YASED Members Explain the Contribution of International Direct Investments to the Economy At ITU
"We believe for Turkey to achieve its objective
to become one of the 10 biggest economies in the world by 2023, it should also
be within the top 10 rank with the highest attraction of FDI (international
direct investments)," said Özlem Özyiğit, YASED Secretary General.
Technical University’s Department of Economics organized an academic conference
on "International Direct
Investments, Investment Promotion and Economic Developments" at ITU
Maçka Campus on October 25-26 with support of the Presidency Investment Office.
Attending the event
titled "Role of International
Direct Investments in the Economic Growth and Development of Turkey: Investor
Insights", where Özlem Özyiğit, YASED Secretary General; Felix Rolf
Walter Allemann, YASED Board Member and General Manager of Nestle and Ayhan
Öztürk, Medtronic Turkey, Western Asia and Levant (TWAL) Regional Chairman explained the contribution of international
direct investments to the economic growth of Turkey.
Noting that Turkey’s
economy grew by 7.4 in 2017 and by 5.2 in the second quarter of this year,
Özlem Özyiğit emphasized that Turkey is one of the countries with the highest
growth rate among OECD, G20 and EU countries.
that Turkey needs to include continuous improvements in investment enhancement
for economic growth in order to be sustainable and in order for Turkey to maintain its potential to appeal to international
direct investors. She continued, "Turkey is a political, economic,
geographical, cultural and social bridge. The strategic geographical location
of the country facilitates access of companies to markets in the region. This
unique geographical location also offers Turkey the opportunity to become a
major regional center in the short term.
The large and dynamic domestic market in Turkey is a significant
differentiating factor between its competitors in Eastern and Southern
Europe. We can add factors such as the
young population, improved entrepreneurship skills, openness to competition,
the ability to adapt to internal dynamics and global changes quickly, the
developing infrastructure and the ongoing reform process. In such a conjuncture, looking at Turkey's
rank in global FDI and based on the outcome of the FDI UNCTAD World Investment
Report, Turkey ranks 26th in world FDI rankings, beingone of the countries with
the highest FDI attraction in the "Western Region" countries .. Turkey receives a share of about 1% per year of
global FDI flows. Although we think this
share is important, we believe that Turkey has the potential to increase its
share up to 3%. We think that for Turkey
to achieve its objective to become one of the 10 biggest economies in the world
by 2023, it should also be within the top 10 ranking countries in the world
with the highest attraction of FDI."
Özyiğit: "Countries are in competition for direct
Stating that all
countries make their investment environments more appealing and competitive to
attract more international direct investments every year, Özyiğit said,
"International direct investments increase the competitive power of the
countries, provides important added value and creates a leverage effect in
social development. According to
research YASED conducted, the international direct investors that invested in
Turkey over the last 10 years made an indirect contribution to the Gross
Domestic Product (GDP) amounting to approximately $84 billion. This economic contribution accounts for about
10% of GDP.” Özyiğit highlighted that
international direct investors contribute to the development of thousands of
Turkish SMEs and help them become companies that can compete abroad, export
products and services and create added value. On the contribution of YASED-member
companies to the economy, she said, "We observe that international
investments in ISO 500, most of whom are our members, realized 48% of the total
export of ISO 500 companies, 38% of the created added value, 29% of the
employment and 44% of the R&D investments.
These figures clearly show the importance of directing international
direct investments to the right areas with the right policies."
Özyiğit: "We need to switch to an
information-based economic structure"
addressed the works of YASED on increasing the international direct investments
of Turkey with the panel and summarized the efforts of the association:
"Our mission is to help the international direct investors see Turkey as a
country where they can make investments and increase its appeal. As YASED, International Investors
Association, our main mission is to support “attracting more value-added
investments to our country", which is among the most important targets of
our government in the new economic program.
It is not enough only to improve the investment enhancement for Turkey
to better utilize its international investment potential, at this point, we
think that our government should prepare a plan based on long-term strategies
for our country to attract more international direct investments. Aiming to be among the biggest economies globally,
Turkey needs to switch to an export-based, information-based and
digitalization-oriented economic structure which focuses on R&D activities
and increases its competitive power in the global market with high added value
products. To decrease the dependency on
imports in particular and to increase exports, taking into account the domestic
production and best practices globally, YASED will continue to contribute with
our international information and experience, in carrying out the technology
and R&D investments with public-private cooperation models.”
"Investors love stability"
Chairman of the Board and General Manager of Nestle, which has made investments
in Turkey for many years and continues to increase them, emphasized that Turkey
has an important opportunity to attract investments due to its skilled
workforce. Noting that Turkey, with a population of 80 million, provides a
bigger growth potential than Germany, Alleman said,"At Nestle, we made
investments amounting to 160 billion dollars between 2012-2017. We plan to make another $190 million
investment by 2023. Thanks to its rich
natural resources, Turkey has the potential to become the "Garden of the
World" in agriculture. However, we
see stability as the most important factor for the realization of these
investments. In addition, implementation
of laws and protection of intellectual property rights are among the most important
factors affecting investment decisions.
However, Turkey needs to offer competitive terms with the same
conditions to all investors to attract more investment. It is also important to accelerate
investment-related processes to simplify investment procedures. With significant
improvements in these areas, Turkey could attract more foreign direct
Öztürk: "Predictability plays a key role in
the Regional Chairman of Medtronic Turkey, Western Asia and Levant (TWAL), and
YASED member, spoke on the panel and noted that establishing "a
predictable environment" is one of the most preferential conditions for
multi-national companies to develop their R&D, investment, workforce and
production processes in Turkey. Öztürk noted that an educated workforce and
human resources play an important role for such investments to become
sustainable in long-term investment plans.
Öztürk continued, "Companies that operate and invest in the country
are a point of reference for the new future international direct investments. Organizations that already know the
conditions of the country and operate on a local basis are an important source
of information for new future investors.
Therefore, it is important to improve the conditions and investment
environment, not only for the investments to come from abroad but also for the
existing investors to achieve consistency and to plan for creating predictable