manufacturing base of ASEAN countries within the world trade strategy. The trade percentage of Asian countries with America, which is the world's biggest market, was less than 20% in the early seventies, and there was a trade deficit. The trade share with America suddenly exploded from 23% in 1980 to 47% in 1982.
In the sixties, the percentage of manufacturing exports was not notable, and even if we look at the percentage of manufacturing in domestic industry, it was also less than 20%. However, the rapid increase of direct investment from developed countries following the change to policies of accepting foreign capital by ASEAN countries who were promoting that investment were crucial for the rapid shift to manufacturing.
As regards the rate of change to manufacturing, even Malaysia, who was the first off the blocks, had investment restrictions on foreign capital guidelines in 1974. In 1985, the investment ratio restrictions on foreign capital for exports were eased, and in 1993 100% of foreign capital investment was authorized for companies whose business was more than 80% export. Also, Thailand took such measures as authorizing 100% of foreign capital for companies whose business was more than 80% export in 1992, following the establishment of a new Foreign Capital Law in 1988. Indonesia took similar action in the nineties as well, and China tried to react positively by establishing a special economic zone in 1979 and joint management was authorized etc.
Direct investment into ASEAN, for example from Japan, showed a substantial increase such as more than ten times greater in Thailand and six times greater in Malaysia in the eighties, because the ASEAN countries positively accepted the foreign capital. Although the standard is low, the growth rate is high, and total direct investment of NIE's became higher than the level of investment of Japan in all ASEAN countries except Thailand in the nineties.
The rapid change to manufacturing in the Asian region was strongly promoted by the international economic environment, but at the same time it is true that it was supported by internal demand following the expansion of the domestic market of each country as shown by the rapid rise in GNP per capita.
