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The CIS, Middle-East and Africa feature an expanding labor market and consumer base, abundant resources as well as wages that are very low. These regions are also projected to grow immensely in the next 3 to 5 years as a result of such factors as growing demand for the expansion of infrastructure.
These regions are going to be what Japanese will think of as the NEXT ASEAN. These markets will be the key to Japanese corporate success in the future and companies are starting to have no choice but to think about how they will move into the region from a strategic standpoint.
In recent years these emerging countries (or the NEXT ASEAN as we call it), are now entering the sights of Japanese companies who have been expanding into Turkey in order to get to these markets.
Turkey will not just be a door to Europe in the coming years; it is project to evolve as the gateway through which Japanese companies will get to the NEXT ASEAN region, which is still dealing with political and societal problems.
① Massive Labor Pool and Consumer Base
The CIS, Middle-East and Africa not only feature a large population; they also have populations that are extremely young, meaning that they have the foundation in place for further expansion of the labor pool. As the labor pools of countries in the region expand the populace will begin to have more economic resources and in turn seek to lead richer lives in the material sense.
In parallel with this, there is projected to be growing demand for consumer products, meaning that a large consumer market will form.
② Abundant Resources
In addition to natural gas (in the CIS), oil (in the Middle-East) and minerals (Africa), there is also in the CIS an abundance of fresh water, which is the resource due to experience a shortage in the future. While it goes without saying that these areas have the massive labor pool needed in order to create infrastructure in the area, but another area that countries around the world have their eyes on is the ease of access to an abundance of resources.
③ Business Opportunities and Infrastructure
Infrastructure in the CIS, Middle-East and African countries is still under-developed, with companies globally looking to find business opportunities in building energy facilities, hospitals, bridges, roads as well as other infrastructure.