Many major and minor events have recently had an impact on the global economy. Even in a severe recession, this renders economic development estimates generally negative. However, FDI inflows into the Asian market are said to be a bright spot in the otherwise gray picture of the global economy. In today’s article, we’ll look at the factors to consider when investing in a country, as well as how to find best Asian countries to invest in.
Factors to Consider when Investing in a country in Asia
When considering the opportunities in one of the best Asian countries to invest in, investors not only need to pay attention to the potential development opportunities of a certain project but also need to analyze the risk level of the investment environment. The macroeconomic circumstances of the nation are also taken into account. Simply put, these are elements to consider when investing in a nation, and investing in Asian countries is no exception.
More specifically, we can consider some common factors that affect investment opportunities, including:
– Political stability
– The government’s supportive policies; include those related to taxes and fees, policies to promote infrastructure development in the host country, and monetary policy to ensure the stability of the exchange rate.
– High-level of labor and technology to apply in production.
Read more: Top 10 Best Countries to Invest in Post COVID Safely and Affectively
Investment opportunity in “Asian Dragon”
The end of 2020 and the beginning of 2021 can be considered a period of time when the global economy slows down due to the great influence of the COVID-19 pandemic. However, despite the consecutive epidemic waves, FDI inflows into the Asian market have increased continuously for three years, according to the World Investment Report presented at the Joint Conference of the UNCTAD International Trade and Development Council in 2022.
Previously, even if the global FDI inflows in 2020 decreased by 30% compared to 2019 and were lower than the time after the economic crisis in 2019, FDI inflows into the Asian market still increased by 4%.
Even in 2022, it also reaches an all-time high, reaching 619 billion VND, and is also the region with the most FDI inflows, accounting for 40% of FDI flows globally. This is enough to see the resilience and investment potential in Asia, and it is no coincidence that the best countries to invest in Asia have become a topic of great interest as economies have matured. There are gradual recovery steps to return to the post-pandemic adaptive state.
Why are investment opportunities in Asia always attractive?
Undeniably, besides the leading economies in the world, the best foreign countries to invest in Asia are always among the top choices of investors. This is due to the Asian region’s good environment for long-term sustainable growth. Specifically:
– Abundant workforce: This is probably the most common factor when it comes to looking at opportunities in the best countries to invest in Asia. Asia has a quarter of the most populous countries in the world. Surely, investors are aware that China is recognized as “the world’s biggest factory.” Even if China is affected and closed during the outbreak of the pandemic, factories in Asia will always be the top choices for manufacturing at large.
– Developing middle class: In addition to Asian factory workers, the growing middle class is also a “fertile ground” for consuming related products and services around the world.
– Flexible policy making: While developed economies in the West will have policies to adjust interest rates to the lowest level if necessary, monetary policies in Asia are somewhat more flexible to support economic activities in the region to develop in a stable and long-term manner.
Read more: Prospects for the Best Emerging Countries to Invest in 2023
Best Countries to Invest in Asia 2023
Recently, when the Fed has continuously adjusted interest rates, you can certainly recognize the recession in the global economy. Nonetheless, Asia continues to expand rapidly, and the finest Asian nations to invest in are more appealing investment subjects than ever. There are still recognized names among them, depending on the investing industry. Each investor will select the best nation to invest in based on the things to consider while investing in each country.
Is Vietnam One of the Countries Worth investing in?
Aside from well-known names in the finest investment Asian nations such as Singapore, Korea, Japan, and so on, Vietnam is recognized as one of the growing economies with significant accomplishments after the changes caused post COVID-19 pandemic or the start of the Russia-Ukraine conflict.
Because of China’s lockdown restrictions during the epidemic, Vietnam has become one of the choices for cash flows from overseas.
Several multinational firms, like Apple and LEGO, have transferred some of their primary production lines and manufacturing plants to Vietnam.