Top 10 global cities in greenfield FDI
Updated: 2015-07-17 06:55
The Chinese mainland became the largest recipient of FDI in 2014 with $129 billion inflows, followed by Hong Kong that received $103 billion and the US with $92 billion. At 39 percent, Hong Kong saw the biggest surge in inflows during the year.
In terms of greenfield investment during the same period, however, things are a bit different. According to figures from fDi Markets, an FT data service, Singapore is sitting atop the world as the best city for FDI, ranking first globally in 2014 for the amount of greenfield inward investment it attracted. The city-state received two-and-a-half times more investment than its main rival, Hong Kong.
Statistics show 390 companies announced or launched 409 greenfield projects in Singapore last year, totalling an estimated $11 billion in capital expenditure. London attracted 334 projects at $7 billion, and Shanghai, 245 projects at $8 billion. Hong Kong, the sixth-ranked city based on number of projects, received 162 projects at $5 billion.
Greenfield investment is a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. It is opposite to a brownfield investment where a company or government entity purchases or leases existing production facilities to launch a new production activity.
Let's take a look at some of the top greenfield FDI destinations among global cities.
No 10 Tokyo
Tourists pose for pictures in Tokyo, April 9, 2015. [Photo / CFP]