Ipsos in SiMa Ipsos | Curiosity February 2017 | Page 26

Region
Country
Ease of Doing Business
Opportunities
Challenges
Southeast Asia
Thailand
2017 Ranking

46 th

2017 DTF Score

72.53
Currently accounting for about 1.5 % of British trade , Thailand offers strong growth potential for British companies , particularly in the machinery , transportation and manufactured goods sectors .
Government infrastructure projects and a growing middle class with strong affinities for high-quality Western goods present solid opportunities for British businesses to expand in the kingdom .
Consumer spending and retail sales have declined due to an economic downturn from 2011 – 15 .
Political uncertainty and related risks have dampened foreign investor confidence in the country .
High levels of income inequality mean any recovery in consumption will likely take place in the relatively small upper-middle to high-income groups .
Thai consumers are major adopters of online shopping / e-commerce , presenting an attractive market for multinational retailers and increasing access to UK products .
Vietnam
2017 Ranking

82 nd

2017 DTF Score

63.83
The recently concluded EU-Vietnam Free Trade Agreement will increase trade , streamline customs procedures and help provide a frame for a bilateral agreement with the UK .
Foreign direct investment continues to grow in Vietnam , which offers a range of incentives .
Improvements in Vietnam ’ s production capabilities are expected to drive growth in electronics , manufacturing , telecommunications and building materials . The government also introduced new incentives for foreign investment in specific industries , mostly high-end technology manufacturing . These developments provide opportunities for a broad range of British businesses seeking to expand their footprint in Vietnam .
Lengthy and opaque investment procedures deter many businesses .
Corruption is fairly widespread and a concern for many corporations and investors .
Several of Vietnam ’ s tax rates ( eg corporate tax and personal income tax ) are higher than in nearby competing markets .
Indonesia
2017 Ranking

91 st

2017 DTF Score

61.52

Strong growth potential as many market sectors are underdeveloped . This significant potential for expansion is supported by probusiness government policies .
Demographic drivers include a large and youthful working-age population and a fast-emerging middle class .
Widespread entrepreneurialism with large numbers of tech startups and small businesses . These are supported by an active venture capital sector attracted by chance of rapid returns in Southeast Asia ’ s largest economy .
Difficulty of doing business and bureaucracy can be bewildering for those unfamiliar with the system . State institutions are not always aligned with each other .
Infrastructure remains inadequate but is a key area of focus for government . Significant progress being made on rail , road and port development .
Non-tariff barriers including complex procedures for imports , investments or joint ventures ; negative investment list , regulatory and legislative unpredictability , and protectionism .
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