Foreign Direct Investment (fDi)
SECTIONS » ASIA
  • Retail giant finally follows rivals into the subcontinent in an outlet joint venture with local company Tata.


  • It’s easy to be bearish on Asia, with its dependence on the US, disasters, disease and so on. The recent triple whammy of the Lehman Brothers bankruptcy, Merrill Lynch takeover and AIG rescue has also shaken Asian markets briefly.


  • HSBC and Standard Chartered will be the first foreign banks to open operations in Vietnam as the country liberalises its banking sector.


  • UK acrylic products manufacturer Lucite is opening a $500m plant in Singapore in October, where it will begin a new process for cheaper acrylic.



  • Industrialist and Infosys chairman N R Narayana Murthy talks to Michelle Price about the challenges for the Indian IT services sector, and the economy in general.


  • Margarito Teves

    The impact of the international slowdown on the Philippines economy has been more severe than expected, but revenue collections and overseas remittances remain strong, the finance secretary tells Ian Gill.


  • Tightening land supply policies add new constraints to investing in China, say James Ku and Amanda Zheng.


  • Korea has succeeded in making itself a more conducive place to do business with an eye on using FDI revenues to kick-start its flagging economy, writes Jules Stewart.


  • Coffee shop chain follows US closures with a huge withdrawal from Australian market, citing poor sales.


  • One reads with increasing frequency of Asia’s disasters and diseases: Chinese earthquakes with a death toll more than 20,000, a Myanmar cyclone that left about 62,000 dead or missing, dengue fever in Singapore, Sri Lankan flash floods, Asian bird flu, and a drought that forced more than 10,000 Australian farmers off land.


  • UK mining group Vedanta Resources is planning to invest $20bn in India in the next four years to expand its metals, mining and electricity generation operations in the country.


  • Tougher intellectual property laws being proposed in China will require foreign companies to register patents there first or risk losing legal protection of the patent.



  • Ajith Nivard Cabraal, Sri Lanka’s Central Bank Governor

    Ajith Nivard Cabraal, Sri Lanka’s Central Bank Governor, tells Lara Williams that the central bank’s inflation-raising policies will help the country’s economy withstand the global downturn and lead Sri Lanka to a brighter future.


  • China is second only to the US in auto production – which explains why car manufacturer Ford plans to expand there. Lara Williams reports.


  • Spiralling costs in coastal cities are driving more foreign investors towards China’s interior. However, as David Lammie reports, transport connections will need to improve if the cost equation is to add up.


  • US car giant makes plans to expand production in China, Thailand and India as domestic sales slump.


  • The Indian government is offering its IT outsourcing industry a $1bn tax break to stimulate more foreign investment and job creation in the sector.


  • Japan’s cabinet has called for policy changes to reverse the county’s protectionist reputation and increase foreign direct investment.



  • The economic ministers of the Association of South-east Asian Nations (ASEAN) are working to establish the ASEAN Economic Community (AEC) by 2015 to achieve the broader goal of the region becoming a single, integrated, seamless market and serving as an international production base.


  • Supachai Panitchpakdi, UNCTAD’s secretary-general

    UNCTAD’s secretary-general, Supachai Panitchpakdi, speaks to Lara Williams about his efforts to strengthen the organisation’s role in helping to integrate developing countries into the global economy.


  • Suwit Khunkitti, Thailand’s deputy prime minister and minister of industry

    Following the turbulence of the 2006 military coup that removed Thaksin Shinawatra from office, Thailand’s new government is working to prove to foreign investors that it provides a stable environment to do business. Courtney Fingar reports.


  • Last year was record breaking for foreign investment in Vietnam but inflation and an ever-present trade deficit are threatening to bring the good times to an end, writes Nick Freeman.


  • Datuk R Karunakaran, MIDA director-general

    Malaysia is keeping up the momentum of its drive to bring FDI into every major area of its economy in an effort to stay ahead of the regional competition. Jules Stewart reports.


  • As Malaysia’s government focuses on achieving the policies already set in motion, Jules Stewart reports on the economic corridors that are expected to deliver future growth for the country.


    • Kyrgyzstan is waiting for the government’s approval of the planned sale of Kyrgyzgaz and Kyrgyzneftegaz in the oil and gas sector.

    • Korea is planning a wave of privatisations, which include the Korea Development Bank, Woori Financial Group and the Industrial Bank of Korea over the course of 2008 and next year.

    • Pakistan has approved the divestment of the government’s share in the SME Bank. The country has received $2bn in proceeds from privatisation in the 2006/07 financial year.

  • In a drive to improve productivity, P&G is restructuring international operations and cutting senior staff.


  • East Asia is overtaking Western Europe in international patent registrations, demonstrating a global shift in knowledge-based businesses.


  • Despite rising inflation and the US economic slowdown, India’s computer services sector increased full-year revenue by an estimated 33%, according to the National Association of Software Services Companies (Nasscom).



  • The economic ministers of the Association of Southeast Asian Nations’ (ASEAN) are working to establish the ASEAN Economic Community (AEC) by 2015 to achieve the broader goal of the region becoming a single, integrated, seamless market and serving as an international production base. Global businesses should begin their business planning to prepare for this economic integration as ASEAN economies become more interdependent.


  • China Construction Bank is the third largest bank in China and the 14th largest in the world. Stephen Timewell talks to chairman Guo Shuqing about his overseas ambitions and strategy.


  • Rocky T Lee,DLA Piper

    The appointment of an international lawyer as vice-chairman of the CCIIP Is a surprising move by China. However, Rocky Lee explains to Karen E Thuermer how his legal experience makes him ideal for such a role.


  • Mike Rowse, Invest Hong Kong

    The head of Invest Hong Kong tells Harrison Mitchell that the city’s status as a business destination is as much to do with its location as with its financial expertise.


  • Improved education and better living standards are resulting in a bigger pool of IT talent in India, and new ways of working are transforming outsourced financial services. Brian Caplen reports.


  • Coal shortages cause transport and power failures as China strains under the demands of its rapid growth.


  • Japan’s top government advisory panel has warned that the country must open its economy to foreign investment in order to boost growth.


  • South Korean president Lee Myung-bak has pledged to boost inward investment levels in the country, as they declined for the third consecutive year in 2007.



  • Branding a nation, location or city in Asia is not just advertising. Asia-Pacific cities must develop a global reputation of creating and adding value and yet concurrently command emotional resonance as part of their unique selling proposition.


  • Indonesia’s finance minister Dr Sri Mulyani Indrawati tells Neil Sen that she is aiming for sustainable growth and an end to corruption that will benefit the whole population.


  • Xiao Gang, chairman of Bank of China

    Xiao Gang, chairman of Bank of China, talks to Stephen Timewell about the bank’s domestic and international strategy for the coming year.


  • Kosit Panpiemras, Thailand’s deputy prime minister, speaks to Brian Caplen about how Asean countries must transform their trade and investment policies by the time the association’s regional free trade zone is launched.


  • Beneath a broader debate about the merits of competitive trade liberalisation, Jeffrey Robertson finds local Korean business owners eagerly anticipating access to new markets.


  • Thailand sets target of four-fold sector expansion over next five years, with particular focus on healthcare.


  • Novartis has inaugurated a pharmaceutical manufacturing site in Tuas, Singapore, adding capacity to help support new product launches in the US and Japanese markets.


  • Rolls-Royce is to assemble some of its big jet engines for wide-body commercial jets outside the UK for the first time at a test and assembly plant in Singapore, the Financial Times has reported.



  • Looking ahead to Asian FDI trends for 2008, we expect Asian companies to seek out investment opportunities in tier-two and even tier-three Asian cities as they invest almost equally in both manufacturing and services due to increasing competition. More knowledge-based investment activities will also grow.


  • Nguyen Van Giau, Vietnam’s central bank governor

    Since Vietnam loosened restrictions on banking, applications for licences have flooded in from foreign players and non-banks. Central bank governor Nguyen Van Giau will have to be tough in making the decisions to grant them. Interview by Karina Robinson.


  • Japan’s recently elected prime minister, Yasuo Fukuda, is keen to press ahead with FDI targets and seeks to develop closer ties with the neighbouring Asian countries, writes Jules Stewart.


  • India is priming itself for the arrival of a low-cost ‘people’s car’, which is due to hit the market by the end of the decade, reports N Chandra Mohan.


  • FDI figures show India narrowing the gap with China whose direct investment levels are flattening out.


  • According to the United Nations Conference on Trade and Development, (UNCTAD), investing abroad is still a relatively recent phenomenon for many Asian firms, which tend to focus on intra-regional FDI.


  • A Chinese court has ordered a French company to pay $45m in damages to a Chinese company in a dispute over patents – the largest ever sum for an intellectual property case in China.


  • FDI inflows to Australia almost doubled in the year ending June 2007, to reach A$35bn ($31bn) -- a financial-year record for the country.



  • German automotive component manufacturer Behr is expanding its operations in China in order to meet projected demand growth of 40%, writes Lillie Guyer.


  • Benefiting from scarce supply and high demand for office units, developers and investors are swarming into the Malaysian commercial market, write Nadine Marroushi and Jon Marks.


  • Hong Kong’s booming property market will eventually hit a ceiling, requiring China to open up the mainland, says Sarah Walker.


  • Some 250 Fortune 500 companies are drawing on India’s R&D talent to develop new products and technologies,writes Premila Nazareth Satyanand.


  • Armed with generous incentives, and three new free zones, South Korea sets out to prove its commitment to foreign investment. Jules Stewart reports.


  • Incheon Free Economic Zone is part of South Korea’s plan to keep an important role in North-East Asia. Jules Stewart reports on its progress.


  • Dr Ki-jae Song, head director of Gunsan Cluster Development Agency

    Gunsan offers easy access to Korea’s major cities, excellent port facilities, corporate investor grants and above all, proximity to China, writes Jules Stewart.


  • Elim Chew, managing director of Singaporean fashion chain 77th Street, explains the company’s international strategy to Lawrence Yeo.


  • South-east Asia may have grabbed the headlines on regional FDI growth, but private firms in countries such as Thailand, Indonesia and Cambodia cannot leave increasingly complex promotion activities to government agencies – they must act themselves, says Lawrence Yeo.


  • Businesses that can provide for the needs of the poor and ageing populations of Asia can help them climb out of poverty and, in return, receive the benefits that access to a gigantic consumer base can bring, says Lawrence Yeo.


  • Will there be an Asia revival this year? Lawrence Yeo finds Asian companies teeming with enthusiasm and looks at the developments that could help the region’s economies to climb up the FDI ladder.


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