Report also predicts growth in Vietnam investment
Global property prices will likely enter a phase of correction as Japan and Europe are trying to tighten their monetary policies by raising interest rates, according to a South Korean research institute. Samsung Economic Research Institute said in a report on January 10 that interest-rate hikes in Japan and Europe and the subsequent contraction in liquidity will put pressure on global asset prices to deflate. The report, named ‘Top 10 Global Trends in 2007,’ also predicted a ‘decoupling’ among the world’s three economic blocs - the U.S., Europe, and Asia - saying economic growth engines are diversified into Europe and Asia beyond the U.S. India and Vietnam were cited as new investment destinations for multinational companies. The Chinese market is losing its attraction amid fierce competition and a rise in value of the Yuan, the report said. Multinational companies have announced plans to build their manufacturing hubs in Vietnam, which is emerging as the most promising site in the so-called policy of "China-plus-one," referring to the fact that investors now balk at solely investing in China, and are now also looking to other Asian countries.Currently, developing countries such as China and India account for 6 percent of the global population’s middle class. By 2030, this figure is expected to rise to 40 percent, the report said. The report urges South Korean companies to try to cope with the new generation of consumers in developing markets as well as a rise in elderly consumers in developed nations. Please direct questions or comments to [englishhani@hani.co.kr]
