Media release: TPP APEC talks today – Lagging NZ needs to be more open
Wellington (10 November 2017): “The TPP APEC talks in Vietnam today are reportedly 'down to the wire.' Yet while the TPP commentary focuses on trade, we should also learn about foreign direct investment from APEC host Vietnam,” says The New Zealand Initiative’s Senior Fellow Dr Bryce Wilkinson.
“In 1997, Vietnam had the most restrictive FDI regime of all 45 countries measured by the OECD. Its score was almost three times New Zealand’s. By 2016, its score was half New Zealand’s.”
“Vietnam’s stock of inwards FDI rocketed from 39% to 56% of GDP. For stagnating New Zealand, the ratio fell from 45% to 39%."
“Vietnam more than doubled its real GDP per capita between 1997 and 2016. New Zealand’s increase was a relatively feeble 33%.”
“Of course, lagging FDI is not the only reason for New Zealand’s poor income growth,” continued Dr Wilkinson. “But it is too important a factor to ignore. Stronger job growth and higher wage rates from productivity growth are critical to reducing poverty.”
“Done well, FDI helps create trade links, opens new markets and improves access to international value chains. Openness matters. Lets do it”, he concluded.
The New Zealand Initiative has previously documented the poor state of FDI regulations in a series of reports:
Open for Business: Removing the barriers to foreign investment, Dr Bryce Wilkinson
Capital Doldrums: How globalisation is bypassing New Zealand, Dr Bryce Wilkinson
New Zealand's Global Links: Foreign Ownership and the Status of New Zealand's Net International Investment, Dr Bryce Wilkinson
Dr Bryce Wilkinson is available for interviews, please contact:
Linda Heerink, Communications Officer
The New Zealand Initiative
Phone: +64 4 494 9109
Mobile: +64 21 172 8036