In an era of global interdependence and dynamic economic landscapes, policymakers face the challenge of formulating effective strategies that respond to the intricate web of international trade and investment. Therefore, access to detailed and comprehensive data is indispensable for informed policy analysis and decision-making.

During our seminar on “Informed Policy Analysis through the Utilization of Orbis Crossborder Investment Database and BACI Bilateral Trade Database”, we introduced participants to two pivotal resources: Orbis Foreign Direct Investment (FDI) data and BACI bilateral trade data. We, then, delved into our two recent studies to showcase the practical applications of these databases. The first study leveraged both databases to analyze the trade and FDI dynamics among RCEP member countries. The second study utilized the Orbis Crossborder Investment Database to examine the impact of the US-China trade war on the reallocation of FDI from China to Vietnam.

Key Highlights:

1. Orbis and BACI – two detailed and comprehensive databases on investment and trade

• Orbis Crossborder Investment Database is a comprehensive and up-to-date repository of global investment flows, offering insights into global investment patterns.
• BACI provides granular, product-level details on bilateral trade.

2. The RCEP’s trade and FDI landscapes have undergone significant shifts since 1995

• RCEP’s trade hub has shifted from Japan in 1995 to China by 2021.
• Singapore had the strongest trade links with other ASEAN countries in 1995, but Thailand took over by 2021.
• The main investor-destination relationship for foreign investments within RCEP has changed from Japan and China in 2013 to South Korea and Vietnam by 2022.
• Despite these shifts, Japan has continued to be a significant investor in RCEP region from 2013 to the present.

3. The US-China trade war has temporarily redirected investments from China to Vietnam amidst increasing tariffs

• Since 2017, the gap in FDI flowing into China and Vietnam has more than halved when compared to the gap observed in 2013.
• The trade tensions between the US and China have prompted a shift of FDI from China to Vietnam.
• Nonetheless, this impact of the US-China trade war on FDI patterns is viewed as temporary.

By BANH, Thi Hang

1. Orbis Greenfield Investment & BACI Bilateral Trade Databases

2. Using Network Analysis to understand RCEP member positions in intra-RCEP trade and FDI

3. FDI Inflows into China and Vietnam and Impact of the US-China Trade War

1. Using Network Analysis to understand RCEP member positions in intra-RCEP Trade and FDI

2. FDI Inflows into China and Vietnam and the Impact of the US-China Trade War