IFDI

MNCs in the News-2016-07-08

Apple struggles to ensure China does not turn into a lemon. Walmart workers in China take widespread action against the company’s new working hours system. British Trade Ministry touts that losing pounds is good for Chinese investors. China Road and Bridge Co. wins first state project awarded to a Chinese company since new government came to power in Myanmar. Chinese banks work to bolster risk management and compliance abilities as they expand overseas. Japanese financial firms licensed in London forced to consider whether they should relocate elsewhere in the European Union (EU). After massacre in Dhaka, Japan’s Fast Retailing Co. suspends all but critical travel to Bangladesh. South Korea begins investigation of Ford Motor’s Explorer for possible leakage of exhaust fumes inside the vehicle. GM Korea is under the microscope in Korea because of repeated bribery/corruption scandals and selling inferior quality cars. The Indonesian Chamber of Commerce and Industry urges the government to take action to allow for full implementation of its policy packages. Contemporary Korean investment in Vietnam represents a third wave of Korean investment in the country.

MNCs in the News-2016-07-01

At the Annual Meeting of Champions, Chinese Premier Li Keqiang stresses the value of foreign direct investment (FDI) and China’s plans to create a better environment for them. Some fret Microsoft’s acquisition of LinkedIn will complicate LinkedIn’s position in China. China’s State-Owned Assets Supervision and Administration Commission (SASAC) reports that China’s state-owned enterprises are increasing their outward activities. Huawei still plans to go forward with multi-billion dollar U.K. investment despite Brexit. Malaysia-Singapore high-speed rail bid to open next year and likely will feature strong competition between Chinese and Japanese firms. Coming into effect of Korea-EU Free Trade Agreement opens up new opportunities for European law firms to set up joint ventures (JVs) with Korean ones. End of sanctions and high-level summits create opportunities for Doosan heavy Industries & Construction in seawater desalination sector in Iran. Indonesian Investment Coordinating Board (BKPM) to help American firms explore opportunities in Indonesia’s mining and infrastructure sectors. BKPM Chairman Franky Sibarani does not see Brexit affecting British investment in Indonesia. Registered FDI in Vietnam continues to show impressive growth with strong increases in FDI flowing into the manufacturing and processing sectors. Vietnam’s Ministry of Education and Training works to create a better environment for education investing in Vietnam.

MNCs in the News-2016-06-17

China’s inward foreign direct investment (IFDI) shows a slight decline in May year-over-year (YOY), though the figures for the first five months of 2016 showed a moderate increase (YOY). Chinese Premier Li Keqiang tells German officials and executives that China plans to improve the investment environment for them as well as others. In China, German Chancellor Angela Merkel calls for independent judiciary and level playing field for foreign firms. XpressWest unilaterally terminates its contract with China Railway International for the construction of a high-speed railway linking Las Vegas and Los Angeles. China National Chemical Corp. (ChemChina) resubmits its Syngenta deal to the Committee on Foreign Investments in the U.S. for national security review. South Korean investigators descend on Lotte Group in connection with allegations of a slush fund. Korea and Azerbaijan agree to expand economic cooperation in areas like investment and infrastructure. South Korea plans to reform government-run energy companies to improve their financial soundness and operating efficiency. Indonesia and Japanese oil giant Inpex reach a deal on the multi-billion dollar Masela onshore liquefied natural gas (LNG) plant which may bring more new opportunities for Japanese business to invest in Indonesia. Japanese firms look very favorably upon Vietnam as an investment destination.

MNCs in the News-2016-06-10

Chinese Premier Li Keqiang stressed to global CEO’s that his government would be acting to create a better environment for foreign investors. Xiaomi strikes a deal to buy roughly 1500 patents from Microsoft. Political uncertainties surrounding the US presidential election expected to lead Chinese firms to become more cautious about investing in the US. United States (US) Commerce Department gives a subpoena to Huawei Technologies as part of a probe in the latter’s exports or re-exports of US technology. Alibaba says it is cooperating with a US Securities and Exchange Commission probe into its accounting practices. Newly elected Philippines’’ President Rodrigo Duterte states that he would welcome Chinese bids on two major railway projects despite bilateral tensions. Japan’s Transport Ministry raids the headquarters of Suzuki Motor Corp. as part of an investigation into the validity of the company’s fuel economy tests. Mitsubishi Materials settles case of World War II slave laborers. Mitsui is cooperating with the Malaysian government on the massive Iskandar Malaysia project. A Japanese-Indonesian consortium Bhimsena Power Indonesia will move forward on a long-delayed coal-fired power plant in Indonesia. Nissan corporate headquarters will file an administrative litigation against the South Korean government for actions taken by the Korean Ministry of the Environment against it. Korea’s Doosan Heavy Industries & Construction wins a 460 billion won deal from Kuwait’s Ministry of Electricity & Water to build a desalination plant. Experts criticize the implementation of Indonesia’s 12 reform packages. Indonesia’s Investment Coordinating Board (BKPM) touts the positive effects of its new investment licensing service, but challenges remain. BKPM pleased by Japanese interest in multi-billion dollar projects. Uber seeks Thai Transport ministry approval for its drivers. Experts call upon the Vietnamese government to tighten environmental regulations for FDI projects.

MNCs in the News-2016-05-27

At the 8th Strategic and Economic Dialogue talks, the US will press China to improve its business and investment climate. China say it will propose a global investment code at the upcoming G20 summit in Hangzhou. Tsinghua Unigroup’s leadership is unconcerned about the possibilities the new Taiwan leadership may review two of its investments in Taiwanese testing and packaging chip companies. Chinese bidding consortium goes to Malaysia to tout its advantages for the Singapore-Malaysia high-speed rail project. Indian Finance Minister plans to pursue vigorous implementation of a Japan high-speed rail project linking Ahmedabad and Mumbai when he visits Japan at the end of this month. Japanese firms want the United Kingdom to remain in the European Union. South Korean cooperation with Saudi Arabia and Kuwait leads to accelerate of SK Gas Ltd.’s liquid petroleum gas-based gas chemistry business. Frustrated with a stalled legal case, Korea Electric Power Corporation (KEPCO) has decided to pull out of a major Nigerian oil exploration and development project. Indonesia is working hard to finalize all the regulations (new and revised) in its 12 economic policy packages. Global rating agencies seem to like Indonesia’s investment quality. Thailand is pushing Food Innopolis, a food cluster designed to enhance the value of the country’s crops. Vietnam’s inward FDI for the first five months of 2016 grows strongly over the comparable period in 2015. Foreign investors can enter the theater industry in Vietnam.

MNCs in the News-2016-05-20

Chinese committee has been examining technology products (hardware, software, and other) sold by by big foreign companies for security risks. Apple CEO Tim Cook meets with Chinese officials in an additional effort to curry government favor. Beijing Automotive Industry Holding Co. has big globalization plans which include working with foreign government partners. Nissan faces South Korea fines and mandatory recall as well as consumer lawsuits over so-called emissions defeat device. South Korean CJ Group senior managers meet with top level Indonesian delegation to discuss cooperation. At forum in Seoul, Indonesian president welcomes more Korean investment and emphasizes his government’s progress in creating a better investment environment. Indonesian Energy and Mineral Resources Minister Sudirman Said meets with US companies to tout investment opportunities in the energy sector. Thailand and China continue negotiations to settle on cost estimates for the Bangkok-Nakhon Ratchasima high-speed rail project. Uber Technologies press Thai officials to legalize its services. Singaporean investors continue to remain important to Vietnam. Vietnam’s State Capital Investment Corporation and the Russian Direct Investment Fund sign MoU to establish a Russian-Vietnamese investment platform.

MNCs in the News-2016-05-13

Inward FDI into China between January and April rises almost 5 percent over the same period last year. Chinese Premier Li Keqiang touts China’s plan to take measures to encourage greater inward foreign direct investment. China is investigating foreign and domestic drug firms for possible violations of competition laws and regulations. Foreign pharmaceutical firms in China take action to offset profit pressures flowing from government actions. Apple invests $1 billion in Didi Chuxing, following various adverse actions against it in China. Beijing Municipal Court denies Zhujiang Beverage the ability to use the Facebook name on its products. China outward deals in 2016 to date already have topped the figures for 2015. Some Chinese state-owned enterprises are adopting the sovereign immunity defense to escape legal liability in the U.S. SK Group explores cooperation possibilities with Kuwaiti government and businesses officials visiting Seoul. Using investor state dispute measures Hanocal Holdings is suing the Korean government for compensation over excess taxes. Indonesian President urges his Cabinet to do more to improve the ease of doing business and to garner an investment grade rating from Standard & Poor’s. Indonesian Investment Coordinating Board Chairman Franky Sibarani touts his country’s reforms at the HSBC Economic Outlook 2016 conference. Indonesia President Joko “Jokowi” Widodo meets with Chinese State Council Yang Jiechi to discuss investment and trade cooperation. Vietnam calls on foreign firms to contribute more to Vietnam’s economic development.

MNCs in the News-2016-04-08

China fails to submit new negative list proposal to US. Chinese firms are pouring money overseas driven by a depreciating currency among other factors. The Washington Post calls for a new approach to Chinese outward foreign direct investment (FDI) that takes into account non-traditional risks. ZTE replaces three top executives in reaction to US sanctions and warns of possible further penalties. China’s Beijing Urban Construction Group wins bid to build a US $300 million international cargo hub and airport in Bolivia. Korea Electric Power Corp. wins its first overseas solar power plant contract. Indonesia’s Investment Coordinating Board warns it will annul the investment permits of foreign companies that are avoiding their tax obligations. Indonesia and France work to expand the possibilities for French infrastructure investment in Indonesia. Thailand’s United Power of Asia Plc has signed an agreement with Myanmar’s state utility to construct a gas-fired power plant in the Dawei special economic zone. Russia and the US are competing for investment opportunities in Vietnam. Vietnam moves to increase its harvest of investment, especially FDI, in the agricultural area. Vietnamese representatives court investors from the Chinese mainland, Hong Kong, and Macao at a seminar in Hong Kong.

MNCs in the News-2016-03-25

China announces a recall affecting BMW Mini Coopers. Chinese M&A and outward M&A deal values hit record amounts for the year to date. Leading Chinese brands are earning an increasing amount of their revenues from overseas. China Railway Group Limited to invest billions of dollars in an integrated office complex in Kuala Lumpur and will set up its regional headquarters there. China’s Railway No. 3 Engineering Group and SinoFortone Group conclude MOU with Scotland that has the potential for US $14 billion in infrastructure projects. Japan’s Inpex multibillion dollar LNG project in Indonesia may undergo a dramatic transformation due to a Presidential decision to move the project onshore. Korean prosecutors raid Volkswagen’s vehicle inspection center to probe emissions equipment on the German’s company’s new cars. Korea’s GS Engineering and Construction wins US $1.26 billion contract for world’s largest rolling stock and bus base in Singapore. A Korean consortium including Daewoo Engineering and Construction and Hanwha Engineering Construction have won a $18-20 billion housing project in Saudi Arabia. Korean firms will invest in Russian Far East for “fishy reasons.” At the BOAO Forum for Asia, Indonesia Vice President Jusuf Kalla says his country needs to improve its regulatory efficiency. Indonesia aims to secure a 30 percent increase in FDI from China in 2016. Thai Deputy Prime Minister courts South Korean investment. Vietnam grants Samsung Electronics Vietnam permission to establish a USD $300 million research and development project in Hanoi.

MNCs in the News-2016-03-11

China’s Ministry of Commerce (MOFCOM) reports that foreign direct investment flows into China topped USD $22.5 billion in the first two months of 2016. Bristol-Myers Squibb moves to deal with fallout of US Securities and Exchange Commission (SEC) Foreign Corrupt Practices Act settlement relating to its China joint venture. Chrysler to recall nearly 21,000 vehicles in China that have an oil pipe defect. Chinese outward foreign direct investment (COFDI) soars YOY with smaller and private enterprises becoming more important proportionally. Statistics for 2015 show strength of COFDI in Europe. China sees room for more COFDI in Russian agriculture as well as agricultural cooperation. Some believe COFDI in the US has the potential to influence voting patterns in some localities. Chicago Transit Authority awards CSR Sifang America a USD $1.3 billion railcar supply order. Mitsubishi partners with Korean firm on government awarded coal-fired power plant project in Vietnam. Foreign businesses in Korea voice concern about the discretionary legal and regulatory environment and call for greater stability. Korea Trade-Investment Promotion Agency has concluded a Memorandum of Understanding with Italy’s SIMEST that will facilitate more Italian investment in Korea. Korea and Egypt expand their bilateral cooperation increase infrastructure and cooperation opportunities for Korean firms in Egypt. The liberalization of Indonesia’s cinema sector draws increases foreign investor interest in cinema screen construction in the country. The Thai Business Development Department (TBDD) and Franchise License Association (FLA) will cooperate to assist franchise business operators conduct business in ASEAN countries, China, and Japan. State Railway of Thailand (SRT) governor welcomes foreign construction companies to participate in government investment projects provided they find a Thai partner and obey Thai rules and regulations.

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