- Advanced APAC offers broad, robust growth environment for dynamic businesses
Region scores strongly in all categories except market growth
Advanced APAC economies offer dynamic businesses a sound, broad-based growth environment according to the Grant Thornton Global Dynamism Index (GDI) 2015. The region scores well in terms of business operating environment, financing environment, labour market and technology although it lags behind in market growth. Dynamism refers to the changes in an economy which are likely to lead to a fast future rate of growth
The GDI - which combines 22 indicators across five growth areas to identify the best business growth environments in the world - identifies Singapore as the most dynamic market globally. Though some APAC peers rank top 30, some have slipped in the rankings such as Malaysia (from 13 to 16) and Australia (from 1 to 3) and Vietnam at 28th (down 1 place).
If we consider the financing environment – which considers the financial regulatory system, access to capital, inward M&A deals, private sector indebtedness, inward direct investment and corporate tax burden –Vietnam ranks twenty-ninth globally, a drop of three positions. Malaysia slid from the sixteenth to twenty -seventh, Australia from eleventh to sixteenth. Japan (36) is the lowest ranking economy in the region. It is in the bottom five for financing environment and market growth. On the other hand, Singapore ranks the first globally and no lower than 25 in any growth area, highlighting its robust, broad-based offer to dynamic businesses.
The overview improves significantly for Vietnam when referring to labour and human capital
– which analyses labour productivity growth, unemployment, time spent in education, population – where Vietnam ranks seventh from top in the global ranking and fifth in APAC. Australia and Indonesia make the third globally.
Lastly, APAC countries rank surprisingly high in economics and growth – which includes real GDP growth, private consumption growth, stock market growth – holding the top ten positions of the global ranking, Malaysia ranks third, Vietnam rose to fifth, Philippines at sixth and Indonesia at eighth.
Kenneth Atkinson, Executive Chairman of Grant Thornton Vietnam), said: "Advanced APAC economies offer a good blend of sound growth fundamentals - alongside a productive labour force and a culture of investment in R&D”.
"Market entry decisions are some of the toughest a business leader ever has to face. There are so many factors - both known and unknown - to consider. Uncertainty about what lies ahead can make it hard to make the case for action to colleagues and funding partners, and to manage risk effectively”.