SEZs

Dr. Jean-Marc F. Blanchard's picture

Vietnam, Special Economic Zones, and the “Problem” of Chinese FDI

To spur economic development, Vietnam has been, among other strategies, moving to establish special economic zones (SEZs). As elsewhere, these SEZs offer special privileges like long-term leases up to 99 years, tax breaks for companies and workers, and discounts on water and other service charges. In Vietnam’s case, SEZs recently have become a lightning rod for public protest rather than a cause to celebrate Hanoi’s economic acumen.

MNCs in the News-2018-06-15

Investigation reveals Foxconn factory in China supplying Amazon products has serious problems regarding labor conditions. Chinese outward foreign direct investment (FDI) for first five month of 2018 shows impressive growth over 2017. China’s SF Motors drives ahead in effort to build electric vehicle manufacturing plant in Indiana (United States). Fears about potential Chinese dominance lead Vietnam to protest their government’s special economic zones plan. Japanese firms making own deals with American states that “go their own way” in pursuing investment opportunities. Mexico’s Economy Minister visiting Japan as country seeks to diversify investment and exports amid NAFTA talks impasse. Korean firm announces $1.7 billion investment plan for liquefied natural gas infrastructure in Philippines following President Duterte’s recent Seoul visit. South Korean construction companies forming task forces and planning investments in North Korea following US and North Korea summit. Mahathir set to “woo investors and offer business deals” during recent Japan visit. Malaysian state Perak to cooperate with EU to strengthen investment cooperation.

Dr. Jean-Marc F. Blanchard's picture

Multinational Corporations and Industrial Parks, High-Tech Zones, and Special Economic Zones: Hitting it out of versus zoning out in the Park

Countries around the world are aggressively constructing industrial parks (“Parks”), high-tech zones (HTZs), and special economic zones (SEZs). They hope incentives such as free or discounted land, lower taxes, and lighter regulation coupled with improved infrastructure, better trade opportunities, and high-quality administration will yield multiple benefits. These include increasing the amount of foreign capital they obtain, facilitating entry into global production chains, and upgrading their scientific capabilities.

MNCs in the News-2015-09-04

Chinese authorities impose penalties on Pfizer for problems relating to erection of Viagra displays. Mainland government policies like the Silk Road Initiative and other factors influence Taiwanese Electric and Electronic Manufacturer’s Association new rankings of favored mainland investment destinations. China Development Bank (CDB) intensifies funding for Chinese overseas investments, deeming the “timing for acquisition is very good.” China Railway Rolling Stock Corporation breaks ground on subway car factory in Springfield (USA). US will take action against Chinese individuals and companies involved in commercial espionage. Japanese companies worth with Japanese universities and government agencies to attract talented IT students, especially from India. Indonesia inward foreign direct investment (FDI) ranked highest among all Association of Southeast Asian Nations (ASEAN) members in the first semester of 2015. Indonesia finally opts to cancel its high-speed rail project disappointing Chinese and Japanese bidders. Foxconn balks at building electronics factory in Indonesia due to government unwillingness to provide free land. Thailand examines boosting incentives for investing in certain sectors in its special economic zones (SEZs). Vietnam draws increasing FDI in its processing and manufacturing sectors especially from Korea. Mongolian Minister negotiating deal over Tavan Tolgoi throws cold water on idea a deal will be struck soon. APEC creates fund to support open trade and investment in mining and sustainable mining.

MNCs in the News-2015-07-10

China tells foreign businesses to stop whining. China’s Ministry of Commerce (MOFCOM) reports that China’s three new free trade zones (FTZs) have attracted significant foreign direct investment (FDI). China’s draft cybersecurity law raises new concerns among foreign technology firms and foreign companies operating in China. China’s heavy outward FDI to and presence around Angola raise concerns among Angolans. Tokyo hosts “Mekong Five” leaders summit to promote export, investment, and infrastructure opportunities for Japanese firms. Japan looks to beat China to build the first deep-water port in Bangladesh. Thai Prime Minister Prayut Chano-Cha courts greatest Japanese investment in Thailand’s special economic zones. Indonesia’s state energy firm Pertamina asserts ownership over the Mahakam block. Indonesia to revoked thousands of unused investment permits issued between 2000 and 2006. Freeport-McMoRan moves to divest mining shares pursuant to Indonesia government regulations. Vietnam moves to build investment and business cooperation in ICT with Japan and South Korea. Vietnamese Communist Party General Secretary promises administrative reforms on tax and customs procedures to create a better investment climate for foreign businesses.