The United States continues its decline for the third year in a row, falling one more place to fifth position. In addition to the macroeconomic vulnerabilities that continue to build, some aspects of the United States’ institutional environment continue to raise concern among business leaders, particularly related to low public trust in politicians and concerns about government inefficiency. On a more positive note, banks and financial institutions are rebounding for the first time since the financial crisis and are assessed as somewhat sounder and more efficient.

Germany maintains a strong position within the Eurozone, although it goes down one position to sixth place, while the Netherlands (7th) improves by one position in the rankings, France drops three places to 18th, and Greece continues its downward trend to 90th. Competitiveness-enhancing reforms will play a key role in revitalizing growth in the region and tackling its key challenges, fiscal consolidation and persistent unemployment.

The results show that while competitiveness in advanced economies has stagnated over the past seven years, in many emerging markets it has improved, placing their growth on a more stable footing and mirroring the shift in economic activity from advanced to emerging economies.

The People’s Republic of China (26th) continues to lead the way among large developing economies, improving by one more place and solidifying its position among the top 30. Among the four other BRICS economies, South Africa (50th) and Brazil (53rd) move upwards while India (56th) and Russia (66th) experience small declines. Several Asian economies perform strongly, with Japan (9th) and Hong Kong SAR (11th) also in the top 20.

The following article by Ben Bland is a candid and comprehensive look at Vietnam's economy and the strain it is under. 
http://www.todayonline.com/Commentary/EDC111125-0000027/Vietnam-under-economic-strain

Here is an excerpt about the Thang Long Industrial Park:
The country's potential as a leading Asian manufacturing hub - and its pitfalls - can be seen at Thang Long Industrial Park, built on paddy fields outside Hanoi by Japanese conglomerate Sumitomo and its Vietnamese state-owned partner. Opened in 2000, it quickly attracted Japanese companies keen to capitalise on cheap labour and develop an alternative production base to China, increasingly prone to rising wages and outbreaks of nationalistic hostility.

The industrial park was full by 2009, with 55,000 people working for 95 mostly Japanese companies: Assembling printers for Canon, refrigerators for Panasonic and the wing flaps for Boeing 737s.

But persistently high inflation, today more than 20 per cent year-on-year, is taking its toll - in Thang Long and other industrial zones across Vietnam. At least 10 of the manufacturers at the park have been hit by wildcat strikes this year, according to Mr Tomoyasu Shimizu, its general manager, as migrant workers struggle to survive on wages as low as 2 million dong (S$124) a month.

Operating on slim margins, many factories are reluctant to boost wages - and are struggling to find workers. On the site's notice board, Canon is offering inducements such as 5kg of free rice a month and cheap accommodation. This is in addition to monthly wages of 2.9 million dong and a twice-yearly pay rise.

Excellent report from Oxford Economics commissioned by Northern Ireland Science Park regarding the knowledge economy in Northern Ireland.  The report covers the current situation and where it can go from here.  San Diego, California is used as a benchmark of how to grow a knowledge economy without massive amounts of government funding.
For an executive summary and full report Click Here.

Summary article of projected business travel costs for 2012.
 
North America and Europe will see modest increases while travel costs to and within Asia and Latin America will see increases of 5 - 10% on the high end.
For full article by American Express Global Business Travel, a division of American Express Company, Click Here.

King and Wood PRC Lawyers has published their September 2011 China Bulletin.  Of interest to those doing more than manufacturing in China, King and Wood has an article describing China's patent laws which require that reasonable remuneration be paid to employees who create patentable inventions during the course of their employment.  For full article Click Here. 

At Global Business Parks, we weigh the pros and cons between leasing land in a business or industrial park and doing so on an individual basis.  In general, by locating in an established business park where one may be able to talk with existing tenants about their experience, a company may be assured that their transaction is on the up and up.  Costs in such parks may be higher than outside a park but there are often other benefits such as shared infrastructure, fast-tracks to licenses and permits, other government support and shovel readiness.  Companies that are looking for larger tracts of land (50 - 100 acres+), however, may find it easier to work at the provincial level in order to find a suitable site. 
In any case, the following article by Bruce M. Boyd, Senior Counsel, King & Wood, Inc. highlights some concerns that effect land transactions in China and how title insurance may be able to mitigate some risk.
September 15, 2011
It is not uncommon for American companies to construct and develop manufacturing or R&D facilities in China or, in the case of a joint venture with a Chinese partner, to have the partner contribute its land and buildings to the venture.  Of course, in China the land itself is owned by the State, and therefore it cannot be owned, sold or transferred by private enterprises or individuals.  However, private parties can obtain land-use rights under Chinese law that are comparable to ground leases in the United States and permit the holder of these rights to improve the land for a specific period of time.  Where the land is improved for an industrial or commercial use, the land-use rights can be for a term of up to 50 years and the holder can in theory request an extension of that term.  Direct ownership of the buildings and fixtures constructed on the land is also permitted by law.  In the case of residential use, the term of the land-use rights can be even longer.

Unlike the United States, these land-use rights are not established or transferred by a deed or other form of conveyance between the parties.  Rather, the land-use rights are registered with the local land registry in China.  Ownership of the rights is determined by this filing and proof of the holder’s right to use the land for the permitted use is evidenced by a certificate issued by the state land office.  In the case of a later transfer of these rights, a new land-use certificate is issued.  China enacted a new law dealing with property rights, which became effective on October 1, 2007.  Among the changes made by this law, a procedure was established that allowed the holder of a land-use right or another “interested party” who disagreed with the information contained in the land-use certificate to petition for a correction.  In addition, if the aggrieved party disagrees with the corrections made to the certificate by the government that party can apply for a registration of its objections to the state’s purported corrections.
For full article on the Silicon Valley Bank website Click Here.

Thai investors remain wary of challenges in Vietnam
For full article in the Bangkok Post Click Here.
 
HO CHI MINH CITY : Thai investors that are still deciding whether to invest in Vietnam may be disappointed to hear a lot of other businesses from the region may have beaten them to the punch.

The newly launched Becamex department store is a smaller version of Bangkok’s Central Chidlom. Despite the efforts to lure Thai investors, very few companies have decided to take the plunge.

"There has been some interest from Thai companies to invest in Vietnam but very few have so far materialised," said Soraya Runkel, an executive at Runkel & Associates, which is advising Becamex, an investment body tasked with developing 38,000 rai of land within an hour's drive from Ho Chi Minh City.

Driving through the various phases of the industrial estate that is meant to be the showpiece of the current economic development programme, only a few Thai companies are visible _ Siam Cement Plc and agricultural conglomerate Charoen Pokphand Group.

Becamex is a state-owned but spun-off entity set up to develop infrastructure for Vietnam. The industrial estate in Binh Doung is one of its largest projects and a shift away from building roadways.

Becamex has been trying to invite foreign companies to undertake various projects but very little interest has been shown by Thai companies. Businesses from Singapore, Malaysia and South Korea have all taken the plunge to participate in the economic boom of Vietnam.
For full article in the Bangkok Post Click Here.

2011 HYSTA Annual Conference:
China, the Next Center of the Global Economy?
Saturday, October 1, 2011
Santa Clara Convention Center
For updated information, please visit http://www.hysta.org/ac2011/.
With the rising of the economic power of China, its impact on global economy has no doubt attracted great attention from all over the world. However, is China ready to become the next center of global economy? Industrial leaders, successful entrepreneurs, knowledgeable investors will come together to discuss that topic and explore opportunities with attendees at 2011 HYSTA Annual Conference.   This HYSTA flagship event also provides a platform for speakers and attendees to engage in productive exchanges and offers a great networking opportunity with peers.

Conference Program:
Track I: Innovation and Leadership with a Sino Flair
# China and Silicon Valley Startups - How are they different?
# China vs. US leadership and career opportunities: Where is the future brighter?
# From local imitators to global innovators: Where will Chinese companies take center stage?
Track II: The Great Wall of Capital
# Angels and VCs in China: Is the Correction Over?

# China IPO & M&A: Diamond or Rough?
# Chinese Green-tech and Biotech: The next investment boom?
Track III: China at the Heart of Today's Mega Trends
# Social media evolution in China and its global impact
# Smart Mobile: the billion mobile consumer opportunity
# China as a new leader in global outsourcing

HYSTA (Hua Yuan Science and Technology Association) aims to promote entrepreneurship and career development among Chinese professionals in Silicon Valley, and to facilitate networking and exchange of business ideas among successful Chinese entrepreneurs and executives in Silicon Valley and mainland China.

The GBIC~The Greater Burlington Industrial Corporation has a great compilation of the Providers, Programs and Services of Economic Development in Vermont
For PDF Click Here.

Topics include the following:
Existing Vermont Economic Development Programs, Resources, Incentives and Resource Partners
Financing:
Workforce Training:
Infrastructure Grants and Loans
Vermont Economic Incentives
Targeted Industry Sector Incentives
Vermont Economic Development Resource Partners
Workforce Education, Development and Training

The GBIC~The Greater Burlington Industrial Corporation
Frank Cioffi, President; Curt Carter, Vice President;
Seth Bowden, Dir. Business Development
P.O. Box 786  60 Main St., Burlington, VT 05402
Tel. 802.862.5726 Fax: 802.860.1899 ~ info@gbicvt.org www.gbicvt.org

SelectUSA seeks to highlight the many advantages the United States offers as a location for business and investment.  The following website is a good start to learn about incentives for business investment in each state.
SelectUSA Website