Foreign direct investment (FDI) into China dropped year-on-year in 2012 as growth slowed, Financial Times reported. FDI fell 3.7% from the year prior to US$111.7 billion, the first drop since the 2009 global financial crisis. Outbound investment from China, however, hit a record high of US$77.2 billion in 2012, a 28.6% increase from 2011. A decline in foreign investment was partially caused by rising costs of operation in the mainland. HSBC (HBC.NYSE, 0005.HKG, HSBA.LON) figures show that FDI into the textile industry declined 19% in the first three quarters of 2012. Meanwhile, sharp rises of FDI into lower cost nations, such as Indonesia and Thailand, indicate China may be losing its ability to compete on cost. “India, Indonesia and Vietnam stand to benefit most as they have large labor forces and strong domestic markets,” wrote Trinh Nguyen, an HSBC economist, in a recent report