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NEXT ASEAN: The 2nd Group of Emerging Nations

The CIS Market and Its Future

Minsk, BelarusThe CIS is the entity formed after the fall of the Soviet Union between the remaining members. It is a massive region and collection of markets that include the former soviet states including Russia. According to IMF numbers, this market if counted as a whole would mean it’s the fifth largest in the world in terms of GDP, meaning that it surpasses ASEAN. While there are political problems in the region, the acceleration of economic cooperation between member states as well as the planned central bank in Russia for the BRICs nations means that entry into the CIS is going to be of great interest to companies going forward.

Charm of the CIS Markets

①Abundant Resources

Russia is considered "mineral heaven," with an astonishing amount of mineral resources when compared to other regions. This kind of environment is very advantageous in terms of the ease of access to resources for manufacturing companies. The CIS is also second in the world in terms of free-flowing fresh water, meaning that it also has an abundance of a resource that is going to be in short supply world-wide in the future.

②Expansion of Labor Pool and Growing Consumption

In the CIS, people over the age of 65 comprise only five to ten percent of the population whereas in Japan they comprise over twenty percent. In comparison to Japan the young account for a large percentage of the population and represent a labor pool that will be expanding in the future. Moreover, in recent years the region has seen stable economic growth that has lead workers to seek a higher standard of living, which ultimately leads to a consumer market that is quite ideal for manufacturers and retailers.

③Business Opportunities in Infrastructure

Energy, information communications as well as construction machinery are all examples of areas that have not yet matured in the region. To Japanese companies that manufacture and create infrastructure the possibilities in the region are endless. In addition to this, the aforementioned abundance of resources and expanding labor pool make the area optimal as a manufacturing base.