Global Business Research
&
Analysis
402
(SEC 103)

Project # 1

June 8, 2012

Cover letter
7 Susan Street, Scarborough, Ontario, M1G1N6
Phone: 647-534-7155 cells: 647-534-7155 sugandeep88@yahoo.com June 8, 2012

Dr. Julie Nguyen
Centennial College
941, Progress Avenue
Toronto, Ontario
M5B1M4

Dear Professor:

I am happy to show you my research project on the topic “ Prospects of Canadian Trade and Investment with the Next Eleven”.

In the research I have shown that the economic growth of the N-11 countries is likely to increase on a large scale in the years to come. Most of the major countries of the world are focusing on investing in BRIC (Brazil, Russia, India, China) but they are least concerned in investing with the N-11. In my research i have shown that investing in N-11 can prove out to be very profitable. I have particularly focused the trade and investment relationship between Canada and one of the Next Eleven countries that is Vietnam. In my research you can see the raw and products that Canada is exporting to Vietnam. The GDP of Vietnam is increasing rapidly year by year. Canada export business with Vietnam is rising up as the time is passing by. Canada is exporting the products that Vietnam needs.

I have attached my research project paper along with this cover letter. I hope that my project will provide some value and knowledge about the subject though it being my first research project.

Thanking You

Yours sincerely
Canada Exporting and Investing in N-11 (Vietnam)

Abstract: -
In this research project, I would like to show how Canada is investing in the Next Eleven countries particularly Vietnam. There are many sectors in which Canada is investing in these countries. Some of the major sectors in which Canada is investing are agro food trade and industry. I would like to discus about the possibility of Canada to invest in the businesses in countries in Next Eleven. Nowadays the world is concentrating in trading and investing in BRIC (Brazil, Russia, India and China). At present the economy rate of BRIC is too high so all the major countries of the world are investing in these countries so as to get the maximum output and revenues. But they have forgotten that the GDP of the countries that comes under Next Eleven is going to reach heights in the 21st century. Investing in these countries can prove very successful in the years to come. In my research I would like to show in which industry or field Canada should invest so as to get the most out of it. There are many sectors in which a country should invest but there certain sectors like automobile industry, agro food, import export, food beverages (http://www.tradecommissioner.gc.ca/eng/offices-vietnam.jsp) and agriculture and forest industries. I would like to discuss the benefits for Canada in investing in food and beverages in the country like Vietnam.

Keywords: - BRIC, N-11, Food and Beverages, Vietnam, Trade, Investment

Introduction
“The Next Eleven” signifies the 11 countries that are very likely to be amongst the world’s largest economies in the 21st century. The countries that come under the “Next Eleven “ are the ones who have a possibility of high growth and investment. It is very likely that these countries can be amongst the economy dominated of the world. Other countries will be looking forward to open their businesses in these countries because they show very high potential of growth and revenue. The countries that are already developed are looking forward to expand their businesses in these countries because the likelihood that the companies will get profit in these countries is high. The factors that hold these countries strong are that these countries are open to trade, have strong political view and industry stability. The countries that come under the Next Eleven are: - * Bangladesh * Iran * South Korea * Vietnam * Mexico * Turkey * Philippines * Indonesia * Nigeria * Pakistan * Egypt

These Next Eleven countries consists the mixture of countries that are developed, the countries that are industrialized, countries that are developing and countries that are least developed. South Korea is the most developed country from rest of all the Next Eleven countries. South Korea has high level of income, high GDP, democratic and the markets are developed. Iran, Philippines, Turkey and Mexico come under the category of industrialized countries. The level of income economy in these countries is upper middle. Indonesia, Egypt, Nigeria, Pakistan and Vietnam are the developing countries. The country that is least developed country in the Next Eleven is Bangladesh.
Instead of focusing only in BRIC (Brazil, Russia, India and China), Canada should focus to do business as it has a very high probability of economic growth in the years to come. The following graph shows the increase in growth of BRIC and N-11

Literature Review: -
According to Goldman Sachs (2012), N-11 countries are the ones who are very likely to show growth in economy prospective in the years to come. The author says that nowadays all of the major countries are concentrating on BRIC. They are very less concerned the N-11. N-11 will show a massive growth in the trade and economy in the years to come. Gold tries to explain that investing in two speed world can prove out to be very helpful and profitable. By the word two speed world means BRIC and Next Eleven countries. According to his research it clearly shows that in the years to come, the N-11 and BRIC will be among the world’s strongest economy countries.

Canada exporting Food, Fruits, Meat and Poultry to Vietnam: -
Vietnam is amongst the fastest growing in terms of economies in the world. From last ten years, Vietnam has been expanding at an average rate of 7.2%. Vietnam also holds a key position as a strategic investment country for the betterment of cost effectiveness of the supply chains globally. Vietnam is one of the strong nations in the world who has a possibility that b the year 2020, its GDP is going to get double. If we compare it with India and Indonesia, the GDP of Vietnam will expand as twice as before. http://insightvietnam .wordpress.com/2011/02/11/vietnams-gdp-per-capita-growth-rate-2008-vs-2020/

There are many sectors in Vietnam in which Canadian companies are investing. Some of the sectors are education, training, forest industries, Information Technology, Food and beverages and agriculture. The major sector that Canada should concentrate with Vietnam is Food and Beverages. In the year 2008, Canada had a total export of near about $91.7 million in food and beverages. Vietnam is constantly importing foods and beverages from Canada as it turned out to be very successful in the market. The demand for the imported food has increased day by day in Vietnam. The quality of the food that is imported from Canada is good, safe and healthy.
Canada also exports meat and poultry to Vietnam there is high demand of meat and poultry. Vietnam wants good quality and hygienic meat. There is an increase in the supply of foods amd beverages as well as in meat and poultry. The following graph shows the constant increase in the export of meat and poultry to Vietnam

Lifting the barriers of the market of Vietnam: -
There were certain barriers to the market of Vietnam. Canada was successful in lifting up the barriers. Canada was able to raise the ban on beef’s heart, kidneys and liver and started trading all these. Vietnam also issued new and improved health certificates for the feather meals and for the poultry/ chicken industry. Canada’s fruits are very popular in Vietnam. Apples and cherries are the main fruits that Canada exports to Vietnam. The taste and quality of these fruits in Vietnam is as such that there is a huge demand in the markets of Vietnam. And the demand of the Canadian fruits is increasing day by day. Not only to Vietnam, Canada is exporting its fruits to almost all the countries that’s comes under in Next Eleven. Next Eleven countries are not very rich, they are middle-income level countries, and they require a lot of quality products and food. Canada is providing the same to them.:
After every interval of time Canada organizes various events and audits in order to make their trade stronger with Vietnam and amongst the countries in the Next Eleven.
The current market trend in Vietnam: -
In Vietnam, large firms produce very less proportion of the meat that is only 12% of the meat. The firms that are medium or small scaled produce the rest of the supply of the meat. Hence the meat that is produced in these small and medium firms is not of god quality and fresh. These industries are only concerned to sell their meat just for the sake of it. Only 12% meat that Vietnam is getting from larger reputed firms is healthy and of good quality. The government has done a research that majority of the people in Vietnam buy meat from the middle and small-scale firms. These firms do not meet the hygienic standards.
The industry of Livestock is very important to the rural area economy of Vietnam. It has a huge contribution towards the GDP that is 27%. The main source of food from the rural communities in Vietnam is livestock. It also helps to accelerate the capital.
Nowadays, as the wealth level of an individual is increasing day by day in Vietnam, people have stopped purchasing from the markets that provide unhealthy food and meat. Now people want more quality in what so ever food they eat. The demand of hygienic food in Vietnam is on its roll. These demands of consumers have given rise to a fear in the government that there is a possibility that the imports will get stimulated. The high rate of consumption of Vietnam and the growing GDP rate can be seen in the chart below:

As in order to fulfill the demands of the people, the level of import of the foods and beverages from Canada has increased. Canada is one of the countries of the world that focuses on the quality more than the quantity. The quality of the food that Canada produces is very safe and healthy. The fruits are properly examined, packed and Supplied by Canada to different places. Canada has certain quality standards through which every product it produce has to go through. Foods and Beverages are given to laboratories in order to meet the vitamin, mineral requirement of the product.

Opportunities in future in Vietnam and other Next Eleven countries: -
It is very likely that In the next coming 3-5 years there is a high probability that Canada will be able to trade their products with Vietnam and other countries as the pull of demand is likely to rise in that time period. There is an expectation that Canada can increase its supply of the food and beverages, poultry and the meat to these countries. If Canada will take full out of this opportunity then they will be able to compete with these countries commodity market. These commodity markets are extremely price focused and likely to be continuing in future also. Canada has the potential and works with a strategy and is able to make strong links to the markets of N-11.
Apart from such exports to N-11, Canada should also focus in investing in some other fields that are environment friendly and provide good for Canada and other countries as well from the economic growth point of view. There are other sectors also like merchandise industry, telecommunication, automobile industry that needs concentration. According to the research, there is a demand of food and beverages in N-11 countries, but there are other sectors also that can provide good output.

Research limitation: -
The research that I have done for this project may have certain limitations. I have taken references from certain internet sources that may not be 100 percent authentic. I have had questionnaire with certain people regarding the project those who are in the import export field, it is possible that they have or they don’t have the exact knowledge about the subject. . I have taken some material from the books from the library. I explored certain newspapers regarding imports in Vietnam on the internet. The main limitations are the people from whom I have asked about the information and the internet.

Conclusion: -
According to me, Canada should not invest in the meat, poultry and food but also in other major sectors in which N-11 sectors are short of. There are certain areas like automobile industry, chemical industry and oil. As N-11 is a group of countries that does not really have high level of income Canada should try to invest in planting large businesses in such countries so as to give employment to the people there. One of the major section in which N-11 countries lack in is Education. Canada should invest in education institutes so as to give the people in N-11 professional knowledge and guidance. From the business point of view, Opening new colleges and school in N-11 can prove out to be a profitable business.

Bibliography: -

1. Sachs, G. (2011, october). Investing in two speed world. Retrieved from http://www.fidelity.com.sg/pdf/market_commentaries/2011-10-05The2SpeedWorld.pdf 2. Vietnam’s gdp per capita growth rate 2008 vs. 2020. (2011, february 11). Insight Vietnam. [Audio podcast]. Retrieved from http://insightvietnam.wordpress.com/2011/02/11/vietnams-gdp-per-capita-growth-rate-2008-vs-2020/ 3. Government of Canada, The Canadian Trade Commissioner Service. (2011). An investment guide to vietnam. Retrieved from website: http://www.tradecommissioner.gc.ca/eng/document.jsp?did=91398&cid=539&oid=852 4. Government of Canada, Cosnulate General. (2011). Canada–vietnam relations. Retrieved from website: http://www.canadainternational.gc.ca/vietnam/bilateral_relations_bilaterales/index.aspx?lang=eng&view=d 5. The next 11 emerging economies. (2008, February 04). Retrieved from http://blog.euromonitor.com/2008/02/the-next-11-emerging-economies.html 6. Stanton. The embassy of Canada in Vietnam, Regional Agro-Trade Officer Commissioner. (2010). Retrieved from website: https://docs.google.com/viewer?a=v&q=cache:22vLYwm8HXMJ:www.ats-sea.agr.gc.ca/ase/pdf/5682-eng.pdf canada exporting meat and poultry to vietnam&hl=en&gl=ca&pid=bl&srcid=ADGEEShoZVhhZbOnmbzLkd7UAYX-wkkwVoxrPnyg3Y_NbLrE7kQh-wesGWTP3o0ZSTqUEyBd3iQ9gy2vJwtYz304H_E2xsS4qy5mYs1zpc9b9I0qS1vDi2ghDSixb6_DROSfUobtThBZ&sig=AHIEtbSrSTqSTq1V9fPTe-hygIHv-ktBmQ 7. STOYAN BOJINOV. (2010, November 23). Etfs for the “next 11″ economies. Retrieved from http://etfdb.com/2010/etfs-for-the-next-11-economies/ 8. Michael Viberg Pedersen. (2011). World of opportunities bric & n-11. Retrieved from http://webcache.googleusercontent.com/search?q=cache:y6Gv4O7T_GUJ:www.hubnorth.dk/Files/Billeder/HubNorth/V1/Aktivitet/DIBD%20at%20Hub%20North%2014%20MAR%202011.pdf bric and n11&cd=4&hl=en&ct=clnk&gl=ca 9. Agriculture and Agri-Food Canada, Agricultural Department. (2009). Canadian confectionary industry. Retrieved from website: http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171977485451&lang=eng 10. Vietnam's prime minister to deliver keynote address at vietnam-canada business forum in toronto. (2005, June 24). Retrieved from http://www.asiapacific.ca/taxonomy/term/2047?page=3 11. Goldman Sachs. (April 2011). Fundamental equity market insights. Investing in N-11, 1. Retrieved from https://docs.google.com/viewer?a=v&q=cache:MyL2qbqggzsJ:www.goldmansachs.com/gsam/docs/funds_international/education/articles_and_whitepapers/fe_mrktinsights_investing_in_the_n-11.pdf gdp of n-11&hl=en&gl=ca&pid=bl&srcid=ADGEESiZjtymnov6IZo3GnReRn8g7SHba4cotnI8l8C-2ky1qY5nc7pHIZm6KaKPTA-XjBRmq75QGnsfw7jpD0eioXQlyGVS8M24QhubiTQ_G1Sd2c1IZTqqlLfqmveYhbEfUG_x54wk&sig=AHIEtbTDzlSW2iMszJN6sVmql9utYyyvBg 12. Cbc news: Canadian breeding cattle again allowed into vietnam. (2011, August 14). Retrieved from http://www.cbc.ca/news/canada/story/2011/08/14/canada-vietnam-cattle.html 13. Chaovietnam - welcome to our vietnam database. (2008). Retrieved from http://chaovietnam.weebly.com/market-trend.html

Marking Rubric for Individual Report: Criteriononsetation points Timesness reportaphs, APA styles, that they are good sources.rt). final version, etc | A-level | B-level | C-level | D-level | Unsatisfactory | Mark | Abstract and key words | Clear, concise, and effective | Clear and effective | Clear, could be more effective | Not very clear | Inadequate | /3 | Background (literature review) | Excellent | Good | Adequate | Acceptable | Unsatisfactory | /2 | Data analysis and interpretation; Business implications | Excellent | Good | Adequate | Acceptable | Unsatisfactory | /3 | Use of professional sources | Uses professional sources extensively and effectively | Uses professional sources sufficiently | Uses professional sources adequately | Uses some professional sources | Does not use professional sources | /2 | APA format; References | Documents sources using APA format precisely throughout | Documents sources using APA format with a few errors | Documents sources using APA format with many errors | Does not use APA format adequately | Does not use APA format | /2 | Writing effectiveness | Writes clearly, concisely and effectively | Writes clearly, and effectively, with only a few errors | Writes clearly and concisely, with many errors | Writing is unclear, with too many errors | Writing is unclear and unfocused, with many serious errors | /3 | Total: | /15 |