fdici 2007

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Nw Cncn n anUnctan WThe 2007 A.T. Kearney Foreign Direct Investment Confdence Index

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The Global Business Policy Council is a strategic service that assists chie

executives in monitoring and capitalizing on macroeconomic, geopolitical,

socio-demographic and technological change worldwide. Council member-

ship is limited to a select group o corporate leaders and their companies.

The Councils core program includes periodic meetings in strategically

important parts o the world, tailored analytical products, regular member

briefngs, regional events and other services.

Global Business Policy Council

A.T. Kearney, Inc.

8100 Boone Boulevard

Suite 400

Vienna, Virginia 22182

U.S.A.

1 703 891 5500 telephone

www.atkearney.com

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A.T. Kany | NeW CoNCerNs iN AN UNCerTAiN World 1

dpt gncant btac, gn ct nvt-

mnt (Fdi) cntnu t n 2007, an gbanvt a ptmtc abut pptunt nth vpng w. Chna an ina cn-tnu t ank at th tp th Fdi Cnncinx. sx th tp 10 cunt n th yaFdi Cnnc inx a mgng makt.

A vnth, Hng Kng, pnt an acc pntt th agt mgng makt, Chna. Fntmakt uch a Vtnam, th Gu tat an

suth Aca a bk nt th tp 25 a tagt gn ct nvtmnt v th nxt nt th ya, wth mutnatna tappng ntgwth pptunt n h tagt makt.dvpng cunt, whch a xpct taccunt an ncang numb ag Fdia, pay pca ntt n nt makta t-tm nvtmnt tnatn.

in th vp w, th Unt stat

mantan t a n nvt cnnc. eupcnmc cvy kp Gmany an th UntKngm n th tp 10, wh Fanc ank 13th.oth eupan cunt, hwv, a w.

Ft-wav eU accn tat uch a Pan, th

Czch rpubc an Hungay a n th ank-ng at nta nvt xubanc n 2005.

A nvt c hw an wh t a-cat th capta, thy wgh nw cnatn.sutanabtycnmc, ptca, ca annvnmntaha bcm a gncant w-

w u. Fwng th a cpat gantuch a Gna ectc, Wa-Mat an Tyta,uvy pnnt hav apt nw pc

an nvt n utanabty pjct, whch axpct t bnt bth th nvnmnt anth bttm n.

Anth mptant vpmnt th u-th mgnc pvat quty, hg un antat gvnmnt un a nw chann gba quty. Athugh pnnt gnaypcv thm a avab, th chann nv-th cmpt wth tatna Fdi. Amttw-th gba nvt vw pvat qutya th gatt uc cmpttn. Mv,th-quat m n th $1 bn t $5bn vnu ang cn pvat quty

A

s 2007 turned into 2008, investors were once again operating on

unstable ground. Several years o bullish recovery rom an early

twenty-frst century recession ended abruptly as the subprime

market crisis pummeled the worlds leading fnancial markets. While the

current account defcit o developed markets persists, emerging markets

are enjoying a current account surplus. Persistently high oil prices are

dampening hopes that the defcit might decline.

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NeW CoNCerNs iN AN UNCerTAiN World | A.T. Kany2

a patcua that t th wn Fdi pan.

Th cut th nw nvtmnt chann xpct t gw, wh th numb ag Fdi-nanc M&A a v th nxt th ya xpct t a.

Th a amng th maj nng A.T. Kany 2007 Fdi Cnnc inxuvy, whch tack th mpact ky pt-

ca, cnmc an guaty chang n th

gn ct nvtmnt ntntn an p-nc th a tp cmpan aunth w.1 Wth pn m gba xcu-tv pannng x cntnnt an 17 nutyct, th uvy pnt a unqu wnwnt th pnt an utu ppct nt-natna nvtmnt fw (see fgure 1).

1 Foreign direct investment includes investment in physical assets, such as plants and equipment, in a oreign country. Holdings o 10 percent or more equityin a oreign enterprise is the commonly accepted threshold between direct and portolio investment as it demonstrates an intent to inluence management othe oreign entity. The main types o FDI are acquisition o a subsidiary or production acility, participation in a joint venture, licensing and establishmento a greenield operation. The last is deined as a direct investment in new acilities or the expansion o existing acilities.

Figure 1

2007 Foreign Direct Investment Confidence Index

Source: A.T. Kearney

Top 25

China

India

United States

United Kingdom

Hong KongBrazil

Singapore

United Arab Emirates

Russia

Germany

Australia

Vietnam

France

Canada

Japan

Malaysia

Other Gulf statesSouth Africa

Mexico

Turkey

Indonesia

Poland

Central Asia

South Korea

Czech Republic

2.21

2.09

1.86

1.81

1.781.78

1.75

1.72

1.70

1.70

1.68

1.67

1.67

1.65

1.63

1.63

1.621.61

1.59

1.59

1.58

1.58

1.57

1.57

1.56

1

2

3

4

56

7

8

9

10

11

12

13

14

15

16

1718

19

20

21

22

23

24

25

(1)

(2)

(3)

(4)

(10)(7)

(18)

(22)

(6)

(9)

(8)

()

(14)

(21)

(15)

()

()()

(16)

(13)

()

(5)

(24)

(23)

(12)

(#)

()

Maintained ranking

Moved up

Moved down

2005 ranking

Not among top 25in 2005 Index

Values calculated on a 0 to 3 scale High confidenceLow confidence

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ya a ncuag by th cunty cntnu

tab maccnmc nvnmnt, th ag cn-um makt an but cnmc gwth, ang

wth acc t cuttng-g tchngy ach(see fgure 4). invt wh pan t ca hcntant th v U.s. nvtmnt (48 pcnt)a vn by btt va nvtmnt ptn,cncn v a maj a vauatn an awng th U.s. cnmy. Th gup at by nca r&d guatn an unc-

tanty uunng th 2008 pnta ctn.

China and India Top FDI Rankings

Chna an ina man th tp tw cunt nth inx. Chna a th inx ankng thth cncutv ya. Chna ank t amng

Aan nvt an cn amng eupan an

Nth Amcan nvt. Bth vp anvpng cunty nvt ct Chna a thp tnatn t-tm nvtmnt.Chna h t appa ac ct, tppng tht nanca an nnnanca vc, ghtan havy manuactung, an pmay ct. it ny upa by ina n tcmmuncatnan utt.

Gba nvt man ptmtc abut

Chna, wth 35 pcnt nvt vwngChna nvtmnt nvnmnt m ptvythan thy n ya ag. Hwv, nvta pt a numb cncn v Chnanvtmnt nvnmnt. Thy a pmay cn-cn abut u aw u n Chna v

Figure 4

Investors are divided over future prospects of the U.S. economy


Planned investments in the United States overthe next three years (percentage of respondents)

Factors leading firms to increase investmentsin the United States (percentage of respondents)

Stableoverallmacro-

economicenvironment

Lessburdensomeregulatoryenviron-

ment

Access tocutting-

edgetechnologyor research

Robusteconomic

growth

Largeconsumer

market

79%

29%

43%50%

71%

Factors leading firms to maintain or decrease invest-ments in the United States (percentage of respondents)

Availabilityof other

overseasinvestment

options

Uncertaintysurrounding

2008elections

Increasedregulation

of researchand develop-

ment

Slowdownin U.S.

economy

Concernover U.S.

dollardevaluation

or crash

62%

23%23%

46%54%

Increase52%

Decrease4%

No change44%

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th ct, fctng th cunty ptnta

t attact m v nvtmnt.Wh Chna th chn nvtmnt ca-

tn Aan nvt (ut a nvt wtha hgh kh nvtng n Chna, 34 p-cnt a Aan) n th na utu, ina attacta ba t gba nvt, ganng cntntt m cmpan uch a iBM, GnaMt an Nka. Th-quat pn-nt hghy ky t nvt n ina v th nxt

w ya a m ut Aa. ina a tpth t ptv nvtmnt utk amng atnatn, wth 36 pcnt gba nvtncatng m ptv vw cmpa t thpvu ya (see fgure 7).

Proven Destinations Remain Strong, but

Frontier Markets Attract Interest, Especially

rom Developing Country Investors

Twnty th tp 25 nvtmnt tnatn nth inx a tunng m th at uvy, cn-mng nvt cntnu cnnc n t-natn that hav v ut. svn thG-8 natn a pnt, a a th BriCcunt (Baz, rua, ina an Chna). oth 10 cunt wth th gatt uptck n nv-

t utk cmpa t at ya, ght a w-knwn nvtmnt tagt: Chna, ina, Baz,Hng Kng, th Unt stat, th UntKngm, rua an Gmany. Th th twa th Unt Aab emat, whch bk nt

Figure 7

Changes in investor outlook compared to a year ago


Percentage of respondents

India China Brazil UnitedArab

Emirates

Vietnam HongKong

UnitedStates

Russia UnitedKingdom

Germany

Positive change in outlook

Negative change in outlook

6%

9%

5%6%

5%4%

23%

14%

7%5%

36%35%

30%29%

28%

24%23% 23% 23%

22%

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th t n 2005, an Vtnam, whch tun

t th t th t tm nc 2003.in, Vtnam ccup th 12th pt n

th inx th ya, t hght ankng v.Havng jn th W Ta oganzatn(WTo) n 2007, Vtnam ha bn nam aang canat t-tm nvtmnt bybth vp an vpng cunty nvt.Manuactung th man attactn v-p cunty nvt. U.s. chpmak int

bung a $1 bn mcpc puctnba n H Ch Mnh Ctyth agt U.s.Fdi pjct n Vtnam. Japan cmpan ucha Cann an Hna a ntt n Vtnama a w-ct puctn ba xpt.

oth cunt a jnng th tp 25. othGu tat av at numb 17, a ncapta quty gv t nw nvt-mnt pptunt n ptchmca wn-

tam nut, cntuctn an a tat,an nanca vc. suth Aca, ank 18th,ha atv ptca an cnmc tabty ana cncntatn ky cmpan t attactvpng cunty nvt. inuta anCmmca Bank Chna (iCBC) acqutn a 20 pcnt tak n stana Bank, suth

Aca agt bank, w aw Chna t ac-tat utu ngy an cmmty nvtmnt

n th Acan cntnnt. inan cngmatTata Gup ha a nvt n mutp ctm iT vc t ca t ht. ewhn th inx, Maaya an inna tunt th tp 25, thank many t ntt m

Aan nvt.Bth vp an vpng cunty

nvt a ntt n makng t-tmnvtmnt n tabh mgng makt ucha Chna an ina an n nt tnatnuch a Vtnam an th Unt Aab emat.

othw, vp cunty nvt a tun-

ng t ag an ppua Fdi tnatn uch arua an Tuky n th vpng w anth Unt stat an Wtn eupan t-natn n th vp w. Th nvta cn sau Aaba pmay a a t tv th gn ag cpatn an hgh nt

wth cutm.By cntat, vpng cunty nvt

ct up-an-cmng tnatn t-tm

nvtmnt v th nxt th ya. Th nv-t a ntt n catn uch a Nga,suth Aca an egypt n Aca an th Meat; Thaan, Camba an inna n Aa;an Ch n th Amca. A t-tm Fdicatn, th cunt ct avantag,ab avaabty an an ncangy avabnvtmnt an bun cmat.

Chn nvt hav tat t utuc

wthn eat Aa t tnatn uch a Vtnaman Camba. Antcpatng gwng ta tang th ha b, Chn puc havnvt n phyca natuctu a w a ac-t n Vtnam t puc bth mtca an xpt. Chn m hav nvt nCamban aw mata uch a n ank. Chna ha a bn actv n Aca. it nan-ca cmmtmnt $20 bn v th nxt

w ya hav cp unng by th cntnnttatna gba a agncy n.2

dvpng cunty nvt nw cmpt nvtmnt tagt wth vp cuntynvt. i th a gn ag chang t cm?T b u, vpng cunt cntbutny abut 15 pcnt gba Fdi utfwn 2006. dvpng Aan cnm hav namatc nca n utfw nc 2003, wth

th ha w Fdi utfw ng m 4t 9 pcnt. sutan cnmc gwth v

2 See A.T. Kearney research on CHIMEAthe growing strategic alignment o China, India, the Middle East and Arica.

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th pat ca ha aw cunt t bu up

hug capta p, much whch ha unntna nvtmnt th accumuatn -gn cuncy v. Chna an ha pakhun bn a n U.s. Tauybn, n pat t mantan t cuncy pg.dvpng cunt nw h m than 70pcnt w cuncy v, accng tth att iMF ata, up m abut 50 pcnt n

1996. Th pbm that cunt accumuat-ng v qucky a xp t gncantcuncy k. in th vnt a maj pcatn th U.s. a, th cunt cnta bank

wu u ubtanta capta . i Chnaan th vpng cnm that hav bnaccumuatng v mv t buyng a atath than pt at, th Fdi numb aky t ht apy.

Nn-Wtn gvnmnt kng t v-y byn vgn bt ntumnt havmany tagt nvtmnt n th hm gn.F ntanc, th sngap tat nvt Tmak

Hng, wth t $80 bn-pu pt, ha

cncntat n Aan nvtmnt tagt. Hwv,th ancta vnc that sngapan cap-ta ha bgun t mv aba. Th TemasekReview 2006 pt that 44 pcnt t ata nvt n sngap, wn m 52 pcntn 2004. Tmak an th Chn gvnmnthp unwt Bacay ht b dutch bank ABN Am.

Tmak nt an. Th Chn

gvnmnt ha acqu a 9.9 pcnttak n bth th Backtn Gup anMgan stany. B duba cncua b 20 pcnt Naaq stckMakt an puung ha n thlnn stck exchang. Th Abu dhabinvtmnt Authty tmat thav nay $875 bn nvtmnt.Fwng cnt ubpm-at wt-

wn, Ctgup cv a $7.5 bnnvtmnt m th Abu dhab invt-mnt Authty an $6.88 bn mth Gvnmnt sngap invt-mnt Cpatn. M lynch acapta m sngap Tmak H-ng, th Kuwat invtmnt Authtyan th Ka invtmnt Cpatn.Ba stan an UBs cv cap-

ta njctn m th Chna invtmntCpatn an th Gvnmnt sngapinvtmnt Cpatn pctvy. Futhxpann th nvtmnt hzn v-gn wath un hu b xpct.

But nt a cunt hav t t tat-wn un t nca th va nvt-mnt pt. Ntaby, ina ha bcm amaj pay n Fdi thugh th actn tpvat m. Th acqutn pcaty tpuc Ac by Mtta st ma th nwym AcMtta th w agt tpuc. Tata st ha pn n kn,

invt n Asia and Europe

preer the near abroad

th nvtmnt, wh

North American investors

tend to look outside th

Wtn Hmph.

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buyng th Ang-dutch Cu Gup, sngap-

ba puc Natst Aa, an a 40 pcnttak n Mnnum st, a Tha t cm-pany. Aumnum manuactu Hnac bughtNv, a U.s. aumnum ng m, $6bn n 2007, catng th w agtaumnum ng cmpany. The Economistptthat tta gn acqutn by inan mtta $23 bn n 2006, a nw c.3

such maj a a ky t cntnu.

Accng t uvy pn, vpng cun-ty nvt pan t mak m than ha (54pcnt) th $500 mn-pu Fdi a vth nxt th ya. Th ag a a xpctt b chann t th vpng cunty ma-kt an t m xtnt eup. in th Untstat, hwv, ptca tanc may wcntan th z uch Fdi nvtmnt, a v-nc by Chna cnt tatgc nvtmnt

n Backtn an Ba stan va gvnmnt-cnt CiTiC scut. Bth ha ama nugh t av cngna vw.

Near-Shore Destinations Draw Asian and

European Investors

rgnay, nvt n Aa an eup pth na aba th nvtmnt, whNth Amcan nvt tn t k ut

th Wtn Hmph. Nn th tp 15 p- nvtmnt tnatn Aan nvta n Aa. eght th tp 15 p nvt-mnt tnatn eupan nvt a neup. data a uggt that nvtmnt fwt th eU-15 (th 15 cunt n th eupanUnn p t th accn 10 canatcunt n May 2004) ncangy cm m

wthn th eU-15. in 1994, 64 pcnt a

Fdi n th eU-15 cam m th eU-15 tat.

By 2005, that numb wa 79 pcnt.Amng th tp 10 Fdi tnatn, Chna

an rua gnat th mt cnnc amnghm gn nvt. Aan nvt ntt nChna pan ac manuactung an vc c-t, a th cunty xpan t mtc maktman an pn t knw-hw a an xptpatm. rua attact gncant ntt meupan nvt, wh a a much m ky

t ct rua a a t-tm nvtmnt t-natn than a Nth Amcan nvt.

on th th han, Nth Amcan nvthav nt hwn a ma tnncy t nvt wthnth gn. rath, thy hav a tng pnc makt ut th Wtn Hmph. U.s.Fdi fw t latn Amca w up 123 pcntv th 1996 t 2006 p. dung th amtm p, fw t Canaa 200 pcnt an

th t eup nca by 318 pcnt. Fdin Aa gw by 300 pcnt, an n th Meat t nca 1000 pcnt. Th chaact nvtmnt Nth Amcan m a vaby gn: dvp cunty nvtmnt ccuva nvtmnt pt an by gn a-at, wha vpng cunty nvtmnt ucapta an ut th tagt cunty.

Accng t th Buau ecnmc Anay

(BeA), th Unt stat utwa gn ctnvtmnt ptn at ya-n 2006 ncaubtantay cmpa t 2005, hp by ut-

wa capta fw $216 bn. Hwv, ntutfw w t $41 bn bw th pt-2000c v 2004.4 Th Nthan cp-nt U.s. Fdi at 15 pcnt th tta.Th Unt Kngm (9 pcnt), luxmbug(7 pcnt), Canaa (7 pcnt) an ian

3 Marauding Maharajas: Indias Acquisi tive Companies,Th ecnmt, 29 March 2007.4 The 2005 to 2006 comparison o U.S. FDI outlows would indicate much higher FDI outlow volume than the 2004 to 2006 comparison. However, 2005 is a

poor benchmark due to tax provisions in the American Jobs Creation Act o 2004, which permitted oreign earnings repatriation at reduced tax rates or FY2005.The FDI outlow numbers or 2005 are thereore artiicially weak due to repatriation o oreign earnings, and 2004 represents a better benchmark year.

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abunant ct t tuctu hghy vag

a. rcnty, hwv, pvat quty ha ununang m cut. Cbu Capta mt

wth tanc n nancng th na mnt t Chy buyut. Th Cay Gup b Vgn Ma a pty unnng nt nanc-ng cuty. Cpat M&A ganng mavantag n bng agant pvat quty,wng t t abty t u nancng mchanmth than vag bt. i th bt makt cn-

tnu th tatn, ntt at n thUnt stat eup v nfatn cn-cn, th pvat quty makt w ky cuth, mnhng th ct n vanvtmnt an acqutn.

Sustainability in Global Investments

invt m nt gn, ct an mz a a cncn abut th utanabty

th gba cnmc . Th gatt ng cha-ng, ct by 66 pcnt pnnt, gbacmpttn cac ngy v. Cmatchang w cy bhn, mntn by 55

pcnt pnnt. oth tp cncn ncu

gba cmpttn nn-ngy natua uc(47 pcnt) an ncang putn m v-png cunt (44 pcnt). Byn nvnmn-ta utanabty, th ang u nvt th wath an ncm gap btwn th vpan vpng w (38 pcnt) (see fgure 9).

Cpatn a takng nt. Fty-thpcnt nvt hav pgam n pac thatnhanc c- an ngy-cnt pactc, p-

uct an tchng (see fgure 10 on page 12).Cmpan a a aptng ma, wttnutanabty c t gu cpat pactc.sm th w agt ntp, ncungBP an Wa-Mat, a mpmntng cpattatg that a ctca chang t a u-tanab utu. Wa-Mat tmat that nvtngn ngy-cnt bung an hppng pac-tc w qucky an ubtantay uc v-

a ct, ang wth upptng utanabty. Atth am tm, t cpat mag w bnt.

Wa-Mat pan t man ma utanabpactc t upp.

Figure 9

Most important challenges to the sustainability of the global economic order over the next 20 years



Globalcompetitionfor scarce

energy reserves

Wealth andincome gap

betweendeveloped and

developing worlds

Increasedpollution from

developingcountries

Globalcompetitionfor scarce

natural resources(excluding energy)

Climatechange

66%

38%44%

29%33%

47%

Chronic U.S.fiscal and

trade deficits

Rising costof basicservices

55%

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Cnum a a vng nvnmnta-m. Wh F Makt, cung n gancan utanab puct, njy hathy p-t n an nuty htcay tght magn.Gna ectc ha but a gncant pnc nth wn pw ct, whch nw njy a bma gvnmnt an pvat cmpan wwman wn tubn; n tun, Gna ectcupp hav bnt a w. Manwh, actv-

t hah m ag pnn un a p-ung m t uph hgh tana n thbun pactc. such hah a vnbth by cncn th ng-tm nvnmn-ta an ca mpact th nvtmnt, an byg bun n.

Futhm, gba cpatn a k-ng ut th wn ganzatn utn.Thty-th pcnt hav jn nuty b

t bby utanab pactc, uch a wtguatn t cmbat cmat chang. Twnty-v pcnt pt that thy hav tghtn c-tn cta upp an wtch t th

that mntat utanab bun pactc.

in atn, 20 pcnt nvt hav aptnutyw utanabty c.

on xamp th lahp n engy anenvnmnta dgn (leed) Gn Bungratng sytm, vp by th U.s. GnBung Cunc. Th ytm pv bnch-mak nvnmntay ny gn anbung pactc, an u t cty nw anxtng cntuctn. Appxmaty 1,200 pj-

ct a aay ct, an 9,000 m havgt wth th bung cunc t cab-at wth t mmb an achv ctcatn.

Anth xamp th iso-14001, an nvn-mnta aut tana that cmphnvgun nvnmnta managmnt anth-paty ctcatn an vcatn. eupan Aa-Pacc (patcuay Japan) tgthaccunt 87 pcnt tta iso-14001 nt-

p ctcatn a 2005, accng t thintnatna oganzatn stanazatn.

invt nthuam ntwthtanng, ny25 pcnt gba nvt ncat that thm tack th tun n nvtmnt (roi) th utanabty ntatv. o that gup, 70pcnt xpct tun 10 t 40 pcnt. Whny 19 pcnt Nth Amcan nvt tackth roi m uch ntatv, thy un ubtan-

tay gat tun than nvt m eupan Aa. A, ag m ($10 bn-pu nannua vnu) pt btt roi n thutanabty nvtmnt than ma m.

Athugh vpng cunty nvt hath am utanabty cncn an pt,vuntay tana hav gnay agg bhngvnmnt ncmnt n pnng t nv-nmnta chang. But cnt pvat ctnnvatn n ina cau ptmm.in 2007, Wp intchth ina, Meat an Aa-Pacc iT bun unt Wplmtbcam th t inan manuactu

Figure 10

Most common firm responses to sustainability risks



Invest in eco-and energy-

efficientpractices,

products ortechnologies

Adoptindustrywide

codes onsustainable

productsand

businesspractices

Tightensupplierselection

critera andswitch to

suppliers withsustainablepractices

Join industrybodies topromote

sustainabilityefforts

Adoptformal

sustainabilitycode

53%

20%

25%

33%34%

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t aunch a ang nvnmntay ny

GnWa ktp. Th ktp a uycmpant wth eU tana n th u hazau mata n manuactung, an thcmpany vntuay pan t ah t th tan-a ac t nt cmput n. in th uttct, Tata BP sa, a jntvntu btwn Tata PwCmpany an BP sa, ankamng th w ang

puc a-pwhm utn. it pjctncu th ntaatn 1,000 a-pw watpump n th tat Punjab,awng am t gt wat

wthut qung tm- anuc-ntnv utng pw n t th gn. it

a bught n-hm ght-ng t mt gn thHmaaya ung a antntchngy.

Pjct uch a th uggt way ina tcntnu t mv twa Wtn tana vnggua unnng wat an n ght-ng, xampwthut th natuctu anputn tpnt qu by Wtn m.

Cntnu vpmnt w qu ubtantanvtmnt, but th a gn that ina bm-ng cnmy w uppt t. F xamp, NwVntu ina ha annunc a $25 mn vn-tu un tagt at gn tchng an hpt u th a a t attact gn nvtmnt.Th nn-gvnmnta ct ha a attmptt th gap. Pgam uch a th Gn ratngPjct pv cmpany-v atng by ct nvnmnta pmanc, an pubcz bthth bt an th wt cmpan n ach ct.

du n pat t t havy mpha n manu-actung, Chna ac vn m acut pbm

that thatn utanab cnmc gwth. rap

nutazatn an vpmnt, cup wthngan atttu abut an an wat ucxptatn, hav ma t amng th mt p-ut cunt n th w. dmtc anntnatna pu t mpv nvnmnta

pmanc ha bn ntn. rcnt utag nth Unt stat, Canaa an eup v pt cntamnat wth nuta chmca ha t gat cutny Chn mpt ngna. Bjng a ac cpng tcatn

that, t unchck, may vtak th cty anmak t unnhabtab. Bnng ut tm aaay a aty ung th umm mnth.

Ftunaty, Chna ha hwn ncangntt n gn vpmnt. Tp gvn-mnt ca k t tm ng mtc untm ngatv actn t th ct ampantputn. st, ky gvnmnt ntatv, ucha gn GdP accuntng (an cnmc gwthnx whch attmpt t act n nvnmntacnqunc), hav nt yt bn uccuympmnt. By cntat, th pvat ct haapt t captu bun pptunt acat

The greatest single challenge to

gba utanabty, ct by 66 pcnt

pnnt, is global competition

or scarce energyuc, w

cy by cmat chang.

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wth nvnmnta gaatn, wth vntu

capta tagt at can tchngy n Chnancang 147 pcnt m 2005 t 2006.

A n ina, th utt ct ha az thctvn a pw n a cunty wthan unvp pw natuctu. in 2006,$2.6 bn wth a-pw wat hat

w nta, cmpnatng bth th ack pw natuctu an Chna pnnc nca- pw pant.

Chna bmng cntuctn nuty haa bgun t aapt can tchng t t pu-p. Th shangha Gn Bung Cunc

wa tabh n 2004 t hp th cty ppa th W exp 2010. it nw aaptngleed tana t th man th Chncmat. Gn bung, ncung hppngma, c cmpx an muncpa bung,a bng pann Bjng, shangha, Habn

an th ct. Amng th mt ambtu shu on Ppt Xhu Tan vpmntpjct n th cty Hangzhua mx-ucatn atung hp, tauant an thcutua actvt. But n cpatn wthU.K.-ba ngnng m Aup, t cva bt-n-ca leed Patnum atng m thU.s. Gn Bung Cunc.

i ina an Chna cntnu an xpan

th maj utanabty ntatv, gba ma-kt w ctany th ct. Cmpancatng patn n th cunt wuac th hgh ct cmpyng wth mtngnt guatn. Futhm, ncaman utanabty puct cu at htag, uch a tay ww wn-m htag whch vn by th ppuaty th wn ngy nuty. on th th han,th ntatv mght a amatcay atth ptabty g an vc tagtat utanab makt, an a t gncantcnm ca.

Regional FindingsThe Americas

Th Unt stat cntnu t ank th amnggba nvtmnt tnatn, but t attactm ntt m vpath thanvpngcunty nvt. A th backahagant Chna Natna oh o Cpatnan duba Pt th attmpt acqu-tn U.s. tatgc at utat, cuty

an ptca cncn a bcmng m pm-nnt act n nvtmnt cn. Th xpan-n th vw pc gn acqutnun by th U.s. Tauy un th Cmmttn Fgn invtmnt n th Unt stat(CFiUs) w nca th guaty bun gn nvt. in, guatn vy muchn nvt mn: Thty-ght pcnt ctnca gvnmnt guatn a n th

tp v vpmnt actng th nvtmntcn. Twnty-nn pcnt ct a bu-nm guaty nvnmnt a a an ncang nvtmnt n th Unt stat, an23 pcnt w mantan ca nvtmntbcau gat guatn r&d.

dpt mac cncn, th U.s. cnmyt xt a pwu pu n Fdi. invt pan-nng nca t th U.s. nvtmnt ptn

n th nxt th ya ct th z th makt,th va tabty th maccnmc nv-nmnt an but cnmc gwth a pmaycnatn. Th pn w cung a p 2007 whn th nanca a-ut m th hung makt cn paty makt an cat ubt abut utucnum man.

Athugh Mxc an Baz c ma

Fdi cpt n 2006, gba nvt a mptmtc abut Baz a an nvtmnt t-natn n th utu, accng t nvt u-vy. out th $19 bn Fdi nfw nt

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Mxc n 2006, 61 pcnt wnt t manuac-

tung nvtmnt, mty by gn m k-ng t puc th U.s. makt wthn thNAFTA tang aa. Baz w at a ccn wth $18.8 bn n nfw, whch 55pcnt wnt t th vc ct, n patcuananca vc an utt. Th Unt stat,th Nthan an swtzan accunt th majty th fw. Fth t tm, Fdi utfw

xc nfw Baz,wng t th acqutn inc,a Canaan mnng cncn, byth Bazan m CmpanhaVa r dc ( Va, a t nw t at a cntcpat banng).5

M than ha thgba nvt uvy cn-

ng ppum n latn Amca a ngatv, wth 55pcnt ncatng that t tth nvtmnt n th gn.Fdi fw nt cunt whppum a cncn hav bn vat. Ata 43 pcnt p n 2004, Vnzua Fdicpt 95 pcnt t $2.6 bn n 2005,but thn t mnu $543 mn n 2006.

Th Unt Natn ct th wntun t thtbutn pt m tat-un gantPdVsA t gn hah, whch th gv-nmnt ha h up nc 2003. Bva Fdintak 66 pcnt m 2003 t 2004, antun ngatv n 2005 b nay ng t$237 mn n 2006.6 M cnty, bthexxnMb an CncPhp u utma-tum t nt nt jnt vntu wth PdVsA

n t kp pumpng n Vnzua. Wth

th cunty pnnt n 90 pcnt t

xpt vnu, th xt maj Wtn man th tchngy w ctany hav pcu-n. Th vatty th fw uggt thatnvt a pnng t ht-tm ptcaan cnmc mv by th ung gvnmnt

wh thy attmpt t cn what th ng tmh bth cunt.

Fnay, wth ta ngtatn aun thdha dvpmnt Agna ta, th Untstat ha takn t ngtatng paat taa wth many t maj latn Amcan

tang patn. in th cunt Wahngtn c-mat, Cng ha c th a t ncucntn n ab an nvnmnta tan-aa fct n th Unt stat-PuTa Pmtn Agmnt (gn n 2006)an th Unt stat-Panama Ta Pmtn

Agmnt (gn n 2007). Thty-nn pcnt pnnt vw th tana ptvy,

wh ny 7 pcnt thught thy wu

nvtmnt attactvn.

Investors planning to increaseth

U.s. nvtmnt ptn n th nxt

th ya a cnng makt z,

overall macroeconomic stability

and robust economic growth.

5 United Nations Economic Commission or Latin America and the Caribbean, Fgn invtmnt n latn Amca an th Cabban, 2006.6 Ibid.

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United States. in atn t hng th

pac n th va inx, th Unt stata ank th t-tm nvtmnt mvp cunty nvt. Hwv, vp-ng cunty nvt pac t 13th. rgnay,Nth Amcan nvt a th mt ptm-tc abut ppct Amcan nvtmnt,ankng th Unt stat t, wh eupanan Aan nvt at t uth an vnthpctvy.

Th gwth n Fdi nfw t th Untstatm $101 bn n 2005 t $175 b-n n 2006, an t an tmat $192.9 bnn 2007fct nvt ptmm. invt nght manuactung ct (ncung tchngyan hath ca puct), tcm an utt ath mt buh n th U.s. makt. F xamp,Fanc Vvn ha annunc pan t buy thv gam mak Actvn. GaxsmthKn

ha ag t buy rant Phamacutca, a p-vaty h ug cmpany pcazng n hatthap, $1.65 bn. in th utt ct,th U.K. m Natna G acqu th U.s.ga an ctcty gup Kyspan $11.8 b-n, btng Natna G t bcm th c-n-agt utty gup n th Unt stat.invt n th havy manuactung an thpmay ct a a upbat abut th U.s.

cnmy. F xamp, sau Bac inutCpatn cnty pa $11.6 bn n cah Gna ectc patc bun.

rankng w, but t upbat, a nvt-mnt ppct n th nanca vc an nn-nanca vc ct. Th cnt pct tm a vau U.s. a an th ubpm mt-gag bac pmptng nvtmnt n nan-ca vc m. on xamp th $7.5 bntak n U.s. bankng gant Ctgup that th

Abu dhab invtmnt Authty acqu n at2007. in th nnnanca vc ana, duba

W pty pan t nvt up t $5.2

bn n th ht an can pat MGM

Mag by buyng ha an ha a maj laVga pjct.

sht-tm nvtmnt ppct n thUnt stat appa t b mx. Cmpa ta ya ag, 23 pcnt nvt pt a mptv utk, wha 23 pcnt pt am ngatv utk. on th n han, a w-wn n th cnmy cup wth cncnabut xpu t th U.s. ubpm makt

hu man a avab cmat nvt-mnt. Hwv, a cuntvang tn thpcat vau th a cmpa t thu an Canaan a, makng mg anacqutn by cmpan n th cunt xpnv an thu m tmptng.

Brazil. Baz cntnu t b a avt ntnatna nvt n th ya inx, ngn pac n th Fdi Cnnc inx m

vnth n 2005 t xth n 2007. Fdi nfw 25 pcnt, m $15 bn n 2005 t $18.8bn n 2006 an uth t an tmat $37.4bn n 2007.

invt n th pmay, manuactung, t-cm an utt ct a pcay cnntabut nvtmnt n Baz. rgnay, Aannvt a mt ntt, ankng Baz uthbhn Chna, ina an Vtnam a a av Fdi

tnatn, wh eupan an Nth Amcannvt ank th cunty ghth an vnthpctvy. in atn, 30 pcnt nvth a m ptv utk n Baz n 2007than n 2006, cmpa t 25 pcnt wh tm ptv n 2005 than n 2004.

Th Unt stat an eup man thagt uc Fdi n Baz, but that a nawng a Aan nvt pay a ag .in 2007, th inan tmak AcMttabught ut mnty hah n t AcBa am n a a achng m than $3 bn,an Nppn st Cpatn unv an $8.4

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bn capacty xpann pan at t Bazan a-

at Umna t naw th puctn gap wth AcMtta. oth cnt nvtmnt n thmanuactung ct ncu Fat $2.8 bnxpann t amby pant n Btm, whch

w mak t th m agt amby acty.Hgh cmmty an ngy pc hav

bt nvt ntt n th ngy an cm-mt ct. Baz ha a cmpaatv avantagn bu, an gn nvt a ptmtc

abut ncang puctn th. Nwganngy gup stat an Ptba cnty gnan agmnt t k jnt bu vntuan t nhanc th xtng cpatn n an ga xpatn an puctn. Th vcct a man an mptant tnatn Fdi. Th ih m expan, xamp, agt pay $1.2 bn a 65 pcnt tak n thcpat ct cnutancy saa.

Pnt luz inc lua a sva c-tn, maccnmc tabty, buyant gwthan th ucc th cnta bank n cnt-ng nfatn a vng Baz cntnu Fdiattactvn. Canada. Canaa ng n th FdiCnnc inx th ya, mvng m 21t n2005 t 14th pac n 2007. Canaa bmngcnmy attact Fdi nfw $69 bn n

2006, up 140 pcnt m 2005.Pmay ct nvt hw th gatt cn-

nc n Canaa. in th ac tng manan tght cmmt makt, thy a nca-ng nvtmnt an ng th bm. Hgh pc hav ma xtactng m th ta ann Abta pvnc cnmcay vab, angt an nfux n xpatn mny an ngtun n Cagay. Th pt a xpctt cntan an tmat 180 bn ba ,th agt v n th w at sau

Aaba. Canaa Natna engy Ba hacat that by 2015, Canaa tta utput

w b 4.1 mn ba cu a ay, 61

pcnt m than n 2005. Fgn nvtmntn ct uch a mnng a man mptant.

A tat a, th Bazan mnng cmpanyVa cnty pucha Canaan nck p-uc inc $17 bn, th agt acqutnv untakn by a latn Amcan cmpany.

Th nw gvnmnt cu n cntnungm by wng tax, mantanng ca u-pu an cntnung bt uctn ha cn-

tbut t nvt ptmm. Tght cmmtymakt, a bugt upu an a cuntaccunt upu cmbn wth th ubpmmtgag mtwn n th Unt stat havpuh th Canaan a abv paty wth thU.s. a. Th gan cat avab cntn Canaan m t acqu at n th Untstat, but t ptnta t ca xpt cm-pttvn aay caung cncn n Canaa.

Mexico. Mxc va ankng 19th th pac bw t pt n 2005. Fdi nfwnt th cunty cn ghty t $19 bnn 2006 m $19.7 bn n 2005, but acha nw hgh $36.7 bn n 2007 accng tth att UNCTAd tmat. Nth Amcannvt ank Mxc a th 10th mt avabtnatn Fdi.

it nt upng that Nth Amcan nv-

t a mt cnnt abut Mxc, bcauamt tw-th Fdi nfw cm mth Unt stat an Canaa. Nth Amcannvt a pcay ntt n manuac-tung, whch accunt amt n-ha a Mxcan Fdi nfw. on xamp nvt-mnt n aut manuactung, whch ha cntn-u t vp nc NAFTA wa gn. Mxcv tp autmak a Gna Mt, F,damChy, Nan an Vkwagn, a

whch puc th Amcan makt. lcatngn Mxc aw aut cmpan t ntgat p-uctn, ay hppng ca an pat nthwa

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by tuck an a. Anayt pct th cntnung

ntgatn Mxc manuactung nutynt th U.s. puctn chan.

Ta agmnt wth th eU, Aa an latnAmcan cunt a unpn nvtmnt nMxc. Athugh Mxc cmpt wth Chna manuactung nvtmnt, t pxmty tU.s. makt w ky kp t cmpttv

nvtmnt n havy g, uch a vhc, tan-pt qupmnt an ag cnum uab.

Th cmmty bm ha a bntMxc, a gvnmnt ca pct that $15bn w b nvt n mnng v th nxt vya. Canaa Gcp, xamp, xpct t

nvt $1.2 bn n t Paqut pjct n thMxcan tat Zacatca, wh t ha pvnv 13 mn unc g an 864mn unc v, amng th pcumna pt. Mxc tum nuty aha gncant ptnta uth vpmntan nvtmnt.

Th cntntu 2006 pnta c-tn cau m cncn amng nvt, but

Pnt Fp Can accptanc by thctat an h abty t gan appva pnn an ca m th ya, agant xpc-tatn, hav a nvt cncn.

Argentina.Agntna ha nt ank amngth inx tp 25 cunt nc t 2002 nan-ca c an bt aut. it putatn appa t b cvng mwhat, hwv, anNth Amcan nvt at t 15th a an nvt-mnt tnatn.

Fdi nfw man nay cntant at$5 bn n 2005 vu $4.8 bn n 2006,

b wng t an t-mat $2.9 bn n 2007.Th t up m $1.6bn n 2003, but Fdiman bw th 1990t 2000 avag mthan $7 bn a ya.

on an NthAmcan nvt ptmm Agntna gwth at at at 8.5 pcnt a yanc th c. A mau tabty ha tun tth cunty, an, a th

wtng, Pnt Ctna Fnnz Kchn xpct t tuctu $6.3 bnn aut bta ba t nvt cn-ncw t th Pa Cub gup ct natn. A pat th a, Agntna

w pbaby vt t 2005 bt tuc-tung an ty t mpv atn wth thintnatna Mntay Fun (iMF). dptthat pg, nfatn, xpt ban, pc cntan ctcty htag t mt Agntnaptnta nvtmnt, an w hav t btack Agntna t attact th v nvtmnt t attan b th c.

Chile.Wh nt amng th tp 25 Fdi -tnatn, Ch ank 14th amng vpngcunty nvt a a tnatn t-tmnvtmnt. infw t Ch 14 pcntm 2005 t 2006, achng nay $8 bn.2007 tmat a vn hgh, at $15.3 bn.

Th United States and Europe remain

the largest sources Fdi n Baz,

but that a narrowing as Asian

investors play a larger role.

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in atn t ta an cnmc agmnt

wth cunt n th gn, Ch ha a gncnmc agmnt wth Chna an ina, an n ngtatn wth Maaya. Th agmntpm t bt utu ta an nvtmnt actv-ty. Apat m cmmt, Ch can a acta a gna puctn an vc patm ajacnt makt n Nth an suth Amca. Andean Region. At th tm th 2005inx, anayt pcuat that thcmng

bata ta a wth Anan cunt ucha Pu wu bt U.s. ntt n th gn.Hwv, th cnt Unt stat-Pu TaPmtn Agmnt wa h up n Cngunt nvnmnta an ab tana wa t th tm. At th tm, many anaytaum that th tana wu mak nv-t ky t mv t Pu ( Panama, whma tctn w qu). But th 2007

uvy uggt thw. A majty pn-nt ncat that th ncun nvnmn-ta an ab tana ha th mpv thnvtmnt attactvn th tat (39 p-cnt), ha n ct (29 pcnt).

Asia-Pacifc

Gba nvt ncat tng cnnc nth Aa-Pacc gn, wth uch cunt p-

ntng 11 th tp 25 mt attactv nvtmnttnatn. Nt ny tabh maktuch a Chna an ina man at th tp, butsngap, Hng Kng, Vtnam, Maaya aninna a a n th . inbun Fdi t Aa-Pacc ach a nw hgh n 2006 an xpct t cmb t m than $270 bn n2007. Chna an Hng Kng cntnu t m-nat th nvtmnt ancap, accuntng

$120 bn th tta. sngap cm nth at an tmat $36.9 bn, Japan uthat $28.8 bn, an ina th at $15.3 bn.ova, th gn cntnu t cvy m

th 1997 nanca c, wth many th cun-

t mt mpcat n that cinna,Thaan, sngap an th Phppnngptv gwth n Fdi cpt.

invt n Aa-Pacc gnay ptmpv vw t han cnm. Mthan 25 pcnt pnnt ncat mptv vw Chna, ina an Vtnamnvtmnt nvnmnt than a ya ag. Thcncn a pmay cnmc. rng ngy

ct tp th t, wth 59 pcnt nvt cn-cn that uch ct wu ngatvy act thcnmy. Byn ngy, th ppct w-wn n th maj cnmc gwth ngn

AaChna an th Unt stata m-a magntu, mntn by 46 pcnt an 44pcnt pnnt pctvy. Gba ptc-tnmamagng t th xpt-ba gwthm much Aa th n th t

cncn, ct by 43 pcnt pnnt. China. dpt tppng th chat n Fdiattactvn, Chna Fdi nfw ghtym $72.4 bn n 2005 t $69.5 bn n2006. etmat nfw 2007 a at $67.3 b-n. statng n Fbuay 2006, Chna Mnty Cmmc tpp ptng a vau,hpng t kp ca m nfatng a zt ap bnu. Th cn, appant cn,

n nfw may b an unntn cnqunc th t.

in th ng tm, hwv, th gvnmntn Bjng ha takn tp that hu ncuagutu Fdi. Pat tctn n gn patc-patn n Chn capta an nvtmnt ma-kt, a w a n gn wnhp agntp, hav n. Th nw ntpncm tax aw, whch tk ct n Januay 1,2008, pac th nt tax at gnan mtc cmpan wth n cmmn at 25 pcnt. Tax ncntv vntu captaan ca nvtmnt w a annunc n

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2007. Th chang w ky hp t uc

th un-tppng, ub-cuntng, mtc Chn captawhch t Fdit nt thugh tax havn uch a Hng Kngan at ntuc back nt th cuntya Fdinfatng Chn nvtmnt gu.Bjng ha a nttut nw u that huaw gat acc gn bank t pat nt capta makt. UNCTAd, n t invtmntB N. 2, pubh n 2007, tmat that

Fdi nfw t th nanca ct gw nayu m 2004 t 2005, an that Fdi na tat wa nay $8.8 bn, m than10 pcnt tta nfw an an tmat 15pcnt th tta Chn a tat makt.Maj nanca nttutn uch a Ctguphav bgun acqung at n th pm makt shangha, Guangzhu an Bjng. Mlynch tagt $30 mn a nta pj-

ct n Nanjng, an Hutchn Whampa ht$5 bn nt nvtmnt n va majChn ct.

Th fuy nvtmnt ha a a an at bubb. T ampn uch a, th gvn-mnt bgan n 2006 t tct gn nvtmntn Chn a tat makt, pat a ba mv gn t n n th vhat-ng ct makt. Whth t can mantan th

tctn n th ac gna pu mshangha an th ct t attact gn ctnvtmnt unca. shangha annunc nMay 2007 that t wu n m Bjngtctn n gn ppty wnhp tav cuagng gn nvt.

Th ct Chna changng bankng g-uatn, tmmng m t cmmtmnt unth WTo t baz th bankng ct, aaay vb. Fnanca vc ct nvtank Chna a th tp Fdi tnatn. in,2006 mak gncant gn nvtmnt n thChn nanca vc ct, vn a nvt-

mnt n tatna manuactung an txt

ct man fat. Amng th nvt wHsBC an Ctgup. each cv pmnm th gvnmnt t ncpat mtcayan tap nt Chn avng. ABN Am, Bank eat Aa an Hang sng Bank hav a ntth makt. A Chna cntnu t pn t m-tc nanca makt t gn m, nvtmntn th nanca ct hu accat.

o th pnnt wh m a nvt

n Aa, nay tw-th ncu Chn atn th Fdi pt. Why wn ntpn Chna a p by a nay tw-t-nat v th quty cntactua jnt vn-tu wth Chn m. Gn nvtmnt cmmn, hwv, an th av m nty ny 7 pcnt pnnt.

Wh nvt atttu twa Chna agnay ptv, va awback w nt.

intctua ppty ght man a cncn 50 pcnt nvt n Chna. Th ptcaan ga gm, n a tat fux a t attmptt aapt t Chna apy changng cnmy,cncn 44 pcnt pnnt. Manwh,th ymptm an vhatng cnmya a tat bubb an a tght makt hgh-k abcncn 32 pcnt an 31 p-cnt pnnt pctvy. Thty pcnt

pnnt wth nvtmnt n Chna ntth gn ptctnt backah agant Chnmanuactu, an tub wth autat awmata hav cv w pubcty. India. ina tan t numb tw ptnn th ya inx. ina a ank cn bybth vp an vpng cunty nvt t-tm nvtmnt. rgnay, eupannvt ank ina t, wh Aan an Nth

Amcan nvt pac t cn an thpctvy. That ptmm wa cmpmntby a ap n nwa Fdi m $6.7 bn n 2005t $16.9 bn n 2006. Pmnay UNCTAd

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tmat put 2007 nfw at a ghty w but

t tng gu $15.3 bn.invt m ac a ct hw cn-

nc n ina. Tcm an utt nvta th mt ptmtc. Accng t inaPannng Cmmn, th cunty n tnvt $500 bn n a, pt, hung, a-

way, apt an tcmmuncatn natuc-tu v th nxt v ya. Th gvnmnt kng pubc-pvat patnhp t mt th

backg nvtmnt. rcnt ntt n thtcm ct ncu AT&T annuncmntthat t cnng a maj w acqu-tn n ina.

Bth havy manuactung an pmayct m a kng at maj pjct. inatn t ntt m cmpan uch a iBM,Gna Mt an Nka, Kuwat PtumCpatn n tak wth inan m, ncu-

ng ranc inut lmt, t bu a agny an ptchmca pant n ina, Aath-agt cnum. Btng th tntwa ncang ach an vpmntnvtmnt, U.s. chmca mak duPnt pant ub t pvuy annunc nvtmntn an r&d cnt n Hyaba t $51 mn.

invt n th nanca an nnnancavc ct a a buh n nvtmnt n

ina. B th hgh vau-a vc c-t, wh ina ha gan a gba putatn,th a tat ct ganng nvt ntt.Unt Aab emat-ba ppty vp-mnt cmpany rakn ha m a jnt vn-tu wth th inan m Tmx Gup, t bca rakn dvp. it pan t pn$5 bn v v ya t vp 50 mnqua t nta an cmmca pac.

Amcan intnatna Gup, th w agtnu, ha ag t buy inan mtgag n

Wzmann Hm t gt a tng th nina gwng makt.

invt a awn t ina a vaty

an. Th inan cnmy bmng, an,accng t th iMF, that gwth appa t bn a tng. stng nvtmnt an p-uctvty gan hav tanat t hgh ptntagwth. Wh nvt wcm th v-pmnt, ptnta bttnck man. Ptcatanc t pvatzatn man hgh, th abmakt atvy nfxb, an p na-tuctu w mp Fdi nfw. rtctn

n Fdi a ampn t ptnta. Cauan Wa-Mat hav bth un nt abck npann nvtmnt. Th inan gvnmnt pnng t uch cncn, hwv. in Ap2009, th gvnmnt w vw tctnn gn bank abty t cmpt wth thmtc va. Fgn bank k a m pnmakt an w mt, uch a a cap n thnumb banch thy can pn.

Hong Kong. Hng Kng ank th n thinx, up m 10th n 2005. Abut n-quat nvt ncat a ptv utk twaHng Kng, wth ny 4 pcnt hng nga-tv vw. Hng Kng ank 10th amng Aannvt, 14th amng eupan nvt, anth amng Nth Amcan nvt. dvpcunty nvt at Hng Kng 13th a at-tm nvtmnt tnatn.

Hng Kng Fdi ucc cntnu tb hap by t atnhp wth th man-an bmng cnmy. intnatna nv-t kng t gt a pc th Chna p Hng Kng ama guaty nvnmnt aan attactv tagng gun manan p-atn. Hng Kng unqu ptn a an Fdicnut t Chna n ubt hp t vaFdi cpt 28 pcnt m 2005 t 2006,t $43 bn. etmat 2007 gu a vnhgh, at $54.4 bn. on th th han,manan cmpan whng t tt ntnatna

wat u Hng Kng, wth t cgnzab

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p th un t buy gn xchang an nvt

n h x ncm puct. Atnay,qua cut agnc a aw t ugn cuncy nvtmnt puct n th man-an an u th cnt gn cuncy t nvtn va cut. Accng t th ecnmtintgnc Unt, $16 bn ha bn aun th chm nc sptmb 2007, wthth majty th capta thught t b hat Hng Kng.

Cmpan cntnu t hav cnnc nHng Kng a a tnatn ght manuac-tung Fdi, ankng t ghth pt th gauamgatn act nthwa. Txt, pnt-ng an pcng a th ky manuactu-ng ubct wthn Hng Kng. Tagt r&dt a unway t uppt th vpmnt hgh-vau ctnc an pmt th c-t yng wth tcmmuncatn, btch-

ngy an pcn ngnng. F ntanc,th Hng Kng scnc an Tchngy Pak t t ub n z at th ya. Hwv, thnthuam n th pat ght manuactungcmpan agan may fct Hng Kng unquptn a a chann -xpt m Chna,

whby g puc n Chna a makt,nanc an hpp thugh th tty. Singapore. sngap chang a cm-

pttn m nghbng cunt hat up t mantan t a a gna hub. Thya inx uggt that n th na tm, thgn-nvt ny natn ha accm-ph jut that. Gba nvt a buhabut sngap, ankng t vnth, up m18th pvuy. Fdi nfw m $24.2bn n 2006 t an tmat $36.9 bnn 2007. Aan nvt a patcuay nt-t, ankng sngap xth amng a -tnatn an t amng vp cunt,

jut abv th Unt stat an th UntKngm. sngap ppua a a t-tm

nvtmnt tnatn amng vp an

vpng cunty nvt, wh bth ankth cunty 14th, vnc that sngapggaphc vcatn t hav yvn. sngap ecnmc dvpmntBa ha aunch a cnct t t aw

Aan an M eatn cmpan t thcunty. ov th pat v ya, th numb cmpan m th tw gn nvtng nsngap ha ub t 13,000. Maj nvt-

mnt at ya ncu Kuwat-ba Pcatabhmnt an qupmnt manuactu-ng acty, th innan cmpany Pan snnw cca pcng pant, an a manuac-tung an r&d cnt pn up by inaBaha inut.

An accmmatng bun nvnmntan gn-ny nvtmnt u maksngap th tbutn hub an nanca

cnt suthat Aa. Amng nnnancavc cmpan an nanca vc cmpa-n uvy th ya, sngap c vnthan uth, pctvy, a a tp Fdi tnatn.Tax hay cmpan that cat gna ntnatna haquat n th cunty antng ntctua ppty guatn a amngth ncntv that u Fdi fw. Cpatntan t bnt uth thugh nvt-ny

mau utn n th 2007 bugt. Thcpat tax at at a uctn m20 pcnt t 18 pcnt (by cmpan, HngKng at 17.5 pcnt), an a chang tth pata tax xmptn guatn nab 80pcnt cmpan t pay an ctv tax at than 10 pcnt.

sngap ha vag t tatgc ptnbtwn Chna an ina an t ta natuc-tu t attact pna vc cmpanangng m cnutng m, iT vc cm-pan an gtc an uppy-chan manag-mnt m. dHl unc th mptanc

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th at n 2007 by catng th

gna haquat t tw gtc v-ndHl Gba Fwang an dHlexc suppy Chant sngap. PayPa jutpn t nw ntnatna haquat antchngy vpmnt cnt n sngap,takng avantag th cunty haquatpmtn an hpng t tap nt t hghyucat p ca pna.

Fnanca vc Fdi ha ng tam

nt th cunty. Twnty-u gn bank hacntaz th gna an gba pc-ng patn n sngap by th n 2006.Th tn hu cntnu, a th nanca -vc ct n sngap gw unabat, byth mgng wath managmnt nuty whchha ug by 9.5 pcnt annuay th pat xya. An xpanng p hgh nt wth n-vua an ncangy phtcat mtc

an gna nvt unpn th gwth wath managmnt, pvat quty, phanthpyan tut unatn.

sngap manuactung ct ha cntn-u t b a magnt Fdi: Fuy 81 pcnt nvtmnt cmmtmnt n manuactung camm aba n 2006.7 lght manuactung cm-pan ank th cunty a th xth mt attac-tv tnatn n th ya inx. ectnc

puct an cmpnnt an chmca anchmca puct ct a th man cpnt Fdi, but th gvnmnt ha aunch pant vy th mx uth, ngng ut pha-macutca an bmca puct v-pmnt. sngap cunty ht x th tp10 phamacutca cngmat, ky nutypay an a gwng ba mca tchn-gy cmpan wthn th Tua Bmca Pak.

rcnt ya hav n a fuy un cmmt-t t cnmc-vn r&d, wth th ga

pung gwth thugh nnvatn. in 2006,

th Mnty Ta an inuty unv tscnc an Tchngy Pan 2010, whch cm-mt $4.9 bn t r&d n ct nuty cu-t. in 2007, Pm Mnt l Hn lnggant atna nanca uppt t thNatna rach Fun, whch chann up-pt t pjct n ctnc, chmca, manngnng an bmca cnc. Accngt th ecnmc dvpmnt Ba, sngap

a attact 158 r&d pjct m aban 2006, wth a tta $1 bn.

Bung n t tng hty a a ba nng, sngap cntnu t attact mut-bn a cntact n th ngy ct. sheatn Ptum pan a cmbn thy-n cack an mn-thyn gyc (MeG)pant w nca sngap thyn utputby abut 800 ktn p ya an bt v-

pmnt n th ptchmca ct. in 2006,sngap cav ut a nw pac n th at-natv ngy ct by cung th danhcmpany Vta Wn sytm Aa-Pacchaquat an r&d cnt. Atnay, n2006 gba nwab ngy gup NatuaFu lmt Autaa bgan cntuctnn what w b th w agt b p-uctn pant.

Australia. Autaa man n th FdiCitp 25 at 11th pac, but t pp m ghthpac n 2005. Nth Amcan nvt a mtbuh n Autaa, ankng t ghth va.

Autaan Fdi cpt cv m th nt$35 bn utfw n 2005, achng $24 bnn 2006. Nvth, that um bw th 2004c v $36 bn.

invt n th pmay ct a th mtptmtc. Th Autaan xtactv nuta a pmay uc gn ct nvtmnt

7 Economist Intelligence Unit, inuty ovvw: Manuactung, 17 May 2007.

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an hav u nvt cnnc. st cm-

pan Tata st an PosCo suth Kahav bth xp ntt n buyng Autaanat mng jnt vntu t cu a-tna mata uc. oth nvtmnt n thct ncu Chvn Ggn natua ga pj-ct Wtn Autaa, tmat t b wthm than $10 bn. Hgh cmmty pchav a mant Autaan mnng m a bu-h abut utwa nvtmnt. BHP Btn,

xamp, jnty t n th Unt Kngman Autaa, ma a $150 bn a-ha tak-v ppa t acqu t ma mnng var Tnt. r jct th , but BHP tpuung th a.

invt n th nnnanca vc cta a ptmtc abut Autaa ppct.Mxc Cmx, th w tp bung mat-a cmpany by vnu, cnty acqu

t Autaan va rnk $16 bn. Anth cnt xamp th Japan gupKn Hng acqutn th Autaanay an ut juc puc Natna F $1 bn.

Autaa hgh ankng a ut wman t cmmt an t tng mac-cnmc an cnmc pcy pmanc vth at ca. lab canat Kvn ru

vcty v Jhn Hwa th lba Paty nt xpct t chang that. Wh cnmcpcy may b twak, n th ab makt xamp, ay ncatn pnt t cntncy.ru pan tax cut wa ny ghty gnu than Hwa. Hwv, th cut,cup wth nw pnng, tng mtcman an tght ab makt, cu b nfa-tnay. st, th unamnta th cnmya tng, th ca ptn g, an t mky that Autaa w mantan t cmmt-mnt t ta, th ctn ha bn mt

wth quanmty by nvt.

Vietnam. Vtnam inx ankng hacmb hapy nc 2005, achng 12th n2007 m bw th tp 25 n 2005. in pa-tcua, Aan nvt a mt buh, ankngVtnam jut bhn Chna an ina. Twnty-ght pcnt gba nvt ncat a mptv utk twa Vtnam cmpa ta ya ag, bhn ny ina, Chna, Bazan th Unt Aab emat. Bth vpan vpng cunty nvt av Vtnama a t-tm nvtmnt tnatn, ankng tvnth an th pctvy.

Vtnam accn t th W Taoganzatn n 2007 an t but cnmyGdP gwth ha nca m 6.8 pcntn 2000 t m than 8 pcnt n 2005 an2006a vng nvt ptmm. inwaFdi fw ach $2.3 bn n 2006, up m$2 bn n 2005 an $1.6 bn n 2004.eay ncat uggt that 2007 Fdi nfw

w b ubtantay hgh. Th VtnamMnty Pannng an invtmnt tmatthat Vtnam attact m than $15 bn Fdi n th t 11 mnth th ya.

invt n th havy manuactung, nn-nanca vc, tcm an utt ct ath mt ptmtc abut nvtmnt n Vtnam.Manuactung ha bn an pcay mptantct nvtmnt. Vtnam ha GdPm nuty ha gwn m aun 23 pcntn th ay 1990 t 41 pcnt n 2006. Bynint pann $1 bn nvtmnt ct a,

Aan, eupan an vpng cunty nv-t hav a hw ntt n manuactu-ng. examp ncu Thaan sam Cmntpan t bu a $3.7 bn ptchmca cm-px n Vtnam, an th itaan m Pagg wnvt $30 mn n a pant t puc ct- th Vtnam makt. Japan HtachCntuctn Machny Cmpany a cn-ng nvtng n a manuactung pant.

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rcnt annuncmnt ncat that gn

nvt a a hwng ntt n Vtnamnanca vc ct. HsBC pan t payughy $255 mn 10 pcnt Ba Vt,bcmng th gn nvt n Vtnamagt nu. dutch Bank cnty bught a10 pcnt tak n th Vtnam n HanBung Cmmca Jnt stck Bank.

Ang wth mmbhp n th WTo, cntm n gatn gvnng pvat ntp

an nvtmnt hu mpv th nvtmntcmat. oth v ung nvtmnt ncu

tw ca cnmc m, a tab ptcatuatn an pxmty t th bmng cn-m. dpt th t an hgh gwth,hwv, nfatn may pv tubng. Vtnama n t cntnu t tngthn th nancact, m tat-wn ntp an ucbttnck n natuctu.

Japan. Japan tan th 15th pt n thinx m th pvu uvy. dvp cun-ty nvt cn Japan th 14th mt attac-tv t-tm nvtmnt tnatn. Nth

Amcan nvt a m buh abut Japan

than a Aan nvt.Fdi nfw t Japan a xpct t bun

n 2007 t $28.8 bn, m a nt utfw $6.5 bn n 2006. it pcuat that thyn cay tabwng n yn t puchahgh-yng at n th cunchabn a act bhn at at m th 2006utfw.

Th ct mt buh n Japan ght

manuactung, whch ncu hath ca anphamacutca. on nfunta act a ag

an gwng y ppua-tn wth amp p-ab ncm. Pz inc. haannunc that t want txpan t ach an v-pmnt actvt n Aa,ncung Japan. on a at

nt, th Cay Gup kng t tap th gw-ng man n hu-ng amng a at-agngppuatn by mng a

jnt vntu wth a unt Tk Man & NchF inuanc Cmpany tbuy an ubh bung

n.Th nanca vc

ct wa actv n 2007. Ctgup $7.9 b-n buyut th bkag m Nkk Ca

wa th bggt a. Anth ntab t wath b $1.8 bn up t 32.6 pcnt shn Bank by a gup nvt byU.s. buyut m J.C. Fw & C.

Japan pc an cnmc gwth a mx bag nvt. Japan ha puhthugh m t attact gn nvtmnt,ncung a cnt mv t aw -ca t-angua mg, n whch a gn cmpany

invt n both developed

and developing countries avorVietnam as a frst-time invest-

ment destination, ankng t

vnth an th pctvy.

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Japan ubay can u t pant cmpany

ha t buy a ca cmpany. Japan ktuytm ntnk bun atnhp anhahng, hwv, t can act a a pactcaba t gn nvtmnt. Japan unamn-ta a g an t payng wn th bt taccumuat n th 1990. Cmpa t th t Aa, Japan cnmc gwth atvy wan xpct t man th abutu. But th Japan cnmy ha cv

m t ump n th 1990, cntnty achnggwth m than 1.5 pcnt nc 2003 (anup t 2.7 pcnt n 2004), whch ha awaknnvt ntt.

Malaysia. Maaya ankng t 16thpac n th 2007 inx at ang bwth tp 25 n th at uvy. Aan nvta mt ntt, ankng t nnth. in 2006,Fdi nfw t Maaya t $6.1 bn,

th hght v nc th Aan nanca c.etmat nfw n 2007 a an a-tm hgh $9.4 bn. Accng t th Maayaninuta dvpmnt Authty, Japan an thNthan th pack nvt cunt,

wth th Aan gn a a wh accuntng c t ha th tta nvtmnt.

Th ctnc ct ha bn a pnc-pa cpnt fw (40 pcnt n 2006). on

attactn ctnc manuactu thavaabty quaty manpw at ct 40 p-cnt w than n sngap an Hng Kng.sny, samung, d an Mta a hav p-atn n th cunty. Un th Th inutaMat Pan, a n 2006, ctnc anth ky ct uch a ptchmca, phama-cutca, tanpt machny an w-bapuct a tagt uth vpmnt anpmtn. in th pat, gn nvtmnt n c-tan ct ha bn mt ubjct t ama-tv actn u qung 30 pcnt Bumputa, ngnu, wnhp. Th guatn a

gauay bng a n th ac capta mga-

tn an ng cmpttn n th gn. ruptanng t gn wnhp manuactu-ng hav bn fxb nc 2003. in 2007, a-matv actn qumnt w pp xvc nut n th ikana dvpmntrgn (idr). Fgn bun that patn th zn a a a 10-ya tax xmp-tn an n tctn n th hng gnmpy. rcnty, u Gu-ba nvtmnt

un cmmtt $1.2 bn n th idr.Indonesia. inna nt th inx tp

ankng n 21t pac, wth Aan nvt ank-ng t 11th. dvpng cunty nvt cnt th 15th mt attactv tnatn t-tm nvtmnt. raz gn ct nvt-mnt n th t ha 2007 t $3.5 bn,up by 17 pcnt n a ya-n-ya cmpanaccng t th invtmnt Cnatng Ba.

Th upug n cnnc v th pat w yamay b th ut Pnt su Bambang

Yuhyn actv cutng th ntnatnabun cmmunty, an utach t thatmak a patu m pat pactc. in Fbuay2006, th Pnta intuctn N. 3/2006utn a pan t mpv th nvtmnt cmatthugh tagt nhancmnt n v aa: gn-a pvn, cutm, ab, taxatn an ma

an mum-z ntp. Th nw nvt-mnt aw Mach 2007 tngthn gn- ppty ght, tuctu th buaucatcpc nvtmnt appcatn, tamnth tax gm an ca th ang nutpn t gn nvtmnt. Athugh th aw wagt wth pa, mpmntatn w b ct-ca t th cntnu uccu attactn Fdi.

rch n natua uc, inna ank hghn th t pmay ct nvt. Fgnnvtmnt ha bn ncuag n th cuntyu t th tchnca phtcatn qu nt xtactv nut. Hwv, an unctan

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guaty nvnmnt ha kpt gn nthu-

am n chck. Th cnt acqutta th U.s.mnng cmpany Nwmnt Mnng an t p-nt putng a bay na t mn mpvcnnc n th cunty patng nvn-mnt. Th Japan-inna ecnmc PatnhpAgmnt cncu n Augut 2007 pva bt t Japan nvvmnt n th ngyph. F xamp, Mtubh nvt n aga-nng pjct nvvng tw ngy m n

xchang inna cmmtmnt t xptth na puct t ngy-cac Japan. Central Asia. Cnta Aa a a gn mvup a ntch m 24th t 23 pac n th inx,

wth Kazakhtan ankng 22n a a t-tmnvtmnt tnatn. Kazakhtan th caa, wth Fdi nfw that tta m thana th th Cnta Aan cunt nfwcmbn. Accng t UNCTAd, nt nfw

gw m $1.9 bn n 2005 t $6.1 bnn 2006 an an tmat $8.3 bn n 2007.Tukmntan, wth t ga uc, thcn-hght cpnt Fdi n th gn

wth $731 mn n 2006. Fdi gw m2005 t 2006 n a Cnta Aan cunt.

Much th ntt n th gn tm mt ngy uc. o puctn man amaj uc Fdi Kazakhtan, an p-

uctn xpct t tp v th nxt ca.Byn , cmpan a a nvtng nmnng. Chna Natna Nuca Cpatn, xamp, mng a jnt vntu wthKazakhtan tat-wn nuca ngy cm-pany Kazatmpm t nvt n uanum puc-tn n Kazakhtan.

Tukmntan ngy uc hav bcman vn bgg u nvt than n th pat,

bcau th ath m Pnt sapamuatNyazv ha mant that th cunty ha tnta-tvy pn up. Aay th bggt ga pucn Cnta Aa, th cunty vng t ngy

gatn n t attact gn patn n

atn t Gazpmuch a CncPhp,Chvn, PeTroNAs, rya dutch sh anBP, many whch a aay tabh n thgn. Chna a ntt n th cunty gauc, an ha t 2009 a th cmptn at a 7,000 kmt ppn t nancng anbung that w ttch m Tukmntan tshangha n th at an Guangzhu n th uth.

in th nanc ct, th itaan bank

UnCt acqu Kazakhtan ATF Bank $2.1 bn, th bggt gn nvtmnt t atut th ct. UnCt hp th acqu-tn w pv a hub t xpan n Cnta Aa.

T xpan byn xptng t ngyupp, th gn attmptng t mpvt natuctu. on uch pan th pm-nay agmnt amng Chna an vn cun-t n Cnta AaAghantan, Azbajan,

Kazakhtan, Kygyztan, Tajktan, Uzbktanan Mnga t nvt n a $19.2 bn na-tuctu vpmnt cb a a mnsk ra ta ut. Th pan ca nvt-mnt v th nxt ca n x nw tanptc, many a an a nk, t cnnctth gn btt t Chna, rua an th t eup.

South Korea. suth Ka man n th tp

25 2007 at 24th pac, ny a ght cnm 23 n 2005. Fdi nfw w wn nay30 pcnt, at $5 bn n 2006 cmpa t $7bn n 2005. Nth Amcan nvt amt buh abut suth Ka, ankng t 14th.Th Unt stat th agt uc KaFdi, an atcatn th Unt stat-KaF Ta Agmntth agt ta a th Unt stat nc th Nth Amcan FTa Agmnt (NAFTA) wth Mxc anCanaaw n ubt nca nvt nt-t n th utu. Hwv, unctanty t xtv atcatn u t pptn n patcua

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ct uch a b an aut, a w a ptctn-

t vc wthn bth gatu. Atnay, ta tak wth th eU an Canaa pmutu nvtmnt nt suth Ka.

Hwv, ta ngtatn cannt makth ncang that that suth Kan xpt,patcuay n th ky cnmc ct havyan ght manuactung, ac m ag mg-ng cnm uch a Chna. But suth Ka nt ny ac ct cmpttn. invtmnt

n th manuactung hgh-n puctuch a mb hant an fat-pan TV aac vgu cmpttn m Chna, Japanan sngap. Th suth Kan gvnmntha bn actvy ptnng t cnmczn (FeZ)inchn, Buan-Jnha anGwangyanga bun hub Aa. Tht a payng : inchn, xamp, haattact cmpan uch a GM daw, dHl

an Nw Yk-Pbytan Hpta t xpanpatn th. Th upcmng W Cty exp2009 n inchn a pm t hwca Kavn a utu ubqutu cty an atnnvatn, ncung bt, hgh-p tan,mutma ntwk an bmca tchn-g, n th hp awng m gba nvt-mnt. Th vnt xpct t attact m than10 mn pp v th mnth.

Thailand. Thaan ha pp th2007 inx, u n pat t nvt cncn vptca tabty wng th mtay cup nsptmb 2006. But Thaan ank 11th a at-tm nvtmnt tnatn amng v-png cunty nvt. Aan nvt man-tan th ntt, ankng th cunty 12th aan nvtmnt tnatn. Fdi nfw cntnut cv nc th nanca c n th 1990.infw t Thaan gw 9 pcnt m 2005t 2006, achng $9.7 bn.

dpt nvt cncn abut ptcatabty, cnt nvtmnt cn cntnu

t hw that th tng ntt n Thaan.

iCBC an Maaya CiMB Gup a cmptngt buy a 19.3 pcnt ha n th Tha bank ACl.Th dutch nanca gup iNG cnty acqua 24.9 pcnt tak n TMB Bank. duba Wa tat m Nakh Gup a annunct wu puu pjct n Thaan.

A ca at th Aan nanca c,Thaan m t hav cv n nvtpcptn, pcay th Aan nvt.

ov tm, th nanca ct ha bn gn-canty tngthn, but th iMF cntnu tcmmn uth m t a manngvunabt, mpv guaty vght anban an pn capta makt.

Europe

Bt by eup cnmc cvy, Wtneup cntnu t b a maj Fdi tagt, vn

a gna nvt y nw tnatn uthat. it ha w Fdi nfw h tayat 45 pcnt m 2005 t 2006. Th UntKngm tan uth pac n th inx,

wh Gmany an Fanc ank 10th an 13thpctvy. Nay ha tta Fdi nfw teup, $263.4 bn, wnt t th thc eupan cnm. Th nvtmnt nth th cunt an gat than th Fdi

fwng t a Aa n 2006.Fdi nfw t th eU-15 hav cn nc

th znth at th n th t-cm bm, athy hav n vp cnm wh.dpt a pt-2003 cvy, va nfw n2006 12 pcnt bw th 2000 v. Butppct cvy n Fdi nfw mantng. F xamp, unn wag tant ungth pat va ya ha ma Gmany amng

th mt cmpttv avanc nuta cn-m. Gman unmpymnt, my mthan 10 pcnt, wa pjct t a t 8.3pcnt n 2007. Futhm, ptca tn

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m p t cntnu th cvy. Pnt

Nca sakzy n Fanc an Pm MntGn Bwn n th Unt Kngm bthp t b cnmc m, thugh tman t b n hw a sakzy w b abt puh th m-av Fnch.

Th 2004 ntant t th eupan Unn(cctvy knwn a th eU-10) cntnut attact nvt, athugh thy may n bcp by th nw 2007 mmb, Bugaa

an rmana. Fm 2000 t 2006, Fdi nfwt th 10 tat that jn n 2004 nca by78 pcnt t abut $39 bn. Wh Panan th Czch rpubc man n th tp 25,Pan pp 17 pt m th t 22n, anth Czch rpubc pp m 12th t 25th.Th cunt cntnu t njy avantag apuctn cnt g tn maktn th Cmmn Makt, an wag man a

bw Wtn eupan ab makt tana.in, 48 pcnt pnnt ct w abct a a act n puung nvtmnt nCnta an eatn eup. Anth attactn th eU-10 fat-tax gm: Th avag mpcttax bun n th eU-10 appxmaty 19.4pcnt, cmpa wth amt 27.6 pcnt nth eU-15.8 Wth th nvtmnt, hwv, havcm ng vng tana an wag. Btwn

2000 an 2006, avag ab ct 173 p-cnt n th Czch rpubc, 128.9 pcnt nHungay, 123 pcnt n lthuana, 110 p-cnt n latva, 103 pcnt n svna an 87.5pcnt n Pan. By cmpan, th avagnca th nt eU-27 v th am p

wa ny 60 pcnt. That a, avag wag ctn th nw mmb tat man w n cmpa-n t th eupan avag: F xamp, ab

ct a 31 pcnt th avag n th Czch

rpubc, 27 pcnt n svna, 25 pcnt n

Pan an Hungay, 22 pcnt n svaka an17 pcnt n lthuana.9

Hwv, th tat nw ac nw cmpt-tn m uth at. Th accn rmanaan Bugaa ntuc tw nw w-wag cant th eU cutm unn. eupan nv-t t rmana xth an Bugaa 13th n thtp Fdi tnatn n th utu, cy ta-ng Pan at th pac an th Czch rpubc

at 12th pac pctvy. Wth rmanan wagat 12 pcnt an Bugaan wag at 7 pcnt th eU avag, nvt hav bgun t kut th gn a nw puctn cnt.rmana, bung n t ca manuactunghty, nw th h appant t svaka ath aut puctn capta eatn eup.invt a a ntt n acc t maktn eup pphy (43 pcnt), th gn

hghy k wkc (40 pcnt) an th ab-ty t h wh manng wthn th eU(34 pcnt). Th act pnt t rmanaan Bugaa ptnta a bth cutm maktan uppy hub. in atn, nvt appc-at th cunt mpvng natuctu. TheU Tan-eupan Tanpt Ntwk p-gam w uth ncuag th ht puc-tn atwa. Wthn th nxt ca, hgh-p

a an mtway nk w t th nw mmbtat t th maj cnum makt Wtneup va th capta Cnta eup. Thap nca n gtca capacty pm byth natuctu mpvmnt hu makrmana an Bugaa vn m attactv nvt-mnt tnatn n th utu.

eup ha wa nt th ntnatnaM&A bm, wth $413 bn n a ccungn 2005, an nca m than 200 pcnt

8 Tax data taken rom Eurostat.

9 All calculations based on labor cost per hour data rom the Economist Intelligence Unit.

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m th makt 2003 na. Th actvty, hw-

v, wa hghy cncntat n th avanccnm Wtn eup, wth Fanc,Gmany, th Nthan an th UntKngm accuntng tw-th th v-a tanactn vau.

Fnay, t hu b nt thatmt eupan Fdi cm m

wthn eupan that thcntbutn ha tay n

v th pat 30 ya. intnaeU-15 nvtmnt fw nwaccunt nay 80 pcnt g Fdi nfw t eU-15cunt. Pvat quty cntn-u t pay a ubtanta nth nvtmnt fw. Aceup, pvat quty an vn-tu capta accunt $70

bn n nvtmnt 2005,27 pcnt v th 2004 gu.Fm 2004 t 2005, th attya n whch ata pubcyavaab, pvat quty un a u nCnta an eatn eup tp, m $625mn t $1.9 bn.10 Th makt man v-at, hwv. Abut $317 mn wa nvtn Bugaa n 2004, but nthng n 2005. By cn-

tat, nvtmnt n th Czch rpubc ncam than x, m $23 mn n 2004 t$160 mn a ya at.

United Kingdom. Th Unt Kngmtan uth pac n th inx. it cv $140bn n Fdi n 2006, makng t th angcpnt gn nvtmnt n eup by amagn nay tw t n v Fanc at $81bn. etmat 2007 nfw amunt t $171.1

bn. Twnty-th pcnt nvt pta m ptv utk v th pat ya, m

than any th Wtn eupan cunty. Th

Unt Kngm ank hghy a an nvtmnttnatn bth Aan an Nth Amcannvt, at xth an ghth pac pctvy. it a th tp vp cunty tnatn vpng cunty nvt makng t-tm

nvtmnt. Bth nanca an nnnanca -vc ct m ncat hgh ntt n thUnt Kngm. Th hgh tanactn ctmp n U.s. makt by th saban-oxy

Act 2002 hav ma lnn a m attac-

tv nanca vc hub. U.s. ptcan k-ng ac th Atantc hav ct lnn a th

w pm nanca cnt, bth t cn-at guaty nvnmnt an t abtyt attact tp-quaty pp an k. rcpt n 2006 w um t hav y$17.3 bn n bnu t lnn bank.Futhm, hgh pc hav nag n th tatnay ag tam mny fw-

ng t th ctynamy, pta m thM eat kng nvtmnt.

10 European Private Equity and Venture Capital Association, Cnta an eatn eup stattc 2005.

The 2004 entrants to the EU con-

tinue to attract investors, athugh

thy may n b cp by nw

2007 mmb due in part to labor

cost considerations.

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Pvat quty a ha a bann ya n

2006, wth Bth pvat quty m nvtng$41 bn, amt twc th 2005 v an upm than th nc 2001. Mv, whnay ha wnt t nvtmnt n th UntKngm, th am ha wa ct at cnt-nnta eup. inuta an cnum gm cv 60 pcnt th tta nvtmntun.11

sva unctant act th utu nvt-

mnt nvnmnt. What th pw tantn atN. 10 dwnng stt w man th Bthcnmy man t b n.

Russia. rua a th pac n th inxm 2005, cmng n at nnth pac n 2007. ruacv $28.7 bn n Fdi n 2006, m thanub th $12.8 bn m 2005. etmat 2007 ach $48.9 bn, fctng cntnunvt ntt n th cunty uc xtac-

tn an uc-pnnt nut. dptth nca, tghtnng uc xtactn g-uatn may act nvt utu cnnc.rua attact mty eupan nvt, cu-ng th pac at ina an Chna, wh ank-ng 14th amng Aan nvt an bw thtp 15 Nth Amcan nvt. A a t-tm nvtmnt tnatn, rua nttbth vp an vpng cunty nvt,

ankng uth an th pctvy. invta mt ntt n rua pmay ct,ankng t jut bw Chna nvtmnt nth ct. invt n havy manuactung aa buh. o wath ha gvn a gnatn ruan puchang pw nt n n cntmmy, ang gn m t t up hpn rua pt th k. on xamp thaut nuty. Tyta, Nan an rnaut a

th pn pant n 2007 hav pant uncntuctn.

Hwv, nvt n rua a pt a t t

utu ppct. Th 45 pcnt wh ncatthy wu nca nvtmnt n rua cnmc an: rua cnty mpvcnmc pmanc, t ag cnum makt,t ngy v an t k ab c. oth kng t nca nvtmnt, 35 pcntct rua cnmc gwth an 31 pcnt tgwng cnum makt a pmay v.

eght pcnt nvt hav c t

ca nvtmnt an 48 pcnt t h cn-tant, xpcty ptca cncn: svntnpcnt a mtvat by th that natna-zatn th at by th ruan gvnmnt.sxtn pcnt ct th n th u aw,14 pcnt th ptca unctanty uunngth upcmng tmnt Putn, an 13 p-cnt th that p by ganz cm. Nay14 pcnt pnnt a th amnt

rua cnmc utk ha wn nth at ya. invt ambvanc abut ruahu nt b upng. A rya dutch sh,Chvn an BP hav a xpnc n thngy patn n sba, th Kmn unPutn ha bcm a c n th cnmy, ttngth tm un whch m may patcpat nmaj nut.

rua ac gncant chang n v-

yng t cnmy, mpvng th hath t ct-zn, ang u nvnmnta pbman achvng pacu atn wth t ngh-b. Th cunty pnnc n vnut pv ng tana vng an un thgvnmnt ha ma th ngy nuty pa-amunt mptanc. Hwv, ruan FnancMnt Ax Kun ha tmat that, wth-ut atna nvtmnt an mpt Wtntchngy, rua w b unab t mt tcntactua cmmtmnt t v ngy n a

11 British Private Equity and Venture Capital Association, rpt n invtmnt Actvty 2006.

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v-ya tmam. rfctng cncn abut th

u, Tukmntan utng a ga ppn trua thugh Kazakhtan ath than ang aht tan-Caucau ut. Germany. Gmany a n pac n thinx ankng m 2005, but t cu 10thpac. At at n gncant gn vt-mnt hk Gman Fdi n 2006: that Wa-Mat, wng appntng a gu at tGman t. Th 85 t w t m-

tc va Mt at a pcuat t b n th$100 mn ang n tp an atna $1bn ht t Wa-Mat bttm n.12

st, nvt a buh abut Gmany,wth 22 pcnt ncatng a m ptv utkcmpa t th pvu ya. Wh eupannvt ank Gmany 11th amng th tpnvtmnt catn, Aan an Nth Amcannvt at th cunty 15th an 13th pc-

tvy. Fdi nfw 20 pcnt m $35.9bn n 2005 t $42.9 bn n 2006, anuth t $44.8 bn n 2007.

invt n havy an ght manuactungct a mt buh abut Gmany, ankngt amng th tp 10 nvtmnt catn vth nxt th ya. Ancta vnc uggta vbant Fdi makt. UPs pn a maj nwgtc hub n th gn aun Cgn an

Bnn at a pc tag $135 mn. d auncha nw cutm vc hub uppyng 1,500 jbat an unc ct. itaan chmca p-uc Mnan, at ya hgh gwth n tGman patn thugh t ubay BnChm, xpanng patn n th atnpat Gmany. Vgn pnt $273 mn tacqu Jamba!, a ang pv w -vc n Gmany. data m th Bunbank

Gmany cnta bankm th anctavnc, wth th chmca, tanpt, an th

ma, tvn an cmmuncatn nut

bng th tp th cpnt gn nvt-mnt n 2006.

sm th mpvmnt may b u tngng cnmc m. in Juy 2007, thBuntag appv gatn t cut th Gmancpat tax at m 39 t 30 pcnt, pac-ng Gmany n th m th tax ang neup an w bw th 35 t 40 pcnt angpvang n th Unt stat. Th hu gn-

at gncant nvtmnt ntt m vacmpan an cntnu th mpact mbgun n m Chanc Gha schgvnmnt. Whth uch m cntnu,hwv, ca. Th gvnng GanCatn un Chanc Anga Mk, havngach th haway mak btwn ctn, mayb tn a p atv nactn. labmakt m byn th Hatz iV mau

th sch gvnmnt appa unky ut unamnta agmnt btwn th mancatn patnth Chtan dmcatcUnn an Chtan sca Unn n th n, an th sca dmcatc Paty n thth. in cntat, th ucc pvat nutyan cmpany-v wag matn mauag t by bth managmnt an unn haha a much ag mpact, gncanty mpvng

Gman cmpttvn.France. Fanc pac 13th n th 2007

inx, up m 14th n 2005. Th $81 bn nFdi fw t Fanc n 2006 w ughy quat th 2005 v. 2007 tmat a hgh, at$123.3 bn. Wth $40 bn n ntnatnaM&A tanactn, Fanc accunt 8.8 p-cnt th eupan tta. Amng eupannvt, Fanc ank a th nnth mt attactvtnatn. it a a ppua tnatn Nth Amcan nvt. Accng t th invt

12 Kate Norton, Wal-Marts German Retreat,BunWk, 28 July 2006.

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n Fanc Agncy, a quat th 40,000 nw

jb gnat by gn cmpan n Fanc n2006 cam m Amcan bun. Fanc aank 11th a a t-tm nvtmnt tnatnamng vp cunty nvt.

Th ctn Pnt Nca sakzyha pm m bazng m th Fnch cnmy: ab aw ktng th35-hu wk wk, gat ab fxbty Fnch m an an mpv ucatn ytm.

Hwv, sakzy ha a vv ptctnt

tak abut natna champn an a h wupn qutn cncnng hw th eupanCnta Bank t mntay pcy. Fnancacmmtmnt ma ung th ctn mght

w wn th bugt ct, pby puttngFanc n vatn th mt t ag tun th stabty an Gwth Pacta tatyamwk cnatng th cnmc p-c cunt n th eupan ecnmc an

Mntay Unn.Tcm an utt ct nvt a

mt cnnt n Fanc a an Fdi tnatn.Th 2005 Fdi tuy pct that pvatzatn

ectct Fanc mght pag a nw a

pnn n th Fnch ngy makt. Butnc thn, Fnch tat actvm ha mantt, wth th catn a Fnch mga-uttythugh th gvnmnt-pn mg Gaz Fanc an sUeZ. Turkey. Tuky ank 20th amng gbanvt n th Fdi Cnnc inx. Fdinfw t Tuky m than ub m 2005,achng $20 bn n 2006 an an tmat

$19.4 bn n 2007. UNCTAd pt thatmt vhc-at nvt-mnt accunt 13 p-cnt Tuky nwa Fdifw n 2006. Amng majnvt, rbt Bchnvt $240 mn n2005 t bu aut patan th manuactu,

an pan t nvt mnm n t Tukh pa-tn. in th nut,inan o ha app a pmt t bu a $6 b-n ny at th pt Cyhan, an Autan noMV bught a $1.1 bntak n Tukh an ga

cncn Pt o. C-b M&A ancu th $1.6 bn pucha tcmmu-ncatn m Tukc itm Hzmt by CTFHng, an Van pucha TmMb $4.6 bn.

Nnth, unctant abut Tuky p-t. Tuky ppct eU accn manqutnab at bt, wth Fnch Pnt Ncasakzy tatng that h wu nt aw Tukyt acc ung h pncy, whch w atunt at at 2012. in 2005 an 2006, Tuky anBu cntnu t ag v th Cypuqutn an ntna human ght u.

Investors are split as to Russias

uture prospects ncuag by

cnmc pmanc an gwngcnum makt, but discouraged

by political concerns.

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Poland. At ng n th inx ankng

n 2005, Pan a m th t 22n pac n2007. Th p can b attbut n pat t that tw ya gncant cnmc an pt-ca tum, whch a nvt cncn abutth utu cnmc m n Pan. Unth law an Jutc Paty, th gvnmnt wapny antagntc bth twa rua an theupan Unn v u uch a ta, cu-ty an ptca pntatn n th eupan

Cmmn. Fm Pm Mnt JaawKaczynk ncat a t pn th pva-tzatn pc that ha cncu n th m-1990, n th gun that many wh bntha tant gac m th Cmmunt a.

At th ba Cvc Patm paamntayvcty v th law an Jutc Paty n octb2007, hwv, th gvnmnt gna t wuw a pput path.

st, Pan a Cnta an eatneup n Fdi nfw, wth nt nfw $13.9 bn n 2006 an an tmat $18.1bn n 2007. it th tp-ank eU t-natn amng eupan nvt, at th pacva. invtmnt n th a tat ct habm, pcay n ta an c ppt.Tcm an utt m cntnu t captazn makt bazatn pptunt. Th qu-

tn whth Pan can h n t eupannvtmnt n th ac nw, w-ct cmpt-t uth at a w a th 2004 accntat uch a th Czch rpubc an svaka.Pan tayng pw w pn n cntnupg n natuctu mpvmnt, upga-ng human capta an th utan gwth cnum makt t u mtc man. Czech Republic. Th Czch rpubc pt 25th pac n th ankng, 13 pt bw t2005 ankng. Nvth, t t th 12th mtattactv tnatn eupan nvt. Fdinfw t th Czch rpubc $6 bn m

2005 t 2006, ppng t $5.9 bn (a gu

whch wa nvth 20 pcnt hgh than t2004 ntak). etmat 2007 nfw a ghtyhgh, at $7.6 bn.

A wth t nghb svaka, th Czchrpubc cntnu t attact aut manuactungnvtmnt m Wtn eup. Maj cntnvtmnt ncu a $74 mn pant Fnchaut pat manuactu Fauca. in th iT ana,Htach an th lCd pay mak iPs Apha

Tchngy cnty annunc pan t nvt$89 mn an $166 mn pctvy ntwn pay act n th m Czch abaat atc. inan twa gant iny pn a400-at BPo vy cnt n Bn t pvvc t eupan cnt. Fnay, a w ang U.s. cmpan, m hgh-tch gant Hwtt-Packa an Mct t cnum pucta Pct & Gamb an nuta g m

ing-ran, tabh r&d act n thCzch rpubc n 2006. Th Czch gvnmnt ncuagng nvtmnt, havng cnty wth cpat tax at m 28 t 24 pcnt. Hungary. Hungay, whch ha bn 11thpac n 2005, nt ank n th 2007 inxtp 25. Fdi nfw m $7.6 bn n2005 t $6 bn n 2006. in that ya, Hungayxpnc gncant ptca tum at

nwy ct Pm Mnt Fnc Gyucnyamtt t mang vt ung th c-tn campagn. Thugh va ay mavmntatn n Buapt nt vtun thgvnmnt, t mn Hungaan an nv-t ak that ptca m hav m way tg b u ptca tabty achv.

Hungay wag an ct avantag v Wtn eupan puctn aa hav bn by th nty rmana an Bugaa ntth eU. Wh Hungaan wag a 25 pcnt th eU avag, rmanan wag a 12 pcnt th avag an Bugaan wag 7 pcnt.

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Spain. span a m 17th pac n 2005ut th tp 25 n 2007. eupan nvta patcuay ngatv abut span ppct.Fdi fw t span pp 20 pcnt, m$25 bn n 2005 t $20 bn n 2006. sm th cn wa u t th uc v pvat quty actvty at a c ya n2005, whn tw U.K. pvat quty mBCPatn an Cnvnbught th iT cm-pany Amau $5.7 bn, an th tcm-muncatn m Auna t cab ubayt spanh va on $3.4 bn, much

whch wa pv thugh a cntum U.s. pvat quty m. A n 2006, thspanh a tat bubb, n whch hungpc nay ub btwn 1997 an 2005,bgan t fat. Th bubb but am tuc-tua cncn spanh cmpttvn, whng nfatn uc ppct spanhcnmc gwth n th na tm. Nvth,span man n th at-gwng cn-m n th euzn. Italy. itay p m 19th pac n 2005 tbw th tp 25 n th 2007 inx. Hwv,eupan nvt ank t 22n an Nth

Amcan 18th a an nvtmnt tnatn.Wth $39.2 bn n Fdi cpt, itay wa thth-agt cpnt Fdi n eup n 2006.Nay n-th th cam m th acqutn Banc Nazna lav by BNP Paba $11 bn, pat a wav itaan bankngcnatn. Fgn ntt n itaan bankcntnu nt 2007, wth dank Bank pn-ng $5 bn Caa rpam Pama.Th c-b bankng a pnt a htm itaan pcy n 2005, whn th Bucngvnmnt ntvn t pvnt gn acqu-tn UnCt. Fwng bth th canathat accmpan that pcy an th ctn Pm Mnt rman P amnta-tn, itay atttu twa gn nty nt

t bankng makt m t hav awn c

t that th eU. Bu ha actvy ncu-ag eupan bankng cnatn wthn thCmmn Makt. Ukraine.Wh Ukan nt ank amngth tp 25, t th vnth mt attactv nvt-mnt tnatn amng eupan nvt. Fdinfw n 2006 by n-th m 2005, t$5.2 bn. sm th cn n ubt tmm Ukan ngng ptca ntabty an

acat cncn abut th pac an ctn cnmc m. ectn n octb 2007

w w by m than a mnth ay ath ang pat pv unab t m a gv-nng catn. Pvuy, th 2004 oangrvutn t tw ya gvnmnta nta-bty. Manwh, tnn wth rua hav p-t nc Januay 2006, whn rua abuptyhut fw t Ukan.

Nvth, gn nvtmnt ha cn-tnu n ctan ct. Czch manuactuka Aut nw puc 19,000 ca annu-ay n Ukan, an ha annunc uth pantnvtmnt th utu. ka pant cm-pany, Vkwagn, ha a mv m puc-tn capacty t Ukan. Futu ppct Fdi n th bankng ct hu mpv wthUkan 2006 pnng t bankng ct t

gn m, un th aupc WTo ng-tatn. UnCt ha aay takn avantag th chang, acqung Uktbank $2.1 b-n n Juy 2007. ruan mny umt b nvv n gncant pucha n Ukan,thugh h bankng ntma makvcatn cut. Romania. rmana a ut th inxn 2007 at butng at 25th pac n 2005.Hwv, eupan nvt ank rmana xthamng nvtmnt tnatn, cn ny tPan amng mmb tat that hav jnth eU nc 2004.

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At a ma cn n 2005, Fdi nfw t

rmana gw m $6.5 bn t $11.4 bn n2006. in patcua, t aut nuty ha bcm amagnt nvtmnt. Amng th maj pay

wa autmb m rnaut, whch pnt nay$750 mn t upga an daca pant tpuc t $7,000 lgan ca. in th pc,rnaut cnvnc t upp t t up pa-tn n rmana. A a ut, rmana nw haa ubtanta aut nuty wth w-tabh

ntwk gn pat upp, a w a g-gaphc pxmty t Wtn eupan makt.Futh nvtmnt a t b xpct, patcu-ay gvn rmana much w wag tuctucmpa wth Cnta eupan cuntpatuch a th Czch rpubc Hungay. Bulgaria. eupan nvt ank Bugaaa th 13th mt attactv nvtmnt tagt nth w. Fgn ct nvtmnt t Bugaa

34 pcnt m 2005 t 2006, achng atta $5.2 bn. Much th mpvmnt pbaby u t Bugaa accn t th eU.

At ya ngtatn, Bugaa an rmananay nt th eupan Unn n Januay 1,2007. shty b accn, th gvnmntbt Bugaa attactvn t nvt bycuttng th cpat tax at t 10 pcnt tmatch that Cypu a th wt n th eU.

Fgn nvt appa t hav pn.Th a tat makt ha attact nttn th Back sa t aa an n th capta,sa. Fgn nvtmnt n a tat ubbtwn 2005 an 2006 t $1.6 bn. rtagant Cau pnt $120 mn t anch tBuva Tagak sh pjct n wn-twn sa. out ta, th itaan cmnt mitacmnt cmmtt $271 mn t upgath act at t Bugaan ubay dvnyaCmnt. Bgan m svay nvt $105 m-n t upga thma pw act thught Bugaan ubay dvn Ad.

Middle East

Th M eat attact a tta $59.9 b-n n gn ct nvtmnt n 2006, upm $41.6 bn n 2005. Tw cunt, thUnt Aab emat ($8.4 bn) an sau

Aaba ($18.3 bn), accunt amt ha th tta.

Th gn man cncn t nv-t bcau chnc gptca chang.invt ct th cntnu ntabty n iaq (74

pcnt), th pb utbak wa wth ian(70 pcnt), th k tm (57 pcnt),ant-Wtn ba (48 pcnt), an thnc cn-fct n th gn (35 pcnt) a tnt tgn nvtmnt. Hwv, nvt a acc t th wathy gna makt a a tppptunty nvtmnt (78 pcnt), -w by th avaabty vc nuty hubuch a duba (65 pcnt). A at-gwng ppu-

atn (61 pcnt) an acc t capta (61 p-cnt) a a amng th tp at th gn.inttngy, a ubtantay ma ha nvt (39 pcnt) cn acc t ngyv a a maj at.

United Arab Emirates. Th Unt Aabemat ha n m 22n n th 2005 inxt ghth n 2007. Amng Aan nvt, thUnt Aab emat ank th, an amng

eupan nvt t ank 10th. Th atv ack ntt m Nth Amcan nvt maypaty b attbutab t cpat cncn vptnta ptca backah at hm. Cmpa

wth a ya ag, 29 pcnt nvt pt am ptv utk twa th Unt Aabematbhn ny ina, Chna an Baz.

Th Unt Aab emat ank avabyamng nanca vc an nnnanca -vc m, wng n pat t cntnu pgn m an attactv ncntv at th dubaintnatna Fnanca Cnt (diFC), ncu-ng pmn 100 pcnt gn wnhp

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an z tax n pt an ncm. in atn,

th cunty ank avaby amng pmay anhavy manuactung nvt. duba cntnut attact maj gn cpatn nttn ttng up M eatn haquat. Fxamp, Habutn, th ngy m an -vc pv, c n May 2007 t mv tcpat haquat t duba m Hutn.Kn nvt ntt tanat nt Fdi nfw $8.4 bn n 2006, wn m a c hgh

$10.4 bn n 2005.

in th at tw ya, th Unt Aabemat ha bcm a maj nvt an ntmpy a tagt gn nvtmnt. A a ut th pta bm, th tat-wn Abudhab Natna engy Cmpany, n th agt-v Nth Amcan takv by a UAe cm-pany, ag n sptmb 2007 t buy Canaa

PmWt engy Tut $5 bn n cah anaum bt. Th gvnmnt Abu dhab abught a 7.5 pcnt tak n th Cay Gup $1.35 bn. in an t t vy m

t nanca vc, B duba buyng

a 20 pcnt tak n Naaq stck Makt.itthma, n duba W a tat nvt-mnt m, ha jut pn t t c van shangha.

Other Gul states. Th Gu gn, chn capta m vat pc, ha wduba m vyng t cnmc ba,nvtng n natuctu an mng nttu-tn t attact gn Fdi. A a ut, th th

Gu tat but n 17th pac n th 2007 inx.Fdi fw t th am ty.

Accng t UNCTAd, nwaFdi t Bahan wa $1 bn n2005 but jump t $2.9 bnn 2006, a 177 pcnt ncan n ya. oman nwaFdi gw m $900 mnt $952 mn n th am

p, an Qata ncam $1.2 bn t $1.8 b-n. Cnvy, Kuwat, whchha cu n m anvcatn, bught n ny$110 mn n 2006, wnm $250 mn n 2005.

invt m th havymanuactung ct, n patc-

ua, h ptv vw thgn. Chmca a a gwng

ct, wth much th capta fw n chm-ca bng gna. lang w m a anvtng: dw, Tta, exxnMb an ryadutch sh a hav tak n chmca jntvntu thughut th gn an a pannnguth nvtmnt n Qata.

invt m th nanca vc cta a ptmtc abut th gn ppct.in Nvmb 2007, dutch Bank caypn t t banch n Qata t nvt-mnt bankng an pvat wath managmnt

rm n m M eatn

cunt have improved the

investment climate; cpatnvt a attact t wealthy

regional markets and services

hubs such as Dubai.

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vc. An app a cn t pat

m th Qata Fnanca Cnt an pan tpn th nxt ya. in Bahan, Aanz aunchan iamc nuanc patn, Aanz Takau(Bahan), an tabhng a cnta c tmnt t gna patn.

A a gn, th Gu tat hav bn pn-ng makt an ncangy ung pubc-pvat patnhp t nvt n natuctu.

Accng t th iMF, th Gu Cpatn

Cunc (GCC) cunt hav ma gn-cant avanc n gatv an nanca ctm. Thy a a mnzng th up-vy an guaty amwk gvnng thnanca makt. Bth Bahan an Qata acatng th natuctu an guaty am-

wk n t xc n nanca vc.Saudi Arabia. sau Aaba th 10th mt

ppua t-tm nvtmnt tnatn v-

p cunt. sau Aaba wa th agt ngcpnt Fdi n th M eat, awng n$18.3 bn n 2006, up 51 pcnt m 2005.

Th nca n Fdi u n pat by sauAaba attmpt t vy th cnmy wthpann nvtmnt thugh pubc-pvat pat-nhp n natuctu an a tat. Th n atn t m n th 1990 ncuag-ng gwth n th ba cnmy. Accng t

th iMF, th m hav ha ut, wth nn- xpt ncang by m than 20 pcntp ya m 2000 t 2006. Th chang ampvng nvt cnnc n th cunty.

invtmnttn thugh jnt vntun th , ga an chmca ct cnttut aag ptn sau Aaban Fdi. sau Aabaaccunt nay 63 pcnt tta GCCnvtmnt n ptchmca pjct n 2006.

Japan sumtm Chmca Cmpany an sauAamc cnty annunc pan t xpan Ptrabgh, th ptchmca jnt vntu, wthatna nvtmnt at at $1.8 bn.

in u uvy, nvt m th nanca

vc ct a mt ptv abut sau Aaba. Th bn ut by cnt annunc-mnt m maj pay n th ct. Mganstany pan t m a bankng vntu wth thsau m th Capta Gup, an Gman sach mng an nvtmnt bankng vntu wthth tat-wn Natna Cmmca Bank. Egypt.Athugh egypt nt mak t ntth tp 25 n th 2007 inx, vpng cun-

ty nvt ank th cunty 12th amngt-tm nvtmnt tnatn. Fdi nfwa mntat ng ntt n th pat nvt n th cunty. Fdi nfw $10bn n 2006 an an tmat $10.2 bnn 2007 pnt amt ub th 2005 gu $5.4 bn. F xamp, Thaan PTTintnatna gn a cntact t buy a 25 p-cnt tak n egypt eat Mtanan Ga

$487 mn.in 2006, egypt Fdi fw mty m th

Unt stat ($4.6 bn) an th eupanUnn ($2.9 bn). Th Unt Kngmaccunt m than 50 pcnt nt eUutfw t egypt, athugh th Fnch cmntcmpany laag 2007 agmnt t buyoacm Cmnt $12.9 bn hw thatth t eup ntcng cnt mpv-

mnt n th egyptan cnmy. M eatncunt nvt $554 mn n nanca ya2005-2006.

Arica

Aca ya-n-ya Fdi pmanc wa p-tv, wth va nvtmnt nfw ng 22pcnt n 2006, at a 78 pcnt nca n2005. But th cntnnt t attact ny $36

bn n tta nvtmnt, than th antty Hng Kng.

dpt Aca tatna pnnc npmay nut, nvt a mt ntt

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m an th tabty th maccnmc

an ptca nvnmnt. Futhm, th a gwng ww cu n nvnmntayan cay utanab vpmnt.

in an ncangy unctan gba nvt-mnt nvnmnt, w th ggaphca ht

Fdi cntnu? Th anw pn nt ny

n th unamnta attbut that attact gbanvt. it pn vy much n pcymakabty t a nvt cncn an tn-guh th cunt amng th cw, cm-pttv nvtmnt tnatn.

Authors

Paul A. Laudicinais managing ofcer and chairman o the board o A.T. Kearney, and chair o the Global Business

Policy Council. He can be reached at [email protected].

Janet Pauis a manager with the Global Business Policy Council. Based in the Washington, D.C., ofce, she can be

reached at [email protected].

The authors wish to acknowledge the contributions o their colleagues David Beert and Samantha King.

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MethodologyTh Fdi Cnnc inx wa cntuct ung pmay ata m a pptayuvy amnt t n xcutv th w ang cpatn. Thpnnt w ct m th Gba 1,000 ppuatn a tmn by 2006vnu, a w a th agt cpatn n mgng cnm. Patcpatngcmpan pnt 60 cunt an pan 17 nuty ct ac a x nhabtcntnnt. Tgth, th cmpan cmp m than $3.8 tn n annua gbaa an m than $35 tn n gba at. Thy a pnb m than

75 pcnt gba Fdi fw. rpnnt ncu nt ny C-v xcutv, buta gna an bun ha. Th uvy wa cnuct n Juy an Augut 2007,jut a th ubpm makt c wa bgnnng t un.

Th inx wa cacuat a a wght avag th numb hgh, mum anw pn t qutn abut th kh ct nvtmnt n a makt vth nxt th ya. inx vau a ba n nn-uc cunty pn. Fxamp, th inx vau th Unt stat wa cacuat wthut pn mnvt ba n th Unt stat. Hgh nx vau ncat m attactv

nvtmnt tagt.

snc th ncptn th Fdi Cnnc inx n 1998, th 10 mt attactvFdi tnatn hav cntnty cv 40 pcnt m gba Fdi nfwughy n ya at th uvy. ov th am p, n avag, th tp vcunt captu 35 pcnt gba Fdi nfw, an th tp 25 cunt mthan 70 pcnt gba nfw. Th an vn tng catn btwn thinx ankng an utu bck-an-mta Fdi, pcay at cctng anma, uch a th tmmng m tax havn.

Fdi fw gu a th att tattc avaab m th Unt Natn Cnncn Ta an dvpmnt (UNCTAd). oth cnay uc nmatnu n th ya Fdi Cnnc inx ncu th intnatna Mntay Fun,th eupan stattc Agncy (eutat), th ecnmt intgnc Unt an thU.s. Gn Bung Cunc. Atna uc nmatn ncu cuntynvtmnt pmtn agnc, cnta bank, mnt nanc an ta, anmaj pca.

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