Transcript Ekonomik Reform Programı

FDI in TURKEY
Undersecretariat of Treasury
Özge DUMLUPINAR
Treasury Expert
October 19, 2009
İSTANBUL
YOIKK Secretariat, 2008
FDI in TURKEY
► Outline
 Global Trends in FDI Inflows
 Basic FDI Statistics of Turkey
 FDI Policy of Turkey
YOIKK Secretariat 2008
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FDI in TURKEY
I. Global Trends in FDI Inflows
YOIKK Secretariat 2008
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Global Trends in FDI Inflows
►FDI inflows: severely affected worldwide by the
economic and financial crisis in 2008.
Fall from a historic high of $1,979 billion in 2007 to $1,697
billion in 2008 (a decline of %14)
 Slide continuation into 2009 : Fall in inflows by %44
compared with their level in the same period in 2008.
►Expectation to fall from $1.7 trillion to below
$1.2 trillion in 2009.
►Slow recovery in 2010 (to a level up to $1.4
trillion) and 2011 (approaching $1.8 trillion)
YOIKK Secretariat 2008
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Global Trends in FDI Inflows
►Change in the investment landscape:
 Decline in FDI inflows of developed countries by %29
Surge to %43 in global FDI inflows in the share of
developing and transition economes in 2008.
►Decline in the numbers and values of cross
border M&As in 2008, also decline in greenfield
investments in the last quarter.
►Intentions of the majority (%58) of large TNCs to
reduce their FDI expenditures in 2009 from their
2008 levels.
YOIKK Secretariat 2008
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Global Trends in FDI Inflows
► Despite concerns about a possible rise in investment
protectionism, greater openness in FDI policies
worldwide:
 During 2008, 110 new FDI –related measures were
introduced, of which 85 were more favourable to FDI.
Compared to 2007, the percentage of less favourable
measures for FDI remained unchanged.
► Trend of scrutinizing foreign investments for national
security reasons.
► Expansion in the network of IIAs: signature of 59 new
bilateral investment treaties and increase in the number
of DTT and international agreements with investment
provisons.
YOIKK Secretariat 2008
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FDI in TURKEY
II. Basic FDI Statistics of Turkey
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
Chart 3: FDI Inflows in Turkey Between 1995 and 2008
USD Million
24.000
22.046
22.000
20.185
20.000
18.187
18.000
16.000
14.000
12.000
10.000
10.031
8.469
8.000
6.000
4.000
2.785
2.000
1.082
1.702
0
1995-2001
2002
2003
2004
2005
2006
2007
2008
Source: CBRT
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Inflows and Their Distribution by Components Between
1995-2008 (USD million)
Cumulative FDI (net)
FDI
1995-2001
(Cumulative)
8.469
8.469
Capital (Net)
Inflow
Outflow
Reinvested Earnings a
Other Capitalb
Real Estate Purchases (Net)
2002
2003
2004
2005
2006
2007
2008
1.082
1.082
1.702
704
2.785
1.442
10.031
8.190
20.185
17.263
22.046
19.120
18.187
15.250
8.469
9.547
-1.078
566
571
-5
556
564
-8
888
986
-98
8.053
8.454
-401
16.876
17.533
-657
18.099
18.842
-743
14.672
14.707
-35
-
-
132
204
81
106
294
204
-
516
-
16
998
350
1.343
56
1.841
281
2.922
727
2.926
374
2.937
Source: CBRT
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
Top 5 Inflows in 2008
Acquired Company
Acquiring Company
Migros
Türkiye Finans
Katılım Bankası
Ereğli Demir Çelik b
Moonlight Capital
The National
Commercial Bank
Arcelor-Mittal
National Bank of
Greece
British American
Tobacco
Finansbank
Tekel Sigara c
Toplam
Home Country of
the Acquiring
Company
Luxembourg
Ratio of Shares
Taken Over (%)
Foreign Direct
Investment
(USD Million)
50.8
1,918
Saudi Arabia
60.0
1,080
Luxembourg
11.3
959
9.7
697
100.0
611
Greece
UK
9,456
Source: Undersecretariat of Treasury, CBRT
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Inflows by Sector, 2008 (USD Million)
Rank
1
Sector
Financial Intermediation
2
Capital
(%)
5,925
39.7
Manufacturing
3,828
25.7
3
Wholesale and Retail Trade
2,073
13.9
4
Electricity,Gas and Water Supply
1,053
7.1
5
Construction
736
4.9
6
Real Estate, Renting and Business Activities
673
4.5
7
Mining and Quarrying
173
1.2
8
Transport, Storage and Communication
169
1.1
9
Health and Social Work
150
1.0
59
0.4
72
0.5
14,911
100.0
10
Other Community, Social and Personal Service
Activities
Other
Total
Source: CBRT
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Inflows by Home Country 2007-2008 (USD million)
2007
Rank
Country
2008
Capital
(%)
1 Netherlands
2 USA
5,443
28.4
4,212
22.0
3 Greece
4 Germany
2,360
12.3
954
5.0
5 UK
6 Portugal
702
3.7
701
3.7
7 Kazakhstan
8 Spain
613
3.2
583
3.0
9 Luxembourg
10 Brazil
583
3.0
467
2.4
Other
2,518
13.2
Total
19,136
100.0
Rank
Country
Capital
(%)
1 UK
2 Luxembourg
2,294
15.4
2,086
14.0
3 Netherlands
4 Saudi Arabia
1,755
11.8
1,244
8.3
5 Germany
6 USA
1,217
8.2
863
5.8
7 Spain
8 Greece
825
5.5
779
5.2
9 France
10 Austria
685
4.6
569
3.8
Other
2,594
17.4
Total
14,911
100.0
Source: CBRT
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
Breakdown of Companies with International Capital According to
their Country of Origin
Countries
1954-2002
2003
2004
2005
2006
2007
2008
Total
(Cumulative)
European Union
Germany
The Netherlands
United Kingdom
Other European Countries
Other European Countries
(Excluding EU)
African Countries
North America
U.S.A.
Canada
Central-South America And
Caribbean
Near And Middle Eastern Countries
Azerbaijan
Iraq
Iran
Other
Other Asian Countries
China
South Korea
Other
Other Countries
Total
1954-2008
2.787
925
467
351
1.044
436
137
65
67
167
1.006
355
138
130
383
1.545
469
192
308
576
1.979
556
270
461
692
2.084
563
255
456
810
1.789
595
286
248
660
11.626
3.600
1.673
2.021
4.332
585
83
349
326
23
134
30
53
44
9
265
37
98
87
11
320
55
111
97
14
372
43
136
113
23
492
47
165
132
33
548
52
149
130
19
2.716
347
1.061
929
132
39
1.060
91
161
319
489
328
98
47
183
63
5.294
5
255
37
38
102
78
102
41
12
49
14
1.029
12
349
51
46
123
129
151
56
16
79
30
1.948
16
380
55
57
121
147
163
32
18
113
23
2.613
10
410
81
73
109
147
165
22
12
131
54
3.169
21
506
120
112
106
168
278
42
24
212
36
3.629
12
567
136
88
139
204
233
46
13
174
47
3.397
115
3.527
571
575
1.019
1.362
1.420
337
142
941
267
21.079
Source:Undersecretariat of Turkey, Porvisional Data
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Inflows by economy (USD million)
Rank
Country
2008
1 United States
316.112
2 France
117.510
3 China
108.312
4 United Kingdom
96.939
5 Russian Federation
70.320
6 Spain
65.539
7 Hong Kong, China
63.003
8 Belgium
59.680
9 Australia
46.774
10 Brazil
45.058
20 Turkey
18.198
Source: WIR 2009
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Inflows by West Asia region (USD million)
Rank
Country
2008
1 Saudi Arabia
38.223
2 Turkey
18.198
3 United Arab Emirates
13.700
4 Qatar
6.700
5 Oman
2.928
Source: WIR 2009
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Stock by economy (USD million)
Rank
Country
1 United States
2008
2.278.892
2 France
991.377
3 United Kingdom
982.877
4 Hong Kong, China
835.764
5 Germany
700.471
6 Netherlands
644.598
7 Spain
634.788
8 Belgium
518.940
9 Canada
412.268
10 China
378.083
40 Turkey
69.871
Source: WIR 2009
YOIKK Secretariat 2008
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Basic FDI Statistics of Turkey
FDI Stock by West Asia region (USD million)
Rank
Country
1 Saudi Arabia
2008
114.277
2 Turkey
69.871
3 United Arab Emirates
69.420
4 Lebanon
24.170
5 Qatar
22.055
Source: WIR 2009
YOIKK Secretariat 2008
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FDI in TURKEY
III. FDI Policy of Turkey
YOIKK Secretariat 2008
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FDI Policy of Turkey
►Three basic components:
Increasing predictability in the economy
Economic stability
Political stability
Maintaining a functioning free market
economy
Creating an investor friendly environment
YOIKK Secretariat 2008
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FDI Policy of Turkey
►Creating an Investor Friendly Environment:
Investment Environment Reform Programme
Diagnosis on Problem Areas of
Investment Environment in Turkey
Determination of Priorities with All
Relevant Parties
Design of an Appropriate Structure
Involving the Stakeholders
YOIKK Secretariat 2008
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FDI Policy of Turkey
►Creating an Investor Friendly Environment: Two
basic platforms based on public-private sector
dialogue and cooperation
Coordination Council for the Improvement of
Investment Environment (YOİKK)
Investment Advisory Council (IAC)
YOIKK Secretariat 2008
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FDI Policy of Turkey
YOIKK STRUCTURE
Coordination Council for the Improvement
of Investment Environment (YOIKK)
Investment
Advisory
Council
Steering Committee
Location of
Investment
Foreign Trade
& Customs
Licensing
Company
Establishment
Employment
Intellectual Property
Rights
Foreign Direct
Investment
Legislation
Corporate
Governance
Investment
Promotion
SMEs
Research &
Development
YOIKK Secretariat 2008
Taxes and
Incentives
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FDI Policy of Turkey
YOIKK WORKING PRINCIPLES
AGENDA SETTING
•
•
•
•
•
•
•
Recommendations of public
institutions
WORKING
YOIKK
Recommendations of
private sector
Assessments in
international indices and
publications
STEERING
COMMITTEE
IAC recommendations
Technical Committee Action
Plans
Basic policy guides
OUTCOMES
•
•
•
Draft regulations
Institutional capacity
building
Recommendations related
to enforcement
TECHNICAL
COMMITTEES
Twinning Project
Council of Ministers is regularly informed about YOIKK studies.
YOIKK Secretariat 2008
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FDI Policy of Turkey
IAC STRUCTURE
Executives of leading
multinational firms,
Heads of international
institutions (IMF, World Bank,
European Investment Bank),
TOBB, TUSİAD, YASED, TİM
Investment Advisory Council of Turkey had 5 meetings so far.
YOIKK Secretariat 2008
V. Meeting
June 18, 2008
IV. Meeting
June 11, 2007
III. Meeting
June 29, 2006
II. Meeting
April 29, 2005
I. Meeting
March 15, 2004
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FDI Policy of Turkey
► The main achievements in the investment environment
of Turkey:
 FDI law
 Simplification of Business Start-Up
 Investment Support and Promotion Agency of Turkey
 Trade Registry Automation Project
Employment Package
Social Security Reform
 Regulations on mining and fuel sectors
 Minimum living allowance system
Communique on Principles to be Followed by Joint Stock
Corporations Subject To Capital Market Law
Increased flexibility in the labor market
Improved infrastructure in strategic sectors
Improved protection for intellectual property rights
New investment incentive system
YOIKK Secretariat 2008
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FDI Policy of Turkey
The performance of Turkey in the international investment indices
Fraser Institute/Economic Freedom
Index
Transparency International /Corruption
Percepitons Index
2006
2007
2008
No of countries
141
141
141
Ranking of
Turkey
80
94
90
IMD/World Competitiveness Yearbook
No of
countries
Ranking of
Turkey
2007
2008
163
180
180
60
64
58
WEF/Global Competitiveness Report
2007
2008
2009
No of countries
55
55
57
No of countries
Ranking of
Turkey
48
48
47
Ranking of
Turkey
YOIKK Secretariat 2008
2006
2007
2008
2009
131
134
133
53
63
61
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FDI Policy of Turkey
►Useful Links
www.hazine.gov.tr
www.yoikk.gov.tr
YOIKK Secretariat 2008
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FDI in TURKEY
Undersecretariat of Treasury
Özge DUMLUPINAR
Treasury Expert
October 19, 2009
İSTANBUL
YOIKK Secretariat, 2008