What goes around comes around . . .

. . . That‘s why despite our fatalism, it is not about destiny; it is about the choices we make? And that’s why the US business community is seeking an audience with President-elect Aquino?

Global businesses with a portfolio of products and/or countries are constantly assessing how each element in their portfolio is performing. For instance, why would foreign investors bet more on Vietnam than the Philippines? What goes around comes around? We were once the best friends of America in the region while Vietnam was the enemy; but in their portfolio, it was Vietnam that showed more promise. And then again, it’s the 80-20 rule or the vital few. Vietnam, being a new market economy, had lots of ground to cover and thus would generate faster returns.

We then should not be surprised why Nestlé is expanding their Indonesian operations: their business model is ‘to be close to the trees’ or the raw materials; and the bigger the source and the market for their products, the better geared they are to invest in state-of-the-art manufacturing – to raise margins and reinforce competitive advantage. The lesson for us: competitive advantage. It is important that we appreciate the 7 strategic industries the Joint Foreign Chambers (JFC) teed up – they are looking at industries where we could attain competitive advantage! Competitive advantage translates to healthy, growing market shares thus sustainability! It would help if the JFC put more efforts to edify the public and explain the mechanics and economic impact of their proposal.

We did not help ourselves any while Vietnam’s stock was on the rise. We put up more barriers to foreign investments than our neighbors. And instead of moving up the next tier of development and creating a new playing field for investors – i.e., 21^st century, globally competitive products – we assumed that we knew how and could do it ourselves?

But what goes around comes around: Vietnam is overheating because of the scale of foreign investments and given the global economic slowdown – their market has shrunk since they’re not yet in the league of Taiwan or South Korean or China in product competitiveness. China is sensing a bubble, thus their efforts to curb speculations and the yuan initiative. Thailand is in political limbo. And Eastern and Central Europe are up to their eyeballs with debts – Western financial institutions had seen them as fertile grounds for investments.

What then is the US business community saying: ‘We believe in redemption; we’re not pure and can’t cast the first stone? The ball is in your court; you’ve had it before, and this time you want to play it smart?’

The Joint Foreign Chambers (JFC) presented us a plan: how to move up the next tier of development – i.e., 21^st century, globally competitive products via the 7 strategic industries – or the new playing field for investors. How are we responding?

What goes around comes around? It is not about destiny; it is about the choices we make? The ball is in our court – let’s play it smart?