Korean companies lead foreign investors in ’00

The Department of Commerce approved a total of 350 long-term business certificates of foreign companies in the whole of 2000, according to figures provided by the agency’s Foreign Investment Office.

Topping the list of foreign investors by country coming into the CNMI last year was Korea with a total of 188 approved business certificates. China came in as the second biggest foreign investor in the Commonwealth with 82 approved business licenses.

Japan was third with only 41 business licenses approved. Traditionally, the country had always occupied the top spot in foreign investment categorized by countries of origin.

Japan was followed by the Philippines with 31 business licenses issued. While. the total for other countries that renewed their long-term business certificates last year was five.

The Foreign Investment Office report also showed that it approved 74 new applicants for its 90-day business certificates. It also said a total of $637,000 was generated by the office from application fees.

The Foreign Investment Office levies corresponding fees for foreign companies that seek to open business on the islands.

It charges no fees for its short-investment plan. It however collects $200 for its regular term, 90-day business licenses. For long-term investment, foreign investment visa and foreign investment certificate, it requires a payment of $1,000, $2,500 and $10,000, respectively.

Early this week, the office said there was only a total of three new foreign investment applicants that they approved in 2000. The number represents $750,000 in alien investment to the CNMI last year.

According to the Foreign Investment Office, the three foreign companies that invested in the CNMI were all for real estate development. Apparently, all three firms poured their money on the island of Saipan.

Since the Commonwealth entered a recession two years ago, the Foreign Investment Office’s policy to assign a minimum investment level of $150,000 and security deposit of $100,000, as mandated by Public 10-44, has always been criticized.

Business leaders see it as a poison, which continuos to prevent foreign companies from plunking down their precious capital in the islands.

Also, among the major concerns raised by the investors were the lack of available local manpower needed to run and man private businesses. They were also apprehensive about some regulations which may not be as friendly as those enforced in the neighboring island of Guam.

Previous reports claimed CNMI has been losing investors to Guam due to the absence of a good set of incentives in the Northern Marianas, unlike in Guam where foreign investors need not deposit $100,000 for security.

While primarily caused by internal and external economic slowdown, officials said this could be attributed to the weakening business confidence in the Northern Marianas due to the persistent existence of protectionist and restrictive investment policies.

Business analysts said weaker confidence in the CNMI economy’s ability to turnaround due to the absence of investment-friendly environment will continue to take its toll unless concrete steps are undertaken by both the government and the private sector.