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Investment in China by companies based abroad has sunk to the lowest level in 30 years, according to official data, in a sign that foreign corporations are leaving China due to tougher crackdowns on spying and U.S. sanctions. China's foreign direct investment totaled $33 billion on a net basis in 2023, according to the State Administration of Foreign Exchange, down about 80% from 2022. The figure was positive as new investment surpassed outflows. But FDI declined for the second straight year and is less than 10% of the peak of $344 billion marked in 2021. Foreign direct investment is at its lowest point since around the time Deng pushed for accelerating that policy during a tour of southern China in 1992.   Source : https://asia.nikkei.com/Economy/Foreign-direct-investment-in-China-falls-to-30-year-low

By his own standards, Joko Widodo has fallen well short of a major economic goal during his decade leading Indonesia. Growth has been laudable in a neighbourhood where the pace of expansion is undergoing a long-term slowdown, but nowhere close to the outgoing president’s lofty ambitions. That’s a pity, because part of Jokowi’s attraction as a candidate in 2014 was his image as a self-made businessman, an outsider who could nudge the country toward achieving its much-promoted potential.This is a failure that comes with some important caveats. Business notched some important wins under the stew- ardship of Jokowi. Infrastructure, long a demerit for Indonesia, is slowly improving – or getting less bad. (Everyone still nurses their favourite horror stories of Jakarta traffic.) The Rupiah has held up relatively well against the strong dollar. He pledged to boost gains in gross domestic product to 7% annually, a promise he reiterated before reelection in 2019. Instead, growth has been stuck at around 5% for most of his presidency. Like just about everyone, Indonesia suffered a nasty recession during the peak of the pandemic. The recovery has been solid, and the archipelago regained its status as an upper middle-income country last year. The country is feted as the next big thing in global commerce, a reputation that has clung to it in good times and bad. Now that investors have soured on China, the projection looks more credible than in the past. Indonesia has made enormous strides. With vast resources and a young population, sometimes all the nation seems to need is the ability to get out of its own way.   Source : https://www.thestar.com.my/business/insight/2024/02/15/the-silver-lining-of-indonesias-economic-miss

China’s businesses are struggling and job seekers have trouble finding work, President Xi Jinping acknowledged during his Sunday New Year’s Eve speech. This is the first time Xi has mentioned economic challenges in his annual New Year’s messages since he started giving them in 2013. It comes at a critical juncture for the world’s second largest economy, which is grappling with a structural slowdown marked by weak demand, rising unemployment and battered business confidence. Hours before Xi spoke, the National Bureau of Statistics (NBS) published its monthly Purchasing Managers’ Index (PMI) survey, which showed that factory activity declined in December to the lowest level in six months.   Source : https://edition.cnn.com/2024/01/01/economy/xi-jinping-new-year-address-economy-intl-hnk?cid=ios_app

A survey of factory managers in China shows manufacturing contracted in December in the latest sign the world’s second-largest economy remains sluggish. The official purchasing managers index, or PMI, fell to 49 last month in what officials said was evidence of weak demand. It was the third straight month of contraction. Global demand for manufactured goods has suffered as central banks around the world have raised interest rates to battle decades-high rates of inflation.   Source : https://apnews.com/article/china-economy-manufacturing-pmi-8f2bd2c1d2025808f3ee1f2d3c3d0897

The  RCEP  (Regional  Comprehensive  Economic  Partnership)  comprises  15  Asia-Pacific  countries,  including  10 ASEAN member states and their five trading partners, namely China, Japan, the Republic of Korea, Australia and New Zealand. In accordance with the commitment of the RCEP agreement, Indonesia will implement immediate zero tariffs on 65.1  percent  of  products  originating  from  China,  and  China  will  also  implement  immediate  zero  tariffs  on  67.9 percent of products originating from Indonesia since the effective date. Based on the China-ASEAN Free Trade Agreement (CAFTA), Indonesia will add zero-tariff treatment to more than 700 Chinese products, including auto parts, motorcycles, televisions, clothing, shoes and plastic products. China will also cut taxes on more products from Indonesia, such as pineapple juice, canned goods, paper products and auto parts, further opening up its market to Indonesia.   Source : https://english.news.cn/20240104/263d37d4ec5e4ada86599a61b5d02cdc/c.html

Indonesia Manufacturing PMI increased to 52.2 in December 2023 from 51.7 in the prior month. It was the 28th straight month of expansion in factory activity and the strongest pace since September, as output growth hit a four-month peak and new orders rose the most since September.   Source: Trading Economics

Nearly nine-tenths of the foreign money that flowed into China’s market in 2023 has already left, spurred by mounting doubts about Beijing’s willingness to take serious action to boost flagging growth. Since peaking at Rmb235bn ($33bn) in August, net foreign investment in China-listed shares this year has dropped 87 per cent to just Rmb30.7bn. “The confidence issue goes beyond real estate, although real estate is key,” said Wang Qi, chief investment officer for wealth management at UOB Kay Hian in Hong Kong. “I’m referring to consumer confidence, business confidence and investor confidence — both from domestic and foreign investors.”   Source : https://www.ft.com/content/b71094b0-d974-47fb-83f2-652dd4c0d4c5

Despite failing to achieve the growth target, Vietnam is still considered a country with high growth in the region and remains to be regarded as a destination for 2024 by international investors. This year has seen a period of global economic difficulties, with Vietnamese economic growth estimated to have reached 5.05%. Although the set target was not fulfilled, the nation's growth can still be considered optimistic. Many foreign businesses continue to highlight the nation as a potential and friendly market with ample room for further development moving forward. Nvidia is also considering establishing a research and development facility in the nation next year. Foreign investment in the country, as of October this year, surged by 54% over the same period from the previous year, with US$15.29 billion being poured into 2,608 new projects.   Source : https://vietnamnet.vn/en/vietnam-remains-destination-for-foreign-investment-next-year-2233392.html