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!

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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!