ASEAN

MNCs in the News-2017-08-18

China takes steps/promises measures to draw in more foreign direct investment (FDI). China’s State Council details a slew of initiatives to increase greater inward FDI (IFDI) as well as to foster specific types of IFDI. Donald Trump signs executive order authorizing US Trade Representative to decide whether or not to investigate China’s theft of American intellectual property. China’s Ministry of Commerce reports small drop in IFDI over the first seven months of 2017 year over year (YOY) while outward FDI drops dramatically over the first seven months of 2017 YOY. The Philippines is looking to Japan and China to finance investments in energy and power generation projects worth over USD $135 billion. Mitsubishi UFJ Financial Group Inc. to expand operations in Saudi Arabia to support Saudi initiatives to reduce reliance on oil. Kumho Tire Co. to be bought out by its Chinese competitor Qingdao Doublestar Co. for USD $857 million after South Korean state-owned development bank sells its stake to Doublestar. Hyundai to promote Indonesia as Southeast Asian production base because of, among other things, the ASEAN Trade in Goods Agreement will remove car import duties in 2018. Indonesia and Vietnam to boost investment activity following 7th Indonesia-Vietnam Joint Commission on Economic, Science, and Technical Cooperation. Facebook opens full office in Indonesia due to tightening regulations on foreign Internet firms. Recent report touts that Malaysia’s strategic location and competitive position make it attractive for foreign investment. US deepening investigation into money stolen from Malaysian state investment fund allegedly used to obtain around USD $1.7 billion in real estate, jewelry and art.

MNCs in the News-2017-08-11

Beijing’s actions to curb overseas foreign direct investment (FDI) by private firms coupled with other factors generate uncertainty among potential Western investment targets. American credit/debit card companies Visa and MasterCard move to gain access to China market, but licensing uncertainties remain. Nissan to sell battery subsidiary to Chinese private equity firm, following recent Chinese government policy changes on purchase of batteries for electric vehicles. Facing pressure to invest in US, Toyota and Mazda plan USD $1.6 billion partnership to establish US based electric vehicle production plant. SK Engineering & Construction Co. announces deal to upgrade Iranian oil plant, reflecting Teheran’s bid to bring in foreign companies to boost its oil industry. Daewoo Engineering & Construction and Samsung Engineering win mega construction projects in Oman. Vale Indonesia experiencing difficulties finding nickel smelter partners for new investments after rule change. Indonesian President courting China for investment but concurrently preparing the military for potential confrontation. EXIM Thailand plans to open new branches in Cambodia and Laos to support outward FDI by Thai firms. China and Malaysia launch USD $13 billion rail project connecting peninsular Malaysia's East and West. Mitsubishi’s CEO tells Vietnamese Prime Minster it plans to produce electric vehicles in Vietnam. Long Son Petrochemical Co Ltd announces Hyundai Engineering and Construction won building contract for petrochemical plant in Vietnam.

Dr. Hwy-Chang Moon's picture

Why Is Vietnam Korea’s Favorite FDI Destination in ASEAN?

The Association of Southeast Asia Nations (ASEAN) has become a major destination for Korean foreign direct investment (FDI). In 2016, this region alone attracted about one half of Korea’s outward FDI (OFDI). Moreover, one half of Korea’s FDI flows within this regional bloc were concentrated in Vietnam.

MNCs in the News-2017-07-21

In rare praise for foreign firms, Chinese President Xi Jinping lauds their contribution to China and says the Chinese government must do more to attract and retain them. The China Banking Regulatory Commission imposes strict limits on Chinese banks providing support for overseas deals by Dalian Wanda. Some feel the United States (US) Committee on Foreign Investment in the United States is becoming stricter which, in turn, may hinder Chinese investment flows in the US. Toyota continues USD $310 million UK plant expansion after receiving Brexit reassurances from British government. Japanese financial institutions move to set up subsidiary businesses in the EU as Brexit jeopardizes their financial services licenses. Hyundai to open fifth Chinese assembly plant as compact vehicle sales are expected to rise before Chinese government’s increase in purchase taxes next year. South Korea’s Nexen Tire Corp. signs memorandum of understanding with United Arab Emirates’ state-owned Mubadala Development Co. Indonesian branch of ExxonMobil drops talks on East Natuna natural gas block, with Jakarta saying it intends to invite firm to discuss project again. Economist says Malaysia to become key economic corridor because of strong economic fundamentals, strategic geographical location and Prime Minister’s diplomatic efforts. China’s restrictions on bank loans to Dalian Wanda Group diminish prospects of Bandar Malaysia project. Vietnam’s Prime Minister signs decision to boost his country’s solar power development which is spurring much foreign investor interest. At HCM City conference, Laotian provinces court investment from Vietnam.

MNCs in the News-2017-06-16

American and other trade unions shake and flip over potential risks to McDonald’s workers after the firm sells its self-owned China stores to Citic and Carlyle Group. United States (US) moving to strengthen review processes to encompass Chinese investment through mechanisms that are not yet subject to Committee on Foreign Investment in the United States (CFIUS) review processes. Responding to news that US is striving to tighten the CFIUS review process, China calls on the US to avoiding politicizing “commercial takeovers.” Canyon Bridge files for third time for CFIUS review of its deal with Lattice Semiconductor. Thailand’s government may loosen licensing requirements for Chinese engineers working on Thai-Sino railway to the consternation of local engineer associations. Japan’s Maritime Air Systems and Technologies (MAST) show offers Tokyo venue to boost military sales with Southeast Asia. Japanese firms carefully evaluate business relations and assets in Qatar following country’s crisis. China blacklists 24 South Korean companies following continued anger over THAAD system. Daewoo Engineering and Lotte Engineering & Construction each sign MOU with Laos’s Petroleum Trading Lao Public Co for infrastructure projects. Indonesian government invites Chinese investors to participate in railway construction project in Bali. CAT Telecom infrastructure development plans continue to drive Thailand to be Greater Mekong Subregion’s digital hub. Lawsuit alleges money misappropriated from Malaysian state fund was used to finance USD $2.2 billion acquisition of US energy firm. Malaysian Minister announces that Malaysian companies will continue to invest in Indonesia. Vietnam’s Deputy Prime Minister encourages businesses from both countries to foster their investment partnership. Vietnam has come up with a new decree to deal with transfer pricing by multinational corporations.

Dr. Amitendu Palit's picture

Will RCEP Promote Investments in the Asia-Pacific?

The Regional Comprehensive Economic Partnership (RCEP) is being looked upon as the most promising framework for regional economic integration in the Asia-Pacific Region (APR) after the United States (US) decided to withdraw from the Trans-Pacific Partnership (TPP). Negotiated by sixteen countries—the ten member states of the Association of Southeast Asian Nations (ASEAN), Australia, China, India, Japan, Korea and New Zealand, RCEP is not as ambitious as the TPP.

MNCs in the News-2017-04-21

Big foreign companies increasingly willing to voice complaints about the situation in China. China’s limits on capital outflows affect the willingness of some to invest in China. Beijing is considering “braking” the requirement capping foreign companies ownership in the auto sector to no more than 50 percent with some predicting a crash of domestic firms if this happens. China’s nonfinancial outward foreign direct investment (OFDI) experienced major drops in March over the prior year and over the first quarter of 2017 year-over-year (YOY). China’s One Belt, one Road (OBOR) initiative leads to the signing of a major number of transportation related accords. Sharp considers joint bid with Hon Hai on Toshiba’s memory chip unit as it seeks to mitigate national security concerns. Kia plans USD $900 billion car manufacturing plant in India to surmount India’s steep import duties and China’s anti-Korean economic sanctions. Malaysian trade mission to South Korea brings home Korean investment worth around USD $550 million. Malaysia seeks to increase its cooperation with New Zealand in IT and tourism sectors. Vietnam develops public-private partnership framework allowing more foreign investment particularly from Japan in its infrastructure sector. Hoang Son Trading Investment JSC partners with Spanish-Japanese joint venture to build new solar plant in Vietnam.

Japan Economic Foundation Executive Managing Director Naoyuki Haraoka delivers keynote address at the “New Developments for Japanese and Chinese Firms” Conference.

At opening of the “New Developments for Japanese and Chinese Firms” conference, Mr. Naoyuki Haraoka, Executive Managing Director of the Japan Economic Foundation (JEF), delivered a keynote address entitled “Japanese FDI in Asia and Asian FDI in Japan.” Mr. Haraoka began his speech by providing background on JEF’s origins and its evolving areas of research.

Dr. Jean-Marc F. Blanchard's picture

China’s Maritime Silk Roads Initiative and Southeast Asia: Rough Sailing through the South China Seas?

As our readership knows, one of China’s signature foreign policy initiatives is the Maritime Silk Road Initiative (MSRI), a key part of its larger One Belt, One Road (OBOR) scheme.

MNCs in the News-2016-09-16

Inward foreign direct investment (FDI) in China shows growth over the previous month year over year (YOY) and for the first eight months of 2016 YOY. China’s State Council announces China will adopt a nationwide negative list by October 1. Chinese outward FDI (OFDI) dramatically jumps over first 8 months of 2016. Chinese OFDI (COFDI) surges dramatically over first eight months of 2016. British government surprise review of Hinkley Point C nuclear plant deal involving China General Nuclear Corporation (CGNC) results in approval. Chinese government and CGNC pleased by British decision on Hinkley Point C. China is major investor in Myanmar’s power sector. Peru’s President expresses concerns about the financial viability and environmental consequences of a Chinese-proposed transcontinental railway from Brazil to Peru. Brexit may drive some political realignments between Japan and Britain, though Japanese companies await developments. GM Korea President James Kim calls for an end to worker strikes and warns of adverse consequences for GM Korea. Korean Fintech firms will push the Korean Fair Trade Commission to force Apple to open its APIs for near field communication. Following high level leader summit, Korean firms win many deals in Russia. Indonesia tax amnesty fails to produce anticipated results. Indonesian minister’s proposal to soften 2009 Mining Law draws fire. Thailand reports the Sino-Thai high-speed rail initiative is chugging forward.

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