DUBBED the last frontier markets in Asia – Vietnam, Cambodia, Laos and Myanmar – hold positive long-term prospects in attracting more foreign direct investments (FDIs), but they will need to address the challenge of managing their economies well, especially during the current global economic slowdown.
Most economists contacted by StarBiz are projecting that the Mekong countries’ gross domestic product (GDP) would decline this year. There will be slower FDIs and several mega investment projects would have to be put on hold as part of the respective governments’ monetary policy battle to contain rising inflation lead by higher fuel and food prices.
Singapore-based Fortis Bank senior economist Joseph Tan said there would be increasing investment risks in the Mekong countries this year after having posted sound economic growth and strong FDI inflows over the past five years.
Like the rest of the world, higher inflation in the recent months will challenge these governments’ monetary policy although part of the inflation was imported through the depreciating US dollar, he said.
More : biz.thestar.com.my
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