironmentIssues (6) (9) RegulatoryEnvironmentIssues (5) (6) ApprovalImplementa[onIssues (8) (5) JudicialEnvironmentIssues (7) (5) Corrup[on (1) (4) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Regulatorystability&predictability Ruleoflaw Qualityofhumancapital Naturalresources Accesstoothermarkets Most)Problema:c)Factors)for)FDI:) StrengthofCurrency(AUD) Costofliving Bureaucracy Taxpolicies Approvalprocess Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

3 Brunei Darussalam Brunei tries to attract more inward FDI flows with key focuses in pharmaceuticals, petrochemicals, food and IT industries, but the total inward FDI flows remain relative to the APEC total. Year Brunei Brunei Brunei Brunei 3

4 Macro)Data:) Brunei)Darussalam) Key)Indicators) Ranking) within)apec) GDP $16,619.18M (2) GDPperCapita $39,418.46M (6) GDPasashareofAPECtotal.4% GDPGrowth 1.23% (21) FDIInward $85.M (2) FDIInwardasa%ofGDP 5.11% (6) FDIOutward $8.M (18) FDIOutwardasa%ofGDP.5% (18) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (21) (16) BusinessEnvironmentIssues (19) (12) RegulatoryEnvironmentIssues (19) (11) ApprovalImplementa[onIssues (16) (15) JudicialEnvironmentIssues (11) (11) Corrup[on (12) (8) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Naturalresources TaxPolicies IPProtec[on Infrastructure Economicgrowth Most)Problema:c)Factors)for)FDI:) Governmentinfluence RegulatoryPredictability Humancapital IndustryDiversifica[on DisputeResolu[on Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

5 Canada Growth of Canada's inward FDI stock in recent years is attributable to FDI into computer and electronics manufacturing industries and retail trade. Year Canada Canada Canada Canada 5

6 Macro)Data:) Canada) Key)Indicators) Ranking) within)apec) GDP $1,773,288.8M (5) GDPperCapita $51,14.68M (3) GDPasashareofAPECtotal 4.32% GDPGrowth 1.8% (17) FDIInward $45,374.84M (7) FDIInwardasa%ofGDP 2.56% (1) FDIOutward $53,938.8M (5) FDIOutwardasa%ofGDP 3.4% (6) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (3) (9) BusinessEnvironmentIssues (5) (3) RegulatoryEnvironmentIssues (8) (4) ApprovalImplementa[onIssues (6) (4) JudicialEnvironmentIssues (2) (4) Corrup[on (1) (3) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) NaturalResources Stabilityoffinancialsystem Infrastructure Easeofregistra[on MarketSize Most)Problema:c)Factors)for)FDI:) SectorSpecificRestric[ons Bureaucracy AccesstoFinancing LaborRegula[ons Taxpolicies Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

7 Chile Chile continued to host a significant inward FDI with total value of over $3 billion in, making the country the second largest FDI destination after Brazil in South America. Chile has continued to build its reputation as a desirable country for FDI inflows, especially in the copper mining industry. Year Chile Chile Chile Chile 7

8 Macro)Data:) Chile) Key)Indicators) Ranking) within)apec) GDP $265,939.16M (14) GDPperCapita $15,263.5M (11) GDPasashareofAPECtotal.65% GDPGrowth 5.6% (7) FDIInward $3,323.5M (8) FDIInwardasa%ofGDP 11.4% (3) FDIOutward $21,9.7M (1) FDIOutwardasa%ofGDP 7.93% (3) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (4) (2) BusinessEnvironmentIssues (8) (1) RegulatoryEnvironmentIssues (1) (8) ApprovalImplementa[onIssues (9) (9) JudicialEnvironmentIssues (3) (9) Corrup[on (1) (7) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Na[onaltreatment AccesstoFinancing FDIOpportunityPromo[on Transparencyofapprovalprocess Interna[onalinvestmentandtradeagreements Most)Problema:c)Factors)for)FDI:) Qualifiedhumancapital Communityconsulta[veprocess MarketSize Compe[[venessofmarkets LaborRegula[ons Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

9 People s Republic of China On top of strong economic growth, China has historically enjoyed consistent FDI inflows. Hong Kong is the largest investor in China, with investment that accounts for 53% of total FDI as of. Many MNCs and foreign companies use Hong Kong as a launch pad into China. However, we were unable to identify which industries are the major beneficiaries in the recent years. Year China China China China 9

10 Macro)Data:) People s)republic)of)china) Key)Indicators) Ranking) within)apec) GDP $8,94,361.85M (2) GDPperCapita $5,979.87M (16) GDPasashareofAPECtotal 19.74% GDPGrowth 7.8% (2) FDIInward $121,8.M (2) FDIInwardasa%ofGDP 1.5% (14) FDIOutward $84,22.M (3) FDIOutwardasa%ofGDP 1.4% (13) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (17) (14) BusinessEnvironmentIssues (11) (13) RegulatoryEnvironmentIssues (18) (13) ApprovalImplementa[onIssues (2) (11) JudicialEnvironmentIssues (19) (13) Corrup[on (17) (13) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Infrastructure MarketSize Accesstoothermarkets Related&Suppor[ngIndustries FDIOpportunityPromo[on Most)Problema:c)Factors)for)FDI:) TransparencyofProcess Corrup[on JudicialIndependence Compe[[venessofmarkets Accessibility&ClarityofInvestmentRegula[ons Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

11 Chinese Taipei FDI inflow decreased starting in as the manufacturing industry experienced pressure from rising costs. The significant dip in was caused by a lack of investor confidence brought on by the European sovereign debt crisis, tightening of fiscal policy, and rhetoric stemming from the highly contested presidential election. The gradual recovery was seen in the following year as the Economic Cooperation Framework Agreement (ECFA) helped attract additional FDI from China. Chinese Taipei Chinese Taipei Year Chinese Taipei Chinese Taipei 11

12 Macro)Data:) Chinese)Taipei) Key)Indicators) Ranking)within) APEC) GDP $476,419.24M (1) GDPperCapita $2,437.97M (1) GDPasashareofAPECtotal 1.16% GDPGrowth 1.26% (2) FDIInward $3,25.M (16) FDIInwardasa%ofGDP.67% (19) FDIOutward $13,31.M (13) FDIOutwardasa%ofGDP 2.74% (8) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview) Response))))APEC) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) MarketAccessIssues (12) (12) BusinessEnvironmentIssues (4) (5) RegulatoryEnvironmentIssues (5) (3) ApprovalImplementa[onIssues (3) (6) JudicialEnvironmentIssues (8) (1) Corrup[on (8) (1) Most)Conducive)Factors)for)FDI:) Accesstoothermarkets Technologicalreadiness Infrastructure IPProtec[on Developedsuppor[ng/relatedindustries Most)Problema:c)Factors)for)FDI:) Poli[calinstability LaborRegula[ons Taxpolicies Governmentefficiency Qualityofhumancapital Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

13 Hong Kong, China Amidst the global financial and European sovereign debt crises, Hong Kong continued to attract FDI thanks to its advantageous business environment and friendly regulations on capital flows. The ability to withstand these crises is also due to Hong Kong s close links to the Chinese economy, as it is a gateway for FDI between China and the West (5% of HK s FDI comes from China only to go back into China). Hong Kong Hong Kong Year Hong Kong Hong Kong 13

14 Macro)Data:) Key)Indicators) Hong)Kong,)China) Ranking) within)apec) GDP $257,287.94M (15) GDPperCapita $35,752.6M (8) GDPasashareofAPECtotal.63% GDPGrowth 1.44% (18) FDIInward $74,584.15M (3) FDIInwardasa%ofGDP 28.99% (1) FDIOutward $83,985.27M (4) FDIOutwardasa%ofGDP 32.64% (1) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (1) (3) BusinessEnvironmentIssues (1) (1) RegulatoryEnvironmentIssues (2) (15) ApprovalImplementa[onIssues (1) (3) JudicialEnvironmentIssues (6) (2) Corrup[on (6) (5) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Ruleoflaw TaxPolicies Accesstoothermarkets Regulatorystability&predictability Englishlinguafranca Most)Problema:c)Factors)for)FDI:) ExpatCommuni[es Costofrealestate Airquality Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

15 Indonesia With governmental support, the natural resource-rich country has successfully attracted FDI in recent years, especially in mining and automotive manufacturing sectors. Singapore is the largest investor in Indonesia followed by the Republic of Korea, Japan and the US in. Indonesia's Investment Coordinating Board aims to increase the FDI by 38% in 213. Year Indonesia Indonesia Indonesia Indonesia 15

16 Macro)Data:) Indonesia) Key)Indicators) Ranking) within)apec) GDP $878,425.24M (9) GDPperCapita $3,588.79M (18) GDPasashareofAPECtotal 2.14% GDPGrowth 6.21% (5) FDIInward $19,852.57M (9) FDIInwardasa%ofGDP 2.26% (11) FDIOutward $5,423.M (15) FDIOutwardasa%ofGDP.62% (17) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (18) (17) BusinessEnvironmentIssues (16) (15) RegulatoryEnvironmentIssues (12) (9) ApprovalImplementa[onIssues (14) (14) JudicialEnvironmentIssues (11) (14) Corrup[on (1) (17) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) MarketSize NaturalResources Availabilityofhumancapital AccesstoFinancing Accesstoothermarkets Most)Problema:c)Factors)for)FDI:) Infrastructure ConsistencyAcrossLevelsofGovernment Qualityofhumancapital Bureaucracy ForeignLandOwnership Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

17 Japan Japan's FDI inflows have decreased substantially since, primarily due to slow economic growth and strong JPY/USD exchange rates. The earthquake, tsunami and aftermath of those events further eroded Japan's attractiveness as an FDI destination. Year Japan Japan Japan Japan 17

18 Macro)Data:) Japan) Key)Indicators) Ranking) within)apec) GDP $5,937,22.6M (3) GDPperCapita $46,958.67M (5) GDPasashareofAPECtotal 14.48% GDPGrowth 2.% (15) FDIInward $1,73.78M (19) FDIInwardasa%ofGDP.3% (21) FDIOutward $122,55.93M (2) FDIOutwardasa%ofGDP 2.6% (12) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (1) (1) BusinessEnvironmentIssues (1) (8) RegulatoryEnvironmentIssues (7) (12) ApprovalImplementa[onIssues (12) (7) JudicialEnvironmentIssues (3) (6) Corrup[on (6) (6) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) MarketSize TechnologicalInnova[on MarketCompe[[veness Infrastructure ProvingGround Most)Problema:c)Factors)for)FDI:) Taxpolicies LaborRegula[ons Poli[calStability AgingPopula[on MarketSatura[on Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

19 Malaysia Malaysia's healthy growth in FDI is attributable to steady foreign investment inflow from other Asian countries, primarily from Japan, the Republic of Korea and Singapore, as well as other economies such as the US and Saudi Arabia. In the first half of, the oil and gas sector accounted for the largest share of net FDI inflow, followed by services and manufacturing sectors. Year Malaysia Malaysia Malaysia Malaysia 19

20 Macro)Data:) Malaysia) Key)Indicators) Ranking) within)apec) GDP $33,488.42M (12) GDPperCapita $1,35.27M (13) GDPasashareofAPECtotal.74% GDPGrowth 5.6% (8) FDIInward $1,73.93M (12) FDIInwardasa%ofGDP 3.32% (8) FDIOutward $17,114.75M (11) FDIOutwardasa%ofGDP 5.64% (4) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (8) (2) BusinessEnvironmentIssues (9) (7) RegulatoryEnvironmentIssues (3) (14) ApprovalImplementa[onIssues (4) (8) JudicialEnvironmentIssues (1) (7) Corrup[on (11) (12) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Governmentandeconomicstability RegulatoryPredictability Infrastructure Transparency Coordina[onbetweenpublicandprivatesector Most)Problema:c)Factors)for)FDI:) HumanCapital ApprovalProcess CulturalDifferences CostofOpera[on(rela[vetoregionalcompe[tors) Taxpolicies Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

21 Mexico Mexico's inward FDI slowdown since is primarily due to a decrease in FDI into the manufacturing, financial and mining sectors. Major investor countries, including the US, Canada, Spain and the Netherlands, reduced the FDI into Mexico on the back of the global financial crisis and European sovereign debt crisis. ) Year Mexico Mexico Mexico Mexico 21

22 Macro)Data:) Mexico) Key)Indicators) Ranking) within)apec) GDP $1,173,434.59M (7) GDPperCapita $1,13.3M (14) GDPasashareofAPECtotal 2.86% GDPGrowth 3.9% (1) FDIInward $12,659.43M (1) FDIInwardasa%ofGDP 1.8% (16) FDIOutward $25,596.65M (8) FDIOutwardasa%ofGDP 2.18% (1) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (14) (13) BusinessEnvironmentIssues (12) (17) RegulatoryEnvironmentIssues (16) (2) ApprovalImplementa[onIssues (11) (12) JudicialEnvironmentIssues (11) (16) Corrup[on (15) (16) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) AccesstoNAFTA Rela[veopennesstoforeigners Qualityofcapitalmarkets Taxa[onagreements Availabilityofqualityofservices Most)Problema:c)Factors)for)FDI:) CrimeandViolence Jurisdic[onaloverlapandconflict Sector`specificrestric[ons Corrup[on Readinessoflocalfirmstoacceptinvestment Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

23 New Zealand Historically, New Zealand's business-friendly environment has helped the country build stable Inward FDI stock. The economy has also gained increasing recognition as a good FDI destination by Asian economies such as China and Japan. Although New Zealand's inward FDI value is small relative to other APEC economies, its inward FDI stock to GDP ratio averages 51% in -, showing the importance of inward FDI to the economy. New Zealand New Zealand Year New Zealand New Zealand 23

24 Macro)Data:) New)Zealand) Key)Indicators) Ranking) within)apec) GDP $171,54.49M (18) GDPperCapita $38,451.16M (7) GDPasashareofAPECtotal.42% GDPGrowth 2.96% (13) FDIInward $2,911.8M (17) FDIInwardasa%ofGDP 1.7% (13) FDIOutward $(489.37)M (21) FDIOutwardasa%ofGDP `.29% (21) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (5) (1) BusinessEnvironmentIssues (3) (6) RegulatoryEnvironmentIssues (4) ` ApprovalImplementa[onIssues (4) (2) JudicialEnvironmentIssues (1) (1) Corrup[on (1) (1) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Transparencyinapprovalprocess Consistencyinregula[ons RuleofLaw Naturalresources Accesstoothermarkets Most)Problema:c)Factors)for)FDI:) GeographicLoca[on Communityconsulta[veprocess SectorSpecificRestric[ons Humancapital CulturalDifferences Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

25 Papua New Guinea Due to overall economic underdevelopment, Papua New Guinea attracts low inward FDI flows and stock relative to other APEC economies. The lack of data on inward FDI flows to Papua New Guinea prevents us from looking into details for further analysis. Papua New Guinea Papua New Guinea.6 5 Year Papua New Guinea Papua New Guinea 25

26 Macro)Data:) Papua)New)Guinea) Key)Indicators) Ranking) within)apec) GDP $15,712.5M (21) GDPperCapita $2,191.33M (2) GDPasashareofAPECtotal.4% GDPGrowth 9.42% (1) FDIInward $28.8M (21) FDIInwardasa%ofGDP.18% (2) FDIOutward NA (19) FDIOutwardasa%ofGDP NA (19) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (2) (15) BusinessEnvironmentIssues (21) ` RegulatoryEnvironmentIssues (21) (19) ApprovalImplementa[onIssues (21) ` JudicialEnvironmentIssues (17) (21) Corrup[on (21) (2) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) NaturalResources Tourism Most)Problema:c)Factors)for)FDI:) Corrup[on Ineffec[ve&OpaqueGovernance,InconsistentApplica[onof RulesandLevyofTaxes Infrastructure TribalSystemofLandOwnership CommunityConsulta[ve process InadequatelyEducatedPopulace Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

27 Peru The significant inward FDI increase in in Peru is mainly due to reinvestment and capital contributions by foreign companies. The capital contributions component was the most significant factor, reaching US $4.67 billion in. The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) estimates that the mining sector is the main destination for inward FDI into Peru: Peru is the third largest silver producer in the world, according to the Silver Institute.) Peru Peru Year Peru Peru 27

28 Macro)Data:) Peru) Key)Indicators) Ranking) within)apec) GDP $22,2.7M (17) GDPperCapita $6,8.36M (15) GDPasashareofAPECtotal.49% (blank) GDPGrowth 6.2% (6) FDIInward $12,239.67M (11) FDIInwardasa%ofGDP 6.5% (4) FDIOutward `$57.48M (2) FDIOutwardasa%ofGDP `.3% (2) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (9) (6) BusinessEnvironmentIssues (18) (18) RegulatoryEnvironmentIssues (2) (2) ApprovalImplementa[onIssues (19) (16) JudicialEnvironmentIssues (18) (18) Corrup[on (18) (14) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Na[onalTreatment Poli[calsupportforFDI EconomicGrowthopportunity EfficiencyofCapitalmarkets Disputeresolu[on Most)Problema:c)Factors)for)FDI:) Mul[jurisdic[onalconflict Workpermitprocess Corrup[on Poli[calInterferenceinRegulatoryprocess Communityconsulta[veprocess Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

29 The Philippines The sharp increase of the Philippines' inward FDI is driven mainly by the foreign infusion of funds to their Filipino operations, according to the Bangko Sentral ng Pilipinas (BSP). The BSP's data shows that top beneficiary sectors include manufacturing, real estate, wholesale and retail trade, financial services and insurance. Although the country's inward FDI grew faster than those of the neighboring countries, the overall inward FDI flows remain small relative to total APEC FDI inflows. Philippines Philippines Year Philippines Philippines 29

30 Macro)Data:) The)Philippines) Key)Indicators) Ranking) within)apec) GDP $25,268.77M (16) GDPperCapita $2,594.23M (19) GDPasashareofAPECtotal.61% GDPGrowth 6.6% (3) FDIInward $2,797.M (18) FDIInwardasa%ofGDP 1.12% (15) FDIOutward $1,845.M (16) FDIOutwardasa%ofGDP.74% (16) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (13) (19) BusinessEnvironmentIssues (15) (19) RegulatoryEnvironmentIssues (17) (17) ApprovalImplementa[onIssues (17) (2) JudicialEnvironmentIssues (11) (17) Corrup[on (2) (19) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Loca[on Qualifiedhumancapital Costofhumancapital Culturalsimilaritytowest Naturalresources Most)Problema:c)Factors)for)FDI:) Corrup[on Infrastructure RegulatoryStability Jurisdic[onalConflict PredictabilityofJudicialSystem Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

31 Republic of Korea FDI inflows into the Republic of Korea remained resilient in recent years, despite global macro headwinds, with the exception of due to the European sovereign debt crisis. Korea's aggressive strategy on free trade agreements with major markets, including the US and the European Union, is considered a major driver of increased FDI flows. Year Korea Korea Korea Korea 31

32 Macro)Data:) Republic)of)Korea) Key)Indicators) Ranking) within)apec) GDP $1,155,679.4M (8) GDPperCapita $23,785.12M (9) GDPasashareofAPECtotal 2.82% GDPGrowth 2.% (16) FDIInward $9,94.M (13) FDIInwardasa%ofGDP.86% (18) FDIOutward $32,978.1M (7) FDIOutwardasa%ofGDP 2.85% (7) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (11) (8) BusinessEnvironmentIssues (14) (11) RegulatoryEnvironmentIssues (15) (7) ApprovalImplementa[onIssues (15) (17) JudicialEnvironmentIssues (2) (12) Corrup[on (12) (11) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Suppor[ngindustries Qualifiedhumancapital Interna[onalinvestmentandtradeagreements Infrastructure Most)Problema:c)Factors)for)FDI:) Easeofhiringandfiringhumancapital Laborunion RegionalTension Transparencyofgovernmentpolicymaking AccesstoFinancing Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

33 Russia Between and, increases in FDI into the wholesale/retail and financial/insurance sectors led to a growth in Russia's overall inward FDI. Despite the country's rich natural resources, FDI into Russian manufacturing and services grew faster in - than in extractive industries. Bermuda, British Virgin Islands and Cyprus are the three largest sources of inward FDI into Russia, which reflects the importance of round-tipping Russian investments via tax-haven destinations according to a report in July by Vale Columbia Center on Sustainable International Investment. Russia Russia Year Russia Russia 33

34 Macro)Data:) Russia) Key)Indicators) Ranking) within)apec) GDP $1,977,996.1M (4) GDPperCapita $13,86.91M (12) GDPasashareofAPECtotal 4.82% GDPGrowth 3.4% (12) FDIInward $51,416.M (6) FDIInwardasa%ofGDP 2.6% (9) FDIOutward $51,58.M (6) FDIOutwardasa%ofGDP 2.58% (9) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (16) (11) BusinessEnvironmentIssues (2) (2) RegulatoryEnvironmentIssues (13) (1) ApprovalImplementa[onIssues (18) (18) JudicialEnvironmentIssues (21) (19) Corrup[on (18) (21) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) NaturalResources Qualifiedhumancapital Costofhumancapital Macroeconomicstability MarketSize) Most)Problema:c)Factors)for)FDI:) Corrup[on Governmentbureaucracy Governmentefficiencyandtransparency Crime&Violence Intellectualpropertyprotec[on Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

35 Singapore Singapore enjoys relatively strong FDI inflow because of its pro-investment policies. FDI inflow has trended upward except in when a significant dip in inflow was caused by a reduction in investment in the pharmaceutical manufacturing sector. Despite the global financial crisis, investment flow momentum into the financial services sector in - remained steady.) Year Singapore Singapore Singapore Singapore 35

36 Macro)Data:) Singapore) Key)Indicators) Ranking) within)apec) GDP $27,461.52M (13) GDPperCapita $51,454.95M (2) GDPasashareofAPECtotal.66% GDPGrowth 1.3% (19) FDIInward $56,65.9M (5) FDIInwardasa%ofGDP 2.95% (2) FDIOutward $23,8.15M (9) FDIOutwardasa%ofGDP 8.53% (2) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (2) (4) BusinessEnvironmentIssues (2) (2) RegulatoryEnvironmentIssues (1) (5) ApprovalImplementa[onIssues (1) (1) JudicialEnvironmentIssues (3) (3) Corrup[on (1) (2) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Poli[calandeconomicstability Infrastructure Accesstoothermarkets Taxpolicies Qualifiedhumancapital Most)Problema:c)Factors)for)FDI:) Costofopera[ons Costofliving Sectorspecificregula[ons Naturalresources Infla[on Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

37 Thailand Recent slowdown in FDI inflows to Thailand is mainly due to decreased inward FDI into financial services and electrical equipment and automotive manufacturing industries. Year Thailand Thailand Thailand Thailand 37

38 Macro)Data:) Thailand) Key)Indicators) Ranking) within)apec) GDP $39,854.95M (11) GDPperCapita $5,592.26M (17) GDPasashareofAPECtotal.95% GDPGrowth 6.4% (4) FDIInward $8,67.45M (14) FDIInwardasa%ofGDP 2.2% (12) FDIOutward $11,911.15M (14) FDIOutwardasa%ofGDP 3.5% (5) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (15) (21) BusinessEnvironmentIssues (13) (14) RegulatoryEnvironmentIssues (9) (16) ApprovalImplementa[onIssues (1) (13) JudicialEnvironmentIssues (15) (15) Corrup[on (12) (15) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Accesstoothermarkets FDIOpportunityPromo[on IndustryClusters ExpatCommuni[es Most)Problema:c)Factors)for)FDI:) PredictabilityandStability HumanCapital Corrup[on ForeignExchangeStability DisputeResolu[on Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

39 United States The global financial crisis caused FDI to the United States to decrease significantly in. In, FDI to the United States once again decreased due to the lack of investor confidence during the European sovereign debt crisis. Banking, finance and insurance sectors were among the most impacted and experienced substantial decreases in FDI. Year United States United States United States United States 39

40 Macro)Data:) United)States) Key)Indicators) Ranking) within)apec) GDP $15,698,324.67M (1) GDPperCapita $49,112.2M (4) GDPasashareofAPECtotal 38.27% GDPGrowth 2.18% (14) FDIInward $167,62.M (1) FDIInwardasa%ofGDP 1.7% (17) FDIOutward $328,869.M (1) FDIOutwardasa%ofGDP 2.9% (11) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (5) (5) BusinessEnvironmentIssues (7) (4) RegulatoryEnvironmentIssues (11) (1) ApprovalImplementa[onIssues (7) (1) JudicialEnvironmentIssues (9) (8) Corrup[on (8) (9) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) Sophis[catedMarket MarketSize ProvingGround Interna[onalinvestmentandtradeagreements Qualifiedhumancapital Most)Problema:c)Factors)for)FDI:) Compe[[venessofMarket Li[giousSociety CostofOpera[on Taxpolicies ApprovalProcess Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]

41 Viet Nam Viet Nam's FDI inflow exhibits a general upward trend since as the economy opened up and investments seeking manufacturing labor flooded in. In the late s, FDI inflow was stimulated by regional recovery, accession to WTO and bilateral trade agreement signed with the US. Year Viet Nam Viet Nam Viet Nam Viet Nam 41

42 Macro)Data:) Viet)Nam) Key)Indicators) Ranking) within)apec) GDP $14,64.68M (19) GDPperCapita $1,566.97M (21) GDPasashareofAPECtotal.34% GDPGrowth 5.1% (9) FDIInward $8,368.M (15) FDIInwardasa%ofGDP 5.95% (5) FDIOutward $1,2.M (17) FDIOutwardasa%ofGDP.85% (15) FDI)Restric:veness: *Tiesbetweeneconomiesarepossible Interview)Response) APEC) MarketAccessIssues (19) (18) BusinessEnvironmentIssues (17) (16) RegulatoryEnvironmentIssues (13) (18) ApprovalImplementa[onIssues (13) (19) JudicialEnvironmentIssues (16) (2) Corrup[on (16) (18) Published)))))))))))))))))))) Proxy)))))))))))))))))APEC) Most)Conducive)Factors)for)FDI:) MarketSize Availabilityofhumancapital Accesstoothermarkets LaborMarketEfficiency HealthandPrimaryEduca[on Most)Problema:c)Factors)for)FDI:) Qualityofhumancapital Infrastructure ClarityofregulatoryPolicies GovernmentalApprovalprocess AccesstoFinancing Community Consulta[ve Process Mul[`jurisdic[onal Conflict Consistencyacross Levelsof Government Regulatory Predictabilityand Stability Corrup[on Inten[onal Restric[ons IPProtec[on HumanCapital PhysicalSecurity ApprovalProcess Efficiency TaxEnvironment DisputeResolu[on InterviewResponses[1`5(worst)]