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World's top 20 investment hotspots
India has emerged as one of the top five investment destinations in the world, primarily on account of its large market and high customer potential, according to BDO Global Market Opportunity Index.
The consulting firm BDO Global Market Opportunity Index 2012 covered more than 1,000 senior finance officers spread across 14 countries, including India, the US and the UK.
The survey examines the views of the company's finance chiefs to expand in specific countries. The index was created from CFOs' stated intention to expand in specific countries.
Notwithstanding bullish business prospects, the survey also said that India is perceived as a risky place to make investments.
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World's top 20 investment hotspots
China
2012: Rank 1
2011: Rank 1
Score: 251
China remains the top investment destination for the third consecutive year.
Over half of Chinese CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful, over a third are neither optimistic nor pessimistic.
Chinese CFOs are more willing to take risks as part of their business expansion: 46% agreed that they were 'willing to take major risks when expanding abroad' (compared to 28% overall).
(Score: The arithmetic mean is based around 100 being the average intention to expand to all 20 countries listed.)
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World's top 20 investment hotspots
United States
2012: Rank 2
2011: Rank 2
Score: 212
Around 82% of US CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful, above the global average of 72%.
US CFOs are less likely than most of their international peers to agree that 'a difficult economy at home has forced my company to look abroad' and are also less likely to agree that 'recent unrest in some countries has changed their company's international plans'.
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World's top 20 investment hotspots
Brazil
Three quarters of Brazilian CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful.
They are also more likely to say that conducting business abroad has become easier over the past three years
Three quarters of Brazilian CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful, on par with the global average.
They are also more likely to say that conducting business abroad has become easier over the past three years.
2012: Rank 3
2011: Rank 6
Score: 198
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World's top 20 investment hotspots
India
2012: Rank 4
2011: Rank 4
Score: 158
The survey attributed India's appeal as attractive investment destination to its large market size, customer potential and cheap labour.
About India, the survey said that the professional services and technology, media and telecoms (TMT) sectors are driving investment in the country.
Besides, planned investment in India is fairly consistent as 32 per cent of Chief Financial Officers (CFO) surveyed in Saudi Arabia expect to enter this market.
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World's top 20 investment hotspots
Germany
2012: Rank 5
2011: Rank 3
Score: 147
Nearly three quarters of German CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful, on par with their overseas peers.
A quarter feel that it has got easier to conduct business abroad than three years ago, although nearly a third think it has got more difficult.
German CFOs seem somewhat more risk averse than their overseas peers. They are less likely to agree that 'we are willing to take major risks when expanding abroad' (12% compared to 28% overall) and less likely to agree that 'the rewards when expanding abroad outweigh the risks'.
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World's top 20 investment hotspots
Russia
2012: Rank 6
2011: Rank 8
Score: 108
The number of CFOs investing or planning to invest in the BRIC countries has sharply increased.
Although over half (54%) of Russian CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful, this is less than the global average of 72%.
Russian CFOs are more likely to think that it has got harder than easier to conduct business abroad over the past three years – 14% think it has got easier (compared to 21% overall) and 32% think it has got more difficult (compared to 28% overall).
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World's top 20 investment hotspots
United Kingdom
2012: Rank 7
2011: Rank 5
Score: 104
CFOs in UK (82%) are optimistic that their companies' international expansion plans in the next year will prove to be successful, above the global average of 72%.
However, they are less likely than most to feel that it has become easier to conduct business abroad over the past three years, and an equal proportion think it has become more difficult.
For CFOs in the UK the biggest risk when expanding abroad is deemed to be currency fluctuations, seen to be a risk by 33%, well above the next perceived risk of the economic slowdown, given by 20%.
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World's top 20 investment hotspots
Australia
2012: Rank 8
2011: Rank 11
Score: 77
Australia is seen as a relatively attractive investment destination when CFOs are asked their intentions towards it: 6% expect to enter the Australian market, 15% expect to increase their investment in Australia, and 12% plan to keep their investment the same.
The global economy is seen to have an ongoing impact on the ability of Australian companies to expand abroad, with 83% of CFOs saying the global economic slowdown will have an impact, 63% the eurozone crisis and 62% the likelihood of a double dip recession.
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World's top 20 investment hotspots
United Arab Emirates
2012: Rank 9
2011: Rank 9
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World's top 20 investment hotspots
Mexico
2012: Rank 10
2011: Rank 13
Score: 77
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World's top 20 investment hotspots
Indonesia
2012: Rank 11
2011: Rank 14
Score: 73
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World's top 20 investment hotspots
Canada
2012: Rank 12
2011: Rank 10
Score: 71
Canadian CFOs are generally more optimistic than their peers overseas that their international expansion plans will prove to be successful – 84% are optimistic compared to 72% overall.
Canadian CFOs seem to be slightly less reliant on overseas expansion than their international peers.
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World's top 20 investment hotspots
France
2012: Rank 13
2011: Rank 7
Score: 67
Just over half of French CFOs are optimistic that their companies' international expansion plans in the next year will prove to be successful, well below the global average of 72% - and only 4% are very optimistic (compared to 24% overall).
French CFOs have seen an average of 6% increase in their companies' international revenues in the current financial year over last year, just under the global average of 9%.
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World's top 20 investment hotspots
Argentina
2012: Rank 14
Score: 66
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World's top 20 investment hotspots
South Africa
2012: Rank 15
Score: 65
CFOs in South Africa are the most optimistic amongst their overseas peers that their companies' international expansion plans in the next year will prove to be successful (90% compared to 72% overall).
However, they are divided as to whether it has become easier or harder to conduct business abroad over the past three years.
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World's top 20 investment hotspots
Italy
2012: Rank 16
2011: Rank 18
Score: 63
World's top 20 investment hotspots
Singapore
2012: Rank 17
Score: 54
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World's top 20 investment hotspots
Thailand
2012: Rank 18
Score: 54
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World's top 20 investment hotspots
Poland
2012: Rank 19
Score: 54
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World's top 20 investment hotspots
Vietnam
2012: Rank 10
Score: 51