British businesses eye emerging marketsSeptember 24th, 2008 - 7:35 pm ICT by IANS
London, Sep 24 (IANS) India and China continue remain the favourite destinations for British companies eyeing emerging markets but new ones are cropping up across the world, a new report shows.While 49 percent of British companies favour China and 42 percent India as a priority for future expansion, many are looking at a host of new countries such as Vietnam, Mexico, the United Arab Emirates and Ukraine, the report by the British government’s trade and investment agency UKTI says.
The report, titled “Tomorrow’s Markets”, is based on the views of more than 560 high-level business executives - over 200 of whom are headquartered in emerging markets - and comes in the backdrop of slowing consumer demand in rich countries.
It was launched at an Emerging Markets Summit in London Tuesday by Trade and Investment Minister Digby Jones, who said new destinations were emerging even within the established BRIC countries - Brazil, Russia, India and China.
“In India, Mumbai is the top city for investment at the moment, but large regional areas such as Gujarat and Ahmedabad are beginning to look more attractive to investors,” Jones said.
“Mexico, the UAE, Ukraine, Indonesia and Singapore are also seen as attractive new markets, for a variety of reasons. These new high-growth markets may not be able to match India or China in terms of population, but their progress in market reforms, trade liberalisation and governance will weigh more heavily in company investment decisions, especially given competitive wage levels,” he added.
The report shows emerging market revenues account for, on average, nearly 30 per cent of total revenues of those companies surveyed and this is expected to rise to nearly 40 per cent in just three years time.
“On the one hand, potential investors could consider a deeper drive into the BRIC markets, especially China and India. But beyond the BRICs, a new wave of relatively untapped markets are emerging, offering huge potential for investors,” Jones said.
The release of the report coincided with the launch of a new emerging markets micro site for professionals interested in global intelligence for trade and investment in emerging markets: www.newwavemarkets.com.