Upload
dinhduong
View
214
Download
0
Embed Size (px)
Citation preview
Regions
Americas
Mexico
Peru & Colombia
Argentina & Brazil
Asia Pacific
India
China
Indonesia
EMEA
Eastern Europe
Middle East GCC
Africa
Egypt & Kenya
4
Mexico
8
GDP
• $1.064 Trillion USD
Population
• 123.1 Million
GDP Growth
• 5 Year Projected Growth Average 2.7%
Growth Drivers
• Automotive, High-end Manufacturing, Telecommunications & E-Retail
• Skilled, competitive workforce.
• Free Trade Agreements with over
50 countries, including NAFTA.
• Average manufacturing labor
costs already 20% lower than
China; but varies by geographic
region and industry sector.
• Easy to setup and run a business
compared to many other Latin
American countries.
• Security an issue near border and
in other select areas.
• Difficult to find and keep mid-
level managers.
• Government reforms slow.
• Infrastructure improvements
critical to development.
• VAT Tax regime needs to be
managed properly.
• Heightened uncertainty in the
wake of the US election.
9
Business & Social Challenges
Mexico - Business Environment
Business Climate
Mexico - Business Opportunities
High-end Manufacturing
•High-end Manufacturing in the central region and near border.
•Aerospace, Plastics, Appliances, and Electronics.
•Textiles and more labor intensive products in the South.
Automotive
•18 OEM Automotive Facilities and 5 more under development.
•By 2020, 1 in 4 vehicles produced in North America will be assembled in Mexico.
•71% of total Mexican demand for manufacturing processes is met through imports
Telecommunications
•18% fixed line density with Telmex and Telcel with > 66% of market share.
•Telecom industry has grown by more than 400% between 2010 and 2016, AT&T to invest 3 Billion USD by 2018 on mobile internet service infrastructure.
E-Retail
•Amazon, Best Buy, Wal-Mart and Palacio de Hierro all investing in E-commerce.
•21.6% growth in 2016 on $14B USD, with an additional 14% to 18% year-on-year growth through 2020.
10
Peru, Colombia, Argentina & Brazil
Metric
GDP $
Population
GDP Growth (Next 5 Years)
Growth Drivers
Peru
$195.1 Billion
30.74 Million
3.7%
Telecom, Financial Services,
Ores/Minerals and Food Products
Colombia
$282.4 Billion
47.2 Million
3.6%
Telecom, Infrastructure,
Specialty Consumer Products, E-Retail
Argentina
$545.1 Billion
43.8 Million
3%
Infrastructure, Agriculture
Equipment, Lithium Mining
Brazil
$1.79 Trillion
205.8 Million
2%
Food & Specialty Consumer Products,
Aerospace, Automotive
14
15
Business Environment
Peru• 7th largest economy in LATAM with Solid growth
over the past 5+ years, slowed by devastating
floods and landslides in coastal areas.
• Government reconstruction program, strength in
mining and strong internal demand will drive
continued growth.
• Inflation low and steady, interest rates being
held in check and favorable trade policies.
Argentina• Inflation declining, but remains very high at 24%
in May against targets of 12 to 17%.
• Pro-market reforms and liberalization of capital
controls are driving slow improvement.
• Third largest economy in Latin America with
pent up consumer demand.
Colombia• Recent comprehensive tax reform with 3% hike
in VAT has slowed internal consumption in the
short term.
• Controversial FARC agreement implementation
has been slowly progressing.
• Strong government infrastructure spending,
higher oil prices and accommodative monetary
policies are driving growth.
Brazil• Weak R$ creates opportunity for acquisition
/capital investment.
• New and prior government weakened by
corruption scandals.
• Still the largest economy in Latin America with
disposable income.
• Challenging tax structure requires localization.
South America - Business Opportunities
Specialty Consumer Products - All
• Small ticket consumer goods.
• Small ticket personal care products.
Fresh and Packaged Food Products
• Specialty packaged foods – Brazil.
• Fish related products - Peru.
• Agriculture equipment – Argentina.
Mining
• Lithium mining triangle – Argentina, Chile, Bolivia.
• Minerals, metals and ores – Peru and Colombia.
• Heavy equipment for the mining industries.
Aerospace & Defense
• This is the bright spot for Brazil. The country is the third largest domestic aviation market in the world with Embraer’s presence.
• Aircraft parts and aerospace products. $3B imported into Brazil in 2016.
Telecommunication Infrastructure and Services
• Broadband subscriber penetration 7% in Peru and 4% in Colombia.
• New regional fiber based networks and telecom infrastructure projects
Infrastructure
•Road and building construction – Peru rebuild; Argentina new and refurb.
•Government driven infrastructure projects – Colombia.
16
17
South America - Opportunities
Specialty Consumer Products
Fresh & Packaged Food Products
Mining
Aerospace
Telecommunications
Infrastructure
India
21
GDP
• $2.26 Trillion USD
Population
• 1.26 Billion
GDP Growth
• 5 Year Projected Growth Average 7.9%
Growth Drivers
• Manufacturing, Consumer-Ready Food Products, Infrastructure, Tourism
• Modi’s ‘Make It In India’ vision.
• Large, educated, young, English
speaking population.
• World’s largest democracy;
federal system with 29 states.
• Becoming more business friendly
with recent reforms; encouraging
foreign investment.
• Manufacturing labor costs are 4 to
5 times less than China.
• New GST tax reform is much
needed change; luxury goods
being hit with 28%+ GST.
• Companies are often inefficient
and would benefit from rigid
processes, training and
leadership.
• Class based society that must be
understood to succeed.
• Infrastructure improvements on
the rise.
• Government reforms slow.
• State owned institutions
dominate financial sector and
capital markets.
22
Business & Social Challenges
India - Business Environment
Business Climate
India - Business Opportunities
Manufacturing & Automotive
•Commercial, Passenger, two and three wheeled segments all growing 9% overall driven by two-wheelers (9.6%) and Cars (7%).
•Largest exporter of machinery and engineering products to Africa.
Engineering, IT & Financial Services
•Engineering Services Global Spend $750 Billion today; $1 Trillion by 2020.
• India IoT market value expected to be $9B with an installed base of 1.9B by 2020.
•Expected to be the fifth largest banking sector in the world by 2020.
Healthcare & Medical Products
•Leading exporter of medicines.
•Second largest number of diabetes sufferers (69 million) globally.
Retail
• Indian Retail market is expected to by $1 Trillion in 2020.
•Demand for high-end, branded luxury goods is growing rapidly.
•Pop-Up Shops a new trend to reach second and third tier cities.
Transportation/Infrastructure (Roadways, Ports, Airports, Rail)
•Goal of $376B USD in investment over the next 3 years with 70% of these funds for power, roads and urban infrastructure.
•Public / Private partnerships now open to foreign investment with FDI reforms.
23
India - Opportunities
24
Engineering, IT and Financial Services
Healthcare & Medical
Retail
Transportation/ Infrastructure
Automotive / Transportation
China
26
GDP
• $11.22 Trillion USD
Population
• 1.37 Billion
GDP Growth
• 5 Year Projected Growth Average 5.9%
Growth Drivers
• Hi-Tech Manufacturing, Automotive, Aerospace, e-Retail and Tourism
• Skilled, highly productive
workforce, increasing labor rates.
• Quality and competitive pressures
driving automation.
• Shifting from export driven to
consumption based economy.
• Consumers prefer high-quality
foreign brands.
• Foreign companies investing to
serve the Asia market not for
export.
• Difficult to find and keep
qualified employees.
• RMB is a managed currency.
• Intellectual property remains
hard to protect.
• Despite China’s economic shift
from socialism to managed
capitalism, there has been little
political reform.
• Labor Costs are now
comparatively higher than other
regions.
27
Business & Social Challenges
China - Business Environment
Business Climate
China - Business Opportunities
Hi-Tech Manufacturing & Aerospace
•Advanced manufacturing equipment including robotics and automation.
•Aerospace OEM Comac competing globally driving supply chain opportunities and Chinese companies buying US small aerospace such as Mooney and Cirrus.
•Food Processing of ready-to-eat foods, organic foods, and specialty beverages.
Automotive
•By 2020, forecasted sales of 30 million vehicles.
•Need for advanced automotive technologies: electric steering, electric braking, driverless car technologies.
E-Retail
•Number one e-commerce market in the world, with China expected to be 50% of global online sales by 2019, equaling $1.7 trillion.
•Second and third tier cities represent largest opportunities.
•Branded consumer goods & specialty foods and beverages are leading segments.
Tourism
•Chinese investing heavily with $180B in new projects and 11% or GDP growth and national employment.
•68 Million tourists visited China last year, a 3.8% increase over 2015.
•Total Inbound tourism income was $57 billion last year.
28
Indonesia
31
GDP
• $932.45 Billion USD
Population
• 258.3 Million across 17,000 islands
GDP Growth
• 5 Year Projected Growth Average 5.5%
Growth Drivers
• Manufacturing, Consumer-Ready Food Products, Infrastructure, Tourism
• Southeast Asia’s largest economy.
• Largest Muslim Democracy.
• Has potential to become a major
Asian manufacturing hub.
• Large, young workforce and rich
natural resources attract
investment.
• Government trying to increase
exports and drive growth.
• Industrial sector contributes 13%
to GDP.
• President Widodo struggling to
implement reforms to combat
corruption and improve
infrastructure.
• Barriers to market entry and
bureaucracy slowly being
reduced.
• Road and airport infrastructure is
severely lacking.
• Serious shortage of engineers.
• Aggressive stance against
terrorism has kept security issues
in check.
32
Business & Social Challenges
Indonesia - Business Environment
Business Climate
Indonesia - Business Opportunities
Manufacturing / Industrial
•Automotive vehicles and parts.
•Electronics, Footwear, Textiles, Paper Products and Furniture.
•Mining which is part of the Industrial sector includes Coal, Ore and Gold.
Consumer Ready Food Products
• Imported read-to-eat food products are in high demand with young consumers.
•Trend is for healthier foods; dairy and fresh fruit products leading categories.
•Eating snacks is part of the daily culture.
Infrastructure
•By 2034 Indonesia is expected to be the 6th largest market for air travel with 270 million domestic and international travelers.
•ASEAN Open Skies Agreement will further increase demand.
• Increased expenditure in investment as country develops further.
Tourism
•Over 10 million international tourists in 2016, with forecasted annual growth rate of 5.3% per year through 2025.
•Key government objective is to grow this sector, resulting in new attractions and resort locations beyond Bali.
33
34
Manufacturing
Mining
Consumer Ready Food Products
Infrastructure
Tourism
Indonesia - Business Opportunities
Eastern Europe
Metric
GDP $
Population
GDP Growth (Next 5 Years)
Growth Drivers
Poland
$467.6 Billion
38.5 Million
2.9%
Manufacturing, Automotive,
Construction, IT & Infrastructure
Czech Republic
$192.9 Billion
10.6 Million
2.3%
Machine-building, Steel Metalworking,
Automotive
Slovakia
$89.5 Billion
5.4 Million
3.5%
Automotive, Engineering,
Electronics, Chemical Engineering, IT.
39
• Manufacturing is moving steadily
into the Eastern European
countries.
• Rising wages, steady
employment, reduced energy
costs driving consumption.
• Silk Road linking Europe to China.
• Poland taking a lead position as it
becomes Europe’s low-cost
manufacturing hub.
• Czech and Slovakia also have low
labor rates, strategic locations,
strong internal demand and
abundance of land.
• UK’s vote to leave the EU creates
uncertainty that will further drive
manufacturing and processing
into Eastern Europe.
• Skilled, educated, aging work
force, but populations growing in
the region, particularly Poland.
• Productivity improvements
needed in the region to remain
competitive against Germany.
• Engineering and Automotive are
strong drivers, but other
manufacturing operations like
Electronics, entering the market.
40
Business & Social Challenges
Eastern Europe - Business Environment
Business Climate
Eastern Europe - Business Opportunities
Automotive
•345 automotive FDI projects contributed to over 60,000 jobs created in Eastern Europe last year.
•Both OEM’s and suppliers are moving production into the region.
•Automotive assembly plants are the largest sector for FDI.
Manufacturing
•Poland’s key segments include vehicles, furniture, textiles, chemicals.
•Advanced manufacturing of highly customized machinery for transportation, mining, aviation and defense.
•Recycling technologies small but growing segment.
Infrastructure
•EU funded projects in Poland including railway, water, sewage.
•Significant road construction projects in Poland.
•EU funded $850 Million gas pipeline system to reduce reliance on Russia.
Construction
•Residential housing remodeling in UK and Germany; new construction in Poland.
•Continual increase in warehouse development and construction in Poland.
•Government housing development programs in Poland.
41
United Arab Emirates (UAE)
45
GDP
• $371.3 Billion USD
Population
• 9.2 Million (1.1 Million Emiratis)
GDP Growth
• 5 Year Projected Growth Average 3.5%
Growth Drivers
• Wholesale, retail, tourism, and construction
• Open economy with significant
disposable income.
• Oil dependence reduced to 21% of
GDP.
• Free trade zones offering 100%
foreign ownership and zero taxes.
• Largely expatriate workforce,
with high standard of living.
• Government five year plan to
continue diversification into
manufacturing and improve
education and opportunity for
nationals.
• Abu Dhabi Bank bailout of Dubai
in 2009.
• Highly susceptible to oil and real
estate prices.
• Low skilled workers often from
Philippines, India and Pakistan.
• Product certifications required
for importing into the Middle East
are challenging; often best
accomplished in UAE.
• Airport development underway to
support growth in aviation,
servicing and tourism sectors.
46
Business & Social Challenges
UAE - Business Environment
Business Climate
Kingdom of Saudi Arabia (KSA)
47
GDP
• $639.6 Billion USD
Population
• 28.1 Million
GDP Growth
• 5 Year Projected Growth Average 1.4%
Growth Drivers
• Oil and manufacturing
• Closed economy, managed by
Royal Family, supported by
significant Oil income.
• Major change in leadership when
King Salman unexpectedly
succeeded his half-brother in
2015.
• Oil is 87% of Government income.
• Government focus on Economic
Development diluted by war
being waged in Yemen.
• Nevertheless, Government
instituted an Economic Reform
Plan, Saudi Vision 2030, in 2016.
• Economic Freedom and
transparency still lags behind
other Emerging Economies.
• Saudi Vision 2030 aims to
significantly reduce dependence
on Oil and grow manufacturing.
• Foreign Companies can now own
Stock in Saudi Companies.
• Saudi ARAMCO (State Oil) is
selling off 5% of company to
generate funds to pay local
benefits programs.
• Foreigners have few rights and
Judiciary is not transparent.48
Business & Social Challenges
KSA - Business Environment
Business Climate
GCC - Business Opportunities
Tourism
•Fastest Growing sector in UAE with 40 million tourists expected annually by 2024.
•Expo 2020 in Dubai driving public/private investment in infrastructure and hotels.
•Dubai International preparing for 20 million visitors to Expo 2020.
Infrastructure
•Massive expansion in UAE Al Maktoum airport to become the world’s largest.
•Estimated $37 Billion in new infrastructure contracts made in 2016-2017.
• Increased spending on metro transportation including first ever Hyper-Loop.
Construction
•Top growth sector in value for UAE with 1.7 million workers.
•Hotels, Tourist Attractions, Shopping Malls and Airports and $3B on Expo 2020.
•High-end furniture, fitments and specialty materials needed for this expansion.
Financial, Trade & Real Estate Services
•Business sector follows the Construction sector in GDP contribution.
•Banking, Finance and Trade are top 3, followed by Real Estate and Leasing.
•KSA building major manufacturing facilities in effort to catch up with world.
49
Egypt
53
GDP
• $332.3 Billion USD
Population
• 94.6 Million
GDP Growth
• 5 Year Projected Growth Average 5.8%
Growth Drivers
• General Manufacturing, rail, construction, and ICT
• Slow economic progress since the
Army took control following the
revolution in 2011.
• In 2014 President el-Sisi directed
changes to the economy to
include the removal of fuel
subsidies, the revaluation of the
Egyptian Pound, and start of VAT.
• To offset the creation of problems
for the poor, Social Safety Nets
were put in place.
• These actions, aided by
Government borrowing, has
stimulated business activity which
is now taking hold.
• The Government has established
the Suez Canal Economic Zone
project to stimulate new
manufacturing.
• Training Programs have been put
in place to further develop a
trained workforce.
• GE have embarked on a $575M
Rail Infrastructure program to
develop a rail network.
• President el-Sisi due to sign new
laws making business easier and
more secure.
• Industrial Manufacturing, is on
the increase.54
Business & Social Challenges
Egypt - Business Environment
Business Climate
Egypt - Business Opportunities
Infrastructure
• 5,000 kilometers of new roads, to support Manufacturing and Logistics
• Continued expansion of airport facilities and infrastructure.
• 1200 kilometers of New Railway structure with supporting stations and trains.
• IT/Telecom infrastructure that is supporting the ICT sector growth.
Manufacturing
•Government establishment of Suez Canal Industrial Zone with 4 new Ports.
•Focus on Building materials, Plastics and Automotive Components.
•Government have targeted Year on Year growth of 9% for manufacturing.
•Expectation is for an additional 3 Million jobs by 2020.
Technology
•Recognition by the Egyptian Government of the importance of ICT.
•The establishment of an Technology Valley near Cairo
•The access to 8 Submarine Cables that can deliver up to 60 TB ps
• Industry Sector delivered $10.2B in economic activity in 2016.
55
Kenya
57
GDP
• $68.9 Billion USD
Population
• 46.7 Million
GDP Growth
• 5 Year Projected Growth Average 6.5%
Growth Drivers
• Construction, transport, tourism, and services
• Small but one of the fastest
growing economies in Africa and
the world.
• Gateway to East Africa’s 140
million consumers.
• Largest economy in the region -
40% of East African GDP.
• Highly educated, English
speaking, youthful workforce.
• Many bi-lateral trade agreements
including China, India, US, and
Poland.
• Recent economic expansion hurt
by reduced tourism due to
security concerns.
• Kenya Vision 2030 Program to
modernize infrastructure
including large rail and road
investments.
• Must increase competitiveness of
manufacturing sector for long
term growth.
• Poverty remains a serious
problem.
58
Business & Social Challenges
Kenya - Business Environment
Business Climate
Kenya - Business Opportunities
Infrastructure
•10,000 kilometers of new roads, an airport expansion and 700 km of new rail.
•Power grid modernization.
• IT/Telecom infrastructure that is supporting the Tech sector growth.
Agriculture
•Tea, horticulture and coffee are the largest crops & most valuable exports.
• In need of agro-processing technology & infrastructure development.
•AG Accounts for 30% of GDP, employs 80% of the workforce.
•Only 17% total land area had adequate rainfall and fertility to be farmed.
Manufacturing
•13% of workers tied to Manufacturing & Distribution Supply Chain.
• Iron, Steel and cement production are core growth sectors.
•Petroleum processing hurt by drop in oil prices.
Technology
•Google, IBM, Facebook, Oracle, Microsoft, SAP, and IBM all have regional headquarters in Nairobi.
•Tech start-up boom producing impressive results with seed capital funds and the construction of Konza Techno City – 5000 acres with more innovation hubs.
59