Turkey aims for a fair share of FDI with new cities branding project
From the change of COVID-19, the production trend in the neighboring regions of Turkey will become more prominent in the immediate future, and the country is therefore ready to strive to attract its fair share of global investments in the production and industry, the Association of Independent Industrialists and Businessmen (MÜSIAD) President Abdurrahman Kaan said on Wednesday.
Kaan was speaking at a press conference organized to present MÜSIAD’s new roadmap as well as to assess economic and political developments, with particular emphasis on a new project for the development and enhancement of cities with original values. .
Kaan, commenting on the prospect of increased production in the region, said two major companies, one from the United States and the other from Pakistan, both currently operating in China, wish to produce in Turkey.
“An American investor has an investment of nearly 90 billion dollars in China with a turnover of approximately 25 billion dollars. We are currently in negotiations. This investor wants to transfer some of its production in China to Turkey, ”he said, adding that the other company, which is a Pakistani company in China that produces cards and chips, also wants to invest in Turkey.
There are a lot of businessmen in the Middle East who want to invest in Turkey, Kaan said, noting that these should not be valued only as an investment but rather as an investment, production and trade as a whole.
Stating that Turkey has not been able to realize its potential in recent years, especially in terms of foreign direct investment, Kaan said: “Although 2020 has been a year that has seen a decrease in investment in the around the world, the reopening of economic activities and trade is evolving. towards developing countries, when Turkey, unfortunately, does not have its fair share.
Kaan noted that 70% of global direct investment went to developing countries while Asia received around $ 476 billion, with China holding the market share both in the region and globally in 2020. .
Speaking of the decline in foreign direct investment around the world in 2020 due to the pandemic, Kaan said Turkey only received $ 6.8 billion last year. The most recent major investments were an investment from London-based companies and the purchase by Qatar of 10% of the shares of Borsa Istanbul.
“We can say that investments have completely stopped from 2021,” he added.
Kaan said that a new era has started in the world and the concept of investing has changed.
“Unless we follow this change well and establish the right investment network in the world, unfortunately I think our current situation in terms of direct investment will not be sufficient and it will trigger the melting of our national capital stock, ”he said. The country should adopt the logic of making Turkey the global investment market and creating an extensive investment network, he said, and this is a perspective that must be embraced by all parts of the country. , from political actors to the business world.
4 criteria for a new era
Explaining their work on how to attract capital to Turkey, Kaan said that an investor first begins by researching the regions where it will be most beneficial for its production.
The quality of the workmanship, the installation costs and the necessary procedures are factors that are evaluated by a potential investor. Other factors include cost optimization, reassuring legal procedures and infrastructure that will not cause problems in time.
Emphasizing the concept of diaspora investment and diplomacy, Kaan said, “Ensuring sustainability of investment is both a state strategy and a strategic cooperation that industrial organizations will jointly undertake. Certain criteria are essential for the new period. These are structuring in the form of branches. In each country ; managing investments from a single source; the economic and commercial intelligence system; and the hunt for investors, ”he said.
The brand image of cities
The MÜSIAD chair also explained an investment network project entitled “Development and branding of cities with their own values”, which will encourage the production of assets and capital with high added value.
Noting that they found it appropriate to run the two models most compatible with the country in the literature review they did at the start of this project, Kaan went on to explain, “One of them is “Measuring city performance with 6 criteria” classifying cities into six different categories, also called 6P, and comparing the unique qualities of cities to each other through these criteria. It is about making a comparison between the assets of cities in the same categories and the value they produce, and allowing the city that produces the least value to reach the level of the other city with the same assets. and determine the roadmap necessary to achieve it.
Kaan noted that the second most compatible model for Turkey is the “Comprehensive Model of Cities according to the World City Index”.
“In this model, cities are divided into two groups as excellent cities and rapidly developing cities. Rapidly developing cities rise to a higher level under four sub-criteria. Perfect Cities, on the other hand, group cities together where the five basic criteria such as vitality of business life, human resources, exchange of information, cultural experience and engagement in life politics are the most common. is, to be matched, is determined with various sub-criteria.
“We have benefited from the basic elements of both models while building the infrastructure for our work and planning our action,” he said, as they matched Turkey’s 81 provinces with cities around the world in based on the value they create.
Kaan pointed out why the city’s brand and this match is important to Turkey.
“Positioning our cities in the new world will be easier and more efficient than positioning the state. In the future, cities, not states, will be in competition. If we develop similar inputs with efficient investments and business models, ”he said, for example, Aydın – a city in southern Turkey -“ will be positioned in the global economy as a city with the same added value than Bordeaux, France. “
“Understanding and assimilating the entrepreneur will in fact be a positive gesture to embrace the city and accelerate investments there. Although our cities have the same strengths as their peers in the world, unfortunately the expected return cannot be achieved and the potential capacity of the city is wasted because they cannot use their capacities by focusing on the right areas. “, did he declare.
Kaan pointed out that this project will boost city economies by evaluating Turkish cities and their overseas counterparts.
Kaan, who gave information on the details of the project, said that, for example, Isparta, a city in the south-central part of the country famous for the production of roses, will be a city for cosmetics; Burdur in the south will be a city of marble production, medicinal aromatic plants and breeding; Erzurum in eastern Anatolia will be a city known worldwide with winter tourism; Afyon in west-central Turkey will be a popular city for spa tourism, southeast Gaziantep for gastronomy, Istanbul for finance and western Izmir for agriculture.