Countries seeking to attract foreign investment must focus on sustainability, technology and green production chains, new report says.
The Foreign Direct Investment (FDI) landscape is shifting due to geopolitical factors, with Investment trends now focusing more on environmental sustainability and incorporating technology to streamline value chains, according to a new report by UN Trade and Development (UNCTAD) titled “Global Economic Fracturing and Shifting Investment Patterns”.
FDI has long served as an economic driver for many countries. According to the World Investment Report 2023 by UNCTAD, Thailand accumulated FDI valued at $306.163 billion, ranking second in ASEAN after Singapore ($2.3 trillion), followed closely by Indonesia ($262.920 billion), Vietnam ($210.471 billion), and Malaysia ($199.206 billion). It was a similar picture in 2022, though Indonesia, Vietnam and Malaysia beat Thailand’s $10.034 billion in the investment stakes with $21.968 billion, $17.900 billion and $16.940 billion respectively.
These statistics reflect the evolving global investment landscape influenced by various factors, necessitating policy adjustments for countries, especially developing ones like Thailand, to remain competitive. In short, FDI must now contribute to sustainable development in Thailand.
Promoting sustainable investment
The report highlights the need for immediate action to ensure that the benefits of investment are more equitably distributed and aligned with comprehensive development objectives.
Policy recommendations suggest that developing countries should shift from traditional investment incentives towards promoting sustainable development investments. Policymakers, businesses, and relevant stakeholders must collaborate to create an open and fair investment environment globally and regionally.
Global value chain trends and geopolitical dynamics are increasingly integrating sustainability into investment strategies. Therefore, investment policies must adapt to this trend, as global production methods are being upgraded and new technologies are being adopted.
Source : The nation
