[Korea Busan = bakminhyeon financial newspaper reporter] BNK Financial Group (Chairman Seong Sehwan) belonging BNK Institute of Finance announced a research report, Indochina and the implications of the entry into southeastern companies' 29.
According to the report, up to 2016 foreign direct investment in the Southeast region businesses accounted for 34.8% of total investment in Indochina. Followed by the higher proportion in Chinese (16.5%), Mexico (9.7%), the US (7.7%), Japan (5.6 percent). Last three years, investment in Indochina, while the US and China showed the fastest growth at a CAGR of 5.8% was posted a decline in investment of around 20%.
India Looking across countries of the peninsula, China accounted for the investment in Vietnam was the highest with 72.7% in 2016. Next it was investigated by Malaysia (8.1%), Thailand (7.6%), Cambodia (5.1%), Myanmar (4.0%), Laos (2.5 percent). Vietnam has Southeast, as well as nationally, and is also the country with the highest investment ratio which is due to low labor costs, political stability, domestic market growth.
Investment sector accounted for and manufacturing the highest status this year, but decreased 71.2% share in 2014 to 62.6% in 2016. This is estimated to increase because the expansion of the wholesale and retail trade, construction, transportation, etc. other sectors of the domestic market, the growth of Indochina. In the case of wholesale and retail trade, Vietnam, Malaysia and distribution markets around the country quickly growing from 6.5% in 2014 significantly increased the proportion to 13.6% in 2016.
Indochina countries has continued to grow and to expand infrastructure investment, increased foreign direct investment despite the global economic slowdown. 2014-2016 GDP growth is higher than the world average (3.3%) in 2017 to 5.8% also forecast for 2019 economic growth amounted to 1.8 times the level of global economic growth (3.2%) to 5.8% CAGR. Therefore, investment in Indochina, which is emerging as 'China Post' is expected to continue.
However, the potential risk to the expansion of the Indochina external uncertainties have emerged need attention. A high proportion of short-term debt compared to foreign currency reserves if the rate hike due to the US economic recovery faster than expected, Malaysia and Laos are likely to suffer as a foreign capital outflow pressure.
Political uncertainty increased attention, such as the withdrawal of US trade protectionism TPP negotiations strengthen the European movement and can adversely affect the high 對 US, 對 EU exports of Cambodia, Vietnam's economy. And it is expected to serve as the US and China trade disputes, China's economic slowdown, China's export dependence 對 risk factors for high Laos and Myanmar.
Thus, in the case of which the investment plan in Indochina company closely for the country's investment environment and the inherent risk factors need to check and monitor the economic and financial situation. To this end, the government or through KOTRA fieldwork, accounting provided by financial institutions, including a thorough review prior to take advantage of investment advisory services, such as law requires.
BNK The Institute of Finance Park Jaehyeon senior researcher hopes for "growth while" The friction between China and the United States trade protectionism moves according to Saad placement As castrate the increased need to improve the trade structure, concentrated in the United States and China. " It is time for companies that require more attention to the big Indochina, "he said.
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