For decades, China has been the world’s leading foreign direct countryinvestdestination, but with competition between the United States and China and the advancement of risk-off policies in Western countries,Southeast AsiaInstead of becoming the new favorite of foreign investment, total foreign investment into Southeast Asian countries will reach US$222.5 billion in 2022.
Voice of America reported today that according to Chinese official data, foreign investment decreased by US$11.8 billion in the third quarter of this year, the first time since records began in 1998; And foreign investment left China and flowed into Southeast Asia.
Nikkei Asia reported on December 2 that Southeast Asian countries have political stability, huge market potential, and can also serve as a buffer between competition between the United States and China. They have attracted the attention of foreign capital, especially companies and capital. United States and China. In 2022, the total foreign direct investment attracted by Southeast Asian countries is set to reach a record high of US$222.5 billion.
Yahoo Finance also reported on November 30 that foreign direct investment into developing countries in Asia will amount to US$619 billion in 2021; Furthermore, according to data from the United Nations Conference on Trade and Development, foreign direct investment in developing countries will account for 1% of global flows into Asia in 2022. Half, will reach $666.2 billion.
Data from the United Nations Conference on Trade and Development also showed that during the gradual deterioration of US-China relations from 2017 to 2022, the amount of foreign direct investment attracted by 11 countries in Southeast Asia also increased rapidly . up to 40%; During this period, Southeast Asia attracted FDI. The scale of investment exceeds that of China, Latin America and Africa.
The Nikkei quoted Shigeru Isono, a senior economist at the Institute of Economic Research who specializes in the Asia-Pacific Economic Cooperation (APEC) and East Asia, as saying that Southeast Asia will be affected by the separation and shaping of the United States and China. Benefit is being gained. A “neutral zone.”
US President Biden’s visit in September this yearvietnamLater, American chip manufacturer Marvell and American electronic design automation company Synopsis immediately expressed their eagerness to invest in Vietnam.
In addition to foreign companies, many Chinese companies have also accelerated their adjustment and invested funds in Southeast Asia due to the impact of the relocation of their production chains.
For example, Chinese car company Zhejiang Geely Group will invest US$10 billion to build a car production base in Perak, western Malaysia. Geely is also considering building a factory in Thailand to produce electric vehicles.
The report pointed out that American companies accelerating investment in Southeast Asia aim to reduce excessive dependence on China’s supply chain, diversify the supply chain, and build a friendly country camp; While Chinese companies hope to continue investing in Southeast Asian countries. Maintaining exports to the United States and Europe.