Expansion During the Pandemic
When it comes to expansion, every country has unique advantages and challenges. Despite current conditions, business expansion has continued to occur. In this new normal, we have identified several growth opportunities and compiled a list of the top countries for global expansion during the pandemic.
Why are these countries so popular right now?
Companies consider a wide range of factors before testing their business in any particular country. Obviously with the current pandemic, laws and regulations are major points of interest. The declining coronavirus case numbers in Thailand and Canada are giving some companies more confidence moving their business to those locations. COVID-19 is still prevalent in the remaining countries on our list, but the skills available and economic advantages are too great to ignore. As we move forward past the pandemic, companies are searching for ideal locations where their business can thrive long-term.
Factors to Consider
Government Laws and Incentives
Cost of Operations
The Philippines is the 3rd largest economy in the Association of South East Asian Nations (ASEAN) and the 13th largest in Asia. Emerging as a newly industrialized country, the country’s economy is moving from agriculture to services and manufacturing at a brisk pace. Exports include transport equipment, electronic products, garments, copper goods, coconut oil, and fruits. A healthy macroeconomic environment, aided by low debt to GDP ratio, low inflation, and a spike in exports, has helped the economy expand. The government is actively pursuing several legislative reforms to improve the business environment and generate more jobs.
Vietnam is the world’s 14th most populous country. Beginning in 1986, the country has seen a major transformation from a highly centralized economy, to a mixed economy. During the three decades of economic reforms, the country has witnessed rapid growth and emerged as a leading agricultural exporter, as well as becoming a major destination for foreign direct investments. Since 1990, economic growth in Vietnam has risen 6.4% per year on average, one of the highest growth rates in the world. Foreign trade is critical to the Vietnamese economy with the combined value of the country’s exports and imports equating to roughly 179% of its GDP.
Thailand, a newly industrialized economy, is the 4th richest nation in Southeast Asia according to GDP per capita. The country’s economy is largely driven by exports including computers, cars, electrical appliances, rubber, jewelry, footwear, textiles, and fishery products. Thailand has set long-term strategic and economic goals as part of its 20-Year National Strategy (2017-2036) to roll out major reforms that address human capital, economic stability, environmental sustainability, equal economic opportunities, and competitiveness.
The Republic of India is a federal democracy that consists of 29 states and 7 union territories. It is the largest democracy and the 6th largest economy in the world. India has thriving manufacturing, technology, and service sectors. Since 2014, the rate of foreign direct investment (FDI) inflows to India has grown steadily as some key policy changes were incorporated by the government to facilitate this growth. Some strategic steps have been taken to revitalize India’s business environment including reforms to remove bottlenecks in key business areas, reducing minimum capital requirement, and simplifying the process of obtaining necessary licenses.
Canada’s economy is primarily service-based. The current GDP (PPP) growth rate in Canada is 3.0%. The threshold for foreign investment in Canada is CAD 5 million for direct investments, and CAD 50 million for indirect investments. Globally, Canada ranks as the 12th largest exporter. The country has also been a key member of the World Trade Organization since 1995. Canada has extensive trading ties with many nations as a result of its bilateral and regional Free Trade Agreements (FTAs). Due to an educated workforce, a multicultural/multilingual population, a thriving economy, and government support for business growth, Canada has become a preferred investment destination.