Research Briefing | Oct 12, 2021

Pandemic disrupts APAC FDI, but prospects remain positive

research briefing for Pandemic disrupts FDI, but prospects remain positive

We believe prospects for FDI inflows into APAC over the medium term remain strong, even though pandemic-driven supply disruptions and uncertainties over the pace of recovery may see some firms rethink their supply chains.

What you will learn from this report:

  • We expect China to remain the top destination for FDI given its rapidly growing domestic market. And as supply chains continue to adjust to higher labour costs in China and trade protectionism, we anticipate SEA, notably Vietnam, to be the key beneficiary.
  • The region is well established in global supply chains, and its labour dynamics and openness to trade and FDI remain very favourable.
  • We rank the advanced Asian economies as some of the least attractive destinations for FDI due to relatively unfavourable labour dynamics. Plus, most have launched tighter screening since the pandemic, dampening FDI. That said, we expect these economies to remain important sources of FDI in the region.”
Back to Resource Hub

Related Services

Post

United States: Student loan payments are less concerning going forward

Despite last summer's US Supreme Court decision, the Biden administration has forgiven $153bn in student loan debt through piecemeal actions. This, combined with a new, more generous income-driven repayment plan and a yearlong grace period following the end of the pandemic-era pause on student loan payments, has reduced the amounts borrowers in the aggregate are paying back to the Department of Education.

Find Out More

Post

UK: Supply constraints are probably less prominent in the south

The extent to which UK employers can respond to likely 2024 interest rate cuts with increased output, rather than rises in prices and wages, will partly reflect the extent of spare capacity. This will inevitably vary by region. Evidence on this is imperfect, but in terms of capital assets (including intangibles) and labour availability, southern regions appear to be in a stronger position than those in the UK's traditional industrial heartland.

Find Out More