Deloitte and the Shanghai Municipal Commission of Commerce (SMCC) jointly issued the second Belt and Road Countries Investment Index Report, highlighting the latest trends in Belt and Road Initiative (BRI) investment during 2017-18, and presenting the latest hotspots and changes in BRI countries and areas through comparative analysis.
The Report indicates that the overall investment attractiveness of the BRI countries has increased, especially in Southeast Asia, but that total investment risks have also risen. Furthermore, the report notes, China plays an increasingly important role in enabling BRI countries’ economic development by deepening trade ties, improving cooperation mechanisms and expanding areas of cooperation.
The report also highlights that Chinese enterprises’ investment in BRI countries will maintain steady growth in investment flow and diversify its areas of cooperation. Except from traditional industries like power, oil and petrochemicals, and transportation construction, the investment focus of Chinese enterprises will expand to sectors including leasing and business services, financial services, wholesale and retail, and new and high technology. In the meantime, regional differences in investment in BRI countries will gradually emerge with increasing investment in key countries and sectors.
2018 marked the fifth year of the Belt and Road Initiative. China’s non-financial investment in BRI countries increased by 9% and trade volume was up 13% from 2017. Four diplomatic events hosted in China also expanded the BRI’s influence on the international stage. China has played an increasingly important role in facilitating BRI countries’ economic development
says Deloitte Global Belt & Road Initiative (BRI) Leader and Deloitte China Vice Chairman Derek Lai.
In addition, during 2018, Chinese investors facilitated transportation and logistics infrastructure development, adopting key local industries including agriculture, industrial parks, information technology and energy. Among the BRI destinations, most of the 20 countries with the highest investment attractiveness are in Southeast Asia and the Middle East. Singapore and India show high growth potential.
Addressing cooperation between China and the BRI countries, Deloitte China Global Chinese Services Group Partner Johnny Zhang adds that China has actively enhanced cooperation with BRI countries in science and technology, education, culture and public health.
According to comparable indicators and indices, a dynamic and forward-looking approach and a comprehensive evaluation framework, the report analyzes the investment attractiveness, overall investment risks and development of five key industries across BRI countries.
The report also ranks the investment attractiveness of key industries in BRI countries. In the manufacturing sector, the rankings of Mongolia and Tajikistan grew sharply due to their active cooperation with China to improve industrial technology.
Other noteworthy trends identified in the report include:
- Resource-rich countries have focused on sustainable energy strategies with a focus on exploring the transition to natural gas and renewable energy;
- The rankings of Vietnam, Poland and Indonesia improved substantially as domestic infrastructure construction enhanced logistics and transportation capacities.
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