A Framework for Choosing an Overseas Plant Location

Overview

An overseas plant is a costly, slow and hard-to-reverse entry route. Base the choice on verifiable conditions, not a single tax incentive or wage figure.

Assessment dimensions

1. Investment access: is foreign investment allowed, at what ownership, with what registration or licence?
2. Parks and zones: customs and tax arrangements in industrial parks, export processing zones and free zones.
3. Land: can foreigners hold land; lease terms and renewal.
4. Labour: supply, skills and expatriate permits.
5. Supply chain: local supplier base, logistics and ports.
6. Tariffs and origin: treatment in export markets and whether origin rules are met.
7. Environment and production permits: EIA, emission standards and sector licences.

Steps

1. Shortlist 3–5 countries and compare them in Compare using the Manufacturing scenario.
2. Consult each country’s investment authority and park operators.
3. Visit candidate parks and check infrastructure and utilities.
4. Model total cost, listing incentive conditions and clawbacks separately.
5. Plan the EIA and permit path before signing land agreements.

Documents

• Feasibility study
• Process and emissions information
• Investment and employment plan

Common limitations

• Incentives usually come with export, investment or local hiring conditions.
• Foreign investors usually get long leases or use rights rather than freehold land.

Practical notes

We do not rank countries. Record the evidence and uncertainty for each dimension as the basis for internal decisions.

Official resources

Investment agency links are in each handbook’s Investment & Manufacturing chapter.