BVI Invest Agency to be Created in the British Virgin Islands

Junior Minister for Trade and Economic Development announced the launch of an investment promotions agency, which will work to attract foreign investment to the BVI territory. The agency called BVI Invest will be included in the Caribbean Association of Investment Promotion Agencies (CAIPA), a network of similar governmental departments across the region.

The establishment of the new agency was announced during a 5-day course held in the British Virgin Islands to train regional governments on methodologies for investment project formulation and appraisal, technical assistance, networking and making use of investment practices. The course was held in co-operation with CAIPA and the United Nations Industrial Development Organisation, and is focused on international accepted methodologies. 

Also, Minister was talking about the BVI efforts to diversify and digitise its economy and the need for investment in human resources. She said that the software would help the BVI to compute financial statements needed to appraise investment projects and their possible economic benefit to the BVI territory.

First BVI Africa Trade Mission to be Held in November 2018

BVI Premier and Minister of finance, Dr Orlando Smith, will be leading BVI Africa Trade Mission which will take place for two weeks from November 5 to 16 of 2018, and will include South Africa, Kenya and Nigeria as the largest business centres in the region. The BVI has a considerable stock of direct investments on the continent, and it is expected that the visit will enhance and deepen business relationships between BVI and African countries.

Dr Smith will be the head of the delegation which includes BVI Finance team and the Africa Expert Network (AXN), BVI Finance’s consultants for the mission. The mission itself is similar to the Asia Trade Mission and consists of high-level meetings with government officials and private sector meetings. 

The BVI mission will also hold three mini conferences in Cape Town, Nairobi and Lagos, which will provide an opportunity for the delegation to promote the products and services of the BVI jurisdiction, such as private equity and venture capital offerings, investment funds and trusts, as well as time proven BVI business companies and recently unveiled micro business company.

BVI Among Major FDI Sources for New Zealand

According to the information of New Zealand’s lobby group, foreign direct investment (ownership of companies) in the country increased by 653% from $15.7 billion in 1989 to $113 billion in 2017. Most assets are owned by businesses from Australia, and the British Virgin Islands also are among the major investors along with the US, Hong Kong, the UK, Japan, Singapore, Netherlands, Canada, Cayman Islands, and a number of other countries.

By words of Bill Rosenberg of the Campaign Against Foreign Control of Aotearoa (CAFCA), "All had over $100m in foreign direct investment in New Zealand. These accounted for 95 per cent of foreign direct investment in New Zealand and Australia alone accounts for 51 per cent. Luxembourg, British Virgin Islands and Cayman Islands are tax havens, and the Netherlands has been used to avoid tax." 

He also said that foreign owned entities keep control of 38% of the share market of New Zealand in 2017, while in 1989 it was 19%. Last year, the Overseas Investment Office approved foreign investments in the country in the amount of $5.3 billion.

BVI Ranks First Among FDI Investors in Vietnam

Foreign Investment Agency in Vietnam informed that in January 2015 the country has attracted more than US$663 million in FDI, which is 67 per cent higher than in the same period of 2014. The British Virgin Islands is number one investor in the economy of the country, its US$331.32 million making half of the total amount. In January, the BVI launched a luxury clothing production project worth US$300 million.  Other leaders among 15 countries that invested in Vietnam in this month are South Korea, with US$110,25 million, and Hong Kong, with US$105.5 million.

Main spheres for FDI in January are process engineering, wholesale and retail, as well as water and electricity production and distribution. As of January 20, US$505 million of FDI were invested in Vietnam. In 2014, the country attracted US$20 billion.

BVI in Top Three of Foreign Investors in Philippines

The Board of Investments of Philippines released foreign investments statistics for 2014, which showed the significant 69.42% decrease if compared to 2013. Netherlands are the top source of foreign investments in the country, while Indonesia became the second FDI source. According to BOI data, Netherlands has seven registered projects in Philippines in 2014, the largest of which was the expansion project of 99% Dutch owned Unilever Philippines Inc.

British Virgin Islands, which remained one of the largest foreign investors of the country, is in the third place of the ranking, followed by Switzerland, UK and Japan; however, its investments have substantially declined as compared to 2013. The biggest investment project of the BVI was the Shangri-La Hotel and Services apartments at the Bonifacio Global City.

BVI and CI as Main Offshore Jurisdictions for Chinese Capital

In the South China Morning Post publication, BVI and Cayman Islands were named the main offshore hubs for China, which get the largest part of Chinese investments in the Caribbean region. The US government body informs that of US$62.1 billion in outward direct investment flows by 2012, all but US$282 million went to these two jurisdictions, while all the other Caribbean countries received only US$31 million.

By the scale of the fund flows, the British Virgin Islands has become the second-largest destination for mainland Chinese overseas direct investment after Hong Kong, being the preferred offshore tool for structuring investments into and out of Asia. 

According to the report published by the US-China Economic and Security Review Commission, in 2010, British Virgin Islands companies were responsible for US$111 billion, or 10 per cent, of foreign direct investment in China. Chinese companies invested US$69 billion overseas, of which 75% was handled by companies domiciled in the British Virgin Islands, Cayman Islands and Hong Kong. In 2012, FDI flows to the British Virgin Islands reached US$2.24 billion, while the stock of these investments amounted to US$30.85 billion.

Last year’s opening of BVI House Asia in Hong Kong facilitated the increase in fund flows. The review commission stated that China's ties with the Caribbean had strengthened over the decade, and are likely to continue expansion.

The Role of BVI Financial Centre Discussed at China Offshore Summit

BVI House Asia made the presentation named ‘BVI 2.0 – Taking it to the Next Level’, during the China Offshore Summit which was held in Beijing from May 28 to 29, and was visited by more than 300 financial intermediaries, corporate service providers, international trust companies, bankers and lawyers from China. During the presentation, the director of BVI House Asia Elise Donovan spoke about the BVI companies’ use in China and their role today in facilitating cross-border transactions in the market.

British Virgin Islands, as one of the leading financial centres for international investments, remains the top jurisdiction for inward and outward FDI flows in China. It is a connecting link for East and West markets, assisting Chinese companies to access Western capital or technology through acquisitions and listings on foreign stock exchanges. 

Another presentation was made by Harney Westwood & Riegels’ Asia managing partner Jonathan Culshaw, under the name ‘Same same… but Different, Differences between BVI and Cayman Companies’. He outlined advantages of both offshore jurisdictions, among them flexibility in structuring, neutrality, and legal and professional competence in the China/Asia market, but noted that “the BVI is better value for money.”

BVI Ranked Fourth in UN Top List of Countries for Foreign Direct Investments

According to the survey conducted by the United Nations, the British Virgin Islands has been at the top of countries for foreign direct investments in the past five years. Last year, it received US$92 billion of foreign investment – more than the growing economies of Brazil and India together, with US$63 billion and US$28 billion respectively. Thus, the BVI became the fourth biggest investment destination in the world, in this ranking it follows the United States with US$159 billion, China with US$127 billion, and Russia, with just US$2 billion more than the British Virgin Islands.

The annual inflow of foreign investment of the jurisdiction in 2013 was 40% higher than last year, and continues a trend that took off after the economic crisis. However, governments are trying to tighten up their tax regulatory framework both at the national and international level. 

While for most countries, foreign direct investment consists of companies spending on corporate acquisitions and new overseas projects, for the BVI jurisdiction most of investment money goes quickly in and out of the country or cash moved through the treasury accounts of large companies, which UNCTAD defines as "transnational corporations".

BVI Among Major Foreign Investors in Nepal in 2012/2013

According to the Department of Industry of Nepal, the amount of Foreign Direct Investment (FDI) in the economy of the country increased by 163% in year 2012/2013, as compared to the previous fiscal year. In 2012/2013, 275 joint venture companies were registered in the country. They have committed to make investment of Rs 18.84 billion, while in 2011/2012 FDI commitment was Rs 7.14 billion.

British Virgin Islands is at the top of the list of countries investing in Nepal, in terms of commitment amount, with investment commitment of Rs 4.49 billion. The BVI is followed by Hong Kong with investment commitment of Rs 3.07 billion, and India with as much as Rs 2.45 billion. In terms of number of companies, China is on the leading position with 87 joint ventures, followed by India. Most of FDI from China and Hong Kong are in the sector of hydropower projects and infrastructure development.

BVI among Top Investors in Hong Kong Economy

According to the official data on Foreign Direct Investments by the end of 2009, published by Hong Kong Census and Statistics Department on December 9, 2010, the stock of the city's inward direct investment increased by 14.8 percent from the previous year, and made HK$7,262.1 billion (US$934 billion) at market value.

The major immediate investment source was mainland China, which accounted for the largest share at the end of 2009, at 36.4 percent. The second major source of investment were the British Virgin Islands, with 32.4 percent of total stock of HK FDI at the end of 2009. The Netherlands, with 6.8 percent, were the third.

According to the Hong Kong Statistics Department, Foreign Direct Investment in HK economy, especially that of mainland's China, covers wide range of economic activities, including investment, holding, real estate, professional and business services, import/export, wholesale and retail trades; transportation, storage, postal and courier services.

BVI Among Top Investors According to Chinese FDI Statistics in 2008

The Ministry of Commerce of China said that the growth of foreign direct investment (FDI) into the Chinese economy fell for the third month of 2009. For the whole year 2008, FDI however grew 23.58 percent and made $92.4 billion (compared to 13.59 percent to $74.8 billion of actually used FDI in 2007), due to the intense growth in the first three quarters of the year.

According to the data reported by the Ministry of Commerce, the major source of FDI for China in year 2008 was Hong Kong, which provided the country with $41 billion for a 48 percent annual increase. The second big FDI source was British Virgin Islands, which invested $15.95 billion. However, the percentage of funds invested by the BVI is just 3.62 - that is less than in 2007, reflecting the general trend.

The level of foreign direct investments from Japan rose 1.76 percent and made $3.65 billion in 2008, followed by South Korea with $3.14 billion (14.76 percent), and the US with $2.94 billion – the rise of 12.54 percent.

The industries which received most of all FDI were banking, insurance and securities, which drew $38.1 billion, or 24.23 percent more than in 2007. Actually, in the past decade China has been one of the biggest FDI recipients, but some experts guess that the global financial crisis could change this trend. For example, Mei Xinyu, a senior researcher with the Ministry of Commerce, said he was not optimistic about this year FDI level. Some experts even say that FDI could fall by 5-10 percent in the first half of the year, but positive turn is also expected – in the second half of 2008.

BVI in the list of Major FDI Investors in Vietnam

According to the information reported at a meeting in Ha Noi by the Ministry of Planning and Investment, during the first eight months of the year Vietnam attracted foreign direct investments on the amount of US$47.2 billion into its economy. The number of new FDI projects is down 20% from last year, however, despite high inflation and slow economic growth in the country, new FDI enterprises contributed investment capital at $46.3 billion – five times more than in the same period last year. Besides newly licensed projects, the expanded projects of foreign investors in the country provided combined additional investment of $833 million – that is 55% increase year-on-year.

So far, the neighbour country of Taiwan is the leader among 38 nations and territories investing in Vietnam's economy. Other major FDI investors are Japan, British Virgin Islands and the US, Malaysia, Brunei, Canada, Singapore and Thailand. Most of these countries, including BVI, have remained on the top list for a long time. In the official statistics of this year, earlier published by the Foreign Investment Agency of Vietnam, BVI ranked the second among foreign investors.

This time, it was admitted by representatives of foreign-invested enterprises that the Vietnamese economy was facing great challenges. They also expressed confidence that “the country would overcome these obstacles and become more attractive to international investors in the long term.”

More than 50% of new projects launched by FDI investors in Vietnam were in services industry; 48.6% went to manufacturing and construction, and the agro-forestry-fishery sector.

PRC Remains Most Attractive Destination of FDI, BVI Ranks 2nd Among FDI sources

The Ministry of Commerce of China published figures for actual FDI inflows into the country's economy, totaling $42.78 billion from January to May 2008 – this is a 54.97% increase from the previous year. Only in May, FDI stood at $7.76 billion, that is 37.94 % higher than in the previous year.

According to the information published by the Ministry of Commerce, about 11,915 new overseas-funded enterprises were established in the first five months of this year, that is down 20.95% from the previous year, and in May there were 2,425 new enterprises – down 10.94%.

The top three leading countries in the five months of the year 2008 by the amount of FDI are the same as in the statistical bulletin for the first quarter of the year 2008 – Hong Kong, British Virgin Islands (in the second place), and Singapore.

By the results of this statistical bulletin, as well as according to the Ernst & Young latest survey among business leaders, China is still in the first place among the countries most attractive for foreign direct investments. This survey reflected more equal distribution of global investments across the world, and 41% of respondents still ranked China as the most attractive investment destination, followed by India and Russia. However, China still draws less than 8% of global volume of FDI inflows, according to the information published by the United Nations Commission for Trade and Development.

Vietnam Attracts More than Double FDI Level in January-May 2008, BVI Ranking the Second

The Foreign Investment Agency of Vietnam has published a report on foreign direct investments in the economy of the country, from January to May 2008. The Agency informed that the level of Foreign Direct Investments attracted in this period was 2.6 times higher than in the same period last year, and reached $15.3 billion.

It is stated in the report that 130 foreign investment projects worth a cumulative $7.5 billion received licences in May, so the total number of new projects licensed this year was 324, worth more than $14.7 billion. Additionally, 132 FDI projects raised their combined capital by $605 mln this year, representing an increase of 67% over the same period of 2007.

FDI increase was attributed to a dozen of newly-licensed projects, which have large-scale investment of over $1 billion. The largest foreign investment project of the reported period is the $4.2 billion tourist centre, five-star hotel and entertainment complex being built by the Canada-based Asian Coast Development Ltd. in the southern province of Vietnam. This project, together with two others at a combined worth of $4.23 billion, moved Canada from the 22nd to the first place in the list of FDI investors. As in the previous statistics published, British Virgin Islands are in the second place with $2.69 billion, and Singapore with $2.23 billion is the third.

$13 billion (83% of the total FDI for the reported period) of the total FDI amount went to the service sector, $2.35 billion were invested into the industry and construction sectors, the remainder going into the agro-forestry-fishery sectors of Vietnam's economy.

BVI 3rd in India's Outward FDI

The Reserve Bank of India has reported the latest data concerning the outward foreign direct investments (FDI) made by Indian corporations. In general, Indian corporations are investing either through low tax jurisdictions, or through countries allowing tax-free remittance of income.
The actual outward FDI in India in the period between April and December 2007 increased 13% and reached US$10.11 billion, compared to US$8.97 billion in April-December 2006.

According to the information published by the Bank, British Virgin Islands were among the three jurisdictions through which major part of outward FDI was directed in April - December of the last year. The other top countries which were invested by Indian companies were Singapore and the Netherlands.

BVI, together with other top jurisdictions, is an intermediate country before Indian investments will reach its final destination. The first place was with Singapore, - the Asia-Pacific business and financial centre had 37% share in FDI approvals ($5 million and above), followed by the Netherlands with 26% and 8% for British Virgin Islands.

Executive Director of PricewaterhouseCoopers in India pointed out the priority for redeploying money for business and commercial reasons, and said that many direct investments were organized in such a way that income from them faced lower tax, or did not attract tax at all. These are the benefits that may be provided by offshore jurisdictions, including British Virgin Islands.

Other factors that may influence the growth of overseas investments through international financial centres are access to new markets, new technologies, risk diversification. Indian corporations are already receiving dividends from all this.

Chinese FDI for Q1 2008 to Increase by 61.26%, BVI being the Second FDI Source

The Ministry of Commerce of China has published FDI statistics for the first three months of the year 2008. The reported foreign direct investment inflow into the country's economy in this period continued to increase and made US$27.414 bln – up 61.26% from the same period of the previous year.

Among the top three sources of FDI inflow in the country's economy in the first three months of the year 2008 there were British Virgin Islands, Hong Kong and Singapore, BVI again being the second in the list of top investors.

Only in March 2008, FDI stood at US$9.286 bln – that is up 39.6% compared to the previous year. According to the ministry's statistics, there were 6,949 new foreign-funded enterprises in the first three months of 2008, that is down 25.5% from a year earlier.

BVI - the top outward direct investment destination and the 2nd largest inward direct investment source in Hong Kong economy for 2006

Yesterday, the Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) government provided the following information regarding investments in the jurisdiction:

According to official figures released on December 13, 2007, at the end of 2006, the stock of Hong Kong's inward direct investment (DI) rose significantly by 42.3% from a year earlier to $740.9 billion at market value.

The Census and Statistics Department indicated that the substantial increase can to a great extent be explained by the large gain in market values of some listed prominent Hong Kong resident companies upon the surge in their share prices as well as an increase of direct investment inflow to these Hong Kong affiliates.

In accordance with the analysis of immediate source of investment, the 2nd largest investor territory at end-2006 was the British Virgin Islands, which took up 33.8% of the total stock of inward DI. So, one of the most popular offshore jurisdictions was 2nd only to China, which stood at 35.1% and reflected the importance of its investment in Hong Kong.

The BVI was followed by the Netherlands, Bermuda and the US accounting for 6.8%, 6.1% and 4.8% of the total stock of inward direct investment at end-2006 respectively.

Stock and Flow of Inward Direct Investment (DI) of Hong Kong at Market Value by Major Investor Country/Territory, 2005 - 2006

HK$ billion

Major investor country/territory	Stock of Inward DI	at end of year	DI Inflow	during the year
	2005	2006	2005	2006
Mainland of China	1,271.9	2,024.3	72.9	108.7
British Virgin Islands	1,270.7	1,950.6	47.0	78.8
Netherlands	327.1	390.9	17.0	28.1
Bermuda	271.5	350.1	36.0	23.8
USA	205.8	277.9	-29.7	51.3
Japan	131.7	151.4	14.1	18.0
United Kingdom	88.5	105.6	13.7	15.4
Cayman Islands	66.7	101.3	12.0	18.4
Singapore	84.3	85.2	11.0	8.1
Taiwan	30.0	33.7	3.5	8.7
Others	308.0	300.9	64.0	-9.4
Total	4,056.3	5,771.9	261.5	350.0

As regards outward direct investments, the Census and Statistics Department of the HKSAR said that, at the end of 2006, the stock of the country's outward DI increased by 44.1% from a year earlier to $675.8 billion at market value.

According to the analysis of immediate destination of investment, the British Virgin Islands remained the most popular tax haven economy for indirect channeling of DI funds as at end-2006 it accounted for 46.9% of the total stock of outward DI of Hong Kong.

Stock and Flow of Outward Direct Investment (DI) of Hong Kong at Market Value by Major Recipient Country or Territory, 2005-2006

HK$ billion

Major investor country/territory	Stock of outward DI	at end of year	DI outflow	during the year
	2005	2006	2005	2006
British Virgin Islands	1,609.3	2,467.6	18.1	78.0
Mainland of China	1,477.4	2,117.2	130.3	166.6
Bermuda	126.1	137.8	12.5	-5.0
United Kingdom	59.6	62.1	4.9	-0.2
Japan	29.7	60.8	-9.2	34.7
Cayman Islands	25.1	41.1	14.8	7.9
India	6.7	37.1	0.8	28.9
Thailand	23.0	34.7	2.6	6.4
Singapore	40.0	33.1	6.0	2.1
USA	26.3	29.1	0.9	3.1
Others	230.7	243.8	29.8	26.8
Total	3,653.9	5,264.5	211.5	349.4

11 Month FDI Statistics in Vietnam: $15 Billion Attracted, BVI the Second in the List of Top Investors

According to the 11 months statistics on Foreign Investments in Vietnamese economy, in this period the country attracted $15 billion in FDI. Pahn Huu Thang, the director of the Foreign Investment Department at the Ministry of Planning and Investment, attributed this to the country's political stability and the fact that investors gained more confidence in the economically booming Southeast Asian country. He also said that Vietnam's admission into the World Trade Organization contributed to the rise in foreign investment.

The list of foreign investors in the 11 months through November is topped by South Korea, with the investment capital of $3.7 billion. The British Virgin Islands are, again, in the second place with $3.5 billion, - compared to US$1.73 billion FDI, reported in the 10 month statistics. The BVI are followed by Singapore with $1.5 billion.

By words of Thang, they expected foreign investments to top $16 billion till the end of this year, - the amount that would top last year's previous annual record of $12.2 billion by more that 30%.

Since 1988, the government of Vietnam has licensed more than 8,000 foreign investment projects worth about $80 billion.

Amount of FDI in China Rises, BVI the Second in the List of Top Investors

China's Ministry of Commerce has published the ten months statistics of Foreign Direct Investments in Chinese economy. From January to October, the number of newly established foreign-invested enterprises reached 30,826 – 6.78% less if compared to the same period of the last year, and the amount of utilized FDI was US$53.995 billion – up 11.15% compared to the same period of 2006.

According to the information released a month ago, FDI level in China continued to rise. In October the number of newly established foreign-invested enterprises was 2,620 – down 14.01%. However the utilized FDI totaled US$6.776 billion – that is up 13.18%.

In the current top list of countries having the largest FDI in China, the British Virgin Islands are ranking the second, with US$12.914 billion of FDI. They are preceded by Hong Kong (US$18.655 billion), which is traditionally the major FDI source for China. Other countries on the list are South Korea with US$2.945 billion, Japan (US$2.81 billion), Singapore (US$2.245 billion), the United States (US$1.987 billion), the Cayman Islands (US$1.788 billion), Samoa (US$1.457 billion), Taiwan (US$1.294 billion), and Mauritius (US$907 million).

The amount of FDI made by the top 10 countries and territories including British Virgin Islands accounts for nearly 87.05% of the total FDI utilized in China in this period.

Vietnam FDI Statistics Reported for 10 Months: BVI the second with US$1.73 billion

The Foreign Investment Department under the Ministry of Planning and Investment of Vietnam reported FDI figures for the ten months of 2007. From the time of the previous 9-month report, British Virgin Islands raised their positions, now they rank the second in the published top list of 50 foreign investors' countries, with the amount of invested registered capital of US$1.73 billion. The Republic of Korea, again, is the first place with registered capital of US$2.44 billion, and Singapore with US$1.37 billion is the third.

According to the Report of Foreign Investment Agency, there are 1,144 new projects on the whole, which brought in US$9.75 billion of foreign investments into Vietnam economy. The overall amount of foreign direct investment during the first ten months 2007 made US$11.26 – a 36% increase if compared to the same period of the previous year.

Vietnam now ranks the 6th among the top ten most attractive FDI destinations. These data were provided according to a survey by the United Nations Conference on Trade and Development.