Foreign direct investment in Southeast Asia: - Regional Office China

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enchmark rankings should be one aim of policy-makers and investmentpromotion agencies (IPAs). But more importantly, as it is virtuallyimpossible to move up across all rankings simultaneously, it is the judiciousselection of nationally relevant variables from among the benchmarks -- andtheir significance in attracting FDI -- that should be the focus of attention bypolicy-makers and IPAs. In this sense, the encouragement from PeterBuckley to “look behind the figures”, to see what could and should bechanged, was welcome.Commentary and discussionBrian Caplen noted that roughly three quarters of world trade is nowconducted within MNEs (i.e. shipping goods from one part of a transnationalfirm to another) and their global factory. The challenge for policy-makers ishow to insert their country into this global factory, at a time when we arealso moving towards a more rules-based approach to trade in goods andservices, as a result of World Trade Organization (WTO) and other bodies.East Asia’s track record in responding to past challenges is fairly impressive,as evidenced by the far-sighted policies enacted by Singapore to attract FDIin the 1960s and 1970s, when it went against conventional thought. EastAsia was also the first region to embrace outsourcing, initially in the textileindustry. Looking ahead, the rise of ‘virtual companies’ poses newchallenges for most countries in Southeast Asian countries and beyond, asdoes the competitive ‘pull’ exerted by China. Possible responses includediversification and specialisation, along a narrow range of specificcomparative advantages, typically stemming from specific technological orinnate skill advantages. The increasing value of a “level playing field” forboth domestic and foreign investors was also underscored as beingimportant.One constant is MNEs’ need for consistency and transparency in policymakingby host countries, and an aversion to gratuitous bureaucracy and redtape (which are often associated with corruption). For firms involved inproduction or services at the higher end of the value chain, the general14
quality of life in a country can be essential in attracting the necessary talent,and therefore is an important determining factor in locating an investment.The provision and quality of after care service for investors (i.e. assistanceprovided by the IPA to an MNE, after the initial investment has been made)can also be an important determinant, notably in terms of reinvestment byexisting investors. In Thailand, for example, the Board of Investment (BOI)has introduced a trouble-shooting unit, to assist foreign investors with anyproblems that they may subsequently encounter.Looking ahead, in-depth analyses of what countries did best in relation to thestrategies of regional neighbours resonates with international best practice inpro-FDI policy craft.15
Page 3: Foreign Direct Investment in Southe
Page 7 and 8: PrefaceThis UNIDO report presents t
Page 9 and 10: PreambleWithin the constantly evolv
Page 11 and 12: IntroductionThe Changing Face of Fo
Page 13 and 14: Theme 1FDI and Multinational Enterp
Page 15: These include: i) changes in long-t
Page 19 and 20: consequence, as well as in terms of
Page 21 and 22: high-technology cluster development
Page 23 and 24: Theme 3FDI, Boundaries, Hierarchies
Page 25 and 26: A second dimension is that incentiv
Page 27 and 28: industrial sector and sub-sector le
Page 29 and 30: industrial base without relying to
Page 31 and 32: socialising public goods and privat
Page 33 and 34: Typically, but not exclusively, Sin
Page 35 and 36: generate tax revenues to fund vario
Page 37 and 38: cumulatively serving to constrain F
Page 39 and 40: Southeast Asia as an integrated mar
Page 41 and 42: Theme 5FDI and Capital in Southeast
Page 43 and 44: Finally, there is also a need for i
Page 45 and 46: components of the integrated global
Page 47 and 48: ConclusionEmerging Policy Direction
Page 49 and 50: In conclusion, Frank Bartels sugges
Page 51 and 52: Taking the above research needs int
Page 53 and 54: Annex 1:Presenters at the EGMName P
Page 55 and 56: TIMOR LESTEMs. Warubon SUKASAMEMr.
Page 57 and 58: 14:00 - 15:30 Theme II: Intra-regio
Page 59 and 60: y Japan ITPOsCommentator: Frank L.
Page 61 and 62: This type of deep information excha
Page 63 and 64: The extent of FDI effects and their
Page 65 and 66: Appendix IV: Opening Statement by U
Page 67 and 68:
only of UNIDO but also other UN spe
Page 69 and 70:
LIST OF ABBREVIATIONSAFTA - ASEAN F
Page 71 and 72:
in mind that host policy for attrac
Page 73 and 74:
forces of competition and co-operat
Page 75 and 76:
2. BACKGROUND ISSUESAn accurate per
Page 77 and 78:
economies. In contrast, Sub-Saharan
Page 79 and 80:
costs, boost quality and accelerate
Page 81 and 82:
Fourthly, in terms of a framework f
Page 83 and 84:
in joint venturing), while retainin
Page 85 and 86:
experiencing the kind of global rel
Page 87 and 88:
other hand, being predominantly nat
Page 89 and 90:
Also, the trade surplus (or deficit
Page 91 and 92:
limited [Freeman and Bartels (2000)
Page 93 and 94:
technology and innovation policy; h
Page 95 and 96:
Credit Information Index NA 0 3 0 6
Page 97 and 98:
Appendix II - Investment climate in
Page 99 and 100:
REFERENCESAlmor T., Hirsch S., 1995
Page 101 and 102:
Freeman N. J., Bartels F. L., Eds.,
Page 103:
Trigeorgis L., 1996, Real Option: M
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