The Asia-Pacific region is now the top destination for manufacturing FDI, according to data from fDiMarkets, as investors shift their attentions from western Europe.
Global FDI into manufacturing has increased 10% between January and July 2011 compared with the same period of 2010. But when it comes to the Asia-Pacific region, that number jumps to 30%. Western Europe, which was the top choice one year ago, has fallen out of favour with decision makers, with a year-on-year decrease of 71%.
More foreign investors have chosen to establish manufacturing operations in the former communist countries of central, eastern and south-eastern Europe during the period January to July 2011 compared with the same period of 2010. This region experienced exponential growth of 650% to become the third most popular destination for establishing manufacturing operations, behind Asia-Pacific and North America.
It is likely that investors that have chosen western Europe to establish manufacturing bases in the past are now deciding to go further afield to central, eastern and south-eastern Europe and the Asia-Pacific regions. Latin America, Africa and the Middle East have also become more popular destinations among decision makers.