Emerging markets still haven for foreign investment

The business landscape in Asia's emerging economies has undergone rapid changes. This has fueled talk about the worsening business climate for foreign firms in these countries.

Business and political leaders from around the world have gathered for the Boao forum for Asia. And emerging economies are once again in the spotlight. Gerry Grimstone is the chairman of Standard Life. He says the size of the population and economic growth make emerging markets a strategic priority for his company.

Nie Jia, CCTV reporter, said, "The faltering global economy has caused businesses to hold back on investment. But capital flows to emerging economies have seen strong revival since mid-2012. It highlights the shift in foreign investment flows, making faster-growing developing economies more attractive to businesses."

Volvo established its China operation in 1992. Right now the country is Volvo's third largest market.

But the rising cost of labor, inadequate market regulation and lack of policy transparency might be hurdles for investment.

Despite the adverse economic conditions around the world, most of the emerging economies are still considered lucrative markets. Last year, China alone attracted 111.7 billion USD in FDI, replacing the US to become the world's top destination for foreign investment.