CHAPTER I Global Investment Trends

CHAPTER I Global Investment Trends 31
Table I.8. Distribution of State-owned TNCs by
home region/economy, 2010
Region/economy Number Share
World 653 100
Developed countries 285 43.6
European Union 223 34.2
Denmark 36 5.5
Finland 21 3.2
France 32 4.9
Germany 18 2.8
Poland 17 2.6
Sweden 18 2.8
Others 81 12.4
Other European countries 41 6.3
Norway 27 4.1
Switzerland 11 1.7
Others 3 0.5
United States 3 0.5
Other developed countries 18 2.8
Japan 4 0.6
Others 14 2.1
Developing economies 345 52.8
Africa 82 12.6
South Africa 54 8.3
Others 28 4.3
Latin America and the Caribbean 28 4.3
Brazil 9 1.4
Others 19 2.9
Asia 235 36.0
West Asia 70 10.7
Kuwait 19 2.9
United Arab Emirates 21 3.2
Others 30 4.6
South, East and South-East Asia 165 25.3
China 50 7.7
India 20 3.1
Iran, Islamic Republic of 10 1.5
Malaysia 45 6.9
Singapore 9 1.4
Others 31 4.7
South-East Europe and the CIS 23 3.5
Russian Federation 14 2.1
Others 9 1.4
Source: UNCTAD.
Note: While the number is not exhaustive, major SOE
investors are covered.
also are dwarfed, in most cases, by the total number
of SOEs in each respective economy. For example,
there are some 900 SOEs in France, while in China,
State sole-funded enterprises and enterprises with
the State as the largest shareholder numbered
roughly 154,000 in 2008. This suggests that the
number and proportion of SOEs that have become
transnational is relatively small.
State-owned TNCs tend to be most active in
financial services and industries that are capitalintensive,
require monopolistic positions to gain
the necessary economies of scale, or are deemed
to be of strong strategic interest to the country.
Roughly 70 per cent of State-owned TNCs operate
in the services sector, led by financial services,
which accounts for 19 per cent of all State-owned
TNCs, transport, storage and communications (16
per cent) and electricity, gas, and water (10 per
cent). Some 22 per cent of State-owned TNCs
are in manufacturing industries, mainly automotive
and transport equipment (4 per cent of all Stateowned
TNCs), chemicals and chemical products
(3 per cent) and metals and metal products (3
per cent) (table I.9). The remaining 9 per cent are
located in the primary sector and are mainly active
in extractive industries.
Table I.9. Distribution of State-owned TNCs
by sector/industry, 2010
Sector/industry Number Share
Total 653 100
Primary 56 8.6
Mining, quarrying and petroleum 48 7.4
Others 8 1.2
Manufacturing 142 21.7
Food, beverages and tobacco 19 2.9
Wood and wood products 12 1.8
Coke, petroleum and nuclear fuel 11 1.7
Chemicals and chemical products 20 3.1
Metals and metal products 20 3.1
Motor vehicles and other transport equipment 27 4.1
Others 33 5.1
Services 455 69.7
Electricity, gas and water 63 9.6
Construction 20 3.1
Trade 42 6.4
Transport, storage and communications 105 16.1
Finance 126 19.3
Holding 27 4.1
Insurance 17 2.6
Rental activities 14 2.1
Business services 18 2.8
Others 23 3.5
Source: UNCTAD.
Note: While the number is not exhaustive, major SOE
investors are covered.
The transnationality index (table I.7), and the share
of their affiliates located abroad (figure I.26), are
each indicative of the internationalization of Stateowned
TNCs. State-owned TNCs from West Asia
show the highest levels of internationalization by the
latter measure (the former measure is not available
for many developing country State-owned TNCs),
with on average 47 per cent of their affiliates being
located abroad. Those based in the other major
developing regions – Africa, Latin America and the
Caribbean, and South, East, and South-East Asia
– are less internationalized, with less than half of