Canada vies with US as top destinations for international business expansion

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Canada vies with US as top destinations for international business expansion

Canada NewsWire

VANCOUVER, Nov. 5, 2019 /CNW/ - The latest HSBC 'Navigator: Now, next and how' survey of over 9,100 companies in 35 markets finds that 11% of international business leaders identified Canada for expansion in the next three to five years, coming close second to the United States, the most popular destination at 14%. Businesses see Canada as an attractive market due to favourable partnership opportunities and proven customer demand. The country is also seen as a gateway to nearby markets by nearly a third (29%) of those planning to expand there.

"Canada outperforms its peers thanks to its open economy," said Linda Seymour, Head of Commercial Banking at HSBC Canada. "After having signed several new trade agreements with regions across the globe, including CETA and CPTPP, Canada's interconnectedness and preferential access to a wide market are getting noticed by companies around the world."

Research released today shows that high-growth businesses are focused on finding new markets. Canadian companies are no exception: they now have preferential access to Japan - the world's third-largest economy – as well as fast-growing markets such as Malaysia and Vietnam.

Despite moderate growth in sales, Canadian business confidence jumps 19 percentage points on cross-border commerce compared to 2018

Close to 9 out of 10 (86%) Canadian businesses are positive in cross-border business outlook, up 19 percentage points from last year, even as 68% think governments around the world are adopting increasingly protectionist trade policies.

Businesses in Canada anticipate growth in sales to be moderate over the next 12 months. 84% of Canadian businesses expect their sales to grow, slightly higher than global average (79%) and the United States (80%). However, only one in five businesses (21%) are expecting to grow their business by more than 15%, below the levels projected for the United States (34%) and globally (22%).

Businesses anticipating sales growth in the next year view both internal and external factors as key drivers: "Internally, companies are looking at improving their business' productivity (30%), investing in technology (29%) and motivating their workforce (28%). Externally, new market opportunities (33%) coupled with better quality and availability of suppliers and raw materials (27%) are the top drivers of sales growth," added Linda Seymour.

Top 10 current trading partners for Canadian businesses

United States

69%

China

17%

United Kingdom

14%

Mexico

12%

France

12%

Germany

8%

India

5%

Austria

5%

Belgium

4%

Italy

4%

 

Top 10 markets for Canadian business expansion in next 3-5 years

United States

48%

Mexico

16%

China

11%

France

8%

United Kingdom

7%

Germany

5%

Australia

4%

Brazil

3%

Hong Kong

3%

Israel

3%


 

Top 10 markets identifying Canada for trading expansion in next 3-5 years

Mexico

37%

United States

30%

India

17%

Brazil

16%

United Kingdom

12%

Sweden

12%

China

11%

Spain

10%

Ireland

9%

South Africa

9%

 

The full report can be accessed here: www.business.hsbc.com/trade-navigator

Note to editors:

HSBC Navigator: Now, next and how for business
HSBC's Navigator report comprises a global survey gauging business sentiment and expectations on trade activity and business growth from 9,131 decision-makers in 35 markets. Canadian sample is 200. Research was conducted by Kantar for HSBC between August and September 2019. HSBC's Navigator helps businesses capitalise on new opportunities and make informed decisions for the future by understanding the outlook for international trade.

Interviews for the Navigator: Now, next and how survey were conducted in Argentina, Australia, Bangladesh, Belgium, Brazil, Canada, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Ireland, Italy, Japan, mainland China, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the UAE, the UK, the USA and Vietnam.

Over half (55%) the companies interviewed were SMEs making annual sales of between US$5m and US$50m, with the remainder being larger enterprises.

HSBC Commercial Banking
For over 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC Commercial Banking serves around 1.5 million customers across 53 markets, ranging from small enterprises focused primarily on their home markets through to corporates operating across borders. Whether it is working capital, term loans, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. As the cornerstone of the HSBC Group, we give businesses access to a geographic network covering more than 90% of global trade and capital flows. For more information visit: http://www.hsbc.com/about-hsbc/structure-and-network/commercial-banking

HSBC Bank Canada
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in the country. We help companies and individuals across Canada to do business and manage their finances internationally through three global business lines: Commercial Banking, Global Banking and Markets, and Retail Banking and Wealth Management. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 65 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,728bn at 30 September 2019, HSBC is one of the world's largest banking and financial services organizations.

SOURCE HSBC Bank Canada

View original content: http://www.newswire.ca/en/releases/archive/November2019/05/c5870.html

Copyright CNW Group 2019

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