Business Environments of the ‘Next Wave’ Countries

of Southeast Asia

PURPOSE

• Analyze the market-readiness of the “next wave” Asian countries• Population Specifics• Infrastructure• FDI Restrictions

• Perspective of the foreign investor or entrepreneur

• Ranked key indicators 1 – 10, ‘track meet’ style scoring

Analysis & Ranking

• Population• GDP per capita• net FDI• Economic Freedom Index• Electricity Penetration Rate• Internet Penetration Rate• Strength of Legal Rights

• Total Railway/ Roadway Distance• Days to Clear Export Customs• Tax Expense (% of Revenue)• Labor Expense (% of Revenue)• Days to Start a Business• Days to Obtain Operating License

CAMBODIAPopulation: 14.68 millionGDP per capita $: $946Net FDI $: $1.6 billionEconomic Freedom: 57.4

VIETNAMPopulation: 88.78 millionGDP per capita $: $1,596Net FDI $: $8.4 billionEconomic Freedom: 50.8

THAILANDPopulation: 66.79 millionGDP per capita $: $5,474Net FDI $: $8.6 billionEconomic Freedom: 63.3

Notables:Electricity Penetration: 32%Internet Penetration: 5%Legal Rights Index: 8/10FDI Restrictions?

Notables:Electricity Penetration: 98%Internet Penetration: 39%Legal Rights Index: 8/10FDI Restrictions?

Notables:Electricity Penetration: 90%Internet Penetration: 27%Legal Rights Index: 5/10FDI Restrictions?

SOURCE: http://data.worldbank.org/indicator

LAOSPopulation: 6.65 millionGDP per capita $: $1,399Net FDI $: $294.4 millionEconomic Freedom: 51.2

BANGLADESHPopulation: 145.7 millionGDP per capita $: $747Net FDI $: $990 millionEconomic Freedom: 54.1

MALAYSIAPopulation: 29.24 millionGDP per capita $: $10,379Net FDI $: $10.1 billionEconomic Freedom: 69.9

Notables:Electricity Penetration: 63%Internet Penetration: 11%Legal Rights Index: 4/10FDI Restrictions?

Notables:Electricity Penetration: 47%Internet Penetration: 6%Legal Rights Index: 7/10FDI Restrictions?

Notables:Electricity Penetration: 99%Internet Penetration: 66%Legal Rights Index: 10/10FDI Restrictions?

SOURCE: http://data.worldbank.org/indicator

PHILIPPINESPopulation: 96.7 millionGDP per capita $: $2,588Net FDI $: $2.8 billionEconomic Freedom: 60.1

INDONESIAPopulation: 246.9 millionGDP per capita $: $3,556Net FDI $: $19.9 billionEconomic Freedom: 58.5

MYANMAR (Burma)Population: 52.8 millionGDP per capita $: $983Net FDI $: $2.2 millionEconomic Freedom: 46.5

Notables:Electricity Penetration: 73%Internet Penetration: 15%Legal Rights Index: 5/10FDI Restrictions?

Notables:Electricity Penetration: 85%Internet Penetration: 36%Legal Rights Index: 4/10FDI Restrictions?

Notables:Electricity Penetration: 50%Internet Penetration: <1%Legal Rights Index: 4/10FDI Restrictions?

SOURCE: http://data.worldbank.org/indicator

BHUTANPopulation: 741,822GDP per capita $: $2,399Net FDI $: $15.9 millionEconomic Freedom: 56.7

BEST FLAG AWARD:

Notables:Electricity Penetration: 35%Internet Penetration: 25%Legal Rights Index: 3/10FDI Restrictions?

SOURCE: http://data.worldbank.org/indicator

1. Malaysia – 1052. Indonesia – 90

3. Vietnam – 864. Thailand – 855. Philippines – 806. Bangladesh – 70

7. Bhutan – 588. Cambodia – 539. Myanmar – 49

10. Lao PDR – 44

Thoughts on FDI

• Mostly Loose Regulations on FDI• Foreign investments can constitute up to about 80% of enterprises• Most industries open to foreign investment (usually excluding defense, state

interests, etc.)• Restrictive financial sectors• Bhutan, Myanmar (Burma), Laos relatively more restricted

• Most recognize the need for FDI as an economic accelerant

At the End of the Day………….

Would you take your business here?

Works CitedBank of International Settlements. (2014, 03). Retrieved from BIS: https://www.bis.org/publ/cgfs22boj1.pdfInternational Business Review. (2014, 03 06). Retrieved from IBR: http://www.ibtimes.com/fdi-restrictions-stifle-start-ups-world-bank-report-246564UNCTAD. (2014, 03 05). Retrieved from United Nations: http://unctad.org/en/docs/iteiia20061_en.pdfWorld Bank. (2014, 03 06). Retrieved from WorldBank DataBank: http://data.worldbank.org/indicator