Amsterdam, Thursday, 26 October, 2006 - New research reveals more than 80 per cent of global companies are already investing in second tier emerging markets.

The research carried out by the Economist Intelligence Unit together with global credit risk manager Atradius, provides insight into opportunities in new investment destinations, including Vietnam, Indonesia, Poland, Mexico and the United Arab Emirates.

Over the last few years the size and potential of the BRIC markets – Brazil, Russia, India and China - has attracted the lion’s share of attention. But as these markets become saturated investors and multinational firms are looking to second-tier emerging markets that could offer even more potential.

The new research includes countries of South-East Asia, such as Vietnam and Indonesia; Eastern Europe, such as Poland and Romania; Latin America, such as Mexico and Venezuela; and countries of Africa and the Middle East, including South Africa and the United Arab Emirates.

The Asia-Pacific region (excluding India and China) is considered to have the greatest opportunity for foreign investors, with Eastern Europe, apart from Russia, not far behind. According to the report’s respondents, Vietnam has by far the most investment potential, followed by Mexico, Poland, Indonesia and Romania.

The research has been used in a report entitled Succeeding in Second Tier Emerging Markets. This report reveals that companies are looking at these markets more as long-term investments, helping to achieve growth rather than simply providing lower production costs.

The report highlights that improving relationships with local governments is felt to be the best way to manage risk, while poor rule of law and political instability remain significant barriers to investment. Also discussed in the report is the importance of credit management and other risk management techniques.

For any type of investment in second-tier emerging markets, executives will need to consider the following:

• Political and economic stability
• Cultural and social issues
• Maturity of capital and financial markets
• Corporate governance of local companies
• Existence of financial intermediaries, e.g. credit rating agencies
• Availability of talent
• Policies and attitudes towards foreign investors
• Taxation structures

The full report can be downloaded, free of charge, from www.atradius.com.

In addition, The Economist website is hosting a webinar, which will be available from Thursday 26th October. To register or listen to the webinar, please go to http://events.unisfair.com/econ/atradius/index.html. Experts on emerging market trade will debate the issues facing businesses trading or considering trade with the emerging markets. The panellists will be: Rob Mitchell, a senior editor in the Economist Intelligence Unit, Sunil S Poshakwale, Professor of International Finance at Cranfield University, and Dr Gaurav Ganguly, Senior Economist at Atradius.

The report and webinar debate will help companies weigh the advantages and disadvantages of operating in these markets. They will also provide valuable comparisons of and insight into individual second-tier emerging markets.

For further information, please contact:

Jeremy Francis
International Brand Manager
Phone: +44 (0)29 2082 4924
E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

or

Penny Clarke or Rebecca Baxter at Energy PR
Phone: +44 (0)1993 823011
E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it