Transcript Business Opportunities for IP Professional

External-oriented Development of
Hong Kong and the Pearl River Delta
Mr Peter Leung
Director, Hong Kong Economic and
Trade Affairs, Guangdong
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Introduction of GDETO
Director
Trade Promotion
Div.
Admin. and Public
Relations Div.
• Duties: Support
HK businessmen
with investments
and operations in
Guangdong
• Duties：Assist HK
businessmen to
invest in
Guangdong
Investment
Promotion Div.
• Duties: Attract
Mainland
enterprises to
invest in HK
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Guangdong Province (1)
 Area: 180,000 sq. km.
 Permanent population: 80 million
(over 100 million if including the nonpermanent population)
 GDP: RMB 1,362.6 billion
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Primary industry: 109.4 billion (8% of total)
Secondary industry：730.7 billion (54% of total)
Tertiary industry：522.5 billion (38% of total)
(The above were statistics of 2003)
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Guangdong Province (2)
 21 cities at prefectural level or above in the whole
Province
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Capital city: Guangzhou
Special Economic Zones: Shenzhen, Zhuhai, Shantou
 Guangdong is not a single market; large differences
in the development among various cities
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Guangzhou’s GDP: 346.7 billion
Heyuan’s GDP: 13.7 billion
(The above were statistics of 2003)
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Comparison of
Major Cities in PRD (1)
Area
Permanent
population
GDP
Guangzhou
7,434
>1,000
346.7
3 : 43 : 54
Shenzhen
1,953
557
286.1
1 : 59 : 40
Dongguan
2,465
156
94.8
3 : 54 : 43
Zhongshan
1,800
138
50.1
5 : 63 : 32
Zhuhai
1,653
82
47.7
4 : 57 : 39
Ratio of the
(sq. km.) (10,000 persons) (billion) three industries
(The above were statistics of 2003)
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Comparison of
Major Cities in PRD (2)
Major Industries
Pillar industries: automobiles; electronic information
manufacturing; petrochemicals; fine chemicals; iron and steel;
Guangzhou machinery and equipment manufacturing; pharmaceuticals
Focus: conference & exhibition; modern logistics; hi-tech;
integrated services
Shenzhen
Pillar Industries: hi-tech; finance; modern logistics
Focus: hi-tech (transforming from processing and assembling
to self-R&D, design and manufacture); port logistics; services
(logistics, finance, conference & exhibition, tourism,
intermediary, international business & information services)
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Comparison of
Major Cities in PRD (3)
Major Industries
Dongguan
Pillar industries: export processing (Humen: clothing; Dalang:knitwear;
Houjie: furniture)
Focus: modern logistics; petrochemicals & gases; conference &
exhibition; commerce & trade; real estates; tourism
Pillar industries: electronic information; biochemical; electrical
Zhongshan machinery; textiles & clothing (Shaxi: casual wear); packaging & printing
Focus: home appliances; metals (Xiaolan); lamp & lighting (Guzhen)
Zhuhai
Pillar industries: electronics and communication equipment
manufacturing; electrical machinery & equipment manufacturing; biology;
pharmaceutical & medical equipment manufacturing
Focus: computer software; petrochemical; business travel; conference &
exhibition; services
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Comparison of Cities
Outside the PRD
Area
Permanent
population
GDP
Shantou
2,064
480
52.6
8 : 51 : 41
Zhanjiang
12,471
624
52.1
21 : 43 : 36
Shaoguan
18,400
315
26.8
19 : 47 : 34
Ratio of the
(sq. km.) (10,000 persons) (billion) three industries
(The above were statistics of 2003)
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Guangdong’s Advantages (1)
 Advantage 1: Cost

Comparison of labour compensation in 2003
(US$/hour):
China
India
0.80
1.12
Thailand Korea
1.96
9.99
Japan
US
Germany
20.68
21.86
30.60
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Guangdong’s Advantages (2)
 Advantage 2: Industry Chain
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Complete up-stream and down-stream industry
chain
Example: Humen in Dongguan
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
Clothing industry
All necessary materials and accessories can be
procured within half an hour
 Production time shortened, overall
competitiveness increased
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Guangdong’s Advantages (3)
 Advantage 3: Quality of semi-skilled
workers on the rise
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Experience accumulated since the opening up of
the Mainland market more than 20 years ago
20 million well-trained workers in the Province
Strengthen training in hi-tech areas to meet the
needs of industry upgrade
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Guangdong’s Advantages (4)
 The largest advantage of Guangdong:
Close to Hong Kong
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Hong Kong’s Advantages (1)
 Credibility

Rule of law, respect for contract
 Institutionalisation
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Well-established legal and professional systems,
procedures and rules
 Market-oriented
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Market economy
Government does not participate in or interfere
with market operations
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Hong Kong’s Advantages (2)
 International Financial Centre
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Comprehensive financial system
Freedom in foreign exchange
Own currency
 International Logistics Centre
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Advanced logistics facilities
Robust growth in air and sea transport
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Hong Kong’s Advantages (3)
 Information Centre
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Free flow of information
Internet hub
 one of the most Internet-savvy cities in the
world
 Trade Networks
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More than half a decade’s experience in trade
Free trade
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Complementary Advantages of
Hong Kong and Guangdong
 GDP per capita in PRD: ~US$ 5,000
 Services sector developing in Guangdong
 Heading towards the comprehensive “wellto-do” (全面小康) stage
 Strong complementarity between HK’s services
sector and Guangdong’s manufacturing sector
 Complementary advantages bring mutual
benefits to each other
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Major Markets of
Guangdong & Hong Kong (1)
Europe
Asia
Africa
America
Middle
East
Oceania
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Major Markets of
Guangdong & Hong Kong (2)

Major export markets (2003)
Guangdong Hong Kong, US, EU, Japan, ASEAN
HK
Mainland China, US, EU, Japan, ASEAN
 Around 70% of Guangdong’s products are
exported to other places through Hong Kong
 Guangdong & HK: External-oriented economy
 Much similarity and room for cooperation
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Major Problems Faced by
Hong Kong Businessmen (1)
 Problem 1: Do Hong Kong businessmen know
well about the situation in the Mainland?
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Status-quo and advantages of various places of
Guangdong
Partners for cooperation in the Mainland
Modes of cooperation in the Mainland
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Major Problems Faced by
Hong Kong Businessmen (2)
 HK businessmen have extensive international
market networks, with clients spreading over
Europe, US, Canada, South-east Asia, etc.
 Problem 2: How to make better use of these
networks and fully cooperate with Guangdong’s
enterprises to increase the market shares
together?
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Major Problems Faced by
Hong Kong Businessmen (3)
 Guangdong’s services sector has been growing
rapidly in recent years
 HK’s services sector is also actively extending their
businesses to the Mainland
 Problem 3: How can HK’s services sector help their
counterparts in the Mainland to develop?
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Do they understand their target customers in the
Mainland?
How to reduce the worries of their counterparts and
to avoid causing barriers to cooperation?
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Organised by the Trade Development Council (TDC),
World SME Expo is a SME-focused exposition which
serves as a one-stop platform for SMEs to access a
full range of trade services, market knowledge and
business advice provided by the TDC, the private as
well as the public sectors.
Date:
Venue:
16 - 18 / 11 / 2004 (Tue - Thu)
HK Convention and Exhibition Centre
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Objectives:
• To create a platform for companies and organisations to exhibit products and
services to support the development of SMEs.
• To provide a one-stop shop where SMEs can access a full range of useful
services, attend informative seminars, participate in forums, and obtain
market advice which addresses their unique business and marketing needs.
• To establish a marketplace where SMEs can explore a bonanza of business
opportunity and enter into co-operation with appropriate partners.
• To develop World SME Expo into a trade platform for SMEs all over the world.
Attendance:
• SMEs from different product and service sectors in Hong Kong and the region
are expected to attend World SME Expo. They will include owners, directors,
senior executives, marketing managers, financial controllers, entrepreneurs
and new business start-up executives. In addition, local enterprises from
mainland China and SMEs from around the world will also visit World SME
Expo and conduct business discussions with Hong Kong SMEs.
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Exposition:
• The Exposition will feature a wide array of products and services targetting at
SMEs, provided by all relevant trade and service sectors of the Hong Kong
economy, including banks and finance companies, accounting firms, lawyers,
professional services and training consultants, IT companies, industry and
trade support organisations, government departments, associations, and
many more. Mainland trade promotion organisations, mainland enterprises
which provide support services for developing the China market, consulates,
trade commissions, international chambers of commerce in Hong Kong,
various Asian trade promotion organisations, world trade organisations and
worldwide SME associations will also showcase their services that may
facilitate partnership between SMEs in Hong Kong and their home countries.
• Ten Thematic Pavilions: (i) China Opportunity; (ii) Global Business
Connections; (iii) Industry Support; (iv) IT and E-Commerce; (v) Management
and Marketing; (vi) SME Financing; (vii) Professional Services; (viii) Trade
Services; (ix) Training and Information; (x) World Market Access
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International SME Conference and Seminars
"Sustaining SME Competitiveness in the Global Context"
China Trade
Global Markets
SME Growth and
Development
Industry-specific
Networking Seminars
16 November 2004 (Tuesday)
CEPA II Opportunities
for SMEs
China's Latest Policy
on Customs and
Electronic Declaration
Latest Policy of China
Taxation - Profit Tax,
Value Added Tax and
Personal Income Tax
Recent Market Trend in
China : Beijing Olympics
& Environmental
Protection
Start-ups of Private
Business in Mainland
Hong Kong - Trade
Platform for Mainland
Enterprises to Go
International
Path to Indian
Market
The Growing
Middle East
Market
Opportunities
for SMEs in
Central and
Western
China
Design - A Key to Business
Success in Today's Competitive
Marketplace
HK Forum: HK -Your Best
Platform for Selling, Sourcing &
Manufacturing in China
Hot Issues in Trade: Antidumping and Hi-Tech & Strategic
Product Trade
Financing Support for
Developing New Markets
Q-Mark Expert Series:
Enhancing Quality Management
and Customer Service through
Quality Certification
HK Forum: Experience Sharing
on How Hong Kong Can
Facilitate Overseas Companies
to Enter the Chinese Market
Cooperation
Opportunities for Auto
Parts Industry
Global Marketing
Strategy of Ceramic
Industry
Business Opportunity
of Service Trade and
Development of Private
Enterprises in Yangtze
River Delta Region
Business Opportunities
in Changchun Municipal
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International SME Conference and Seminars
"Sustaining SME Competitiveness in the Global Context"
China Trade
Global Markets
SME Growth and
Development
Industry-specific
Networking Seminars
SME Convention:
Clustering and Growth
Textile & Garment Industry
Networking Seminar Impact of Quota Free After
2005
Cooperation Between
SMEs in Hong Kong and
Chinese Mainland
SME Convention: Business
Creation and Innovation
Development Projects
Financed by International
Aid Agencies - Current
Trends and Opportunities for
Goods and Service
Providers
Path to Enter the
Cosmetics Retailing
Market in China
Cooperation
Opportunities for PanPRD Environmental
Protection Industry
Logistics Industry
Networking Seminar
Cooperation
Opportunities for
Chinese Medicine
Industry
Business Opportunities
in Hunan Province
17 November 2004 (Wednesday)
Success of Mainland
Private Enterprises in
Hong Kong
Financing & Credit
Risk Management in
Mainland
How to Effectively
Protect Intellectual
Property Rights
SMEs Grasp New
CEPA Opportunities in
Pan-PRD Region
Growing
Opportunities in
Russia and North
Europe
Business
Opportunities in
Guangdong
Hinterland
A Tale of Two Cities
- Exploring European
Market via UK &
France
Market Environment
in South Europe &
North Africa
Best Practice in
Doing Business in the
US
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International SME Conference and Seminars
"Sustaining SME Competitiveness in the Global Context"
China Trade
Global Markets
SME Growth and
Development
Industry-specific
Networking Seminars
SME Convention:
Growth in Globalized
Market
Ethical Sourcing for
Production in China &
Corporate Social
Responsibility
Mediation: The
Effective Tool for SME
Management
Business Opportunities
in Liaoning Province
Exploring the Retail
Market in Pearl River
Delta Region
Cooperation
Opportunities of Food
Industry in a New Era
18 November 2004 (Thursday)
Effective Brand
Building Strategy in
China
China's Recent
Liberation of Retail
and Distribution
Channels for Foreign
Enterprises
Quality Control of
Production in China 3C Certification
Marketing Strategy
in China's Changing
Consumer Market
Market Opportunities in
South East Asia
Fast Growing Market in
Bohai Bay & Shandong
Region
Latest Trend of American
Market
The Evolving Central and
Eastern European Market
Exploring European
Market from Belgium Opportunities of New Tax
Treaty with HK
New Opportunities in
Ireland
Challenges in Japanese
Market
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Major Problems Faced by
Hong Kong Businessmen (4)
 An official of the National Development and
Reform Commission once said:
In the eyes of foreign enterprises,
HK is a city of China;
In the eyes of Mainland enterprises,
HK is an international city;
In the eyes of HK people,
what kind of a city is HK?
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Business Opportunities
through CEPA
 Legal services:
a) Mainland law firms can employ HK lawyers
b) (15) qualified HK lawyers to practise in the
Mainland
c) HK residents can take legal qualification
examinations in the Mainland
d) HK firms can set up representative offices and have
joint operation (not partnership) with Mainland firms
e) Relax the minimum stay requirements (no
restrictions in Guangzhou and Shenzhen)
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Other Potential Opportunities
 Clients:
a) Foreign firms
 There are 76,000 HK firms in Guangdong
 There are some 20,000 Taiwanese firms in
Guangdong
 There are some 10,000 foreign firms in
Guangdong
 Many foreign firms from Europe want to set up
firms in HK for entering China
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Other Potential Opportunities
b) Private local firms
 The GDP of private enterprises is about 40% of the
total GDP in the Province.
 Many of them want to set up firms in HK.
 There are already over 280 firms listed in the HK
Stock Exchange.
 Many are queuing up for their turn.
c) Foreign trade
 Guangdong is the largest export and import centre for
the Mainland, accounting for one-third of the total
national foreign trade (about US$250 billion in 2003)
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IP Professional Services
 This is a growing sector by itself but is
only at the very early stage.
 The concept of Intellectual Property Rights
is growing but violation to it is widespread.
 We need to put efforts to cultivate our
market.
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Method of Cultivation (1)
1. Contacts/Promotion
2. Diversify our business into related legal field,
e.g.:
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Legal service for commercial contracts (foreign
trade, merge & acquisition, trademarks
registration, patent registration, etc.)
Arbitration – Use HK’s advantage as the
arbitration centre between Mainland companies
and their foreign counterparts
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Method of Cultivation (2)
3. Joint efforts with other professionals, e.g.:
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With bankers/accountants for listing
With HK designers – IP vs Design
With building services for infrastructural
projects
With exhibition & conference organisers for
product and trade promotion
Other examples as in the SME Exposition
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We need to
1. Understand the needs of our clients
2. Let our clients know the benefits of our services to
them
3. Coordinate with other services to provide more
“one stop” services
4. Understand the global market and our own niches
in the market
5. Build up stronger links with foreign partners to
gear up our preparation for the international market
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Thank You!
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