Investors continue to shy away from Ukraine, preferring Mongolia and Laos
Despite the improvement in the business climate in Ukraine, the influx of FDI (foreign direct investment) continues to decrease in the country.
This was stated in an interview with the Kyiv online publication “Apostrophe” by a Ukrainian financial analyst, executive director of the Blazer International Fund.
The expert notes that the forecast for this year is $1,5 billion in FDI, while in 2013 it was $4,5 billion.
“And why will there be less of them this year than last year, because last year there were 1,7 billion dollars, and even less than the year before, when there were 2,5 billion dollars, and even less than in the previous year , when there were 3,4 billion dollars. Why is the quality of the business climate improving, while inflows of foreign direct investment are decreasing?” the analyst asks.
According to him, this trend is explained by the fact that the situation in the world is changing, and financial flows have rushed to “safe havens”, of which Ukraine no longer belongs.
“Look at the situation in countries that, traditionally for us, were considered very poor - Vietnam, Mongolia, Laos. Mongolia is growing at a rate of almost 10%. Laos, Vietnam show an increase of 6%. Videos from Vietnam that you can easily watch while in your office or home show that this is a completely different country compared to the stereotypical pictures that the average person has in their head. This is a completely different country because the quality of the business climate is changing.
And this someone else takes an extra piece of the pie, he gets the opportunity to develop at a rapid pace, and we continue to grow at this rate - and this is not normal. Because, firstly, we are in Europe, and the environment around us and our people are mobile, and there are no borders, and these people quickly leave,” Ustenko laments.
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