FDI TREND, CAPITAL INVESTED AND NUMBER OF FDI

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Figure 12. Positioning of Source country respect the variables of capital invested and number FDI

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Figure 13. Trend of Total Capital Invested FDI in ASEAN between 2003 and 2017

Figure 14 Trend of Total Number of FDI in ASEAN between 2003 and 2017

The graph shows that 2008 was the luckiest year among those analyzed both for the total number of FDI and for the total amount of Capital Invested. The total FDI to ASEAN countries (excluding Laos and Brunei) recorded was 183.23 Billion dollars for a total number of 1660 investement. Despite the global crisis that began in the second half of 2007, the growth in the flow of FDI was 34%, in fact 2007 closed with a total of 120.39

YEAR

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YEAR

NUMBER OF FDI

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billion dollars invested. The UNCTAD, in the World Investment annual report justify the growth from combination of positive factors, a step towards economic regional integration, and an improvement of the structure of the investment environment. The region became increasingly attractive to market-seeking FDI. However, the exponential growth starts from 2005, in fact after a drop in investments from 2004 to 2005, the area has recorded continuous growth with recorded rates of 29.8% In 2006 and around 40% in 2007, the year of greatest growth in the period analyzed. A significant event for the start of growth were also the numerous structural reforms in the countries analyzed, which increased some phenomena favorable to the FDI inflow.

The period between 2005 and 2008 for example saw the increase in large cross-border M

& As in South East Asia, in 2005 there were 2582 M&A operations, in 1995 there were only 958 operations of this type. After the widespread of the financial crisis, the 2009 was marked by a global decrease in FDI flow. During the year there was a big decline in Merger And Acquisition operations and a downturn of Greenfield investments since the last quarter of 2008.

The decline continued until 2012, which recorded a total of FDI's Inflow of FDI of 55.91 billion dollars, and a total number of FDI of about 14300, posting a loss of 69.5% in the period between 2008 and 2012. From 2012, there will be evidence of the first signs of recovery. Foreign MNE resumed capital investment production, finance, infrastructure and other services, also during the period there was an increase in intra-regional FDI, which displayed a constant increase between 2010 and 2015, growing from 15 billion to 22.1 billion in 2015 (ASEAN Secretariat, ASEAN FDI database). The 2017 ends up with a new downturn in respect to 2016, closing the fiscal year with a total amount of FDI for 68,27 Bilions Dollars and 1300 as number of investment.

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Figure 15. Trend of FDI received for ASEAN countries

Figure 15 clarifies by country the trends highlighted in the graph in Figure 13 shows the trends of each individual country taken into analysis, it clarify the individual bars show the amount received for each year; It Possible to figure out in. Figure 15 individual trends similar to that shown in the overall graph in Figure 13 . For example, all states see significant growth between 2007 and 2008, with the exception of Singapore and the Philippines, that report respectively 10,46 and 11,44 Bilions dollars in 2008 respect to 15,91 and 12,41 bilions dollars of the years before. Indonesia and Vietnam are the single states with the largest FDI revenue in the year before the crisis, but also those that had a steeper drop between 2008 and 2009. In 2008, Indonesia recorded an inflow of FDI for 65.41 billion dollars, while in the following year alone they reported investments received for 27.31 billion, recording a loss of more than 50% on the total. An explanation is provided if the OECD, as previously highlighted the years between 2003 and 2008 have recorded an exponential growth in the operations of Merger and Acquisition, indonesia was one of the target states for this type of financial transactions, as some structural reforms within the Indonesian economy have increased its attractiveness and given investors more confidence in the face of the country. The acquisition of Sampoerna (Indonesia) by Philip Morris (United States), is an example of this kind of activities.

Indonesia's attractiveness in terms of FDI has become elastic in relation to M&A activities, consequently leading to a decrease in incoming FDI, parallel with a decrease

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YEAR , DESTINATION COUNTRY

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in Merger and Acquisition operations. In Figure 16, we find a representation of the total number of FDI received by the countries analyzed in the period. We figure out rofound difference compared to the previous graph; while Indonesia is the one that has attracted a total received capital greater than the others ASEAN countries, the primacy for number of investments received is Singapore with a total of 4980 foreign investments, Indonesia ranks fourth with 2440 behind Vietnam with about 3580 and Thailania with 3000 investments. Therefore we can deduce that Singapore attracted on average lesser capital investments in the period analyzed. In fact, as we will see later, Singapore differs in terms of types of investments, mostly of Strategic asset-Seeking and Resource Seeking types, rather than investments aimed at guaranteeing lower-cost resources as in the other countries belonging to the ASEAN group. Singapore has investments mainly in the Financial Services, Retail Trade and Headquarters locations. Investments on average at a lower cost than those for Manufacturing and Construction and which have seen a boom in companies being born and investing more in the first, in recent years.The increase in companies operating in the service sector partly explains the reason for the primacy of Singapore in terms of number of FDI compared to neighboring countries.

Figure 16. Total Number of FDI in ASEAN by Destination country

In order to clarify and summaries the assumption made in the chapter about Amount of capital invested and number of FDI, in Figure 17 has been reported an Scatter plot where

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Destination Country are positioned in the graph, with x-axes represent The capital invested in that country (Millions dollars) and on y-axe the number of investment undertaken.

Figure 17. Positionining of Destination Country in respect to Capital Invested and number of FDI received

3.3 CAPITAL INVESTED AND NUMBER OF FDI FROM SOURCE