Net foreign direct investment (FDI) flows into the country in August grew year-on-year by 36.3 percent to US$409 million. This development brought the cumulative eight-month net FDI flows to US$929 million or a growth of 70.5 percent from the US$545 million net inflow registered last year.
Net inflows of equity capital in August surged to US$297 million on account of additional investments, mainly in the form of machinery and equipment, in the manufacturing sector. For the first eight months of 2005, net equity capital inflow was up by 47.6 percent to US$912 million from US$618 million last year on account of higher equity placements and lower withdrawals. New investments were channeled into manufacturing (US$506 million), real estate (US$ 81 million), and services, i.e., business process outsourcing (US14 million) sectors coming mainly from Hong Kong and the U.S., the country’s largest investors during the period.
The “other capital” component of FDI which comprised of inter-company borrowings between investee companies and their corresponding foreign direct investors likewise contributed to the growth in net FDI flows in the first eight months of the year, as its balance reverted to a net inflow of US$6 million from a net outflow of US$165 million.