Foreign Direct Investment in ASEAN countries

Foreign Direct Investment in Southeast Asia

Foreign Direct Investment – FDI – is a strong driver of economic development around the world and particularly in Southeast Asia, where high growth potential attracts more investors. These presentations review the different FDI regulations in each ASEAN coutry together with summaries of FDI volume and sectors data.

Foreign Direct Investment regulations in ASEAN countries

These first slides present an overview of FDI laws and regulations in Southeast Asia with details on each ASEAN member country regarding investment from public and private, foreign and local, small or large and formal or informal companies.

Reviewing questions from a large panel, this presentation designed for policy makers can also guide potential investors and businesses to properly appraise each countries’ investment regulations in following domains:

  • investment
  • ease of doing business
  • land ownership
  • intellectual property rights
  • sector specific regulations
  • human resource
  • expropriation

Investment Climate Reform in Southeast Asia – summary

  • Policy Framework for Investment – slide 2
  • Investment policy – slide 4
  • The ease of doing business – slide 5
  • Doing business in ASEAN – slide 6
  • Land ownership and registration – slide 7
  • Foreign ownership of land in ASEAN – slide 8
  • Intellectual property rights – slide 9
  • Non-discrimination – slide 10
  • ASEAN approaches to non-discrimination – slide 11
  • Forms of discrimination against foreign investors – slide 12
  • Different approaches to screening – slide 13
  • Costs/benefits of screening – slide 14
  • Possible PFI questions on screening – slide 15
  • Sectoral restrictions – slide 16
  • Restrictions on key personnel – slide 17
  • Other restrictions – slide 18
  • OECD FDI Regulatory Restrictiveness Index – slide 19
  • OECD regulation restrictiveness index full sample – slide 20
  • ASEAN economies are generally more restrictive across sectors than OECD – slide 21
  • FDI Index scores vs FDI stocks (as % of GDP) in ASEAN9 countries – slide 22
  • Fewer FDI restrictions mean more FDI – slide 23
  • Possible additional PFI questions: negative lists – slide 24
  • Expropriation – slide 25
  • Protection against expropriation in AMS – slide 26
  • International investments agreements – slide 27
  • IIAS in force in the ASEAN region – slide 28
  • Dispute settlement – slide 29
  • Approach to International investment agreements in ASEAN – slide 30
  • Further information – slide 31

State and data on Foreign Direct Investment in Southeast Asia in 2014

This second presentation illustrates how Foreign Direct Investments are currently following a positive trend in Southeast Asia, as foreign investors generally have a very positive outlook on the region even though some challenges remain to dealt with.

Overview of Foreign Direct Investment in Southeast Asia in 2014 – summary

  • Outline – slide 2
  • Global FDI is still significantly below pre-crisis level – slide 3
  • FDI in ASEAN is at record levels – slide 4
  • FDI in ASEAN may be even greater than what AMS report – slide 5
  • MNE employment show even stronger growth – slide 6
  • US investors are turning towards the regional markets – slide 7
  • What can explain the recent performance of ASEAN in terms of FDI? – slide 8
  • Strong FDI performance… but challenges remain – slide 9
  • Benchmarking restrictiveness across countries and over time – slide 10
  • FDI liberalization in Indonesia 1985-2009 – slide 11
  • Investment policy reform in Korea and its impact on FDI inflows – slide 12
  • Fewer FDI regulation means more FDI – slide 13
  • FDI Index scores vs FDI stocks (as % of GDP) in ASEAN9 countries – slide 14
  • ASEAN economies are generally more restrictive across sectors than OECD – slide 15
  • Embodied services are an important part of exports – slide 16
  • FDI restrictions affect the share of services value added in exports – slide 17
  • Conclusion – slide 18
  • Further information – slide 19

More information on Foreign Direct Investment in ASEAN

For more information:

Presentations from March and December 2014 respectively by Stephen Thomsen of OECD

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