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Developing Asia to lose up to half of foreign direct investment: UN

Pandemic pushes multinationals to restructure or reshore operations

A  worker is seen at a clothes factory near the Bangladeshi capital Dhaka. The country had high hopes for companies to relocate from China. (Photo by Akira Kodaka)

NEW YORK -- Foreign direct investment to developing economies in Asia is projected to decrease between 30% and 45% this year because the region's status as the world's factory makes it particularly vulnerable to disruptions from the coronavirus pandemic, the United Nations said in its annual World Investment Report.

"Flows to developing Asia will be severely affected due to their vulnerability to supply chain disruptions, the weight of [global value chain]-intensive FDI in the region and global pressures to diversify production locations," said the report, published Tuesday by the U.N. Conference on Trade and Development.

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