CIVETS, BRIC’S and FDI
Birchtree Global, LLC New York based staff attended the Business Without Borders presentation hosted by HSBC bank in Manhattan on May 16. An excellent program on the emerging CIVETS countries and their attractiveness to foreign direct investment. The program was presented by Leo Abruzzesse Global Forecasting Director at the Economist Intelligence Unit.
Abruzzesse provided a compelling presentation on the emerging markets of Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. He concluded that from a political, economic, legal and business perspective these growing economies are attractive FDI targets. His illustration of GDP growth patterns over the next several years showed the BRIC countries bracketing the CIVETS with the G7 countries at the bottom.
We asked him to compare the service sector investment opportunities in these countries. He and the panelists he brought with him indicated that services were needed but had different regulations that would require a slightly different approach to FDI. Acquiring an in country firm or merging with an in country firm was seen as the most expeditious approach.
HSBC bank provided a summary of their financial products and services that were designed to get cash back to investors more quickly improving cash flow. These were interesting and innovative, are worth considering and can be seen on their website.
Entry into these markets is not without risk and is more complex than market entry into the BRIC countries. We note that Birchtree Global has worked in all these locations over the past several years and can provide guidance to businesses wishing to establish company activities in these countries.