July 19, 2011
Press Release
Ministry of Knowledge Economy
Foreign Investment Figures for First Half of 2011
FDI pledges for the first six months of 2011 gained 23.8 percent year on year to record $5.37 billion. As of July 13, actual inbound investments stood at $2.8 billion, an increase of 22.8 percent from a year earlier. Amid unfavorable global conditions, the domestic economy has been recovering at a steady pace, as shown by increased investment for two consecutive quarters.
FDI Figures for First Half
- Figures were rounded off.
Foreign direct investment (FDI) in the manufacturing sector grew 11.8 percent to $2.23 billion, while FDI in the service sector fell 16.8 percent to $2.65 billion.
Notably, investments in nonmetallic minerals and culture and entertainment shot up 10,500 percent and 6,766.7 percent, respectively.
Foreign Direct Investment (Sectoral Breakdown)
First Quarter Second Quarter
First
Six Months Growth Rate Manufacturing $787 million
(39.3%) $1.44 billion
(43%) $2.23 billion
(41.6%) 11.8%
Parts and
materials $683 million
(34.1%) $1.35 billion
(40.2%) $2.04 billion
(37.9%) 35.8%
Service $1.20 billion
(59.8%) $1.45 billion
(43.3%) $2.65 billion
(49.5%) 16.8%
Other sectors $19 million (0.9%)
$462 million (13.7%)
$481 million
(8.9%) 640%
Total $2.01 billion $3.36 billion $5.37 billion 23.8%
- Percentage of total FDI shown in parentheses.
- Other sectors include primary industries and electricity, gas, water service and construction.
- Figures were rounded off.
After a significant year-on-year drop in the first half of 2010 (42.9 percent), FDI through mergers and acquisitions declined at a slower rate. Greenfield investments amounted to $4.5 billion, an increase of 30.5 percent, with both the service and manufacturing industries reaping the benefits.
Foreign Direct Investment (Breakdown by Type) First Quarter Second
Quarter
First
Six Months Growth Rate M&A $506 million
(25.2%) $357 million
(10.6%) $863 million
(16.1%) -2.5%
Manufacturing $113 million $90 million $203 million -55.2%
Service $393 million $264 million $657 million 52.4%
Greenfield $1.5 billion (74.8%)
$3.0 billion (89.3%)
$4.50 billion
(83.9%) 30.5%
Manufacturing $674 million $1.35 billion $2.02 billion 31.4%
Service $807 million $1.19 billion $2 billion 8.5%
Total $2 billion $3.36 billion $5.37 billion 23.8%
- Percentage of total FDI shown in parentheses.
- Figures were rounded off.
Large scale investments—those of at least $100 million—posted $1.76 billion, a decrease of 29.1 percent from the same period the previous year, while investments worth less than $100 million jumped 94.1 percent to $3.6 billion.
The largest proportion of all investments (48.3 percent) fell between $10 million and $100 million.
Furthermore, investment from most of the major investing countries increased.
FDI from the United States grew 185.6 percent to $1.11 billion while investments
from Japan and the European Union rose 43.5 percent and 45.6 percent, respectively. With a stronger service sector, inbound investment from China gained 251 percent to record $228 million. Notably, FDI from the Middle East did not follow this trend, but instead declined 58.9 percent.
FDI Figures for First Half (Breakdown by Country)
2009 2010 2011 Growth
Rate United States $605 million $389 million $1.11 billion 185.6%
Japan $1.18 billion $621 million $891 million 43.5%
European Union $1.80 billion $1.41 billion $2.05 billion 45.6%
China, Hong Kong, Singapore, Malaysia and Taiwan *
$870 million ($31 million)
$354 million ($65 million)
$677million ($228 million)
91.2%
(250.7%) Middle East $18 million $163 million $67 million -58.9%
- Figures were rounded off.
* Figures for China alone shown in parentheses.
Released by the Foreign Investment Policy Division
