United Nations Radio

Trans-national corporations or TNCs are increasingly optimistic about the international investment environment and their own prospects for foreign direct investment (FDI) this year, according to survey by the UN's Trade Agency, UNCTAD.

The World Investment Prospects Survey 2010-2012 is the most recent in a series of surveys on FDI prospects. UNCTAD has carried out similar surveys since 1995.

This year's results are based on the responses of over 200 multinational corporations and a little over a hundred investment promotion agencies to an UNCTAD questionnaire.

The figures suggest that while Trans-national corporations are continuing to face short-term difficulties, the economic crisis has been less destructive to foreign direct investments than feared.

The crisis did, however, accentuate a recent trend, namely the shifting of Trans-nationals' geographical focus to developing and transition economies.

Nine of the top 15 priority FDI destinations are developing or transition economies. China, India and Brazil are now the lead destinations for foreign direct investments by multinationals, while the US has receded to fourth position.

These economies, which weathered the downturn better and are leading the global recovery, are playing an increasingly important role in Trans-national corporations' strategies.

Jocelyne Sambira, United Nations Radio
(duration: 1'30")