Editor's note: FDI flows face a new gradient
Crossborder greenfield investments are stagnating. Hardly staggering news in the current climate, but according to fDi’s investor intentions survey, very few sectors are in a position to plug this gap, leaving the whole foreign investment arena feeling flat, writes Courtney Fingar.
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On familiar ground
Lisi Aerospace, the world’s third biggest supplier in its field, is holding off on a move into Asia while the global economy continues to stagnate, and is instead bolstering its home Turkish market until conditions are less risky, reports Lara Williams.
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Full steam ahead
Enel has just rolled out two geothermal power plants in Nevada, the latest step in the Italian company’s expansion into the US market, which is picking up pace due to federal and state incentives. Lara Williams reports.
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The multilocal challenge
Businesses operating in several countries that aspire to create a unified, crossborder working culture must beware of rubbing too much against the grain of local business customs, write Giancarlo Ghislanzoni, Risto Penttinen and David Turnbull.
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David Thompson, Barbados prime minister |
Reputation protection
Angry at his country being lumped into the ‘tax haven’ group by G-20 leaders, Barbados’ prime minister embarked on a trip to London to explain why small economies need help, not criticism, from bigger nations. Lara Williams reports.
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Luciano Coutinho, BNDES's president |
Wider horizons
The president of Brazil’s development bank, Luciano Coutinho, tells Brian Caplen how its new international subsidiary will help domestic Brazilian businesses maintain their competitive edge as they expand abroad .
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Sonny Perdue, Governor of the state of Georgia |
BIO 2009 round up
The BIO 2009 event in the US city of Atlanta provided Courtney Fingar with a welcome dose of Southern hospitality, as well as an opportunity to grill the leaders of nine North American states, and one city, about their biotech prospects.
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Out of the wilderness
Underdeveloped and poorly connected, the beauty of the Brazilian state of Alagoas remains unknown to all but a handful of adventurous tourists. Plans to draw in investment are under way but are hampered by the state’s lack of air access. Spencer Anderson reports.
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Durango’s five-pronged plan
Close in proximity to the Atlantic and Pacific oceans, as well as the US, the Mexican state of Durango is ramping up its activity in five key sectors to attract foreign investment. Jason Mitchell reports.
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Mark Vlassopulos, Eighth Wonder |
A calculated gamble
Casino developer Eighth Wonder has responded to a slowing of business in the West by targeting the gambling-hungry markets of the Commonwealth of Independent States, south-east Asia and South Korea. Lara Williams reports.
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Profit in peace?
After 26 years of civil war, Sri Lanka is looking for an estimated $5bn of inward investment to rebuild its shattered economy, writes Eric Ellis.
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Time to explore
Remote yet resource-rich, Papua New Guinea has started to spark the attention of foreign investors, although tenacity is paramount, reports Michael Deibert.
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Strength in breadth
The Lord Mayor of the City of London tells Lara Williams how the Square Mile’s versatility and ability to reinvent itself will see it through the global banking crisis, from which it will emerge both stronger and modernised.
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Gianni van Daalen, managing director of the Baltschug and European regional president for
Kempinski |
A varied approach
German company Kempinski has made a name for itself with its bespoke luxury hotels in exotic locations. Now it is looking to add properties in western Europe while expanding its presence in the east. Courtney Fingar reports.
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A soft landing for Wallonia
Tom Blass surveys the prospects for Belgium’s Wallonia and its aerospace industry, which seems to be battling through the downturn thanks to proactive government initiatives and support from Liège University.
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Following the smart money
Biotech companies can only thrive with the right mix of available funding, intellectual property protection and effective regulation. With so many locations claiming to offer them all, an fDi panel discusses how companies can best evaluate expansion options.
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From the ground up
The region of Castilla-La Mancha has competencies that range from agribusiness to aeronautics, with renewables and logistics in between. Jules Stewart reports.
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José María Barreda, president of the Junta de Castilla-La Mancha |
Capital gains
The president of the Spanish region of Castilla-La Mancha tells Jules Stewart how improved transport links and a lack of bureaucracy – as well as a population overspill from Madrid – are driving investment in the area.
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Counting the cost
The sharp increase in residential and commercial real estate lending in the three Baltic states by Swedbank and SEB has left the two institutions painfully exposed to the market crash. Robert Anderson reports.
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Nils Melngailis, chief executive, Parex Bank |
The long road back
Latvia’s second largest bank, Parex, would have gone under last November if it hadn’t been bailed out. Six months on, Robert Anderson reports on its slow, but steady recovery.
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Mantas Nocius, the Lithuanian Development Agency |
Battling for investment
The Baltic countries are enhancing local skills in a bid to attract more Inward investment and to boost their service and high-tech sectors, reports Tom Blass.
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The nation’s favourite
Latvia’s changing past means that Latvijas Krajbanka Bank is well positioned to deal with an uncertain future.
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Latvia poised for recovery
While Latvia has not been immune to the effects of the global economic downturn, it is keenly positioned to attract investors into the country when things pick up, says Olyga Ertuganove, senior analyst at Latvijas Krãjbanka.
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Banking on expansion
Looking to the future, Lithuania’s AB Bank SNORAS aims to boost its retail, investment and private banking operations in the long term and expand in the region.
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Opportunity to reflect
The Lithuanian economy has skyrocketed during the past decade. However, the country’s financing model requires some fine-tuning to help it through the global slowdown, reports Gitanas Kancerevycius , director of Bank Snoras’ risk management division.
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Ilmars Rimsevics, Latvia’s central bank governor |
Revival process
Latvia has been the worst-hit of the three Baltic states following the global credit squeeze. Bank of Latvia governor Ilmars Rimsevics tells Lara Williams how policy-makers are responding to the challenges.
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Goodluck Jonathan, Nigerian vice-president |
Double trouble
The twin problems of the global economic downturn and plummeting oil prices are endangering Nigeria’s macroeconomic stability, while the vice-president urges investors not to lose confidence. By Lara Williams.
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Donald Kaberuka, the president of the African Development Bank |
AFDB round-up: Urgent response
Courtney Fingar talks to Africa’s politicians at the African Development Bank Annual Conference in Senegal, as they react to the global recession and the fallout of the G-20 Summit in London.
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Nigel Turner, bmi |
A secure strategy
UK airline bmi has plans to re-establish air links with Iraq next year. Despite the security concerns of entering a post-conflict zone, the company is confident its first-mover status will give it long-term kudos in the country. Lara Williams reports.
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Rethinking Iraq
With the security situation much improved, and a government committed to private investment, Iraq could be a risk worth taking, says Lara Williams.
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New blood
Will Kuwait’s newly elected parliament implement the reforms needed to bring life back to the country’s stilted economy? Spencer Anderson reports.
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Manufactured diversity
The economies of north Africa’s Maghreb region – Algeria, Libya, Morocco and Tunisia – are branching out into manufacturing as the demand for hydrocarbon exports continues to decline, writes Michael Deibert.
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View from the top
As fDi releases the results of its investor intentions survey, Lara Williams looks to 2009 for trends in crossborder investment. The economic outlook for 2009 may not offer the ideal circumstances for global corporate expansion, but even in a downturn companies must evaluate the pros and cons of launching into new markets.
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Andalucía’s attraction
Andalucía is one location which investors could consider in 2009, reports Jules Stewart.
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Experiencing turbulence
Although airlines are cutting production in Europe and the US, expansion in India and China may offset this loss. Karen E Thuermer reports.
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Mumbai top for machinery
Leading fDi’s rankings for the production of machines, tools and equipment are Hanoi and Mumbai – with Mumbai also heading up the quality rankings.
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Macedonia’s ‘invest in’ surge
Google monitoring reveals that the US, France and surprise entry Macedonia are the most searched for ‘invest in’ locations.
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Home from home
As they fight to rein in costs, many companies are keenly trying to work out how to cut back on the onerous expense of relocating their expatriate workers. Lara Williams reports.
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Offshoring navigates an uncertain course
As markets the world over undergo dramatic shifts, the offshore outsourcing industry is trying to get to grips with how this will affect its prospects, write Michael Mainelli and Leslie Willcocks.
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Aero activity holds
While project numbers in aerospace remain almost on a level with 2008, project value and jobs created have plummeted.
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