Reasons Why Foreign Direct Investment Will Carry On During Pandemic – Global pandemic stops most business, not only within a country but also the international ones. Thus, the flow of foreign direct investment (FDI) is also slowing down. Latest report shows that the FDI is expected to contract up to 40% within this year only. Does it mean that the investors will stop their FDI? No, they are not. There are several considerations for this decision.
– An Alternative For China
Aside from the pandemic, big investors have several other considerations to contribute their funds. The most recent issue was the disputes with China as the biggest suppliers for mega companies in the world. A number of investors are now looking for alternatives to produce their required items. Some of the best candidates are Indonesia, Vietnam and India.
This relocation is an important decision that could not wait, just like how the players place their bet in online casino sites like. US factories are in the process of moving 27 of its factories to Indonesia. Nevertheless, FDI investors demand for transparent system and clear target. The country that could fit the criteria would be more likely to have flow of FDI.
– An Investment in Unique Goals
Not all of the investors have disputes with China, especially those who sign contract with European companies. Just like the other business, things are slowing down. However, a light of hope could be seen among companies with unique proposition.
Some of them are Newcastle United, the soccer club and Sunderland car plant company which recently had support from Nissan, Japan. Both deals are made during the pandemic. All parties hope that the cooperation will bring positive results and meet the targets within five years.
– A Development of Green Technology
The pandemic puts the brake and set different goals for business. Lately, green technology gains high interest more than ever. During the isolation, people started to realize that health is very important and put interests on this issue. This pattern also applies to FDI investors, which start looking for green company profiles..
In the middle of the economy crisis, green energy company is looking for more employees as they are sponsored to do a lot of projects. This is a positive start in addition to last news about the job vacancies in health department.
The investment sector is terribly affected by the pandemic, but it doesn’t mean that investors stop their support. Now, many of strong contenders are looking for new places to replace China’s companies. In addition, the pandemic has shifted the focus of industry to green company and some other unique-oriented business.