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FDI for Sustainable Development

In the Committee on Trade, Investment, Enterprise, and Business Innovation session held at the United Nations Conference Centre in Bangkok, Foreign direct investment (FDI) was one of the discussed topics. FDI has been a significant contributor to the economies of the Asia-Pacific region. However, to maximize its impact, it is essential to understand how FDI can contribute to sustainable development in three key areas - gender, digital economy, and climate.


In the context of gender part of FDI, it comes from women entrepreneurs as investors. This presents an opportunity to promote gender equality through targeted training programs that enable women to take leadership roles in management and work on factory floors. In addition, providing benefits like childcare facilities can further promote gender equality in the workplace.


FDI can also contribute to host economies' digital transformation, creating digital infrastructure, encouraging the adoption of digital technologies, and promoting a flourishing digital start-up environment. This can help local businesses become more digitalized, improving their efficiency and productivity and enabling them to compete on a global scale.


FDI also plays a crucial role in climate mitigation and adaptation. However, FDI in this area exhibits a decline in the Asia-Pacific region. Governments and private sectors can work together to create and promote investable climate projects, attracting more greenfield FDI and fostering sustainable development. In summary, businesses need to develop strategies that promote sustainable development in the areas such as gender, digital economy, and climate. At the same time, policymakers need to promote sustainable development through legislation, regulations, and incentives to help scale the impact of FDI in the region. By doing so, FDI can drive sustainable development, creating economic growth and improving people's lives in the Asia-Pacific region.

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