Figure 4.1. Decomposition <strong>of</strong> the incidents into 10 categories: <strong>ASEAN</strong> 10 in 2009Figure 4.1 Decomposition <strong>of</strong> the incidents into 10 categories: <strong>ASEAN</strong>10 in 2009viii)7%vii)2%ix)17%x)2%i)10% ii)3% iii)5%iv)3%v)21%vi)30%Data source: Table 4.2.Note: i) to iv) indicates four categories for FDI liberalization and v) to x) indicatessix categories for FDI facilitation. Figures express shares <strong>of</strong> each category. SeeData source: Table 4.2. 4.1 for 10 categories.Note: i)to iv) indicates four categories for FDI liberalization and v) to x) indicates six categoriesfor FDI facilitation. Figures express shares <strong>of</strong> each category. See Table 4.1. for 10 categories.200
The major problems identified in many countries for category v) areunderdevelopment, lack <strong>of</strong> transparency, ambiguity, sudden changes, frequent changes,and uncertainty <strong>of</strong> various legal regulations and institutions, particularly thoseconcerning taxation, investment incentives, safety and environmental standards andconformity, and financial markets, including exchange rates. The major problems forcategory vi) are complexity, delay, difficulty, and inefficiency <strong>of</strong> variousadministrative procedures, arbitrary interpretation in implementing regulations,corruption, smuggling, particularly complicated customs clearance procedures,delayed, difficult, inefficient, and complicated procedures for visa application andrenewal, import tariff reimbursement/exemption, value-added tax exemption(including non-implementation) procedures, taxation, and withdrawal <strong>of</strong> business,arbitrary and/or inconsistent interpretation and implementation <strong>of</strong> safety certification,customs clearance, and arbitrary tax collection. 9Categories v) and vi) are followed by another category classified under FDIfacilitation, category ix) underdeveloped infrastructure, shortages <strong>of</strong> human resources,and insufficient investment incentives (17 percent <strong>of</strong> total incidents). It suggests thatan access to necessary infrastructure, human resources, and investment incentives isalso an important factor for firms in making the decision to entering a new country orexpand operations in the host country. Major problems in category ix) are asfollows: difficulty in hiring and securing human resources due to shortages <strong>of</strong>management staff and engineers, high turnover ratios, underdevelopment <strong>of</strong> industrial9 Delays in procedures are sometimes a result <strong>of</strong> their complicated nature.201