HCM CITY — Despite the global economic slowdown, companies operating in international markets are doing better than those focusing on domestic markets in all major economies, with the exception of China, a new survey has found.
Carried out by Regus, a Belgium-based provider of workspace solutions, the survey covered more than 12,000 firms worldwide.
The survey findings indicate that foreign expansion is good for business and should be considered urgently by domestically-focused companies who do not want to be left behind in fiercely competitive markets.
It said the survey found "a gulf between the outlook of companies already operating internationally – where 80 per cent intend to expand still further – and those solely operating in home markets – where only 42 per cent intend to expand abroad over the next few years."
The findings of the worldwide survey emphasize that "property" and "human resource" are seen the main obstacles in expanding operations to foreign markets..
William Willems, deputy general director of Regus in Australia, New Zealand and Southeast Asia, said the survey should serve as a wake up call for firms focused solely on domestic markets to "find effective and cost-efficient ways of moving cross-border in order to enhance their earnings and spread their risk."
In China, the only exception to major economies in the world, state-sponsored infrastructure investment and development is providing "disproportionate" domestic market opportunity for Chinese firms.
Nevertheless, such infrastructure development would ultimately turn out to be finite, and into the next decade, Chinese firms could to once again be looking for export-led growth.
In Viet Nam, export activities had seen fruitful results in the last year. In the context of rapid international economic development, it was not too difficult for Vietnamese businesses to expand operations to foreign markets, he said. — VNS