Even without the powerhouse that is China, East Asia hasmany of the world's most promising emerging economies formultinationals looking to grow their businesses. But the East Asiannations are a varied lot, and each presents its own challenges.

When considering the key factors for multinationals, such asease in shifting funds in and out of the country and the efficiencyof the payment system, Hong Kong, Singapore and Malaysia rest atthe top of the pyramid, with South Korea, Taiwan and thePhilippines a notch below.

South Korea and Taiwan are hard to classify as traditionalemerging markets, given that they have healthy middle classes andhomegrown multinationals.

Nevertheless, companies doing business in East Asian economiescan expect to encounter some sticky wickets. Larry Harding,president of High Street Partners, which specializes in setting upand supporting clients in overseas locations, says South Korearemains a relatively closed society, with few English speakers.Plus, “it's a hard market to sell into,” Harding says. “It'sintensely price-competitive and it's hard to sell value there;without the cheapest price, it's hard to gain market share.”

The next level of countries in East Asia, including Vietnam,Indonesia and Thailand, displays more of the factors associatedwith emerging markets, such as less developed infrastructures andpoorer populations. Multinationals are looking to those countriesas possible destinations as production and labor costs rise inChina and India, and some companies are looking ahead to when thesemarkets will become vibrant in their own right.

The Economist Intelligence Unit has identified Colombia,Indonesia, Vietnam, Egypt, Turkey and South Africa—the CIVETScountries—as desirable business destinations because of factorsthat include relatively low labor and production costs, growingdomestic markets, reasonable financial systems and manageableinflation and public debt. The CIVETS' combined population of 580million pales next to that of China or India, with Indonesia andVietnam making up more than half of that total.

Big multinational banks also have weighed in on this topic. In areport earlier this year, Citibank defined global growthgenerators, or 3Gs—countries it expects to thrive in a globallyintegrated economy and exhibit high growth rates and returns oninvestment in the coming decade. Vietnam, the Philippines andIndonesia were among Citi's 11 3Gs, as were China, India,Bangladesh, Egypt and Nigeria.

Citi points to Indonesia's rapidly growing working-agepopulation, as well as its per capita income of just $4,362 in2010, which leaves it plenty of room for catch-up. Vietnam displayssimilar traits, as well as a relatively high investment rate, orthe share of gross domestic capital formation in gross domesticproduct. However, the country's shabby infrastructure and one-partypolitical system “impart a certain fragility in Vietnam's outlook,”according to authors Willem Buiter, Citi's chief economist, andEbrahim Rahbari.

Harding says Vietnam and Thailand recently have improved theirpayment systems, making it easier for multinationals to move fundsin and out of the countries—something that's still a struggle inChina and India. Moving funds is much easier in South Korea and thePhilippines, which has been a major beneficiary of multinationaloutsourcing.

“What tends to happen is that some element in the economy reallybegins to take off and pulls everything else with it,” Hardingsays. “In the cases of India and the Philippines, that's led tohyper-growth in their economies, whereas Thailand, Vietnam andIndonesia have not had that.”

Nevertheless, prosperity in East Asia has lifted all boats, andmost countries have growing middle classes. Vacationers from HongKong, for example, bring money into Thailand, helping it improveits infrastructure.

The infrastructures of Thailand, Vietnam and India still canpose difficulties, Harding says, but companies that arrive earlywill benefit from low costs.

In addition, “you'll get the best of the best in terms of localtalent, and you'll be the special person in town, which may resultin favorable taxes or regulatory approvals,” he says. “It's anopportunity to be a big fish in a small pond.”

See more stories hereabout countries where multinationals have spottedopportunities.