Transcript Connectivity

Connectivity:
Bringing the world of
business together
21 November 2005
Peter Woo
Chairman
Hong Kong Trade Development Council
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!
Delivering more value
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
Let’s talk business!
The China story
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• 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 “middleclass” = 250 million
• This group will
increase to 25%
by 2010
The China story
• 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)
China’s future direction:
• 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?
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
HK’s first-mover advantage
• 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
HK’s first-mover advantage
• 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
Time to act
What about mainland enterprises?
• 4 million MPEs
• 30% growth in their number p.a. –
compounded over last 10 years
Time to act
What about mainland enterprises?
Use the Hong Kong platform to:
• Connect with the world’s markets
• Raise capital and finance deals
• Improve competitiveness
Hong Kong’s Story
• 5.5% growth
• Cepa III
• More tourists (Disneyland open)
• More RMB services
• Removal of estate duty tax
The Hong Kong Agenda
Build critical mass of:
~ 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
The Hong Kong Agenda
Build critical mass of:
~ Capital market
~ Infrastructure and logistics
~ Talent and creativity - people
The Hong Kong Agenda
• 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
The Hong Kong Agenda
World capital for:
• SMEs
• Entrepreneurs
plus
World platform for private capital
HKBAs’ connectivity
Join a global talent-hunt for China:
• Hong Kong Business Associations - a
source of talent
• Your services are needed
HKBAs’ connectivity
Message for Hong Kong Business
Association members:
• Focus on connectivity
• Connect with other associations
• Map out a plan for the next 5 years
• Build your critical mass
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
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”
We are at your service!