Chapter 4 Investment Climate Study of ASEAN Member ... - ERIA

More documents

Recommendations

Info

Table 3.2. Assessment of FDI Policy Regimes of ASEAN CountriesTable 3.2 Assessment of FDI Policy Regimes of ASEAN CountriesTotal score Market National Screening Board of Movement Performanceaccess treatment & appraisal directors of investors requirementweight 1 0.4 0.2 0.1 0.1 0.1 0.1Brunei 0.394 0.243 0.795 0.434 0.590 0.180 0.180Cambodia 0.242 0.140 0.183 0.622 0.000 0.750 0.117Indonesia 0.375 0.364 0.198 0.789 0.308 0.546 0.255Lao, PDR 0.428 0.392 0.410 0.608 0.250 0.793 0.245Malaysia 0.438 0.320 0.833 0.250 0.397 0.562 0.227Myanmar 0.463 0.378 0.401 0.921 0.399 0.714 0.284Philippines 0.237 0.257 0.279 0.112 0.519 0.043 0.107Singapore 0.175 0.197 0.143 0.154 0.356 0.074 0.091Thailand 0.300 0.423 0.000 0.500 0.000 0.805 0.000Vietnam 0.315 0.338 0.262 0.364 0.286 0.469 0.152Average 0.339 0.305 0.350 0.475 0.310 0.494 0.194Standard deviation 0.100 0.092 0.272 0.266 0.193 0.296 0.113Note: See the main text for the explanation of the scoring systemNote: See the main text for the explanation of the scoring systemSource: Authors' computationSource: Authors’ computation184
Examining the average scores for the ASEAN countries by issue areas, one findsthat ASEAN countries have restrictive FDI regimes in the areas of the movement ofinvestors and the screening and appraisal procedures for FDI applications, as theiraverage scores are similarly high at 0.494 and 0.475, respectively, compared to anoverall average of 0.339. Having pointed out the problems with the movement ofinvestors and screening and appraisal procedures for FDI applications in the ASEANcountries, it should be noted that there are wide variations in these scores among theASEAN countries, reflecting a diversity in the seriousness of those problems amongthem, as shown by high standard deviations. Movement of investors is particularlyrestrictive in Thailand, Cambodia, and Myanmar, while screening and appraisalprocedures are particularly restrictive in Myanmar, Indonesia, Cambodia and Lao, PDR.The lack of national treatment is a serious problem in Malaysia and Brunei. InMalaysia there are a number of cases where foreign companies are not treated equallywith local companies. For example, foreign companies are only allowed to acquire landup to a certain amount. In several industrial sectors foreign companies are required toform joint ventures with local companies. In Brunei the government reserves the rightto impose any restrictions with respect to national treatment. Restrictions on boards ofdirectors and management composition are rather severe in Brunei and the Philippines,where the majority of board directors have to be local.Let us examine the restriction on the right of establishment, or market access, whichis considered to be the most important policy regarding inward FDI. Table 3.3 showsthe results of our assessment of market access for the ASEAN countries by sector.185
Page 1 and 2: Chapter 4Investment Climate Study o
Page 4 and 5: Figure 1.1 FDI Inflows to ASEAN and
Page 6 and 7: Although ASEAN members have been ex
Page 8 and 9: discern the business environment in
Page 11 and 12: The Doing Business Database evaluat
Page 13 and 14: Table 2.2. Components of Ease of Do
Page 15 and 16: may not directly influence the inve
Page 17 and 18: Similarly to the rankings in Doing
Page 19 and 20: Table 2.4. The Most Problematic Fac
Page 21 and 22: PECC (2002) evaluated FDI regimes o
Page 23: 3.2. The ResultsThe results of our
Page 27 and 28: Table 3.3. Assessment of Market Acc
Page 29 and 30: 4. Assessment of FDI Environments b
Page 31 and 32: The four categories of impediments
Page 33 and 34: terms of institutional problems and
Page 35 and 36: 4.2. The ResultsTable 4.2 summarize
Page 37 and 38: Table 4.3. Investment Climate in AS
Page 39 and 40: Fourth, most problems identified ar
Page 41 and 42: The major problems identified in ma
Page 43 and 44: include a nationality requirement f
Page 45 and 46: To sum up, ASEAN economies as a who
Page 47 and 48: procedures of customs clearance, ar
Page 49 and 50: difficulty of administrative proced
Page 51 and 52: and road and traffic, and insuffici
Page 53 and 54: underdevelopment, ambiguity, and su
Page 55 and 56: Impediments to Foreign Direct Inves
Page 57 and 58: The Sources Used for the Analysis o
Page 59 and 60: Supporting documents(1)ICFTU (2005)
Page 61 and 62: investment certificates of foreign-
Page 63 and 64: (Continue)2009-2010 2008-2009Brunei
Page 65 and 66: Lao PDR Total Market accessNT Scree
Page 67 and 68: Vietnam Total Market accessNT Scree
Page 69 and 70: (Continue)Category2009 2008 2005Ind
Page 71 and 72: (Continue)Category2009 20082005Indo

Chapter 4 Investment Climate Study of ASEAN Member ... - ERIA

Create successful ePaper yourself

Delete template?

Save as template?