Trade Horizons’ Market Entry Blog

£50 million in funding is available for innovation in four key areas of manufacturing. The Government is funding £11 million through the Advanced Propulsion Centre in the Advanced Route to Market Demonstrator competition (ARMD2) for innovative ideas in electric motorcycle and emergency vehicles with £22.7 industry matched funding. The Centre for Connected and Autonomous Vehicles (CCAV) is funding 43 companies £18.5 million including those which innovate in self-driving vehicles and sensors. The Faraday Institution through Innovate UK is funding £19 million of ideas in four battery research and innovation projects.

Vietnam’s Prime Minister visited the US last week with a view to attracting FDI into Vietnam in the technology and innovation sectors. Various Vietnamese Government sub-departments have signed MoUs with US organisations such as Synopsys and Cadence Design Systems which are both semiconductor chip design companies. In addition, an MoU was signed with Arizona State University which focuses on ‘information sharing’ and educational programs in the semiconductor and related fields. The US is Vietnam’s largest foreign investor with a total of 17% share. A new research 5-hectare centre is being built in the Hanoi region. Recently the US and Vietnam have upgraded trade relations to ‘Comprehensive Strategic Partnership.’ In 2022 China was Vietnam’s top trading partner with bilateral trade at USD$176 billion followed by the US with $124 billion, South Korea with $86 billion and Japan at $48 billion.

Vietnam’s Prime Minister visited the US last week with a view to attracting FDI into Vietnam in the technology and innovation sectors. Various Vietnamese Government sub-departments have signed MoUs with US organisations such as Synopsys and Cadence Design Systems which are both semiconductor chip design companies. In addition, an MoU was signed with Arizona State University which focuses on ‘information sharing’ and educational programs in the semiconductor and related fields. The US is Vietnam’s largest foreign investor with a total of 17% share. A new research 5-hectare centre is being built in the Hanoi region. Recently the US and Vietnam have upgraded trade relations to ‘Comprehensive Strategic Partnership.’ In 2022 China was Vietnam’s top trading partner with bilateral trade at USD$176 billion followed by the US with $124 billion, South Korea with $86 billion and Japan at $48 billion.

Vietnam’s Prime Minister visited the US last week with a view to attracting FDI into Vietnam in the technology and innovation sectors. Various Vietnamese Government sub-departments have signed MoUs with US organisations such as Synopsys and Cadence Design Systems which are both semiconductor chip design companies. In addition, an MoU was signed with Arizona State University which focuses on ‘information sharing’ and educational programs in the semiconductor and related fields. The US is Vietnam’s largest foreign investor with a total of 17% share. A new research 5-hectare centre is being built in the Hanoi region. Recently the US and Vietnam have upgraded trade relations to ‘Comprehensive Strategic Partnership.’ In 2022 China was Vietnam’s top trading partner with bilateral trade at USD$176 billion followed by the US with $124 billion, South Korea with $86 billion and Japan at $48 billion.

Interest rates impact FDI because high interest rates mean debt becomes more expensive. Expensive borrowed capital may lead to borrowers being discouraged due to higher costs. As the cost of greenfield projects increase, less foreign investors may pursue an interest or wait until the cost of debt decreases, when the project may become more affordable to complete, and yield a higher return of investment. Currently, interest rates are at record highs globally to stem inflation which is also at record breaking levels. One major source of FDI is expansion of existing projects. With higher interest rates and higher financing costs, extension or increased investment may not be viable or paused until the cost of debt decreases. Interest rates are expected to decrease in 2024.

The UK Foreign Secretary James Cleverly recently travelled to Ankara Turkey to discuss a refresh of the UK Turkey free trade agreement signed in 2020 which currently only covers goods. UK Turkey bilateral trade in 2022 was worth almost £24 billion in the four quarters to 1Q23. and is up around 20% year over year. UK exports to Turkey are around £9 billion whilst UK imports from Turkey are around £15 billion. Turkey’s top export good to the UK is vehicles, machinery and textiles. UK’s top exports to Turkey are gold, combustion engines and metal. The Turkish press release mentioned the new agreement would be focused on digital trade and services. Turkey is the UK’s 18th largest trading partner.