FDI into Japan negative in 2006

There’s nothing good about this except to say that there is enough investment capital in Japan to service the internal market.

Foreign direct investment inflows to Japan turned negative in 2006 for the first time since 1989, affected by divestments by large transnational companies, including Vodafone Group PLC, according to a U.N. development agency.

The sluggish result was in contrast to a surge in FDI inflows to other advanced economies amid an increasing number of cross-border mergers and acquisitions, as well as a steady uptrend in other part of Asia, including China, the U.N. Conference on Trade and Development said in its annual report to be released Wednesday.

FDI inflows to Japan fell to minus $6.5 billion last year on a net basis, after an inflow of $2.8 billion in 2005.

Although $2.3 billion in earnings was reinvested in Japan, it was overwhelmed by $8.6 billion in net equity unloading, according to UNCTAD’s World Investment Report 2007.

You can download the report here.

Foreign investment in Japan negative in 2006 | The Japan Times Online