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NEWS World giants turn their eyes to Turkey

4 Nov 2021

Disruptions in supply have caused the world's giants to turn their eyes to Turkey. Turkey's strategic location has become a magnet to attract multinational companies as a production, export and management center in the region and enable Turkey to participate in the global value chain.

Disruptions in the supply chain, which pushed inflation to a 13-year peak in Europe and caused disruptions in production in the United States and China, allowed the world's giants to turn their eyes to Turkey. Attracting attention especially from European investors due to the increasing global shipping prices recently, Turkey stands out with its geographical location, transportation network, demographic structure and the facilities it offers to investors. The exponential increase in long-distance transportation costs along with the epidemic is turning Turkey into an attractive investment and production center that offers location and cost advantages for many foreign international companies.

THE COUNTRY THAT WILL BENEFIT THE MOST

Recently, many European-based international companies operating in areas such as furniture, pharmaceuticals, textiles and packaging have announced new investment plans for Turkey with strong logistics infrastructure and facilities. The fact that the global supply chain is turning to Turkey due to the quality of production and logistics opportunities from a network dependent on Asia and especially China has led to the expectation that investments in Turkey will increase in this area. In the latest analysis of the international rating agency Fitch Ratings, it was also stated that Turkey is the country that will gain the most from the change in supply chains in Europe.

Turkey's strategic location, a free trade network, a strong logistics infrastructure, production diversification, higher incentives, costs, skilled workforce, a liberal investment climate offer international companies a suitable environment to connect to global value chains.

ADVANTAGEOUS FOR EUROPE

Experts say, "Production in Turkey may be more advantageous for European countries given the uncertainties experienced due to power outages in Chinese factories, as well as shipping and container prices. The conditions that will require considering production in Turkey, especially for the clothing, furniture and automotive industries, have become stronger.”.

MORE REASONS WHY TURKEY IS ATTRACTIVE

Turkey is a 4-hour flight away from the European, MENA and Central Asian markets which are home to 1.3 billion people with a GDP of $26 trillion. Turkey has a Customs Union with the EU and a Free Trade Agreement (FTA) with more than 20 countries.

Turkey has a diversified production base with strong links to global value chains, supported by a well-developed infrastructure and uninterrupted business services. The government actively supports participation in the global value chain through special incentives and labor development programs. It provides incentives for production, employment and R & D by providing investors with a tax deduction etc.

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