Professional Documents
Culture Documents
S T O R Y
GLOBAL To REPORT
ite Selection is pleased to present its fifth annual Best to Invest rankings of nations and metro areas for investmentattraction activity in 2012. The national Investment Promotion Agencies and metro areas recognized here were particularly successful in 2012 at attracting capital investment projects both expansions of existing facilities and new projects from investors at home and abroad. The editors welcome the participation of: (1) Amsterdam-based FDI advisory Investment Consulting Associates (ICA) and its LocationSelector.com FDI software solution, a comprehensive suite of market analysis tools and research used by corporate executives and site location experts worldwide; and (2) IBM Global Business Services and Brussels-based IBM-Plant Location International, which tracks global flows of foreign direct investment and publishes an annual Global Location Trends report.
Methodology
Fifty percent of the national rankings were based on growth in new facilities, capital investment and job creation using data from Conway Datas New Plant database and from IBM-PLIs database of new projects for calendar years 2011 and 2012. Each country was ranked on the total number of projects, investment and jobs created both as raw value and as a per
capita value. The other 50 percent of the ranking was based on the Location Rank and Competitiveness Score resident in LocationSelector.coms proprietary database using these factors: business costs, economic strength, infrastructure; regulatory burden; and tax rates. Fifty percent of the metro rankings were based on growth in new facilities, capital investment and job creation using data from Conway Datas New Plant database and from IBM-PLIs database of new projects for calendar years 2011 and 2012. The other 50 percent was based on the Location Rank and Competitiveness Score using LocationSelector.coms proprietary database using these factors: economic strength and infrastructure (physical capital). Additional points were given to those metros that ranked among the top 25 metro destinations for Foreign Direct Investment Projects as identifiedin IBMs Global Location Trends report. Site Selection congratulates the countries, national investment promotion agencies and metros recognized here for their success in attracting foreign direct investment in a global economy that remains lukewarm. Capital investors only invest where they are confident they will earn a meaningful return, and these locations deliver that confidence. Editor
Western Europe
Top Countries 1. Ireland IDA Ireland www.idaireland.us/ 2. Germany Germany Trade & Invest www.gtai.com . France 3 Invest in France www.invest-in-france.org . Finland 4 Invest in Finland www.investfinland.fi 5 . Netherlands Netherlands Foreign Investment Agency www.nfia.nl/
Eastern Europe
Top Countries 1. Slovak Republic Slovak Investment and Trade Development www.sario.sk 2 . Czech Republic CzechInvest www.czechinvest.org . 3 4. 5. Romania Romania Trade and Invest www.romtradeinvest.ro Hungary ITD Hungary www.investfinland.fi Poland Invest in Poland www.paiz.gov.pl
. South Africa 2 TradeInvest South Africa www.tradeinvestsa.co.za 3 . Egypt Ministry of Investment www.investment.gov.eg 4 . Israel Invest in Israel www.investinisrael.gov.il/ 5 . UAE Dubai Dev. & Investment Authority www.emiratesfreezone.com Top Metros 1. Dubai, UAE 2. Nairobi, Kenya 3. Pretoria, South Africa 4. Port Elizabeth, South Africa 5. Dammam, Saudi Arabia 6. Johannesburg, South Africa 7. Kinshasa, Congo 8. Ras Al Khaimah, UAE 9. Casablanca, Morocco 10. Cairo, Egypt
Top Metros 1. Frankfurt, Germany 2. Paris, France 3. Dublin, Ireland 4. Madrid, Spain 5. Barcelona, Spain 6. Vienna, Austria 7. London, UK 8. Berlin, Germany 9. Amsterdam, Netherlands 10. Birmingham, UK
Top Metros 1. St. Petersburg, Russia 2. Moscow, Russia 3. Istanbul, Turkey 4. Bucharest, Romania 5. Warsaw, Poland 6. Vilnius, Lithuania 7. Budapest, Hungary 8. Prague, Czech Republic 9. Ankara, Turkey 10. Krakow, Poland
75
Latin America
Top Countries 1. Mexico ProMxico Trade and Investment www.promexico.gob.mx . Brazil 2 ApexBrazil www.apexbrasil.com.br . Chile 3 Chilean Econ. Dev. Agency www.hightechchile.com . Columbia 4 Proexport www.investincolombia.com.co/ . Argentina 5 Invest in Argentina www.inversiones.gov.ar Top Metros 1. Sao Paulo, Brazil 2. Buenos Aires, Argentina 3. Mexico City, Mexico 4. Monterrey, Mexico 5. Bogota, Colombia 6. San Jose, Costa Rica 7. Rio de Janeiro, Brazil 8. Lima, Peru 9. Santiago, Chile 10. Guadalajara, Mexico
Asia-Pacific
Top Countries 1. Singapore Singapore Econ. Dev. Board www.sedb.com 2 . 3. 4. Malaysia Malaysian Investment Development Authority www.mida.gov.my Australia Austrade www.austrade.gov.au/invest Taiwan Invest in Taiwan www.investtaiwan.nat.gov.tw
5. Thailand T Thailand Board of Investment www.boi.go.th 5. China T Invest In China www.fdi.gov.cn Top Metros 1. Singapore 2. Shanghai, China 3. Beijing, Cina 4. Sydney, Australia 5. Tianjin, China 6. Chennai, India 7. Suzhou, China 8. Shenzhen, China 9. Osaka, Japan 10. Dalian, China
76
MAY 2013 S I T E S E L E C T I O N
f the five countries attending Marchs BRICS summit in South Africa, only one could boast a growth rate significantly higher than 5 percent. That was China, and although its current growth of about 8 percent is less than half the 20-percent rate seen in headier days, it goes some way to explaining why it is still attracting serious money amid a worldwide slump in foreign direct investment (FDI). Firstly, its the 300- to 400-million middle class consumers in China. They have more money to spend and want a better life. For this better life, the government must improve healthcare, transportation and everyday living needs. On top of this, they need more energy, cleaner air and water, and more food, says Stanley Chao, managing director of Los Angelesbased All In Consulting and the author of Selling to China: A Guide to Doing Business in China for SMEs. Secondly, the government is on a continued spending spree to maintain the 8- to 10-percent GDP growth. Theyll continue to import cement, raw materials and anything industrial to keep up with this hyper growth.
Lang Dong, vice-chairman of the Tianjin Economic-Technological Development Area (TEDA), one the development zones that have helped drive Chinas meteoric rise. Langs prudence is underwritten by continuing large-scale investments from across the spectrum, with technology and the service sector making particularly strong showings recently. For example, General Nice Group, a resources and logistics firm, has invested over $50 million in establishing a presence at TEDA, while China Industrial Leasing input an investment of $50 million in the zone. The geo-engineering firm OYO Corporation set up a joint venture with an investment of $ 6.5 million. Worldrecognized security software firm McAfee also recently set up a new plant at TEDA. This year has also seen increases in TEDA investments by Samsung (an extra $110 million); Japanese drink maker Pocari (a further $ 65 million); Shell Lubricant (an extra $40 million) as well as Belgiums Betafence and Dow Chemical Tianjin Holdings. According to the Ministry of Commerce, manufacturing is still attracting increasing FDI, but it is being outperformed by the service sector. The Ministry also reported FDI from the US and Japan was down about 20 percent in January year-on-year, but FDI from the EU was up 82 percent, including a massive 4,000-percent jump in investment from Sweden and a 350-percent increase from Denmark, both leaders in the high-tech and green energy sectors. Arnaldo Abruzzini, secretary-general of Eurochambres, the association of European chambers of commerce, told the China Daily newspaper that smaller European companies now believe the time is ripe for them to invest in China.
FDI Magnets
Many of the big MNCs have chosen to locate in development areas such as TEDA, which offer advantages such as excellent national and international transport links, modern facilities, business-friendly regimes that fast-track bureaucracy and international-class accommodations, hospitals and schools. TEDA is among the first generation of development zones and is ranked top overall among all Chinas industrial parks for 15 consecutive years. The zone has about 5,000 foreign-invested companies (including 85 Fortune 500 companies), with total foreign investment of $79 billion, and more than 10,000 Chinese firms. But it faces stiff competition from development zones in central and western China, which offer lower costs. The Ministry of Commerce says more FDI is flowing into central and western regions, although they still only account for about 20 percent of all FDI into China. Coastal economic zones have responded by working hard to move up the value chain. At TEDA that means offering MNCs access to the core support systems that they need.
78
MAY 2013 S I T E S E L E C T I O N
S I T E S E L E C T I O N MAY 2013
79