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Six Southeast Asian Countries Offer the Most Promising Investment Opportunities for Australian Businesses
Six countries in Southeast Asia offer the most attractive investment opportunities for Australian businesses
Released Monday, July 20, 2015
Researched by Industrial Info Resources Australia (Perth, Australia)--Energy demand in Southeast Asia will increase by more than 80% between now and 2035. As a result, the region is one of the most active areas for offshore oil and gas exploration in the world. As the Australian economy continues to wind down, the great industrial potential within Southeast Asia presents a number of opportunities for Australian businesses seeking new markets. Although emerging markets present risks and opportunities, Industrial Info's data shows that the following countries are the most promising.
Myanmar
After 60 years of isolation, Myanmar is rapidly opening itself up to foreign investment. However, an antiquated financial system, poor infrastructure, an unskilled labor force, and a lack of hard in-country data present substantial challenges for doing business in Myanmar, which is said to be rich in natural resources. Industrial development within the country is in its infancy, with Industrial Info tracking more than $2.28 billion of planned capital spending within the Oil & Gas and Metals & Minerals sectors combined. This data provides an insight into recent developments that signal some stability emerging within the country--and a greater opportunity to do business there.
The Philippines
The Philippines likely will remain a small producer of oil and gas in the near future, particularly as exploration and development activities offshore have been suspended by the government as a result of ongoing territorial disputes with China. Nevertheless, a respectable $11.61 billion of planned project spending has been forecast for the country's oil and gas sector. Although Industrial Info predicts growth in the Philippines' oil and gas reserves will remain stagnant in the foreseeable future owing to the limited number of discoveries made, there is no question that its territory contains vast energy reserves to be explored and developed.
Thailand
According to the Australian Trade Commission, "Australia's trade and economic relationship with Thailand has grown strong since entry into force of the Thailand-Australia Free Trade Agreement." The country's oil and gas industry is well established, and is said to be one of the most advanced industries when compared with other nations in the region. Thailand has more than 38 operational production plants and 77 unique, operational terminals that provide insight into the strength of its oil and gas industry. The sector continues to attract major investment despite the unsettled political situation within the country, with Industrial Info projecting $4.7 billion of planned capital expenditures within oil and gas alone.
Vietnam
Vietnam was recently ranked as the top destination for attracting greenfield foreign direct investment. Reasons for this might include the country's low labor costs, a well-educated workforce, and changes to governmental policies--such as allowing foreign ownership of larger corporations and major investment in infrastructure. Vietnam represents one of the strongest performers in the region, with a good outlook for its capital spending. Metals and Minerals dominates the capital spend forecast with $42.73 billion being invested in 249 planned projects--52 of which are already in the engineering or construction stage. However, oil and gas is also a strong industrial performer, with data showing $9.77 billion in planned capital spending spread across 52 projects.
Malaysia
Positioned between the economic powerhouses of Thailand and Vietnam, Malaysia has generally been regarded as one of Asia's success stories. A significant oil and natural gas producer, its strategic location amid vital sea lanes has led the government to make a commitment to open new investment opportunities in oil and gas activities by focusing on development and exploration endeavors in deep water areas offshore of Sarawak and Sabah. Indeed, more than $18.47 billion has been invested into 120 new capital projects within the Oil and Gas Industry already. Industrial Info has flagged 14 of these projects to be completed between now and January 2016.
Indonesia
Indonesia is Southeast Asia's largest economy, and with an estimated 252 million people, it is also the world's fourth-most populous country. Recently, Indonesia Energy and Mineral Resources Minister Sudirman Said commented that investors from Oman have expressed a desire to invest more than $7 billion in oil and gas projects throughout the country, highlighting Indonesia's economic opportunities. This would be in addition to the 119 capital projects already planned for the oil and gas sector, with a total investment value of more than $57.5 billion. Indonesia has abundant natural resources, and it is expected that the country will attract major investment into the economy over the next decade, despite the substantial risks involved.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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