7 th Meeting of the Asia-Pacific FDI Network 2-3 November 2017, Bangkok FDI and national policies/ international agreements on investment Trends and developments in the Asia-Pacific region Ms. Soo Hyun Kim (kim51@un.org) Associate Economic Affairs Officer, Trade, Investment and Innovation Division
Billions of United States dollars Percentage FDI inflows to the Asia-Pacific 600 500 400 300 200 100-2011 2012 2013 2014 2015 2016 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Asia-Pacific FDI inflows Asia-Pacific share in world FDI inflows to the Asia-Pacific region contracted by 3% to $541 billion in 2016 A-P s share of global FDI inflows: 31% in 2016 Still developing A-P accounted for 74% of FDI inflows to developing economies worldwide
Billions of United States dollars Per cent FDI outflows from the Asia-Pacific 600 500 400 300 200 100-2011 2012 2013 2014 2015 2016 Asia-Pacific FDI outflows Asia-Pacific share in world 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% FDI outflows from the Asia-Pacific region increased by 10% to $495 billion in 2016 Slightly picking up from 2015 s low level
Billions of United States dollars Greenfield FDI flows: Asia-Pacific region 450 400 350 300 250 200 150 100 50 2011 2012 2013 2014 2015 2016 Inflows Outflows Greenfield FDI inflows increased by 12% in 2016, accounted for 43% of global greenfield FDI inflows Greenfield FDI outflows also increased by 20% Positive signs: greenfield investment - long-term investment and barometers of FDI contribution to local economic development: job generation, skills development, capital and technology transfer
Billions of United States dollars Percentage Intraregional FDI flows 200 180 160 140 120 100 80 60 40 20 60% 50% 40% 30% 20% 10% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Others China ASEAN Share in total greenfield FDI Intraregional greenfield FDI inflows increased over the last decade, with annual growth rate of 4% Stagnated in 2016, with share of 48% in total greenfield FDI inflows to the region 0%
Intraregional FDI flows ASEAN continues to attract significant amount of intraregional investment Continued economic integration efforts Relocation of investment from China (capturing labour-intensive productions and advantageous geographical locations)
Billions of United States dollars FDI inflows: subregions 350 300 250 200 150 100 50 - Developing East and North-East Asia South-East Asia South and South-West Asia 2014 2015 2016 North and Central Asia Developed Asia- Pacifc Mixed performance among subregions and individual economies
FDI inflows: subregions - Highlights Japan Philippines Viet Nam India (greenfield) China (-1%) -liberalization and facilitation -losing competitive cost advantage Hong Kong (China) Malaysia Indonesia Thailand
Billions of United States dollars FDI outflows: subregions 300 250 200 150 100 50 - Developing East and North-East Asia South-East Asia South and South West Asia North and Central Asia 2014 2015 2016 Developed Asia- Pacific Led by East and North-East Asia mainly China, Hong Kong (China), Japan
Billions of United States dollars FDI inflows: sectoral 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000-2011 2012 2013 2014 2015 2016 Primary Manufacturing Services Greenfield FDI inflows in the services sector increased by 31% in 2016 Manufacturing: affected by industrial reconfiguration of the subregions value chains
National policies on investment 10 9 8 7 6 5 4 3 2 1 0 Liberalization Restriction 43 policy changes related to liberalization, promotion and facilitation 9 new restrictions or regulations on investment
National policies on investment 1 Relaxation on foreign ownership 2 Privatization 3 Promotion and facilitation of foreign investment
International agreements on investment 8 7 6 5 4 3 2 1 0 Signed Entered into force Signed and entered into force 20 new IIAs signed and 5 entered into force Also some terminations of IIAs (Indonesia (11) and India (7))
Regional integration agreements 1 ASEAN Economic Community & ASEAN Comprehensive Investment Agreement 2 Treaty on the Eurasian Economic Union 3 Regional Comprehensive Economic Partnership
Science, technology, and innovation in international investment agreements in the Asia-Pacific region (Working Paper) The paper examines the degree to which STI related provisions are included in IIAs, and provides further analysis of STI-related provisions by categorization based on common themes, such as technological and technical cooperation, information technology, clean technology, and Intellectual Property Rights (IPR), separately for bilateral investment treaties (BITs) and regional trade agreements (RTAs). The paper concludes by suggesting areas for future research.
Thank you For more: www.unescap.org/tii www.aptirreportlink.com http://www.unescap.org/events/seventh-meetingasia-pacific-foreign-direct-investment-fdi-network http://www.unescap.org/resources/sciencetechnology-and-innovation-internationalinvestment-agreements-asia-pacific-region