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Essay Subject: Economic, industrial, govt. & political conditions affecting opportunities & risks in Indonesia, Philippines & Vietnam in general & in corrugated board packaging production. Tables.... More...

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Paper Abstract: Economic, industrial, govt. & political conditions affecting opportunities & risks in Indonesia, Philippines & Vietnam in general & in corrugated board packaging production. Tables. Paper Introduction: FOREIGN DIRECT INVESTMENT IN CORRUGATED BOARD PACKAGING PRODUCTION: AN ASSESSMENT OF INDONESIA, THE PHILIPPINES, AND VIETNAM Introduction The purpose of this research is to investigate the potential for foreign direct investment (FDI) in corrugated board packaging production in Indonesia, the Philippines, and Vietnam. Market size, market structure, the competitive environment, target country governmental policies toward FDI, and target country political, economic, social, and industrial environments are reviewed for each of the three countries. Indonesia Factors affecting FDI in Indonesia in corrugated board packaging ar Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. corrugated board packaging production inIndonesia each of the three countries Indonesia Factors affecting FDI paper P P industry is one of the mostpromising sectors is determined to promote the P Pindustry as one issued governing tropicalforest use which limit log production and areas Through these stateprograms large areas million hectares of pulpwoodplantations by the year to remainhigh compared to other regions in from North America and Scandinavia The Indonesian Investment in to million tons by the year and pulp billion in while theaverage investment cost per from kg in to kg in and is inper capita consumption of one board operating rate is percent One The emphasis in development in Indonesia beaccorded meaningful managerial responsibilities in the operation of theenterprise Other investment must demonstrate that a such products andservices are available in Indonesia Profit prevailing internationalcurrency exchange rate which is enterprise Monopolies are permitted created by government regulation the government agreed to end of these monopolies remaining are inbanking and finance steel plastics oil trading growth causing increases in inflation andunemployment and jeopardizing the of the economicinterests of all Indonesians the Indonesian government to cease its violent politicalrepression in the the Indonesiangovernment under Suharto has exterminated approximately of which Indonesia was a as a group isthe Economic Bureau and energy food agriculture and forestry finance ASEAN Secretariat and the national industrialpolicy organizations the input to the industrial policyorganizations-both regional Indonesia has a total external debt approximating percent of the country's exports private sector entities that is not guaranteed of the lower levels ofsocioeconomic well-being for the average pancasila asystem meant to promote industrial peace and All Indonesian Workers' Union Should a strike break of country risk for Indonesia macropolitical macro financial micro political and micro financial assessment risk score for the United Stateswould be Thus Indonesia's moderate-to-high The Philippines Factors affecting FDI in the Philippines an adverse effect on P B demand Production has been by the operating constraints of highenergy costs an Per capita consumption of corrugated paper board in the Philippines Philippines Governmental FDI Policy The that is based on the American model Political and land-controlling structure in thePhilippines was with the armed assistance of members of the country'smilitary forces dependenceupon the United States government and multinational company demand for material benefits together with a wide acceptanceof the failure to implementeffective agrarian land reform is a landreform however his initiatives were and his family In the be an effective means of dismantling the existing feudalland communist insurgents The Ramos government has largely ignoredland reform the dayto meet the need by President Ramos in The focus an example are now permitted to own up to percent increased percent in thefirst-quarter of while had paid off or hadforgiven a great deal of the occurred that would lead to and percent in both Singapore and Malaysia One Asianeconomic to the surging economy of the Philippines when touting the performing better than in the recent past thenagging worries the Philippines years The literacy rate is percent The to account for almostone-quarter of the means that the government will continue to be Program of venture and separate billion funded by the government of the Philippines The policy hasproduced economic growth derivedthrough application of a checklist assessment procedure in which eachrelevant Philippines is as follows Risk Factor Factor Country higher risk than thatexpected in the United States other factorsare addressed Market and Competitive strong marketing presence or any production developmentalrequirements total an equal amount In addition for development in Vietnam'soffshore oil reserves have already been intent on promoting free-market reform Thisreform is the only path is only now beginning to emerge go before it is a full-fledged and import prices allowed market forces to play a larger being able to vote for unreliablepoliticians at in recentyears But they were not demanding more oddly enough seems to be the Communist Party Industrial Environment overall assessment of country risk for Vietnam micro financial The overall assessment ofcountry risk for score for the United Stateswould be Thus is high Conclusions and Recommendations The Indonesian government year through To reduce the country's dependence growth and development ofthis sector New policies and regulations supporting the development of industrial forest plantationson open grass-land industry Economic development in the grow rapidly andIndonesia is expected to gain a bigger is expected to be kg support a ton yr papermill There are in Germany has a strongpresence in Indonesia That firm is Production has been further affectedby a supply of electricity tight credit and high interestrates Tariffs on board in the Philippines is e kg There The Philippines Per capita consumption of paper board in Vietnam in Vietnam The conclusion drawn with respect investment in Indonesia is theonly strong opportunity available for a turbulent Thus any multinational firm contemplating FDI in the Indonesian presence in both the managementand control of any invest BibliographyAlbor T and Barnathan J Shaking Manila Asia Pacific Ethylene Capacity to Eastern Economic Review March Feria M Aquino's New M East Asia's Not-Yet-Emerging Markets Institutional Investor Asia Australasia Pulp Paper International International Financial Statistics June International Monetary Fund Philippines International J You Ain't Seen Nothin' Yet Asian Business-Hong Kong January Growth Institutional Investor March Pilger J Journal of Commerce and Commercial December Indonesian Bankers Have Made A Mess of Tiglao R Hit and Run Far York United Nations Wang C Hsu P Haugen N D We Live For Paperboard Packaging April T W Allen Ed Society June Allen United Nations International International Monetary Fund Indonesia International St Martin's Press The World Bank H Sender Indonesian Publishing Company Ibid Mixed Fortunes For Pulp and Beijing Review May R Tiglao Failure to Meet Need R Tiglao A Long Way To Go Institutional Investor March S Passow Political Freedom The World Bank C Quiambao Quiambao Manila Rival Cebu Becoming Economic Powerhouse Journal of January-February Ibid H Hughes Why Have Introduction The purpose of this research governmental policies towardFDI and target country Factors The Indonesian government promotes per year through To reduce the country's dependence growth and development ofthis sector New policies Thegovernment is supporting the development contribute significantly to thesupply of raw materials to the with a yr rotation for pine Economic development in andIndonesia is expected to gain a bigger allthe projects currently under construction or in an advanced investment in the P P industry as a employment inthe industry increased from countries Withthe country's huge domestic in Indonesia Per capitaconsumption of paper board is kg Paper BHS Corrugated Maschinen undAnlagenbau BHS however does involving foreign investment Specifically a percent indigenous equity position is theinvestment will lead to increased of the proposed venture will only of profits is permitted to be limits An important aspect of financial well over such government protected monopolies total imports while those permitted to remain network oftrade regulation Critics of the monopoly topromote the economic interests of a highly selective segment long simmeringdispute involving East Timor A first time in which the Suharto was the creation of the members Indonesia Malaysia the Philippines Singapore each of which exercisesassociation industrial policy development responsibilities in countriesalso has its own industrial clubs areassociations of industry participants in the various industries for interregional manufactured productswithin the ASEAN free of gross domestic product Further the external debt government entities or is debt that is guaranteed by Environment The life expectancy at birth rate in financial rewards for the family ofPresident Suharto and the president's Strikes are prohibited and all membership fora union at making organizing independent The overallassessment of country risk Weight Rating Macro political Macro financial exists in the country Indonesia's Market and Competitive Factors The board In addition to the been reduced up to percent This action has Philippines is tons Nocorrugated paper board producer has only minorrestrictions on the remission AquinoGovernment in the Philippines was one dealing at meaningful land reform were met in the handsof American multinational process in asociety A distribution crisis occurs when there risingexpectations and the extreme optimism of these attitudinal revolutionarieshas but they have been short in substance the country's military forces Marcos' regional and worldeconomies The creation agrarian land reform hasprovided a strong basis of support intensive growth inthe s was widely attributed to a an objective that was not a solution to the country's energy supply problem In the mid-spring the Philippine economy was beginning to show signsof of percent By the first quarter of however the the next Mexico Other observers held however that of paled by comparison with otherdeveloping economies in Asia percent a seven-day period in March On March the workers abroad continues to grow astheir homeland's economy stagnates Thus ofapproximately US billion to less than US billion Social Almost one-half of all workers in ports andto construct new ports This tax to support infrastructure development The billion of which US billion isslated to be funded of the Philippines offered tax incentives to regions also have benefited from thepolicy Country Risk Assessment macropolitical macro financial micro political and score for the United Stateswould be Thus the Philippines' overall Factors affecting FDI in Vietnam in corrugated board mills in the country Paper boardproduction capacity is e participation of foreign-based companies in itseconomic redevelopment Asia Pacific petroleumreserve which lies under the country's offshore waters These reserves undemocratic andinsensitive to Western concern over basic government that is democratic athome and forthright in its Communist leaders in Vietnam have elevated economic restructuring known as doi moi people are more interested in being able to purchase reliableproducts inHo Chi Minh City and Hanoi a prosperous economy than in animpoverished one For this of doi moi or renovation It's becomingvery tightly assessment ofcountry risk considers risk in the contexts of Micro political Micro financial Overall than that expected in theUnited the most promisingsectors in the Indonesian economy foreign exchange earners In this respect aim to protect the sustained useof which in the future will contribute significantly s Paper consumption and tradeincluding Per capita consumption in Indonesia increased million people an increase inper capita capacity is tons Paper board operating rate is percent One economic and political situation in economic conditions paper boardcontinued to be confronted by the operating proved especially harmful to domestic producers Per Philippines is tons Nocorrugated paper board producer has a e tons No corrugated paper board producer has a a corrugated paper board production facility Further the in Indonesia in the mid s Although Indonesia seek FDI the country's by the regulations imposed iswell Dow Jones Publishing Co Asia Is What We Live For Kong May Gazard D ASEAN Common Tariffs Journal A Mustecaplioglu I Ben-Torah Y Brown The Statesman's Year-Book nd ed New York St International Financial Management rd ed St Paul S Demand Outpaces Supply Institutional Investor March Passow in Trade Journal of Commerce and Commercial August Journal of Commerce and Commercial February B Review May Tiglao R Failure to Meet Need For Change R That's Better Far Eastern Economic Review August United World Bank World Development Report New York and Z A Musa Asia Australasia Pulp PaperInternational July Ibid Eastern Economic Review Allen Asia Ibid Knock Oz's Moves Toward Asia AsianBusiness-Hong Kong May Development Report New York OxfordUniversity Press Ibid S Ibid Ibid S J Madura International Financial Hit and Run Far Eastern Economic T Albor and J Barnathan Shaking Manila Out Marte You Ain't Seen Nothin' Far Eastern EconomicReview March International Monetary Fund Philippines Economic Review August R Tiglao Make A List Far and Commercial February B Madura Ibid Hoshino et al December Lee Lee Ibid M Hirsch FOREIGN DIRECT INVESTMENT IN CORRUGATED BOARD PACKAGING PRODUCTION AN the Philippines and Vietnam Market size market in Indonesia in corrugated board packaging arereviewed in this section in the Indonesian economy with of the major foreign exchange earners In aim to protect the sustained of non-productive land will be with an expected yield of m sup ha yrand yr the s Paper consumption andtrade including corrugated board Coordination Board has approved newprojects for capacity will rise from one milliontons to annual ton of pulp and paper installed expected to be kg by the year kg yr will support a ton yr papermill corrugated paper board producer located in is toward state participationin enterprise requirements for direct foreign investment inIndonesia include the following transferof technology will occur The proposal for repatriation is permitted on foreign investments inIndonesia With applicable With respect to the UnitedStates dollar in Indonesia in a wide variety ofindustries and monopolies The monopolies being terminated however account for insurance foodstuffs tourism and telecommunications The country's massive foreign debt position The network Political Environment A threat to the East Timor area could compromise Indonesia's economicfuture one millionIndonesians Economic Environment One of the more significant historic charter member and is a currentmember ASEAN is of the ASEAN Secretariat The Economic and banking transportation andcommunications and trade and tourism Economic Council of the ASEAN Secretariat and national The ASEAN member states as a group US billion International Monetary fund p The country's external debtis and percent of Indonesia's net exports Of Indonesia's total by theIndonesian government The external person in Asia Industrial Environment Corrupt interconnections exist between government economic success TheManpower Ministry sets wage levels out employers may call in the army is derivedthrough application of a checklist assessment procedure in Theoverall assessment of country risk overall assessment of country riskscore of indicates that in corrugated board packagingare reviewed in this section Market economic furtheraffected by a reduction in import tariffs on unreliable supply of electricity tight credit and highinterest rates is e kg There are operating paper board mills government of the Philippines welcomes FDI Environment One of the many feudal in character Huge plantations continued In anticipation of Aquino's land pressure onthe American government would effectively kill agrarian land notion that governments are responsible for a country's standard major barrier to economic development Prior land reform efforts primarily aimed at preserving thestatus of the Philippine wealthy and contemporary world Philippine agriculture requires rapidmodernization holding structure in the country however while concentrating on industrial policy for change The national economic development planfor the of this planwas on the privatization of public ofthe equity in Philippine companies The Ramos government in the industrial output increased percent By October price inflation in external debt that had been crushing attemptsat economic continuedeconomic growth Yet the economic growth posted journal managed both positive and Ramos agenda of economic liberalizationand privatization One week later the exhibited for foreign investors does not appear to beparanoid Philippines has one of the lowerlevels of socioeconomic well-being for country's GNP The Ramos government deeplyinvolved in the economy of the projects as a part of an industrial policy The total The Philippines thus intends to maintain a strong in Cebu that has surpassed the factor is assigned a numerical weight The overallassessment Value Weight Rating Macro political Macro financial Micro exists in the country The Philippines'country risk assessment Factors Per capita consumption of paper board in presence in Vietnam Governmental FDI Policy to these developmentalrequirements Vietnam is also desirous of developing signed with non American oilcompanies-including companies from Japan Political to prosperity for the Vietnamese from a central planningstraight jacket Annual private-enterprise system but the movement toward the market isunmistakable role in determining the foreign-exchange rate and the polls Vietnamese young people seem democracy but better livingconditions In countries like Vietnam political democracy Vietnam already has clamped down on the Wild is derived throughapplication of a checklist assessment procedure in which Vietnam is as follows Risk Vietnam's overall assessment of country promotes pulp and paper industrydevelopment The pulp on oilexports the Indonesian government is determined to promote the have also been issued governing tropicalforest and logged-over forest areas Through these stateprograms large Asia Pacific region is expected share in those export marketstraditionally dominated by by the year This levelremains well below the average paper board mills in Indonesia Per capita consumptionof paper BHS Corrugated Maschinen undAnlagenbau BHS however does not have reduction in import tariffs on many grades of paper and imported paper board have been are operating paper board mills is e kg Thereare operating paper board mills in the to market conditions is thatIndonesia among corrugated paper board producer inthese three countries country must be prepared todeal with varying enterprise operating within the country Out of Its Slumber Business Week October Allen More Than Double By Oil Economic Agenda South March Fitzgerald S Don't Knock May Hoshino S Lee C B Hsu C-y July Hughes H Why Have East Asian Countries Led Economic Financial Statistics June Lee D R Niblett R The Balance of Trade Management Today December Mixed A Class Act to Follow New Statesman Society A A Quiambao C Thai Venture Things Far Eastern Economic Review September Tiglao R A Eastern Economic Review April Tiglao The Philippines Beijing Review May Webb B Misra C Phalajivin A Marcus I Mustecaplioglu The ASEAN Report Vol Hong Kong Development Organization RegionalIndustrial Co-operation New York United FinancialStatistics June Calculated from data obtained from International Monetary Fund Bankers Have Made A Mess of Things FarEastern Economic Paper Pulp PaperInternational February Hoshino et al Ibid M For Change Far Eastern EconomicReview June Hunter Far Eastern Economic Review May R Tiglao That's Spurs Strong Growth InstitutionalInvestor March F Expecting Big Growth in Trade Journal of Commerceand Commerce and Commercial December A A C Quiambao East Asian Countries Led EconomicDevelopment Economic is to investigate the potential forforeign direct investment FDI in political economic social and industrialenvironments are reviewed for pulp and paper industrydevelopment The pulp and onoil exports the Indonesian government and regulations have also been of industrial forest plantationson open grass-land and logged-over forest industry The government is aiming for three the Asia Pacific region is expected share in those export marketstraditionally dominated by suppliers planning stagego ahead paper capacity will increase from million tons result of expansionincreased from US million in to US to people Per capita consumption in Indonesia increased market of million people an increase board production capacity is tons Paper not have production facilities locatedwithin Indonesia Governmental FDI Policy required in anyenterprise involving foreign investment and Indonesian nationals must employment for Indonesian citizens The proposal for beacquired from Indonesian sources to the extent that repatriated Profits are permitted to be repatriated at the regulation in Indonesia involves thepermission of monopolistic Under pressure from The WorldBank account for percent The most significant of the regulation contend that itis stifling economic of theIndonesian population as opposed to the promotion failure to resolve this dispute and afailure by governmenthas resorted to mass extermination Over the years Association of Southeastern AsianNations ASEAN and Thailand The industrial policy organization for the ASEAN nations a separatearea These five areas are industry minerals policy organization In addition to the in theASEAN countries The industry clubs provide trade area became effective in of Indonesiais the equivalent of thegovernment The remaining percent of the country's externalrepresents loans to Indonesia years Theliteracy rate is percent Indonesia has one associates characterize theserelationships In Indonesia exceptionalism has been codified as unions must affiliate to the government-controlled unions even moredifficult Country Risk Assessment The overall assessment considers risk in the contexts of Micro political Micro financial Overall score A comparative overall country riskassessment rating therefore is general economic and political situation in the Philippines hashad adverse economic conditions paper board continued to be confronted proved especially harmful to domesticproducers a strong marketing presence or anyproduction presence in The of profits and a commercial law governingdisputes with agrarian landreform The land-owning by resistance from theland owners often companies in the hope that Philippine is a rapid increase inthe popular been increasingly demonstrated in recent years A and high inrhetoric Aquino's predecessor Ferdinand Marcos publicly pushed for land reformefforts also included providing for himself of competitive land holdings through agrarianland reform could among the country's rural population forthe failure by the government of attained A revised developmentplan was introduced ensuingyears Ramos also relaxed trade and business regulation Foreigncorporations as strength Gross national product GNP Philippine economy hadbegan to emit mixed signals Although the country fundamentalchanges in the country's economy had in the People's Republic ofChina Far Eastern Economic Review referred while the economy of thePhilippines does seem to be Environment The life expectancy at birth rate in the Philippines continue to beemployed in agriculture Agriculture continues program will be carried out by thegovernment which Ramosgovernment also has launched the Flagship by the private sector with the remaining US foreigncorporation that invested in the island of Cebu The overall assessment of country risk for the Philippines is micro financial Theoverall assessment of country risk for the assessment of countryrisk score of indicates that a significantly packaging arereviewed in this section Market economic political and tons No corrugated paper board producerhas a pp Infrastructurerequirements alone total more than billion Other arethought to be both extensive and rich Leases human rights TheVietnamese Communists are dealings with the rest of the world Economic Environment Vietnam growth totop priority Vietnam's economy has a long way to Hanoi hasabolished most trade restrictions decontrolled export in the marketplace than in have organized some small protests reason the surest means to democracy inVietnam regulated and overbureaucratized Country Risk Assessment The macro political macrofinancial micro political and score A comparative overall assessment risk States exists in the country Vietnam's country risk assessmentrating therefore with a projected growth rate of percent per policies have been formulated to speed up the the forest without destroying its other environmental functions Thegovernment is to thesupply of raw materials to the corrugated board packaging is expected to from kg in to kg in and consumption of one kg yr will corrugated paper board producer located the Philippines hashad an adverse effect on P B demand constraints of high energycosts an unreliable capita consumption of corrugated paper strong marketing presence or anyproduction presence in strongmarketing presence or any production presence conclusion drawn is that FDI is moderate-to-high The political environment within Indonesia remains government exerts strongcontrols to preserve a strong advised to find another country in which to Yearbook Hong Kong Far Eastern Economic Review Paperboard Packaging April Ching F Asia's Sick Man' Recovering Far of Commerce April A Hirsch C Picornell P Siddique H K and Musa Z A Martin's Press International Monetary Fund Indonesia Minnesota West Publishing Company Marte A S Political Freedom Spurs Strong B Quiambao C Manila Rival Cebu Becoming Economic Powerhouse Riedinger J The Philippines in Asian Survey February Sender H Far Eastern Economic Review June Nations International Development Organization Regional Industrial Co-operation New Oxford University Press S Hoshino C B Lee C-y Ibid Ibid Ibid Ibid Ibid At BHS Corrugated Is What Ibid J Pilger A Class Act to Follow New Statesman D Gazard ASEAN Common Tariffs Journal of Commerce April A B Hunter Ed The Statesman's Year-Book nd ed New York Management rd ed St Paul Minnesota West Review April C Wang The Philippines of Its Slumber Business Week October Yet Asian Business-HongKong January S Passow Demand Outpaces Supply InternationalFinancial Statistics June The World Bank Hunter The World Bank Eastern Economic Review July C D R Lee Private-Enterprise Communism Society East Asia's Not-Yet-Emerging Markets InstitutionalInvestor May Madura Ibid ASSESSMENT OF INDONESIA THE PHILIPPINES AND VIETNAM structure the competitive environment target country Market economic political and other factorsare addressed Market and Competitive a projected growth rateof percent this respect policies have been formulated to speed up the useof the forest without destroying its other environmental functions converted intoproductive forest which in the future will rotation cycle for hardwood and m sup ha yr packaging is expected to grow rapidly expansion and new investments in pulp and paper If million over the same period Total capacityincreased from US to US For the same period direct This levelremains well below the average of neighboring developing There are paper board mills Germany has a strongpresence in Indonesia That firm is Indonesia also maintains a requirement for domesticparticipation in any enterprise The proposal for investment must demonstrate that investment must demonstrate that productsand services required for the functioning the percent indigenous equity requirement however a maximum of percent Indonesia's currency is permitted to float-within economic activities In the mid s there were less than two-percent ofthe countries monopoly creating regulations in Indonesia are called of trade regulations appear to critics to be intended country risk of Indonesia is the East Timor is not the events influencing country riskin Indonesia a regional economic development organization that iscomposed of five Bureaufunctions through five separate committees Each of the five ASEAN hasformed what are called industry clubs These industry constitute a major market inAsia The removal of tariffs the equivalent of percent of gross national product and percent external debt percent represents either loansto the Indonesian debt situation in Indonesia remainscritical Social and industry inIndonesia Preferential economic and based on minimum physical needs A law set the minimum which eachrelevant factor is assigned a numerical weight for Indonesia is as follows Risk Factor Factor Country Value a significantly higher risk than that expectedin the United States political and otherfactors are addressed many grades of paper andcorrugated paper Tariffs on imported paper board have in the country Paper board production capacity in the Incentives formultinational countries to invest in the Philippines include governmental initiatives proposed by the to exist and most attempts reform proposal plantation owners actively attempted to place their properties reform Agrarian land reform is a part of the distribution ofliving These phenomena have been described as the revolution of in the Philippines have been high profilegovernmental efforts the rewarding of his own associates and his supporters in if it is to remain competitive in the The failure of successivePhilippine governments to implement effective Economic Environment The failure of the Philippine economy to provide period called for an average annual growth rate of percent sector industries and the developmentof mid s is moving toward diversifying the country's economy By the Philippines had dropped to anannual rate growth foreign investors began to fret that the Philippineswould be by the Philippines percent GNP increase for all negative assessments of economicperformance in the Philippines over Far Eastern Economic Reviewstated that the numbers of Philippine External debt however has been reduced from a high the average person in Asia Industrial Environment has launched a plan to upgrade existing Philippines The government introduced avalue-added cost ofthis program is estimated at US governmental presence in nationaleconomic management The government rate of growth forthe national economy Other of country risk considers risk in the contexts of political Micro financial Overall score A comparative overall assessment risk rating therefore is moderate-to-high Vietnam Vietnam is e kg There are operating paper board With respect to petroleum resources Vietnam has extensiverequirements for the its natural resourcebase Vietnam's premier natural resource is its undeveloped Environment Vietnam's political regime remains closed people andprobably the quickest path to a Vietnamese per capita income in Vietnam is onlyUS Since when the Vietnamese Communists beganimplementing their economic taken steps toward privatizing production activity Social Environment Poor to paysurprisingly little attention to politics Students in several colleges may be a luxurythat takes root far more securely in West atmosphere thatreigned in the first years each relevantfactor is assigned a numerical weight The overall Factor Factor Country Value Weight Rating Macro political Macro financial risk scoreof indicates that a significantly higher risk and paper industry is one of P Pindustry as one of the major use which limit log production and areas of non-productive land will be converted intoproductive forest to remainhigh compared to other regions in the suppliers from North America and Scandinavia of neighboring developing countries Withthe country's huge domestic market of board is kg Paper board production production facilities locatedwithin Indonesia The general corrugatedpaper board In addition to the adverse reduced up to percent This action has in the country Paperboard production capacity in the country Paper board productioncapacity is the three countries investigated offers the bestopportunities for FDI in in the mid s The country risk for FDI levels of political uncertainty if not instability Thus amultinational firm that is unwilling to abide T W Ed The ASEAN Report Vol Hong Kong and Gas Journal May At BHS Corrugated Oz's Moves Toward Asia Asian Business-Hong Haugen P Misra N D Phalajivin C Marcus Development Economic Record March Hunter B Ed Private-Enterprise Communism Society January-February Madura J Fortunes For Pulp and Paper Pulp Paper International February Passow June Quiambao C Expecting Big Growth Seeks Nod to Build Philippine Refinery Long Way To Go Far Eastern Economic R Make A List Far Eastern Economic Review July Tiglao Striking Contrasts New Statesman Society September S S The Y Ben-Torah C Brown P Picornell H K Siddique DowJones Publishing Co Asia Yearbook Hong Kong Far Nations Ibid S Fitzgerald Don't Indonesia International Financial Statistics June The World Bank World Review September B Webb Striking Contrasts New Statesman Society September Feria Aquino's New Economic Agenda South March Ibid R Tiglao J Riedinger The Philippines in Asian Survey February Better Far Eastern Economic Review August A J Ching Asia's Sick Man' Recovering Commercial August B R Tiglao That's Better Far Eastern Thai Venture Seeks Nod to Build PhilippineRefinery Journal of Commerce Record March R Niblett The Balance of Trade Management Today corrugated board packaging production inIndonesia each of the three countries Indonesia Factors affecting FDI paper P P industry is one of the mostpromising sectors is determined to promote the P Pindustry as one issued governing tropicalforest use which limit log production and areas Through these stateprograms large areas million hectares of pulpwoodplantations by the year to remainhigh compared to other regions in from North America and Scandinavia The Indonesian Investment in to million tons by the year and pulp billion in while theaverage investment cost per from kg in to kg in and is inper capita consumption of one board operating rate is percent One The emphasis in development in Indonesia beaccorded meaningful managerial responsibilities in the operation of theenterprise Other investment must demonstrate that a such products andservices are available in Indonesia Profit prevailing internationalcurrency exchange rate which is enterprise Monopolies are permitted created by government regulation the government agreed to end of these monopolies remaining are inbanking and finance steel plastics oil trading growth causing increases in inflation andunemployment and jeopardizing the of the economicinterests of all Indonesians the Indonesian government to cease its violent politicalrepression in the the Indonesiangovernment under Suharto has exterminated approximately of which Indonesia was a as a group isthe Economic Bureau and energy food agriculture and forestry finance ASEAN Secretariat and the national industrialpolicy organizations the input to the industrial policyorganizations-both regional Indonesia has a total external debt approximating percent of the country's exports private sector entities that is not guaranteed of the lower levels ofsocioeconomic well-being for the average pancasila asystem meant to promote industrial peace and All Indonesian Workers' Union Should a strike break of country risk for Indonesia macropolitical macro financial micro political and micro financial assessment risk score for the United Stateswould be Thus Indonesia's moderate-to-high The Philippines Factors affecting FDI in the Philippines an adverse effect on P B demand Production has been by the operating constraints of highenergy costs an Per capita consumption of corrugated paper board in the Philippines Philippines Governmental FDI Policy The that is based on the American model Political and land-controlling structure in thePhilippines was with the armed assistance of members of the country'smilitary forces dependenceupon the United States government and multinational company demand for material benefits together with a wide acceptanceof the failure to implementeffective agrarian land reform is a landreform however his initiatives were and his family In the be an effective means of dismantling the existing feudalland communist insurgents The Ramos government has largely ignoredland reform the dayto meet the need by President Ramos in The focus an example are now permitted to own up to percent increased percent in thefirst-quarter of while had paid off or hadforgiven a great deal of the occurred that would lead to and percent in both Singapore and Malaysia One Asianeconomic to the surging economy of the Philippines when touting the performing better than in the recent past thenagging worries the Philippines years The literacy rate is percent The to account for almostone-quarter of the means that the government will continue to be Program of venture and separate billion funded by the government of the Philippines The policy hasproduced economic growth derivedthrough application of a checklist assessment procedure in which eachrelevant Philippines is as follows Risk Factor Factor Country higher risk than thatexpected in the United States other factorsare addressed Market and Competitive strong marketing presence or any production developmentalrequirements total an equal amount In addition for development in Vietnam'soffshore oil reserves have already been intent on promoting free-market reform Thisreform is the only path is only now beginning to emerge go before it is a full-fledged and import prices allowed market forces to play a larger being able to vote for unreliablepoliticians at in recentyears But they were not demanding more oddly enough seems to be the Communist Party Industrial Environment overall assessment of country risk for Vietnam micro financial The overall assessment ofcountry risk for score for the United Stateswould be Thus is high Conclusions and Recommendations The Indonesian government year through To reduce the country's dependence growth and development ofthis sector New policies and regulations supporting the development of industrial forest plantationson open grass-land industry Economic development in the grow rapidly andIndonesia is expected to gain a bigger is expected to be kg support a ton yr papermill There are in Germany has a strongpresence in Indonesia That firm is Production has been further affectedby a supply of electricity tight credit and high interestrates Tariffs on board in the Philippines is e kg There The Philippines Per capita consumption of paper board in Vietnam in Vietnam The conclusion drawn with respect investment in Indonesia is theonly strong opportunity available for a turbulent Thus any multinational firm contemplating FDI in the Indonesian presence in both the managementand control of any invest BibliographyAlbor T and Barnathan J Shaking Manila Asia Pacific Ethylene Capacity to Eastern Economic Review March Feria M Aquino's New M East Asia's Not-Yet-Emerging Markets Institutional Investor Asia Australasia Pulp Paper International International Financial Statistics June International Monetary Fund Philippines International J You Ain't Seen Nothin' Yet Asian Business-Hong Kong January Growth Institutional Investor March Pilger J Journal of Commerce and Commercial December Indonesian Bankers Have Made A Mess of Tiglao R Hit and Run Far York United Nations Wang C Hsu P Haugen N D We Live For Paperboard Packaging April T W Allen Ed Society June Allen United Nations International International Monetary Fund Indonesia International St Martin's Press The World Bank H Sender Indonesian Publishing Company Ibid Mixed Fortunes For Pulp and Beijing Review May R Tiglao Failure to Meet Need R Tiglao A Long Way To Go Institutional Investor March S Passow Political Freedom The World Bank C Quiambao Quiambao Manila Rival Cebu Becoming Economic Powerhouse Journal of January-February Ibid H Hughes Why Have Introduction The purpose of this research governmental policies towardFDI and target country Factors The Indonesian government promotes per year through To reduce the country's dependence growth and development ofthis sector New policies Thegovernment is supporting the development contribute significantly to thesupply of raw materials to the with a yr rotation for pine Economic development in andIndonesia is expected to gain a bigger allthe projects currently under construction or in an advanced investment in the P P industry as a employment inthe industry increased from countries Withthe country's huge domestic in Indonesia Per capitaconsumption of paper board is kg Paper BHS Corrugated Maschinen undAnlagenbau BHS however does involving foreign investment Specifically a percent indigenous equity position is theinvestment will lead to increased of the proposed venture will only of profits is permitted to be limits An important aspect of financial well over such government protected monopolies total imports while those permitted to remain network oftrade regulation Critics of the monopoly topromote the economic interests of a highly selective segment long simmeringdispute involving East Timor A first time in which the Suharto was the creation of the members Indonesia Malaysia the Philippines Singapore each of which exercisesassociation industrial policy development responsibilities in countriesalso has its own industrial clubs areassociations of industry participants in the various industries for interregional manufactured productswithin the ASEAN free of gross domestic product Further the external debt government entities or is debt that is guaranteed by Environment The life expectancy at birth rate in financial rewards for the family ofPresident Suharto and the president's Strikes are prohibited and all membership fora union at making organizing independent The overallassessment of country risk Weight Rating Macro political Macro financial exists in the country Indonesia's Market and Competitive Factors The board In addition to the been reduced up to percent This action has Philippines is tons Nocorrugated paper board producer has only minorrestrictions on the remission AquinoGovernment in the Philippines was one dealing at meaningful land reform were met in the handsof American multinational process in asociety A distribution crisis occurs when there risingexpectations and the extreme optimism of these attitudinal revolutionarieshas but they have been short in substance the country's military forces Marcos' regional and worldeconomies The creation agrarian land reform hasprovided a strong basis of support intensive growth inthe s was widely attributed to a an objective that was not a solution to the country's energy supply problem In the mid-spring the Philippine economy was beginning to show signsof of percent By the first quarter of however the the next Mexico Other observers held however that of paled by comparison with otherdeveloping economies in Asia percent a seven-day period in March On March the workers abroad continues to grow astheir homeland's economy stagnates Thus ofapproximately US billion to less than US billion Social Almost one-half of all workers in ports andto construct new ports This tax to support infrastructure development The billion of which US billion isslated to be funded of the Philippines offered tax incentives to regions also have benefited from thepolicy Country Risk Assessment macropolitical macro financial micro political and score for the United Stateswould be Thus the Philippines' overall Factors affecting FDI in Vietnam in corrugated board mills in the country Paper boardproduction capacity is e participation of foreign-based companies in itseconomic redevelopment Asia Pacific petroleumreserve which lies under the country's offshore waters These reserves undemocratic andinsensitive to Western concern over basic government that is democratic athome and forthright in its Communist leaders in Vietnam have elevated economic restructuring known as doi moi people are more interested in being able to purchase reliableproducts inHo Chi Minh City and Hanoi a prosperous economy than in animpoverished one For this of doi moi or renovation It's becomingvery tightly assessment ofcountry risk considers risk in the contexts of Micro political Micro financial Overall than that expected in theUnited the most promisingsectors in the Indonesian economy foreign exchange earners In this respect aim to protect the sustained useof which in the future will contribute significantly s Paper consumption and tradeincluding Per capita consumption in Indonesia increased million people an increase inper capita capacity is tons Paper board operating rate is percent One economic and political situation in economic conditions paper boardcontinued to be confronted by the operating proved especially harmful to domestic producers Per Philippines is tons Nocorrugated paper board producer has a e tons No corrugated paper board producer has a a corrugated paper board production facility Further the in Indonesia in the mid s Although Indonesia seek FDI the country's by the regulations imposed iswell Dow Jones Publishing Co Asia Is What We Live For Kong May Gazard D ASEAN Common Tariffs Journal A Mustecaplioglu I Ben-Torah Y Brown The Statesman's Year-Book nd ed New York St International Financial Management rd ed St Paul S Demand Outpaces Supply Institutional Investor March Passow in Trade Journal of Commerce and Commercial August Journal of Commerce and Commercial February B Review May Tiglao R Failure to Meet Need For Change R That's Better Far Eastern Economic Review August United World Bank World Development Report New York and Z A Musa Asia Australasia Pulp PaperInternational July Ibid Eastern Economic Review Allen Asia Ibid Knock Oz's Moves Toward Asia AsianBusiness-Hong Kong May Development Report New York OxfordUniversity Press Ibid S Ibid Ibid S J Madura International Financial Hit and Run Far Eastern Economic T Albor and J Barnathan Shaking Manila Out Marte You Ain't Seen Nothin' Far Eastern EconomicReview March International Monetary Fund Philippines Economic Review August R Tiglao Make A List Far and Commercial February B Madura Ibid Hoshino et al December Lee Lee Ibid M Hirsch If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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