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2020 | OriginalPaper | Chapter

5. Outward Foreign Direct Investments from South Korea, Taiwan, and ASEAN in the V4 Countries

Authors : Katalin Völgyi, Tamás Peragovics

Published in: Emerging-market Multinational Enterprises in East Central Europe

Publisher: Springer International Publishing

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Abstract

Völgyi and Peragovics present outward FDI of six emerging Asian countries (South Korea, Taiwan, Malaysia, Thailand, Indonesia, and Vietnam) in V4 countries, namely, Hungary, Poland, Slovakia, and the Czech Republic. After analysing the global trends of outward FDI of the six Asian countries, they focus on the activities of South Korean, Taiwanese, and ASEAN companies in V4 countries. Companies originating from the six Asian countries are engaged in several manufacturing and services sectors in the V4. Among them, Völgyi and Peragovics pay special attention to the automotive and electronics sectors, which are the most preferred one. In the last section of the chapter, they identify the pull factors for market- and efficiency-seeking investments in these two sectors.

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Footnotes
1
In 2019, one Malaysian and two South Korean companies answered our interview questions via email.
 
2
Source of data: UNCTADSTAT.
 
3
Cumulative amount of approved outward FDI between 1952 and 2016.
 
4
CLMV stands for Cambodia, Laos, Myanmar and Vietnam
 
5
This is calculated on the basis of accumulated net value of outward FDI between 2006 and 2015.
 
6
Industrials: automotive, industrial materials and machinery, paper and printing materials, petrochemicals and chemicals, packaging, steel; agro and food industry: agricultural business, food and beverage; property and construction: construction materials, construction services, property fund and real estate investment trust, property development.
 
7
The owners of most of the largest business groups are of Chinese descent. For them, the incentive to hide investments is high, “(b)ecause outward direct investments carry the stigma of disloyalty to Indonesia, and is often portrayed negatively in the Indonesian press” (Carney and Dieleman 2011, p. 7).
 
8
Missing data or unpublished data.
 
9
Wistron produces desktop computers, servers, and LCD monitors/TVs in the Czech Republic.
 
10
Foxconn produces LCD TVs for Sony in Slovakia; computers and workstations for home and businesses for HP and Cisco in the Czech Republic; and desktop computers, servers, storages, and telecommunication devices for Huawei in Hungary.
 
11
Compal produces computers and peripheral equipment in Poland.
 
12
Darfon produces computers and peripheral equipment in the Czech Republic.
 
13
Eson produces metal frames and stands for LCD TVs of Sony in Slovakia.
 
14
AU Optronics produces LCD module for TVs in Slovakia and solar module in the Czech Republic.
 
15
Ferroxcube produces electronic components and boards in Poland.
 
16
We consider HIT Electronics as an Indonesian company because it was established in Indonesia, although its owner originates from South Korea.
 
17
We consider Indorama Ventures as a Thai company because it was established in Thailand, although its owner originates from India.
 
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Metadata
Title
Outward Foreign Direct Investments from South Korea, Taiwan, and ASEAN in the V4 Countries
Authors
Katalin Völgyi
Tamás Peragovics
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-55165-0_5