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

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Discussion by countryIn the following, we briefly discuss major problems by country.Brunei (0 incident, 1 Japanese affiliate)For Brunei, no problems are identified in JMC Survey 2009, though one problemwas identified in JMC Survey 2005 in category v) lack of transparency in policies andregulations concerning investment: ambiguity of government procurement procedures.It should be noted that few Japanese affiliates operate in Brunei, leading to lowprobability of incidents.10Cambodia (14 incidents, 10 Japanese affiliates)The categories with issues identified are v) lack of transparency in policies andregulations concerning investment (5),11vi) complicated and/or delayed procedureswith respect to investment-related regulations (3), and ix) underdevelopedinfrastructure, shortages of human resources, and insufficient investment incentives(6). The examples include underdevelopment, ambiguity, and lack of transparency ofvarious legal regulations and institutions for category v), complexity of administrative10 In Brunei, some non tariff measures (NTMs) are applied to many tariff lines, including technicalmeasures for food industries, automatic licensing measures and import quotas for machineryindustries, and automatic and non-automatic licensing measures for chemical and woodenindustries. These measures may influence the investment climate indirectly. See Ando (2009) andAndo and Obashi (2009) for an analysis of NTMs, using frequency ratios of NTMs by type andindustry.11 The number of incidents is shown in parenthesis.206
procedures of customs clearance, arbitrary interpretation in implementing customs andtaxations, and corruption for category vi), inadequate infrastructure such as electricitysupply, road and traffic, and telecommunication, and underdevelopment of financialmarkets for category ix).Indonesia (68 incidents, 659 Japanese affiliates)Major categories are vi) complicated and/or delayed procedures with respect toinvestment-related regulations (23), v) lack of transparency in policies and regulationsconcerning investment (13), i) restrictions on foreign entry (10), and ix)underdeveloped infrastructure, shortages of human resources, and insufficientinvestment incentives (9). While the number of incidents slightly declined in thecategories concerning FDI facilitation from 52 in 2005 to 50 in 2009, the number ofissues increased in those relating to FDI liberalization from 10 in 2005 to 14 in 2008and 17 in 2009. As a result, the total number of incidents slightly increased from 62 in2005 to 67 in 2009. One should note that the number of incidents of restrictions onforeign entry, which is one of the categories for FDI liberalization, increased from 5 to10. Such a change seems to have been caused by the introduction of a more restrictive“new negative list” (in effect since July 2007) which specifies the sectors in which noforeign entry is allowed, as well as sectors subject to certain conditions for foreignequity participation, particularly in the service sectors. Examples include complexity,delay, and inefficiency of various administrative procedures, arbitrary interpretation inimplementing regulations, and corruption under category vi), underdevelopment,207
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 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: To sum up, ASEAN economies as a who
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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