United Nations Conference on Trade and Development (UNCTAD) has published the World Investment Report 2019 which states that more and more foreign companies are leaving China and relocating their factories to China’s neighbours. The exodus is caused by trade tensions between Washington and Beijing, and the investors’ effort to avoid US tariffs. Some Southeast Asian countries, including Vietnam, Indonesia and Thailand, have long been attracting foreign direct investments which rose 3 % in the region in 2018 to a record level of €132 billion. These countries have been attracting foreign firms because of their cheaper labour, business-friendly policies and strong trading relations with major importers such as the European Union and the US.
