Asian Investment Destinations Overview:

Foreign Direct Investment

Last year, Asia recorded a 2.2% drop in Foreign direct investment (FDI), far less than the global decline of 21%. This year, however, FDI to Asia fell further. Hard hit China saw declines of over 32% in January to 17% as recently as last month. Even in Vietnam, one of Asia's fastest growing investment destinations, a 15% decline was recorded thus far this year.

India was Asia's big winner in FDI terms. For one, it has replaced Japan as the primary destination for new FDI projects in Asia. Furthermore, FDI to India increased by a whopping 85% over 2008, with its emerging retail market attracting the most capital.

Real Estate Market

With a recent surge in FDI flowing to many of Asia's real estate markets, there have been opportunities for returns on investments despite a global market decline. Nowhere in Asia has benefited as much as Ajman, UAE which has seen a 100% appreciation in property prices since 2007.

Elsewhere in Asia, property prices have shown a bit of stability as of late. In China and India, both prices and sales have risen, suggesting the worst of the real estate market decline is behind.

Taxes & Law

According to the World Bank's Doing Business rankings, Singapore is not only the best place in which to do business in Asia, but the most business-friendly place in the world. New Zealand ranked second, followed by Hong Kong (#4), Australia (#9), and Japan (#12). Taxes were lowest in Hong Kong while New Zealand was the easiest country in which to both launch a business and register property.

Economic Growth

Overall, positive economic growth has been forecast for Asia, with China leading at nearly 7% for 2009. Emerging markets in India, the Philippines, and Vietnam are expected to continue to grow this year, while more mature economies like Japan and Australia will not. The IMF's most recent economic growth forecast sees Japan contracting by 2.6% in 2009, more than any other developed nation in the world. Australia, on the other hand is expected to drop to just 0%.