Engin Aksoy, President of the International Investors Association (YASED), stated that Turkey aims to get a 1.5 percent share from global international direct investment flows, and said that the current figures do not fully reflect Turkey’s potential.
Noting that there was an international direct investment inflow of 4.8 billion dollars to Turkey in the first 6 months of this year, Aksoy said, “2.5 billion dollars of these investments are investment capital inflows such as mergers, acquisitions or from scratch. The June period of our PULSE survey conducted for YASED senior executives Based on the results, we estimate that the macroeconomic stability and improvements in the regulatory framework in the next 6 months will trigger an additional investment capital inflow of at least 7.1 billion dollars.
Pointing out that the European Union (EU) countries have occupied the first place with a share of 59 percent among all investments that have come to Turkey since 2002, Aksoy said:
“In the first 6 months of this year, we see that this general trend is preserved. EU countries continued to be the first source region for capital inflows to Turkey with a share of 56 percent. At the country level, the Netherlands constitutes 23 percent of total investment capital inflows. We see that the Netherlands is followed by Russia with 15 percent, UAE with 13 percent, Germany with 7 percent and Ireland with 7 percent. Wholesale and retail trade, electricity generation were the prominent sectors in investment capital inflows in the first 6 months of 2023. In addition to these sectors, we see that investment inflows continue in information and communication, which was one of the prominent areas last year.”
Expressing that international companies consider the performance in terms of market size, sophistication of the business environment, human resources, costs, infrastructure and logistics, taxes and incentives, regulatory framework, suitability for investment location, economic and political risk indicators, Aksoy said: In our Competitiveness Analysis of Turkey in Terms of International Direct Investments, which we have been regularly renewing since then, we closely follow the performances of the countries that are shortlisted in investment decisions, together with Turkey, in each of these categories.” said.
“Turkey is a country where costs are lower compared to countries like Poland and Hungary”
YASED President Aksoy, Turkey; He emphasized that it is an important investment destination with its population in the region it is in and its proximity to the EU market with which it has intensive trade relations with the contribution of the Customs Union.
Stating that Turkey is a country with lower costs compared to countries such as Poland and Hungary with which it competes, Aksoy said, “In general, taxes and incentives are still an attraction factor in Turkey compared to the countries compared. Although it cannot use its full potential, Turkey’s Other areas where it is advantageous are human resources and infrastructure.
On the other hand, Aksoy stated that there are still areas of improvement in Turkey in terms of risk indicators and regulatory framework, and that they attach importance to the Investment Environment Improvement Coordination Board (YOIKK), and that they follow the priority agenda issues together with the public authorities in the consultation platforms to which they actively contribute, He also said that they will follow up the agenda issues that are important for YASED in the Medium Term Program, which is expected to be announced soon.
“If we can find the opportunity to finalize these issues in the Investment Environment Legislation Package, I think we will go a long way”
Engin Aksoy stated that as YASED, the two main factors that play the most important role in increasing Turkey’s competitiveness in terms of international direct investments are the provision of a predictable regulatory framework based on the rule of law and macroeconomic stability with the vision of moving the country to the group of high-income countries.
Noting that in addition to these prerequisites, there are issues that they describe as the current dynamics of the global competitive environment and the levers of competitiveness, Aksoy continued his words as follows:
“These are increasing integration into global supply chains, realizing digital transformation, adopting sustainable development and developing human capital. In these areas, we carry out studies that will support Turkey and its companies to be a pioneer in the changing competitive race at the global level.
In this context, one of the most important developments in this period was I had the opportunity to present in detail YASED’s proposals for the new term action plan of YOIKK at the meeting chaired by our Vice President, Mr. We were pleased with the positive approaches of YOIKK members on many issues, especially on the development of legislation on personal data, the establishment of an emission trading system, and especially on making regulations that will pave the way for investments in areas such as cyber security, 5G, fiber internet, and data centers in order to accelerate digital transformation.
If we can find the opportunity to finalize these issues within the Investment Environment Legislation Package, which is planned to be presented to the parliamentary agenda in October, which our Honorable Vice President specifically mentioned, I think that we will go a long way in increasing the international direct investment competitiveness of our country. I would also like to express that YASED members, the companies of Turkey, will continue to serve the sustainable development of our country with their high value-added investments, and that any improvement in the investment environment will return as a net increase in existing and new investments.”