Foreign Direct Investment

Providing a framework . . .

Christopher Pike MA(Oxon) MBA MRICS

Providing a framework . . .

• OBJECTIVES

• To increase local employment

• To produce substitutes for imports

• To improve the balance of payments

• To collect taxes to support public spending

• Pursue satisfying and successful development

of the economy and society of your country

•

STRATEGY

Development by attraction, location and retention of FDI

• Attract

Bring activities & investors appropriate to your location

• Transform

Convert selected prospects into definite investors

• Retain

Create and ensure the conditions to stay sustainably•

Attract

Attract the most appropriate activities & companies

Determine your strengths – and focus on them

Validate internally – obtain commitment from existing actors

Test regional relativities – complementary or competitive?

Benchmark widely – companies see beyond your region

Discover the essence of each new investor’s business –

not their business model, but their business vision

1

Transform

Be attentive to industry context and corporate culture

Timeliness – Don’t just surprise, delight an incoming candidate

Standard welcome package ? There’s no such thing !

Be realistic – The story can never be better than the product

Stay realistic – What went wrong last time ? Lost sales . . .

Cost factors – Vary by region : model the real cost of operating

Retain

How will the new arrival change the map ?

Identify and engage the hidden supporters

Where are the cases of risk of loss ?

What are motives for potential leavers ?

Exploit complementarity : Origin / Industry / Language

Adopt a future Cluster mindset well in advance

Effective location : optimal / least cost to incoming investor•

Make ongoing policy as clear as outline advantages

Demonstrate the fit – utilise existing local companies

Respond to Investor definitions of market criteria

Face up to the downside – Know your disadvantages,

the Investor will find them

ATTRACT

TRANSFORM

Admin is EDA business – who covers Project Management ?

Incentives – Confirm your offering – keep some spare cards

Extras – Can you provide extra, site-specific infrastructure ?

Realism – Local delays perceive as your fault / responsibility

RETAIN

How has the new arrival changed your investor map ?

After Sales

What later services does newcomer generate or require ?

Potential for clustering

Engage established actors with incoming investors

Stuivenbergbaan 32 2800 Mechelen Belgium

Tel +3215 423 820 Mob +32 476 429 358

mdemeirleir@yahoo.com