The new era for investment promotion and attraction

The new era for investment promotion and attractionDr. Douglas van den Berghe – FDI 4.0 and NxtZones

Workshops Pakistan

The role of IPAs

3

Investment promotion versus facilitation

Image building

Investment

generation

Investment promotion

Investor servicing

Aftercare

Policy Advocacy

Implementation of

investment

facilitation-related

policies

Investment facilitation

Investment

promotion

agencies

Policy makers

Stakeholders

4

IPA ACTIVITIES & PROMOTION LIFE CYCLE

Image Building & Marketing

Lead Generation & Targeting

Investor Servicing & Facilitation

Investor Aftercare & Policy Advocacy

Image Building &

Marketing

Create the market

perception of your

location as attractive

locations for international

investment.

Investor Servicing &

Facilitation

Facilitate the efforts of

foreign investors seeking to

invest by providing services

that can assist an investor in

analysing investment

decisions, establishing a

business, and maintaining it

in good standing.

Lead Generation &

Targeting

Attract new investment projects

by actively targeting specific

investors in (prioritized)

sectors. Lead generation entails

targeting specific sectors and

companies with a view to

creating investment leads.

Investor Aftercare &

Policy Advocacy

Facilitate the continuing

development of a foreign

affiliate with a view towards

maximising its contribution to

the local economic

development, including acting

as a conduit for foreign

investors.

Intelligence & Knowledge

© 2021 Douglas van den Berghe

5

INVESTMENT PROMOTION LIFE CYCLE, FRAMEWORK

AND KEY IPA ACTIVITIES AND FUNCTIONS




Investor Aftercare & Policy

(Advocacy)

Image Building &

Marketing

Create awareness and the

market perception of your

location as attractive locations

for international investment.


Facilitation

Facilitate the efforts of foreign

investors seeking to invest by

providing services that can assist an

investor in analysing investment

decisions and establishing the

business. Potential project start up.

Lead Generation &

Targeting

Attract new investment projects by

actively targeting specific investors in

(prioritized) sectors. Lead generation

entails targeting specific sectors and

companies with a view to creating

investment leads.

Investor Aftercare &

Policy Advocacy

Facilitate the continuing

development of a foreign affiliate

with a view towards maximising its

contribution to the local economic

development, including acting as a

conduit for foreign investors.

Organization, coordination, Intelligence & Knowledge

Investment facilitation. (post)

investment/project Client servicing and

after sales

Investment promotion. Pre-investment:

Business development. Awareness


6

Combining site selection with IPA services

Strategy Building

Identifying Opportunities & Due Diligence

Site Visits & Implementation

Operational




Investor Aftercare & Policy Advocacy

Invest

men

t D

ecis

ion

-

Makin

g P

rocess

Invest

men

t P

rom

oti

on

Acti

vit

ies

& S

erv

ices

Dem

an

dS

up

ply

Pre-Investment Post-InvestmentInvestmentInitial Decision-

Making


IPAs and digitalization

8

Most effective marketing techniques?

8

Technique 2014 2011 2008 2005 2002 1999 1996

Internet and website

67% 55% 56% 53% 34% 37% 18%

Planned visits to corporate executives

65% 57% 54% 55% 53% 46% 53%

Media relations and publicity

48% 33% 52% 50% 40% 38% 39%

Hosting special events

46% 33% 45% 49% 37% 42% 39%

Trade shows 38% 35% - 33% 32% 45% 39%

Advertising 17% 16% 15% 20% 21% 19% 19%

Direct mail 14% 15% 19% 23% 33% 25% 25%

Telemarketing 6% 4% 4% 6% 4% 6% 7%

9

Which other marketing channels can you use?

▪ Newsletters

▪ Websites but also, and more research driven……

▪ Investor Guides

▪ Investment Opportunities Guides

▪ Value Propositions

▪ Sector Profiles

▪ Competitive Analysis of your country

– But you will need a Brand Book, Research Tools like Benchmarking Databases

and a database of contacts

9

10

EFFECTIVE STRATEGIES & TOOLS - SELECTION

Image

Building &

Marketing

Lead

Generation

& Targeting

Investor

Servicing &

Facilitation

Investor

Aftercare

& Policy

Advocacy

Brand Book X

Competitiveness Benchmarks & Analyses X

Local Value Proposition X

Website & Social Media X X

FDI Benchmarks & Analyses X

Country Profiles X

Sector Profiles X

Investment Opportunities Booklet X

Investor Guide X X

Public Databases X X X X

Paid Databases X X X X

CRM System X X X

Training Needs Assessment & Program X X X X

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Digital tools for investment promotion and

facilitation

▪ IPAs are using three types of digital economy applications to promote and facilitate

investments:

1. Websites: include key features, local economic data, and testimonials. Often used as a

matchmaking platform.

2. Social Media: LinkedIn for investor identification and gathering intelligence; Facebook,

Instagram, and YouTube to advertise host location; SMS and WhatsApp for investor

queries.

3. Video Conferencing: used to remotely pitch their countries to foreign audiences,

showcase investment locations, and answer queries from interested parties.

12

WEBSITE AND PURPOSE

12

▪ The main purpose of a website is to:

– Educate and inform - providing learning resources

– Market – promote your location and the services you offer to potential

investors

– Support function - deal with investor requests via email, phone and feedback

– Support business - providing support information for an Investor application

or business process

– Community - building a forum or community that Investors use to share ideas,

experiences, issues, etc

13

PROVIDE INFORMATION BUT ONLY

RELEVANT

13

▪ Information that is relevant for business

▪ Sector specific information

▪ Information that can be used for benchmarking

▪ Factsheets

▪ Include investment opportunities

▪ Categorize information

▪ Use multiple metrics and currencies for international investors

▪ If aimed at foreign investors it must be in English

14

Good websites

Investment promotion 4.0

16

Social media and IPAs: 2020 survey

17

Digitalizing your IPA services: virtual site visits

Given the COVID-19 pandemic many IPAs, Free Zone staff and corporate investors cannot travel. Many IPAs hence have limited opportunities to showcase the USPs of their location value proposition, attract investors or organize site visits. With the pandemic taking place ‘traditional’ internet and web-based marketing becomes even more important and many IPAs and Free Zones do not seem to be fully prepared or miss out on the many opportunities they have at their disposal. Some of which are very cost effective and can be very successful.

- Equal level playing field for all IPAs

- Harmonizing your IPA activities in line with the corporate investment and location decision making process

- What would investors like to see when you digitalize your IPA process of activities?

- Which digital tools can you use for which part of your IPA and Free Zone activities?

- How can you best use Virtual Reality in your IPA activities?

- How can you best organize a VR site visit and what should be included?

- How can you conduct a virtual site tour for potential corporate investors?

▪ Digitalizing your IPA services: virtual site visits

▪ During this pandemic many FZs have limited opportunities to showcase the USPs of their location value proposition, attract investors or organize site visits.

▪ With the pandemic taking place ‘traditional’ internet and web-based marketing becomes even more important. Equal level playing field.

▪ So in order to be prepared and not miss out on the many opportunities need to digitalize their investor attraction and marketing services. How to start this process and what to do?

▪

- What would investors like to see when you digitalize your IPA process of activities?

- Which digital tools can you use for which part of your IPA and Free Zone activities?

- How can you best use Virtual Reality in your IPA activities?

- How can you conduct a virtual site tour for potential corporate investors?

- How do you start?

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Investor Aftercare & PolicyAdvocacy

Intelligence &

Knowledge

Image

Building &

Marketing

Lead Generation

& Targeting


Facilitation

Investor

Aftercare &

Policy

Advocacy

Leve

l of

Dig

italiz

atio

n

Phases of IPA Services

Virtual reality tools

Tradition

al digital

tools

o COVID-19

proof Website

o SEO

o Social Media

Toolkit

o Investor

Messaging

Image Building

& Marketingo LinkedIn targeting

o Webinars

o Virtual Meetings

o Zoom, Microsoft

Teams, Skype

o Podcasts,

YouTube

o Virtual Site Tour

app and Video

o Interviews with IPA staff and

Stakeholders

Lead Generation &

TargetingInvestor Servicing&

FacilitationInvestor Aftercare &

Policy Advocacyo Virtual Meetings

o Online Meetings

and Webinars

for existing

Investors

o Aftercare events

Digitalizing the IPA service cycle


19

Online presence benchmark

19

Country Website Facebook Twitter LinkedIn Youtube Newsletter Investor GuideInvestment

Opportunities GuideValue Proposition Sector Profiles Comment

Brunei * * Very brief and not communicated properly

Cambodia * Unefficient lay out and very minimal

Indonesia * Not active

Laos

Malaysia

Myanmar * Only in Burmese

Philippines * Unefficient lay out and very minimal

Singapore

Thailand * Not active

Vietnam

20

Case studies

Invest HK

▪ An integrated approach between online

marketing and communication activities

▪ These tools include – advertising, social

media, public relations activities, and two

main websites.

▪ For campaigns – they coordinate across

all social media channels, email marketing

campaigns, as well as on their websites.

▪ Most recently, they even started their

own mobile app!

Invest India

▪ Online meetings

▪ Well structured

▪ Sector focus

▪ 1000 attendees

▪ Cost effective

21

Social media content examples

21

▪ Post a mix of external and relevant news updates &

internal relevant and engaging events/news updates

▪ Post content on all media channels, weekly, at least

Contact details:

Dr. Douglas van den Berghe

FDI 4.0 & NxtZones

Amsterdam, The Netherlands

+31 6 4628 6660

[email protected]

www.NxtZones.com (in development)

Documents

The new era for investment promotion and attraction