FSG’s analysts are constantly speaking with senior executives in emerging markets and staying on top of the latest headlines from around the world. In this week’s Emerging Market View, our analysts have flagged several articles worth noting for the emerging market executive.
Vietnam is in the latter stages of a structural slowdown and recent unrest in the country has only exacerbated the impact on MNCs. Adam Jarczyk, Practice Leader for Asia-Pacific, read Bloomberg’s article on the Anti-China riots in Vietnam and notes that, “Although protests in Vietnam certainly give grounds for concern, Hanoi should be better prepared to handle them in the future. The government does not want public anger shifting from external actors to internal ones, so it will try to establish more robust security measures as soon as possible. The next time protests begin building, Vietnamese officials should be better equipped to contain them.” Adam went on to say in another Bloomberg article that “the Vietnamese government must prepared for future protests to limit any further “collateral damage” to Hong Kong, Taiwanese and Singaporean companies. The Chinese government would probably continue pressing its territorial claims in the South China Sea. Unless Beijing deviates from its current pattern of behavior, we are likely to see more conflict erupt off of Vietnam’s shores and more anti-Chinese protests break out in Ho Chi Minh City.” For more information on how to best handle your market approach in Vietnam, FSG clients should contact their account manager for more information.
Lauren Goodwin, Senior Analyst for Western Europe recently read The Economist’s Bumpkin Bosses, an article that, “highlights why FSG’s pieces on talent management and managing local competition in Sub-Saharan Africa are so urgent in ensuring companies are getting the most from their markets. Only 12% of the Fortune Global 500 are led by a non-native CEO, and MNCs are losing ground as a result: MNCs increased profits in EMs by an average of 15% per year between 2005 and 2010, compared to local companies’ 23%.” FSG’s Head of Sub-Saharan Africa, Anna Rosenberg, also made note of this trend in February’s blog post Five Trends That Will Impact Your SSA Business in 2014, and was also featured on CNBC discussing the rise of emerging market competitors in SSA .
It’s not just foreign competitors that are on the rise either. “As emerging market consumers continue to gain higher levels of disposable income, the traditional concept of the market pyramid begins to shift to the paradigm of a “Market Diamond”, as the middle-class surpasses the lower-class in terms of sheer quantity,” notes Sam Osborn, Practice Leader for FSG’s Global Analytics after reading The Street’s article on how to profit from the coming flood of emerging markets consumers. For more information on how to tap this burgeoning opportunity, refer to FSG’s report on Winning The Race For The Middle Diamond.
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