VIENTIANE, 6 September 2016 – The ASEAN Secretariat and the United Nations Conference on Trade and Development (UNCTAD) jointly launched the “ASEAN Investment Report 2016: Foreign Direct Investment and MSME Linkages” during the ASEAN Business and Investment Summit 2016, held alongside the 28th and 29th ASEAN Summit.
The ASEAN Investment Report is an annual report on investment and other related issues in the region. This year’s Report features the linkages between ASEAN Micro, Small and Medium Enterprises (MSMEs) and multinational enterprises (MNEs). It highlights the extent to which ASEAN MSMEs internationalise and, more importantly, why and how they do so. It also analyses the roles of ASEAN MSMEs in realising the goals of the ASEAN Economic Community and in improving the overall investment environment.
According to the report, after three consecutive years of increase in Foreign Direct Investment (FDI) flow, the ASEAN region witnessed an 8% decrease in FDI to a low of US$120 billion in 2015, especially in the areas of services, intra-company loans and cross-border mergers and acquisitions. However, ASEAN remains a major global destination for FDI. Bright spots include a 61% increase of FDI in manufacturing; an all-time high of equity capital component of FDI at US$96 billion; intra-ASEAN investment rising to US$22 billion; and continuing expansion of MNEs operations across the region. FDI from Regional Comprehensive Economic Partnership (RCEP) partner economies also rose by 11% to US$40 billion, and Cambodia, Lao PDR, Myanmar and Vietnam received greater attention from investors.
ASEAN MSMEs are important actors in all Member States in terms of establishments, employment generation, Gross Domestic Product contribution and exports. They strengthen the region’s investment environment. They also play an important role in establishing linkages with MNEs and foreign MSMEs through their business activities as suppliers, contract manufacturers, contract service providers, franchisees, franchisors and direct investors.
The ASEAN Investment Report is prepared under a technical cooperation arrangement between the ASEAN Secretariat and UNCTAD, and supported by the Government of Australia through the ASEAN-Australia Development Cooperation Phase II (AADCP II).
The Report can be downloaded here
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