EDITION 3, APRIL 08 News Letter for the Pacific Rim, Hong Kong & Selected South East Asia Markets

The purpose of this newsletter is to alert UK business to what UKTI sees as the main headlines in the Pacific Rim, South East Asia & Hong Kong. It is meant to be no more than a snapshot. To go to a chapter – Click on heading, press `Ctrl’, then left click.

Feedback, comments and contributions to the UKTI strategy are always welcomed. Further information on any of these subjects is also available.

Feedback & Ask Mike
Useful URL’s

Vietnam PM Visited the UK

Taiwan –  Taiwan’s business interests in the mainland

Indonesia – possible visit to the UK by President Yudhoyono early June, Tax reform Paper

Korea – President Lee a workable majority & Mr Man Soo Kang, Minister of Strategy and Finance to visit UK in May, First meeting of KBBC with EC representative, eGovernment Event, Seoul, 7-9 July

Singapore – March Visit by Minister Bill Rammell,  Investment flows

Philippines – UK investment in the market

Thailand – Lord Jones to address “Thailand Means Business 2008” seminar,  Security Information Service for Business Overseas (SISBO) Conference,  The Bangkok Metropolitan Administration (BMA) Governor Khun Apirak to visit UK

Vietnam – Call for Euro to be used for bids, Airport Development Plan

Hong Kong & Macao – economic overview,
Abolition of import duties on wine & beer, Soft Landing Zone, New Consul General,  Asian Attractions Expo

General Items of Interest  - EU ASEAN FTA, ASEAN Retail Event 8 May with guests Harvey Nichols, Latest Trade figures Dec 07, snapshot graphs by market  

Taiwan

The President elect is currently putting together his Ministerial team. All signs are that a more positive cross Straits policy will lead to greater Taiwan ties with the mainland. As it stands Taiwan’s business interests in the mainland are substantial: 75,000 investments, official figures show total Taiwanese investment of US$64.9bn over 20 years but most analysts agree the figure (including investment routed via eg the British Virgin Islands to evade Taiwanese investment restrictions) is probably around US$100-120bn. Over 52% of Taiwan’s top 1000 companies have invested in China and over 70% of the investment is in the manufacturing sectors.

Indonesia

A visit to the UK by President Yudhoyono is slated for early June. UK Trade and Investment will work with the Indonesian Government to ensure that there is a major economic and business angle to his programme. As was seen with the recent visit of the Vietnamese Prime Minister, such visits can be used to push forward commercial agreements.

Tax Reform Paper:   

Korea

Parliamentary elections have given President Lee a slim, but arguably workable, majority in the legislature. The e.bulletin will continue to report on how the President aims to develop his pro-business, economic policies.

Mr Man Soo Kang, Minister of Strategy and Finance, will be one of the first Ministers from the new administration to visit the UK when he undertakes a programme in London in early May.

First meeting of Korea British Business Council

Sir David Wright Chaired the meeting which included a most constructive discussion on the EU Korea FTA with Ulrich Weigle, EC. The Council will be looking to consolidate views on market access issues and feed these into UKTI.

eGovernment Event, Seoul, 7-9 July 2008

The Seoul Metropolitan Government are organising an eGovernment event in Seoul where they hope to promote exchanges and cooperation between global eGovernments. The organisers are keen to invite UK City mayors.

Singapore

April saw the opening of the world’s largest observation wheel (for now) – the Singapore Flyer, shown above. 

Investment

The latest figures (for 2006) on investment flows between the UK and Singapore were published in April by Singapore’s Department of Statistics.  These figures showed that:

• The UK remains the leading foreign direct investor in Singapore with the total now reaching S$52,621 million, ahead of the US S$46,097 million

• Eight out of every ten Singaporean dollars of investment in the EU flows into the UK.  This is a leap from two-thirds in 2005.

Trade

In March, Minister Bill Rammell headed up a visit to Singapore by a group of 4 British university Vice Chancellors.  The successful visit was aimed at developing inter-university relations.  This was followed in April, following an SBBC initiative, by a visit from Hertfordshire University, who were exploring developing their own links with Singapore.

Looking ahead to the autumn, after the SBBC visit in September, Singapore will be preparing for the Lord Mayor of London’s visit in October.  Companies wishing to be involved in this visit should contact the team in Singapore.

Philippines

Data released by the Banko Sentral ng Philipinas (Central Bank)) shows that in 2007 the UK was the largest investor in the Philippines:

Portfolio Investment US$4428.95m
FDI                             US$446.50m

Recently, on the back of growing international business success, two UK companies, Balfour Beatty and Cape East recently opened training centres in the Philippines - to train workers to service their growing overseas businesses in respectively, overhead line transmission and offshore oil and gas servicing.

Thailand

As a direct result of his recent visit to Thailand, Lord Jones will be giving the Opening Address at the 670-strong British Chamber of Commerce Thailand (BCCT) first "Thailand means Business 2008" Seminar at Asia House on Thursday, 1 May 2008. This is just the first of a number of similar business-to-business events which the BCCR will be staging this year in both the UK (Birmingham. Edinburgh, Liverpool, Manchester and South Wales) and the region (Hong Kong and Singapore).

Bangkok hosted the Annual Security Information Service for Business Overseas (SISBO) Conference - jointly run with the International Security Management Association (ISMA) and the Overseas Security Advisory Council (OSAC - the US State Department's global business outreach network) - on 31 March/1 April which, with the UKTI's teams active involvement, proved a very successful event.

The Bangkok Metropolitan Administration (BMA) Governor Khun Apirak will be visiting Liverpool from 9-15 May 2008 to develop links which it is hoped will lead to the formal signing of a Town Twinning Agreement 
in 2009.

Vietnam

At a briefing in Ho Chi Minh City, EuroCham called for Vietnam to offer the use of euro as an alternative currency for bids. Vietnam National Oil and Gas Group posted total revenues of nearly 69.4 trillion dong (more than 4.3 billion dollars) in the first three months of this year, up 71% year-on-year.
Vietnam needs 221.5 trillion dong to carry out its airport development plan from now until 2020. Its plan envisages a total of 26 airports, including 10 international and 16 domestic ones, to be in operation by 2020. Its first 3-year first phase is estimated to cost 38.5 trillion dong.

Hong Kong & Macao

HK’s economy sustains it strong growth

HK’s economy sustained its strong growth momentum with growth by 6.8% in 2006 and by 6.3% in 2007. Growth of 4-5% is forecast for 2008.
The improving job market, rising household income & wealth, a record number of 28 million visitors in 2007 all contributed to strong domestic demand, the key driving force behind HK’s current economic growth.

Hong Kong abolishes import duties on wine and beer

Hong Kong announced its new tax rule on immediate abolition of duties on wine, beer and all other alcoholic beverages except spirits in the release of its 2008-09 Financial Budget on 27 February.  This offers opportunities for UK companies with niche opportunities in the food and drinks, transportation, tourism, education and training sectors.

Launching of the Soft Landing Zone (SLZ), Hong Kong Science Park

The SLZ programme, organised by the Coventry University Enterprise and funded by UKTI, offers ‘hands-on’ support, dedicated office accommodation and advice on setting up offices abroad.  This will enable hi-tech UK companies the use of office premises and support to explore opportunities in Hong Kong.

New British Consul General in Hong Kong

Mr Andrew Seaton took up his appointment as the new Her Majesty's Consul General to Hong Kong on 22 April 2008.  Mr Seaton’s opening remarks are attached in the following link. http://www.britishembassy.gov.uk.OpeningRemarks
UK Mission to attend IAAPA Asian Attractions Expo, 16-18 July
The Birmingham Chamber of Commerce & Industry will be taking a group of UK businesses to IAAPA Asian Attractions Expo for the leisure industry.  Please refer to http://www.iaapa.org/expos/asian/ for more details. 

 General items of Interest:

EU-ASEAN Free Trade Agreement

The 4th Joint Committee met in Bangkok from 16-18 April 2008 addressing a number of issues including trade in goods and non tariff measures. On the positive side these were the first discussions at expert level, more than 150 ASEAN delegates suggesting  increased interest. However, there still appears to be a gulf between the EU and most ASEAN countries as to a level of understanding (e.g. in Services), ambition (e.g. as regards the level of regional integration that the FTA should usefully bring about within ASEAN) and political perception and priorities (e.g. on "sensitive" issues like IPRs and Sustainable Development). ASEAN does not seem ready to place their position on paper and is concerned at the pace at which the EU wishes to progress. A three-to-four year negotiation rather than the EU preferred two-year process is a key difference in approach - Summary: Talks continue. Progress is slow but positive nonetheless.

Retail Opportunities in the ASEAN markets

8 May: UKTI have organised an event at Asia House to promote the retail opportunities in the ASEAN markets.  The event will be aimed at mid-corporates.  Harvey Nichols will be speaking to Manny Silverman of their experiences in the region.  Other guests include Grant Thornton & Fox Williams.  Flyer attached:

Trade figures, all markets, to December 07:

Snapshot graphs - goods & services by market -  to December 07:

Useful URLs

UKTI’s website – includes trade opportunities, exhibitions, recent successes and trade briefs, by market.  https://www.uktradeinvest.gov.uk/

Feedback & Ask Mike

Email mike.qureshi@uktradeinvest.gov.uk with your questions about UK Trade & Investment activity

Your suggestions for content or themes to appear in the next edition are welcomed. Email mike.qureshi@uktradeinvest.gov.uk 
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