The emerging Asian market has increasingly attracted worldwide investors as it is geared by robust development of the electronic industry and economic growth in China and India, according to a report released at the 2006 annual meeting of Boao Forum for Asia (BFA) on Friday.

Direct foreign investment has witnessed steady growth in recent years, and has replaced Latin America to become the developing region which has attracted the largest amount of foreign investment, according to the Annual Report 2006 of Economic Integration in Asia, which was released by the Institute of Boao Forum for Asia (BFA).

It is "one of the striking findings"that some low-income countries are receiving significant capital flows relative to their size, said Long Yongtu, the secretary-general of BFA.

He said that the creation of a suitable investment climate through a public-private partnership always seems to play a crucial role in attracting both domestic and foreign investment in all countries.

In Asia, China and India are both among the top countries receiving the biggest foreign investment.

Foreign investment in India has also been on a steady rise in recent years, as investors have been attracted by the country's strong economic growth and huge domestic market. Foreign investment in some small, low income countries in Asia has also been significant, according to the report.

Vietnam, Cambodia, Laos, the Philippines and Thailand also received large amounts of foreign direct investment relative to their economic scale, the report said.

The huge magnetism of Asia to worldwide investors is closely related to the development of the global manufacturing system and the transition of the labor-intensive industries to the region.

Different from the other regions, foreign investment in Asia mostly focuses on the manufacturing sector. Many European and American companies are transferring their manufacturing factories to the low-cost Asian countries.

Source: Xinhua