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

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specific types of local people). All of these problems can certainly be impediments tonew foreign entry or expansion of investment by existing foreign firms.The six categories of impediments related to FDI facilitations are as follows: v)“lack of transparency in policies and regulations concerning investment (institutionalproblems)”, vi) “complicated and/or delayed procedures with respect to investmentrelatedregulations (implementation problems)”, vii) “insufficient protection ofintellectual property rights (IPRs)”, viii) “labor regulations and related practicesexcessively favorable to workers”, ix) “underdeveloped infrastructure, shortages ofhuman resources, and insufficient investment incentives”, and x) “restricted competitionand price controls”. 8Categories v) “lack of transparency in policies and regulations concerninginvestment” and vi) “complicated and/or delayed procedures with respect to investmentrelatedregulations” cover issues concerning various investment-related regulations in8 Category v) corresponds to 5. regulations on policies of supporting industries, 7. implementingprocedure for Foreign Capital Act, 8.issues of FDI hosting agencies, 9.regulations on export/importactivities and customs clearance, 10.restrictions on activities in free trade zones (FTZs)/specialeconomic zones (SEZs), 14.taxiation, 19.(industrial) standards and conformity, 22.issues ofenvironmental pollution and waste disposal, 24.lack of legal regulations/sudden changes inregulations, and 26.others in the JMC survey. Note that some of the issues in these categories in theJMC survey are classified as those in category vi) when they are the issue of implementation. Inaddition, category vi) includes 4.regulations on withdrawal of operations and 23.inefficientadministrative procedures of various regulations, in the JMC survey. Category vii) is composed of17.problems of IPRs, category viii) consists of a part of 16.labor, the category ix) includes6.diminished incentives for FDI, 13.finance, 16.labor (human capital-related), and 26.others(infrastructure-related), and category x) takes in 15.price control and 20.monopoly.192
terms of institutional problems and implementation problems, respectively. Category v)“lack of transparency in policies and regulations concerning investment” is specificallyconcerned with sudden and/or frequent changes (without notification in advance), nontransparency,ambiguity in various investment-related regulations and lack of certainregulations, while category vi) “complicated and/or delayed procedures with respect toinvestment-related regulations” covers problems in implementing regulations onestablishments, approval of foreign entry, taxation, customs clearance,withdrawal/reorganization of operations, arbitrary and/or inconsistent interpretation andimplementation of various regulations, and other such matters. Examples of problemsin categories vii) “insufficient protection of IPRs”, viii) “labor regulations and relatedpractices excessively favorable to workers”, ix) “underdeveloped infrastructure,shortages of human resources, and insufficient investment incentives”, and x) “restrictedcompetition and price controls” include the following: insufficient protection of IPRsand issues involving patents for category vii), non-modern labor regulations that areexcessively favorable to workers, such as difficulty in firing workers, drastic/frequentchanges in minimum wage levels, never decreasing wages, and restrictions ontemporary workers for category viii), underdeveloped physical infrastructure andlogistics, shortages of human resources such as management staff and engineers, andhigh turnover ratios for category ix), and oligopolistic market structure andmonopolistic pricing for category x).Most of the problems classified into categories iv) to x) are not necessarilydiscriminatory measures aimed at foreigners but are, rather, domestic problems inside193
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 and 24: 3.2. The ResultsThe results of our
Page 25 and 26: Examining the average scores for th
Page 27 and 28: Table 3.3. Assessment of Market Acc
Page 29 and 30: 4. Assessment of FDI Environments b
Page 31: The four categories of impediments
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

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