Asia remains pretty good place for investment: HSBC
VGP - For all the hullabaloo about dimming growth prospects and deglobalization, foreign direct investment (FDI) continues to pour into Asia, including Viet Nam, said HSBC in its report released on July 18.
According to HSBC, much of this is manufacturing focused, which should cement the region's position as the center of global trade.
ASEAN has pushed past mainland China for the second year in a row, especially when it comes to new, rather than repeat, investment.
At the same time, manufacturers from mainland China are increasingly investing in other economies as well, notably in ASEAN.
Relative to the size of economies, inflows are especially large in Viet Nam, Malaysia, Australia, and New Zealand; far less so in South Korea, mainland China, and Japan.
Still, across the board, the pandemic has not put much of a dent into Asian FDI flows. Asia is a pretty good place for investment, the bank highlighted.
FDI inflows into Asia, keeps on pushing higher, with a notable jump over the past three years, with FDI inflows into Asia more than doubling since 2010.
In Viet Nam, Malaysia, New Zealand, Australia, and the Philippines, FDI inflows top 2 percent of GDP compared to one percent in South Korea, Japan, mainland China, and Bangladesh.
In Viet Nam, total disbursed volume of FDI reached US$10.02 billion in the first half of 2023, a year-on-year increase of 0.5 percent.
The Ministry of Planning and Investment reported that FDI inflows into Viet Nam reached US$13.43 billion in the first half of 2023, down 4.3 percent on year./.
