ASEAN: bet88 con destination of global investment flows

bet88 con latest foreign direct investment (FDI) data showed that global FDI inflows dropped by 2 per cent in 2023 to a total of .33 trillion, while ASEAN saw record inflows for bet88 con third year with a gain of 1.2 per cent to 6.3 billion, driven by robust economic growth and strong integration into global value chains.

bet88 con Global Direct Investment Flow Separation

Global FDI inflows totaled .33 trillion in 2023, a 2 per cent drop from 2022, which bet88 con United Nations Conference on Trade and Development (UNCTAD) attributed to bet88 con “wild swings” in a small number of European conduit economies, partly due to bet88 con global minimum tax (GMT) for large multinational enterprises (MNEs) as well as “a big drop” in bet88 con value of cross-border M&As in developed markets. Excluding bet88 con effect of these conduits, bet88 con headline global FDI inflows in 2023 experienced a far larger decline, down by more than 10 per cent year-on-year, while inflows to developing markets shrank by 7 per cent, led by Developing Asia, bet88 con largest FDI recipient, which dropped by 8 per cent, according to UNCTAD.

Despite bet88 con decrease, FDI inflows into Asia remain at high levels, reaching 1 billion, and bet88 con region stayed as bet88 con largest recipient of FDI, accounting for nearly half of global inflows.

bet88 con East Asian region (including China, Japan, and South Korea) also experienced significant declines due to China's drop, but stable flows into ASEAN were maintained thanks to strong economic growth and numerous global value chain connections.

In Developing Asia, inflows to China fell by 14 per cent to 3.3 billion, and to India plunged by 43 per cent year-on-year to .2 billion. In contrast, inflows to ASEAN rose 1.2 per cent to 6.3 billion in 2023, although bet88 con distributions were uneven, gripped by tight monetary policy conditions worldwide. Among ASEAN members, Singapore remained bet88 con largest destination, rising 13 per cent to nearly 0 billion, while Vietnam saw a smaller increase of 3.4 per cent to .5 billion. However, Indonesia, Malaysia, and Thailand reported year-on-year declines of 15 - 59 per cent, following broader global trends during bet88 con year as economic activities slowed in response to tight monetary policies by various central banks.

bet88 con United States remained bet88 con largest contributor of FDI inflows to ASEAN since at least 2019. bet88 con US accounted for 32 per cent share of total inflows to ASEAN in 2023, more than doubling from bet88 con 13 per cent share in 2022 and bet88 con average value of 12 per cent in 2010-2019, suggesting that rising US-China tensions, bet88 con shifting of supply chains, and de-risking/ “friend-shoring” continue to be bet88 con main motivating factors.

Similar to bet88 con US but at a much smaller scale, inflows from Europe have increased significantly compared to historical averages. For example, inflows from Switzerland and Germany saw multiple times of increases compared to bet88 con 2010-2019 period.

Prospects positive for ASEAN in bet88 con next 3-5 Years

Are FDI inflows to ASEAN sustainable in bet88 con years ahead? And will bet88 con decline in key ASEAN markets (Indonesia, Malaysia, and Thailand) reverse?

Most economic experts believe that ASEAN will continue to be a destination for FDI in bet88 con next 3-5 years. Specifically, in 2024, bet88 con economic growth of bet88 con ASEAN region is expected to remain very positive, particularly in some major consumer markets in Southeast Asia such as Indonesia, bet88 con Philippines, Vietnam, and Malaysia, due to stable demand from these countries and improved export activities of goods and services.

Mr. Suan Teck Kin, Head of Research and Executive Director of Global Economics and Markets Research at UOB Group, said that bet88 con factors supporting bet88 con region's FDI attraction prospects are demonstrated through:
(1) bet88 con signing of bet88 con MOU between bet88 con Singapore and Malaysia governments in January 2024 to implement bet88 con Johor-Singapore Special Economic Zone (JS-SEZ);
(2) Increased integration of bet88 con region, reflected in some recent developments, including bet88 con entering into force of bet88 con Regional Comprehensive Economic Partnership (RCEP) in 2022, bet88 con sizeable intra-ASEAN flows of trade and FDI, and increased adoption of cross-border payments via QR and digital channels;
(3) Population – bet88 con demographic dividend will be unfolding in bet88 con years ahead as income rises and wealth increases for bet88 con large pool of young population;
(4) Domestic political stability – Power transitions after recent elections in Indonesia, Malaysia, and Thailand have been smooth and uneventful, demonstrating bet88 con increased maturity of these countries, which ensures policy continuity and stability in these key ASEAN members for at least bet88 con next 3-5 years.

“ASEAN remains a unique location for companies which are progressively able to localize their production capability and contents as supply chains evolve to become more robust and extensive, particularly in bet88 con areas of intermediate inputs within bet88 con electronics sector,” Mr. Teck Kin emphasized.

However, geoeconomic fragmentation is also reshaping bet88 con landscape of global investment, with fragmenting trade networks, diverging regulatory environments, and bet88 con reconfiguring of international supply chains creating both obstacles and isolated opportunities, with some countries benefiting from investments in global value chain-intensive manufacturing while others struggle to participate in bet88 con global economy. This is a clear reminder that governments and businesses will need to stay nimble and competitive in such an environment.

bet88 con Shining of Vietnam

As China slows, secular growth opportunities are opening up in ASEAN, thanks to tailwinds of global supply chain reorientation and favorable demographics.

And within bet88 con vast picture of bet88 con ASEAN region, Vietnam stands out as a gateway to this area. This country is seen as bet88 con “highlight” of economic growth in Southeast Asia and is increasingly attracting bet88 con attention of global investors.

Vietnam now ranks third in bet88 con region for attracting foreign investment, trailing only behind Indonesia and Singapore. As a vital cog in global supply chains, it has become a preferred destination for corporations looking to diversify their operations amid global uncertainties, particularly within bet88 con context of “China+1” strategies.

bet88 con actual foreign direct investment (FDI) inflow to Vietnam reached a record high of .2 billion in 2023, surpassing bet88 con previous record of .4 billion in 2022. Meanwhile, registered FDI for bet88 con year 2023 increased by 32 per cent to .6 billion from .7 billion in 2022, nearly reaching bet88 con historic high of billion in 2019. It is predicted that Vietnam's GDP attraction will also achieve positive results this year, with bet88 con figure of FDI capital disbursed in Vietnam from January to June 2024 reaching .8 billion, more than double bet88 con amount of .6 billion in Q1 of 2024.

This strong performance is attributed to significant improvements in Vietnam's infrastructure, including investments in seaports, highways, and industrial parks, which have enhanced transport and trade capabilities. Additionally, efforts to green products towards sustainable development, coupled with investment incentive policies, interest rate reductions, tax breaks, and price stabilization, have turned Vietnam into one of bet88 con most attractive destinations for FDI in bet88 con region.

bet88 con positive forecast for foreign direct investment inflows is expected to continue as a driving force for Vietnam's growth this year. This is evidenced by bet88 con optimistic projections of GDP growth in 2024 made by various financial institutions. Specifically, in its latest report, UOB Bank maintains its projection of Vietnam's GDP growth at 6 per cent in 2024.

bet88 con World Bank's recent report released on August 26, 2024, also raises bet88 con forecasted economic growth rate of Vietnam in 2024 to 6.1 per cent, driven by bet88 con recovery of manufacturing and processing exports, tourism, consumption, and investments. At bet88 con same time, bet88 con World Bank predicts that this growth rate will reach 6.5 per cent in both 2025 and 2026. This implies that Vietnam has bet88 con potential to become bet88 con fastest-growing economy in ASEAN this year and in bet88 con coming years.