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Connectivity:Bringing the world ofbusiness together
Connectivity:Bringing the world ofbusiness together
Peter WooChairmanHong Kong Trade Development Council
Peter WooChairmanHong Kong Trade Development Council
21 November 2005
Global convention for SMEs
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CONNECTIVITY
Global convention for SMEs
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CONNECTIVITY
Global convention for SMEs
• 30,000 HK SMEs• 5,000 MPEs• 1,500 SMEs from overseas
The concept works!
• 30,000 HK SMEs• 5,000 MPEs• 1,500 SMEs from overseas
The concept works!
++
Delivering more value
World Federation of HK Business Assns
Bilateral committees
• Hong Kong – UK• Hong Kong – France
World Federation of HK Business Assns
Bilateral committees
• Hong Kong – UK• Hong Kong – France
Delivering more value
• A platform for collaboration between designers and manufacturers
• Assist SMEs to move up value chain
• A platform for collaboration between designers and manufacturers
• Assist SMEs to move up value chain
Let’s talk business!
The China story4
• Out performed expectations in past 25 years• Annual GDP growth at 8.5% over 10 yrs
• GDP will double in next 10 years
The China story4
• Out performed expectations in past 25 years• Annual GDP growth at 8.5% over 10 yrs
• GDP will double in next 10 years
The China story
• 20% of the population in the “middle-class” = 250 million
• This group will increase to 25% by 2010
• 20% of the population in the “middle-class” = 250 million
• This group will increase to 25% by 2010
• Huge consumption power of the new rich
• US$ 2 billion on luxury items in 2004
• 29% of the world's luxury market by 2015
• Space industry (Shenzhou 神舟 6)
• Huge consumption power of the new rich
• US$ 2 billion on luxury items in 2004
• 29% of the world's luxury market by 2015
• Space industry (Shenzhou 神舟 6)
The China story
China’s future direction:
• Sustainable development for the whole country
• Balanced growth among different regions
• Further urbanisation to lift living standards
• Sustainable development for the whole country
• Balanced growth among different regions
• Further urbanisation to lift living standards
Implications for China:
• Move 200 million rural dwellers to cities in next 20-30 years
• Expand / build 200 cities of 3 million people each
• Do all types of productions (low-to-high end)
• Car exports – soon?
• Move 200 million rural dwellers to cities in next 20-30 years
• Expand / build 200 cities of 3 million people each
• Do all types of productions (low-to-high end)
• Car exports – soon?
Pie in the sky? Many believe not !
Pie in the sky? Many believe not !
Hong Kong’s connectivity
Opportunities for Hong Kong
• Build / finance / operate China's new urban infrastructure
• Provide the services needed
• Set up factories in new industrial areas
Opportunities for Hong Kong
• Build / finance / operate China's new urban infrastructure
• Provide the services needed
• Set up factories in new industrial areas
HK’s first-mover advantage
• Over 50% of China's FDI from / or through Hong Kong
• Experience and know-how to manage risk
• Over 50% of China's FDI from / or through Hong Kong
• Experience and know-how to manage risk
HK’s first-mover advantage
• China's service economy is 32% of GDP
• Hong Kong’s service economy is 89% of GDP
• China's service economy is 32% of GDP
• Hong Kong’s service economy is 89% of GDP
HK’s first-mover advantage
• Success in PRD in last 25 years
• Replicate in other parts of China
• Success in PRD in last 25 years
• Replicate in other parts of China
Time to act
• Balancing opportunities, competition and risk
• "Wait-and-see" no longer a viable strategy
• Take full advantage of the Hong Kong platform
• Connect with Hong Kong
• Balancing opportunities, competition and risk
• "Wait-and-see" no longer a viable strategy
• Take full advantage of the Hong Kong platform
• Connect with Hong Kong
What about mainland enterprises?
• 4 million MPEs
• 30% growth in their number p.a. – compounded over last 10 years
What about mainland enterprises?
• 4 million MPEs
• 30% growth in their number p.a. – compounded over last 10 years
Time to act
Use the Hong Kong platform to:
• Connect with the world’s markets
• Raise capital and finance deals
• Improve competitiveness
Use the Hong Kong platform to:
• Connect with the world’s markets
• Raise capital and finance deals
• Improve competitiveness
What about mainland enterprises?What about mainland enterprises?
Time to act
Hong Kong’s Story
• 5.5% growth
• Cepa III
• More tourists (Disneyland open)
• More RMB services
• Removal of estate duty tax
• 5.5% growth
• Cepa III
• More tourists (Disneyland open)
• More RMB services
• Removal of estate duty tax
~ transactions in goods and services~ transactions in goods and services
• Good news from TDC – CEC expansion
• 40% more exhibition space
• 8 trade fairs to go for #1 in the world
• Bumper year for Hong Kong trade fairs
• Good news from TDC – CEC expansion
• 40% more exhibition space
• 8 trade fairs to go for #1 in the world
• Bumper year for Hong Kong trade fairs
The Hong Kong Agenda
Build critical mass of:Build critical mass of:
~ Capital market
~ Infrastructure and logistics
~ Talent and creativity - people
~ Capital market
~ Infrastructure and logistics
~ Talent and creativity - people
The Hong Kong Agenda
Build critical mass of:Build critical mass of:
• Over stressed and over worked
• Demand for talent and creativity far greater than before
• Attract more talent and entrepreneurs globally
• Act as agent for China's talent-hunt
• Over stressed and over worked
• Demand for talent and creativity far greater than before
• Attract more talent and entrepreneurs globally
• Act as agent for China's talent-hunt
The Hong Kong Agenda
Raise the bar- Make it more difficult for others to catch up
Differentiate ourselves - Move up the value chain
Raise the bar- Make it more difficult for others to catch up
Differentiate ourselves - Move up the value chain
The Hong Kong Agenda
World capital for:
• SMEs
• Entrepreneurs
World capital for:
• SMEs
• Entrepreneurs
plusplus
World platform for private capitalWorld platform for private capital
The Hong Kong Agenda
Join a global talent-hunt for China:
• Hong Kong Business Associations - a source of talent
• Your services are needed
Join a global talent-hunt for China:
• Hong Kong Business Associations - a source of talent
• Your services are needed
HKBAs’ connectivity
• Focus on connectivity
• Connect with other associations
• Map out a plan for the next 5 years
• Build your critical mass
• Focus on connectivity
• Connect with other associations
• Map out a plan for the next 5 years
• Build your critical mass
HKBAs’ connectivity
Message for Hong Kong Business Association members:
Message for Hong Kong Business Association members:
Message for HKBA members:
• Penetrate your local business community
• Spread the gospel
• Make HK a “must” on China trips
• Connect with 10 new players and bring them here
• Penetrate your local business community
• Spread the gospel
• Make HK a “must” on China trips
• Connect with 10 new players and bring them here
HKTDC’s connectivity
• TDC is the conduit
• We match-make businesses the world over
• Our credo:
“ Anyone using the Hong Kong
platform ~ is our client”
• TDC is the conduit
• We match-make businesses the world over
• Our credo:
“ Anyone using the Hong Kong
platform ~ is our client”
We are at your service!We are at your service!
