By Jamie Haerewa, Co-founder and Managing Director at Agile HRO,

As a business owner, you’re always looking ahead and searching for new opportunities to grow your company. One increasingly popular option is expanding your business internationally. With an influx of benefits like new markets to explore, access to a global talent pool and lower production costs, it’s no wonder that more and more companies are choosing to take their operations overseas.

But with so many countries to choose from, it can be difficult to know which ones will offer the best opportunity for your business. To help you make a decision, Jamie Haerewa, co-founder and managing director at Agile HRO, has provided her top picks for the best countries to expand your business to in 2023.

Singapore

Singapore will likely maintain its status as being one of the best countries to expand, not just in the APAC region, but in the world. Businesses can benefit from:

A booming economy

Singapore’s economy definitely makes it a frontrunner for the best country to expand your business to in 2023. This year they climbed two spots to the #3 most competitive economies in the world, and they’re forecast to maintain this position in the coming years.

Plus, as part of the Association of Southeast Asian Nations (ASEAN) – which is forecast to be the fourth largest economic bloc by 2030 – several multinational companies have set up operations in Singapore in recent years, including Google, Facebook and Amazon.

Political stability

Another big plus for expanding your business to Singapore is the country’s political stability. The country’s ruling party, the People’s Action Party (PAP), has been in power for over 50 years and is known for its low corruption policies. Because of this, Singapore is often considered one of the safest countries in Asia for businesses.

Location

Singapore’s location is also a major advantage for businesses looking to expand internationally. The city-state is situated in Southeast Asia, making it a prime location for businesses looking to tap into the growing markets of countries like Indonesia, Malaysia and Thailand.

Last month, a total of 28,919 flights passed through Singapore Airport – that’s an average of 963 flights per day! This means that it’s easy and convenient for businesses based in Singapore to travel to other parts of Asia for business meetings or to source products and materials.

What to consider? There are, however, some things to consider before expanding your business to Singapore. The cost of living in the city-state is relatively high, so you’ll need to make sure that your business can cover these costs. In addition, the process of creating a subsidiary-based entity can be challenging and time-consuming. You must complete several prerequisite tasks, including signing up for work injury compensation insurance, opening a bank account and registering with the Accounting and Corporate Regulatory Authority (ACRA).

Australia

After closing its borders to the world in 2020 due to the pandemic, Australia finally reopened to international travellers in February 2022.

Response to the pandemic

Australia’s Prime Minister at the time, Scott Morrison, has been widely praised for his government’s handling of the pandemic. Thanks to their quick response and strict border control measures, Australia was one of the first countries to bring the pandemic under control. As a result, life in Australia has pretty much returned to normal, and businesses are operating as usual.

Strong economy

Despite the pandemic, Australia’s economy has remained strong. According to the IMF, Australia is set to become the world’s 12th largest economy in 2023 with a nominal GDP of around A$2.5 trillion. This makes it a very attractive option for businesses looking to expand internationally.

Ease of doing business

Australia was ranked 14th in ease of doing business and 7th easiest country to start a business in the World Bank’s Doing Business 2020 survey. As a business owner, you’ll be pleased to know that Australia has no minimum paid-in capital requirement. And, It only takes about two days for the Australian Securities and Investments Commission (ASIC) to approve a company for registration. Plus, as Australians speak English, you’ll be able to communicate with your employees and customers without any language barriers.

What to consider? One is the cost of living. Australia is currently experiencing a cost of living crisis with the number of Australians who believe prices have increased “a lot more” rising from 21.6% in January to 48.4% in October. Additionally, Australia’s time zone difference with most of the world can make doing business internationally more difficult. You’ll have to be available for calls and meetings during unsociable hours if you want to do business with clients in the United Kingdom or North America.

The U.S.

Home to some of the world’s most successful companies, with locations such as Silicon Valley, New York City and Boston being hubs for startups and innovation, the U.S. remains a favoured destination for businesses looking to expand internationally.

A large market

With a population of over 331 million, the U.S. offers businesses a large potential customer base. In addition, The United States is the world’s largest economy and is projected to retain this title over the next few years with a projected nominal GDP of 29.3 trillion USD in 2026.

A favourable business environment

The U.S. has a favourable business environment, with low taxes and minimal laws and regulations. In addition, the country is very welcoming to foreign businesses, with many offering incentives to attract them. For example, Florida offers many tax breaks and subsidies to businesses relocating to the state.

Investor friendly

The U.S. is also very investor friendly, with a number of venture capital firms and angel investors based in the country. Last year, the value of venture capital investments in the U.S. amounted to approximately 330 billion U.S. dollars. This made the United States the country with the most V.C. investments globally.

What to consider? The first is choosing the right market, as the U.S. is a very large and diverse country. Selling a product or service in New York City can differ massively from selling in rural Montana, for example. Additionally, the U.S. can be a very competitive market, so you’ll need to make sure that your business is able to stand out from the competition. Finally, the cost of doing business in the U.S. can be high, particularly in major cities.

Brazil

With a population of over 214 million people, Brazil presents several opportunities for business owners looking to expand their business:

Large consumer market

As mentioned, Brazil has a population of over 214 million people – that’s a lot of potential customers for your business! Brazil’s large consumer market, along with its growing middle class, means that there is great potential for businesses to succeed in the country.

Access to other Latin American countries

Another advantage of doing business in Brazil is that it gives companies easy access to other countries in Latin America. This is because Brazil is part of the Southern Common Market (MERCOSUR), which was established in 1991. As a result, businesses incorporated in Brazil have direct access to all of the MERCOSUR countries, which includes Argentina, Paraguay, Uruguay, and 7 other associated states.

Favourable trade agreements

In addition to providing access to other Latin American countries, MERCOSUR also creates plenty of trading and commercial opportunities and provides attractive fiscal advantages for businesses. For example, they have eliminated custom duties on most products traded between member countries. As a result, businesses can save a significant amount of money on import/export costs.

What to consider? Brazil is still classed as a developing country and does come with some risks. These include high crime rates, corruption, and bureaucracy. However, if you do your research and plan carefully, doing business in Brazil can be a very lucrative endeavour.

Vietnam:

With China’s response to the pandemic and the US-China trade war, the once-overshadowed Vietnam has been thrust into the spotlight as a top destination for businesses looking to expand internationally. Vietnam has a lot to offer businesses, including:

A young and educated population

With a population of 98.17 million people, a large number of Vietnam’s citizens are young and educated. In fact, over 50% of the population is under the age of 35. Additionally, the literacy rate in Vietnam is high, with 94.52% of the population being able to read and write.

Having a large population means not only a strong purchasing power but also a large pool of educated workers for businesses to choose from. Plus, Vietnam’s labour costs are relatively low compared to other countries in the region.

A developing infrastructure

Vietnam is investing heavily in its infrastructure. There are currently ten international airports in Vietnam, with three of them being key International Airports located in Ho Chi Minh City, Hanoi, and Da Nang. The country also has several seaports, including Saigon Port and Vung Tau Port and expressways are being developed to connect different regions and neighbouring countries. This is important for businesses as it makes transportation and shipping easier and more convenient.

Favourable trade agreements

The country has seen a number of trade agreements over the years, including the Free Trade Agreement with South Korea (which came into effect in 2015), the Economic Partnership Agreement with Japan (signed in 2009) and agreements with other countries such as India, China, New Zealand, Australia and the UK. These trade agreements make it easier for businesses to import and export goods and provide tariff and duty benefits.

What to consider: The most important consideration is the language barrier, as not everyone in Vietnam speaks English. The country can also be quite bureaucratic, so it’s important to have patience when dealing with government officials. Finally, there is a lack of intellectual property protection in Vietnam, so businesses need to be aware of this when expanding there.

Final Thoughts

Choosing the right country for your global expansion is a big decision. There are a lot of factors to consider, from the economic climate to the infrastructure to the trade agreements in place. However, if you do your research and plan carefully, expanding your business internationally can be a very rewarding experience.

Remember, product-market fit is key. Make sure you have a good understanding of the market you’re expanding into and that there is a demand for your product or service. You’ll also want to ensure that you follow compliance and regulatory requirements. You can do this by conducting an expansion plan and speaking to industry experts. Once you’ve done that, everything else will fall into place.

Author Bio:

As Co-founder and Managing Director at Agile HRO, Jamie Haerewa helps businesses expand their remote workforces by merging cutting-edge technology with industry experts. With 12+ years of experience in the global PEO, global mobility, and workforce solutions, she is a recognised thought leader with her valuable insights featured in popular publications like Business Leader, Grit Daily News and HackerNoon. 

Her hard work and determination have resulted in her company being awarded the #1 payroll provider in Singapore in 2020 and SME100’s fastest-moving company in 2022. She is also committed to giving back to the community. She is a proud sponsor of education for the next generation of Cambodia through the not-for-profit organisation Caring for Cambodia.