An Analysis of the Investment Environment of Asian Major Cities : Questionnaire Survey for Korean Overseas Affiliates

Nowadays, as Korean companies are eager for overseas investment, there has been a growing interest in analysis of the investment environment of our overseas subsidiaries.In this paper, I will compare the investment environment conditions through a questionnaire survey of our overseas subsidiaries in 10 major cities (regions) of Shanghai, Qingdao, Chengdu, Ho Chi Minh, Hanoi, Mumbai (including the Pune area), Chennai, Delhi, Jakarta and Yangon in China, Vietnam, India, Indonesia, Myanmar, which were promising and prominent partner countries to Korean overseas investment. The target areas (cities) were selected for the following reasons.First, the most preferential consideration was given to the current status and outlook (demand) of outward foreign direct investment(FDI) of Korean companies.The second reason was whether foreign direct investment is increasing and expected to increase continuously in addition to the presence of industry having the interest of Korean companies in the target areas.Third, policy factors, such as the infrastructure investment plan and the attitude of FTA of the local government associated with the South Korean companies which were taken into account. Fourth, the cities (regions) were selected preferentially in order of necessity and urgency regarding the regional investment environment analysis of industrial complexes. Fifth, the areas with the trade branches of KOTRA(Korea Trade & Investment Agency) where there is significant meaning associated with foreign direct investment were selected in consideration of the efficiency of the investigation.The purpose of this paper is to provide reference materials for Korean small and medium-sized enterprises to support their overseas investment through comparative evaluation of the investment environment of 10 promising major Asian cities in 5 countries, using a questionnaire survey of Korean overseas affiliates. This paper is useful for Korean investors & potential investors in this area, and also the Korean government, including outward investment related agencies such as KOTRA, KIEP, KIET and academic institutes. For this study, KIET created a questionnaire that was distributed and collected through the KOTRA overseas trade centers and their subcontractors for Korean companies operating in this area