An Overview on the N10 Countries by Dragon Sourcing

Dragon Sourcing
Your Tailored Approach to Emerging Markets
www.dragonsourcing.com
N10 Countries – An Overview
Dec, 2016

www.dragonsourcing.com© 2016 Dragon Sourcing. All rights reserved. 2
Table of Contents
 Executive Summary
 Overview
 South Korea
 Indonesia
 Mexico
 Turkey
 Philippines
 Vietnam
 Bangladesh
 Egypt
 Pakistan
 Nigeria
 Dragon Sourcing – India
 Disclaimer

Why N-10 Countries?
© 2016 Dragon Sourcing. All rights reserved. 3
International
Investors
Procurement
Professionals
Where do I invest next?
What are the other options?
Where do I source next? What
are the other options?
Which countries have foundation in place for future
growth over the coming years?
Which economies have grown significantly over
the past few years?
N-10
Countries
Why N10
countries
?
 N10 countries are front runners of the new global economy due their growth trends
 Many of these countries have huge, young, and increasingly educated and wealthy populations, meaning their
consumption potential is enormous and growing all the time.
 These countries are comparatively stabile politically and socially, plus they have relatively robust legal, financial and
regulatory systems in place.
 Indeed, they display all the key characteristics that BRICs did a decade ago; characteristics which empowered the
bloc’s phenomenal rise into a global economic superpower. And those who now invest sensibly in the N-10 countries
could benefit as those who previously invested in the BRICs did.
Solution

N10 Countries
Brazil
India
China
Russia
Indonesia
Mexico
Turkey
South Korea
Pakistan
Philippines
Vietnam
Bangladesh
Egypt
Nigeria
N10 Countries
BRIC Countries

Executive Summary – N10 Countries
Country
Total Exports
in 2015 (USD
billons)
Top Importers
Global
Competitiveness
Index
Country
Rank
Population
(millions)
GDP
(USD
billions)
Macroeconomic
Environment
Labor
market
efficiency
Domestic
Market
Size
Business
sophistication
N10 Countries
South Korea 526.900
China, USA, Hong Kong,
Vietnam, Japan
5.0/7 26/138 50.6 1,376.9 6.6/7 4.1/7 5.3/7 4.9/7
Indonesia 150.282
Japan, USA, China,
Singapore, India
4.5/7 41/138 255.5 859.0 5.5/7 3.8/7 5.7/7 4.3/7
Mexico 380.749
USA, Canada, China, Brazil,
Colombia
4.4 /7 51/138 127.0 1,144.3 5.0/7 3.8/7 5.5/7 4.2/7
Turkey 143.850
Germany, UK, Iraq, Italy,
USA
4.4/7 55/138 77.7 733.6 4.9/7 3.4/7 5.3/7 4.0/7
Philippines 58.648
Japan, USA, China, Hong
Kong, Singapore
4.4/7 57/138 102.2 292.0 5.9/7 4.0/7 4.7/7 4.1/7
Vietnam 186.842
USA, China, Japan, South
Korea, Hong Kong
4.3/7 60/138 91.7 191.5 4.3/7 3.9/7 2.6/7 3.7/7
Bangladesh 35.873
USA, Germany, UK, France,
Spain
3.8/7 106/138 159.9 205.7 4.8/7 3.6/7 4.6/7 3.5/7
Egypt 21.967
Italy, Saudi Arabia, India,
Turkey, USA
3.7/7 115/138 88.4 330.8 2.7/7 3.2/7 5.1/7 3.7/7
Pakistan 22.089
USA, China, Afghanistan,
UK, Germany
3.5/7 122/138 186.2 270.0 3.8/7 3.3/7 4.9/7 3.7/7
Nigeria 53.805
India, Netherlands, Spain,
Brazil, France
3.4/7 127/138 178.7 490.2 4.0/7 4.5/7 5.0/7 3.6/7
BRIC Countries
China 2,281.855
USA, Hong Kong, Japan,
South Korea, Germany
5.0/7 28/138 1,374.6 10,982.8 6.2/7 4.5/7 7.0/7 4.4/7
India 264.381
USA, UAE, Hong Kong,
China, UK
4.5/7 39/138 1,292.7 2,090.7 4.5/7 4.1/7 6.4/7 4.4/7
Russia 343.907
Netherlands, China, Italy,
Germany, Japan
4.5/7 43/138 146.3 1,324.7 4.3/7 4.4/7 5.8/7 3.8/7
Brazil 191.126
China, USA, Argentina,
Netherlands, Germany
4.1/7 81/138 204.5 1,772.6 3.5/7 3.7/7 5.8/7 4.0/7
Note: The indicators were obtained from World Economic Forum, assessing the competitiveness landscape of 138 economies

Interpreting Country Scores
Macroeconomic
Environment
Labor market
efficiency
Domestic Market Size Business
sophistication
Factors considered
 Calculated based on the
government budget
balance (% GDP), gross
national savings (%
GDP), inflation,
government debt (%
GDP) and country credit
rating
 The stability of the
macroeconomic
environment is important
for business and,
therefore, is significant
for the overall
competitiveness of a
country
 Calculated based on the
cooperation in labor-
employer relations,
flexibility of wage
determination, hiring and
firing practices,
redundancy costs, effect
of taxation on incentives
to work, pay and
productivity, reliance on
professional
management, country
capacity to attract and
retain talent, female
participation in the labor
force.
 The size of the domestic
market is calculated as
the natural log of the
sum of the gross
domestic product valued
at PPP plus the total
value (PPP estimates) of
imports of goods and
services, minus the total
value (PPP estimates) of
exports of goods and
services.
 This is calculated based
on the local supplier
quantity & quality, State
of cluster development,
Nature of competitive
advantage, Value chain
breadth, Control of
international distribution,
Production process
sophistication, Extent of
marketing, Willingness to
delegate authority.
Scale
Data are then
normalized on a 1–7
scale
 1=worst, 7=best  1=worst, 7=best  1=worst, 7=best  1=worst, 7=best
 Among the 138
economies,
 High Score: 6.84
(Norway)
 Minimum Score: 2.00
(Yemen)
 Median Score: 5.33
 Among the 138
economies,
(Switzerland)
(Venezuela)
 Among the 138
economies,
(China)
(Gambia)
 Among the 138
economies,
(Switzerland)
(Mauritania)
Source: World Economic Forum

N10 Countries – An Overview
 South Korea, Indonesia, Mexico, Turkey, Philippines, Vietnam, Bangladesh, Egypt, Pakistan, Nigeria
7© 2016 Dragon Sourcing. All rights reserved.

Country Indicators
Score/
Value
Global Competitiveness Index
Score
5.0/7
Macroeconomic environment
Score
6.6/7
Labor Market Efficiency Score 4.1/7
Domestic market size index 5.3/7
Business Sophistication Score 4.0/7
Top Export Categories
HS
code
Electrical machinery and
equipment
85
Vehicles other than railway or
tramway
87
Industrial Machinery 84
Ships, boats and floating
structures
89
Mineral Fuels 27
Optical, photographic, medical/
surgical instruments
90
Plastics & Plastic Products 39
Iron and Steel 72
Organic Chemicals 29
Iron & steel products 73
South Korea
 Total exports (2015): USD 526.900
billion
 Major Import markets: China, USA,
Hong Kong, Vietnam, Japan
 Trade Balance (2015): USD 90.353
billion
Note: Score reading: 1-7 (best)
Economy Overview Trade Statistics Trade Agreement
Annual GDP Growth (%)
2015 2016 (E) 2017 (E)
2.6 2.8 3.1
 Total FDI in 2015: USD 5.042 billion
 EU, China, USA and Japan are the major
investors
 Metallurgical and automobile sectors
attracts more FDI
Country
Agreement
Arrangements
United
States
America
US-Korea Free Trade
Agreement (UKFTA)
European
Union
EU-South Korea Free
Trade Agreement came
into force completely on
December, 2015
Major Industrial Zone Locations
Source: worldbank.org, unctad.org, trade.ec.europa.eu, businesskorea.co.kr, dipp.nic.in
Seoul
Population: 50.6 millions
GDP: USD 1,376.9 billions

Country Indicators
Score/
Value
Score
4.5/7
Score
5.5/7
HS
code
Mineral Fuels 27
Animal or vegetable fats and
oils
15
equipment
85
Rubber & rubber articles 40
Precious Metals 71
tramway
87
Footwear 64
Wood & wood articles 44
Apparels & Products (Not
Knitted/Woven)
62
Indonesia
billion
 Major Import markets: Japan, USA,
China, Singapore and India
billion
2015 2016 (E) 2017 (E)
4.8 5.1 5.3
 In 2015, about 55% of the total FDI (USD
15.508 billion) was in Java region.
 Main invested sectors: Mining (16.4%),
Food industry (11%), Transport, storage
and communications (10.5%).
Country
Agreement
Arrangements
United
States
America
Indonesia is USA’s GSP
(Generalized Scheme of
Preferences) ‐ Eligible
Beneficiary
European
Union
Indonesia benefits from
EU’s Standard GSP
Preferences)
Source: worldbank.org, oecd.org, adb.org, indonesia-investments.com, unctad.org, ustr.gov, trade.ec.europa.eu
Jakarta
GDP: USD 859 billions

2015 2016 (E) 2017 (E)
2.5 2.5 2.8
Country Indicators
Score/
Value
Score
4.4/7
Score
5.0/7
Domestic market size index 5.57
HS
code
tramway
87
equipment
85
Mineral Fuels 27
90
Furniture 94
Precious Metals 71
Iron & Steel Products 73
Edible vegetables and certain
roots and tubers
07
Mexico
 About USD 30.284 billion was invested in
Mexico in 2015, of which around 53%
was by the US.
 Top sectors receiving FDI: Automobile,
financial services, telecommunication.
billion
 Major Import markets: USA, Canada,
China, Brazil and Colombia
 Trade Balance (2015): USD (-)14.482
billion
Country
Agreement
Arrangements
United
States
America
Trade agreement with the
US: NAFTA (North
American Free Trade
Agreement)
European
Union
EU-Mexico Global
Agreement.
Negotiations to modernize
their trade agreement
began in June 2016.
Source: worldbank.org, fas.org, ec.europa.eu, unctad.org, country.eiu.com, ampip.org.mx
Mexico City
GDP: USD 1,144.3 billions

Country Indicators
Score/
Value
Score
4.4/7
Score
4.9/7
HS
code
tramway
87
Precious Metals 71
Apparels & Products
(Knitted/Non-Woven)
61
equipment
85
Iron and Steel 72
Knitted/Woven)
62
Iron & steel products 73
Mineral Fuels 27
Turkey
billion
 Major Import markets: Germany, UK,
Iraq, Italy and USA
billion
2015 2016 (E) 2017 (E)
4.0 3.5 3.5
 Total FDI invested in 2015: USD 16.899
billion.
 The majority of FDI inflows to Turkey
come from Europe, North America, and
the Gulf countries.
Country
Agreement
Arrangements
United
States
America
Turkey is USA’s GSP
Beneficiary
European
Union
Turkey is member of the
Euro-Mediterranean
partnership (Euromed)
Source: worldbank.org, oecd.org, ustr.gov, ec.europa.eu, invest.gov.tr, unctad.org, invest.gov.tr
Ankara
GDP: USD 733.6 billions

Country Indicators
Score/
Value
Score
4.4/7
Score
5.9/7
HS
code
equipment
85
90
Ores, slag and ash 26
Ships, boats and floating
structures
89
tramway
87
Animal or vegetable fats & oils 15
Apparels & Products
(Knitted/Non-Woven)
61
Copper and copper products 74
Philippines
 A  Total exports (2015): USD 58.648 billion
 Major Import markets: Japan, USA,
China, Hong Kong, Singapore
billion
2015 2016 (E) 2017 (E)
5.8 6.5 6.2
 Japan and the US are the major
investors, while inflows are concentrated
in the manufacturing and the finance
industry.
Country
Agreement
Arrangements
United
States
America
Philippines is USA’s GSP
Beneficiary
European
Union
Benefits from EU’s Special
Incentive Arrangement for
Sustainable Development
& Good Governance,
('GSP+')
Source: worldbank.org, unctad.org, trade.ec.europa.eu, investphilippines.gov.ph, aseanbriefing.com
Manila

Country Indicators
Score/
Value
Score
4.3/7
Score
4.3/7
HS
code
equipment
85
Footwear 64
Knitted/Woven)
62
Apparels & Products
(Knitted/Non-Woven)
61
Furniture 94
Fish and crustaceans 03
Mineral Fuel 27
Coffee, tea, maté and spices 09
Leather Products 42
Vietnam
 A  Total exports (2014): USD 150.217
billion
 Major Import markets: USA, China,
Japan, South Korea, Hong Kong
billion
2015 2016 (E) 2017 (E)
6.7 6.1 6.3
 Major cities within Vietnam such as
Hanoi and Ho Chi Minh City attracts
major investments.
 Attractive sector: Manufacturing
Country
Agreement
Arrangements
United
States
America
US - Vietnam Bilateral
Trade Agreement
European
Union
Vietnam benefits from EU’s
Standard GSP
Preferences)
Source: worldbank.org, unctad.org, ec.europa.eu, vietnam-briefing.com, business-in-asia.com
Hanoi

Country Indicators
Score/
Value
Score
3.8/7
Score
4.8/7
HS
code
Knitted/Woven)
62
Apparels & Products
(Knitted/Non-Woven)
61
Made-up Textile Products 63
Footwear 64
Paper yarn, woven fabric 53
Raw hides and skin 41
Headgear 65
Leather Products 42
Tobacco 24
Bangladesh
Japan, South Korea, Hong Kong
billion
2015 2016 (E) 2017 (E)
6.5 6.3 6.8
 Textile and wearing and power, gas &
petroleum sectors have received highest
FDI.
Country
Agreement
Arrangements
United
States
America
Trade and Investment
Cooperation Forum
Agreement (TICFA)
European
Union
Bangladesh benefits from
EU’s special - Everything
But Arms (EBA) trade
arrangement.
Source: worldbank.org, unctad.org, trade.ec.europa.eu, worldstopexports.com, bb.org.bd, beza.gov.bd
Dhaka

Country Indicators
Score/
Value
Score
4.3/7
Score
4.3/7
HS
code
Mineral Fuel 27
equipment
85
Edible fruit and nuts 08
Knitted/Woven)
62
Edible vegetables, roots,
tubers
07
Apparels & Products
(Knitted/Non-Woven)
61
Precious Metals 71
Salt 25
Fertilizers 31
Egypt
 Major Import markets: Italy, Saudi
Arabia, India, Turkey, USA
billion
2015 2016 (E) 2017 (E)
4.2 3.3 4.2
 Oil sector attracts about 70% of the total
FDI
 UK, USA and UAE are the major
investors.
Country
Agreement
Arrangements
United
States
America
Egypt is USA’s GSP
Beneficiary
European
Union
Egypt is one of the
partners of the Euro-
Mediterranean Partnership
(Euromed)
Source: worldbank.org, unctad.org, trade.ec.europa.eu, ustr.gov, qizegypt.gov.eg, tpegypt.gov.eg
Cairo

Country Indicators
Score/
Value
Score
3.5/7
Score
3.8/7
HS
code
Cotton 52
Made-up Textile Products 63
Apparels & Products
(Knitted/Non-Woven)
61
Knitted/Woven)
62
Cereals 10
Leather Products 42
Salt 25
Raw hides and skins 41
Edible fruit and nuts 08
90
Pakistan
Afghanistan, UK, Germany
billion
2015 2016 (E) 2017 (E)
4.2 4.5 4.8
 FDI inflows to Pakistan increased by
31% to USD 1.7 billion as a result of
rising Chinese FDI flows in services.
 Oil & Gas sector attracts more FDI
 Lately, USA and Saudi Arabia has been
withdrawing its investments.
Country
Agreement
Arrangements
United
States
America
Pakistan is USA’s GSP
Beneficiary
European
Union
Benefits from EU’s Special
Incentive Arrangement for
Sustainable Development
&Good Governance,
('GSP+')
Source: worldbank.org, unctad.org, trade.ec.europa.eu, boi.gov.pk, ustr.gov
Islamabad

Country Indicators
Score/
Value
Score
3.4/7
Score
4.0/7
HS
code
Mineral Fuel 27
Cocoa & cocoa products 18
Oil seeds 12
Raw hides and skin 41
Aircraft, spacecraft 88
Aluminium & aluminium
products
76
Copper & copper products 74
Ores, slag and ash 26
Nigeria
 Major Import markets: India,
Netherlands, Spain, Brazil, France
billion
2015 2016 (E) 2017 (E)
2.7 0.9 3.5
 Many programmes has been introduced
to boost FDI, notably in agriculture,
exploitation and mining, oil and gas
extraction, and in the export sectors.
Country
Agreement
Arrangements
United
States
America
Nigeria is USA’s GSP
Beneficiary
European
Union
Nigeria benefits from EU’s
Standard GSP
Preferences)
Source: worldbank.org, unctad.org, trade.ec.europa.eu, allafrica.com, guardian.ng
Abuja

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wide range of industries
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DIY

Our clients are medium to large size corporations across a
wide range of industries
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