instrument’s · 5.1% (2014 –2018) japan • projected growth in real gdp at 1.2 – 1.7% (2016...

Supporting international commercialisation of EU innovation

Overseas Trade Fair Participation

Programme

SME Instrument’s

WEBINAR 26 October 2016

Webinar hosts and speakers

Jean-Jacques Lennon Overseas Trade Fairs teamTeam Leader/Market Expert SEAModerator

Vanessa RicciSME Instrument Phase 3 teamProject ManagerSpeaker

Mamoru WatanabeDeloitte JapanMarket Expert JapanSpeaker

Eddie YanDeloitte ChinaMarket Expert ChinaSpeaker

Vilma ZotouOverseas Trade Fairs teamTeam MemberModerator

“…the more one

looks at Asia, the

clearer it becomes

that the region’s

ascendancy in the

global economy will

continue...” (Akrur

Barua, Deloitte)

CHINA• Projected growth in

real GDP at 6.0 –6.3% (2016 – 2017)

ASEAN COUNTRIES• Projected growth in

real GDP at 3.3 –5.1% (2014 – 2018)

JAPAN• Projected growth in

real GDP at 1.2 –1.7% (2016 – 2017)

Target markets

– Focus on Asia

IE Expo

Environment &

biotechnologies

Electronica & Productronica

Electronics

CIIF

International

Industrial technology

Industrial

technologiesFiber Optics Expo

Optical

communication

Asia Water

Expo

Water industry

MIHAS

Food, healthcare &

tourism

Tech

Innovation

Technologies

Metalex

Machine tools & metal

industry

Target markets

– Focus on Asia

Focus on China

Presentation title© 2016. For information, contact Deloitte China. 6

China is now the EU’s 2nd trading partner in goods

Source: Eurostat


China will enter into a new round of high level opening up

Implementation of Free Trade Zone strategy will be accelerated;

An all-round new opening-up pattern will be established.“One belt and one road” program will be advanced.

The Go Out Policy will be further implemented. Enterprises are encouraged to participate in overseas infrastructure construction and capacity building cooperation. Efforts will be made to bring more made-in-China equipment to the world, such as railways, electricity, etc.

Foreign investment will be made better use of. Catalog of Industries for Foreign Investment had been revised to further open up service and general manufacturing industries and restrictions on foreign investment will be cut by half.

Transformation and upgrading of foreign trade will be promoted. Export rebate burden mechanism will be improved.A more active import policy will be implemented to expand imports of advanced technologies, key equipment and important parts.


Financials • Limited credit growth • Debt / NPL risks

Old Economy

Real Estate • Signs of recovery in Tier 1 cities• Supply being gradually weeded out

Oil and Gas • Low level of oil prices• Investment cut • Production reduction

Industrials • the manufacturing industry

transformed toward a new age of smart manufacturing.

Automobile• Resume is expected in H2• Increased consumer appetite/

tax cut • Massive new model offering

Internet/ Media• E - commerce enter into a relative

stable industry structure• Internet + : opportunity & bubble

New Economy

Technology • Next generation technology e.g.

robotics, AR/VR, EV, Clean technologies

• M&A led by tech companies

Healthcare • Aging population/ 2nd child

market• Increasing healthcare

spending

Consumers • Service, leisure, F&B• Overseas expansion• Brand innovation• New business models

Emerging industries are reshaping and redefining China's economy

Higher growth comparing to 2015

Lower growth comparing to 2015


A more investor-friendly market environment is setting up

Focus on Japan

Overseas Trade Fairs Webinar 26 October 2016

Deloitte 2016 11

Scoping Japan

Thousand islandsJapan is nearly equivalent to Germany and Switzerland combined, and consists of 6,852 islands, including 4 main islands.

4.87

126

US$ Trillion GDP in 2015Japan is the fifth largest economy, after China, the EU, the US and India.

Million People in 2014Most Japanese reside in densely populated urban areas. Approximately 12 million people live in Tokyo Metropolitan Area.

Kyushu Shikoku

Honshu

Hokkaido

Source: Japanese National Tourism Organisation, 2016


Deloitte 2016 12

Promising industries for European companies

LIFE SCIENCES

• #2 market worldwide afterthe US

• 10% of global pharmaceutical product market

• 10% of global medical equipment markets

(RENEWABLE) ENERGY

• 6% energy self-sufficiency in 2013 – 58,1% in 1960

• 24% of energy supply through renewable energies in 2030 – 10,7% in 2013

• ¥tn 8 fully-liberalisedelectricity market since 2016

ICT

• #3 market worldwide afterUS and China

• ¥tn 98 real domesticproduction in 2013

• ¥tn 11.7 of IT investments from domestic privately owned companies in 2016e

Source: JETRO, 2016


Deloitte 2016 13

Key concepts and values in the Japanese culture

Hierarchy

Wa

Formality

Relative status in an organisationdetermines how members interact with each other and how they expect others to interact with them.

Japanese will prefer the continuation of peaceful harmony within a social group over their personal interests.

The way of doing things, appearanceand politeness are higly valued in theJapanese culture. The languageincludes a formality system

Focus on South East Asia

Swimming in Foreign WatersDoing Business in Southeast Asia

Deloitte 2016 15

Southeast Asia (SEA) and Association of Southeast Asian Nations (ASEAN)

Countries since 1995The Philippines, Malaysia, Indonesia, Singapore and Thailand founded ASEAN in 1967 (Declaration of Bangkok).

2.610

622

US$ Trillion GDP in 2014ASEAN is the 8th largest economy in GDP terms. It’s GDP nearly doubled between 2007 (US$1.33 tn) and 2014.

Million People in 2014ASEAN’s population is the 3rd

largest in the world, after China and India. Over 50% is younger than 30 years (34% in Europe).

Source: ASEAN Secretariat, November 2015


Deloitte 2016 16

A heterogeneous economic landscape

Vietnam

Belongs to the lower middle incomeeconomy group. Its key subsectors include food processing, tobacco, crude oil, coal, tourism and hospitality, catering, transportation, seafood.

Malaysia

Belongs to the upper middle incomeeconomy group. Its key subsectors include banking and financial services, utilities, oil and gas.

Singapore

Belongs to high income economy group. Its key subsectors include banking and financial services, manufacturing pharmaceuticals, oil and gas equipment.

Indonesia

Philippines

Cambodia

Malaysia

Myanmar

Brunei Darussalam

Vietnam

Lao PDR

Singapore

Thailand

European Union

United States

Japan

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

-1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0%

GD

P p

er

ca

pita

, P

PP

(cu

rre

nt in

t'l $

)

GDP per capita, PPP (2006-2015 CAGR)

World Bank’s classification of economies:

• low income,

• lower middle income,

• upper middle income,

• high income

Source: ASEAN Secretariat, November 2015

Lao PDR

Belongs to the low income economy group. Its key subsectors include Tourism, agricultural products (rice, sweet potatoes, corn, coffee, etc), handicrafts.


Deloitte 2016 17

Country GDP Composition by Sector Key Subsectors

Singapore

(2014)A: 0.0%; I: 24.9%; S: 75.2%

Banking and financial services,

manufacturing pharmaceuticals,

oil and gas equipment

Brunei

(2013)A: 0.7%; I: 68.2%; S: 31.1%

Petroleum and natural gas,

petrochemical industry,

telecommunication services

Thailand

(2014)A: 10.4%; I: 36.9%; S: 52.7%

Financial services, tourism,

automobiles and automotive

parts, electronics, textiles, rice,

shrimp

Malaysia

(2015)A: 8.4%; I: 39.1%; S: 44.3%

Banking and financial services,

utilities, oil and gas

Indonesia

(2015)A: 13.5%; I: 40.0%; S: 43.3%

Oil and gas mining, F&B,

tobacco, construction, wholesale

and retail trade, banking, real

estate, rice, palm oil

Sectoral composition of SEA economies

Country GDP Composition by Sector Key Subsectors

Philippines

(2015)A: 10.2%; I: 30.8%; S: 58.8%

Business process outsourcing

(BPO), electronics assembly,

garments, footwear, coconuts,

pineapples, sugar

Vietnam

(2015)A: 17.0%; I: 33.2%; S: 39.7%

Food processing, tobacco, crude

oil, coal, hotel, catering,

transportation, tourism, seafood

(shrimp, catfish)

Cambodia

(2015)A: 28.2%; I: 29.4%; S: 42.3%

Garment manufacturing,

cultural tourism, construction

and real estate

Lao PDR

(2014)A: 27.6%; I: 31.4%; S: 40.9%

Tourism, agricultural products

(rice, sweet potatoes, corn,

coffee, etc), handicrafts

Myanmar

(2013)A: 38.8%; I: 19.3%; S: 41.8%

Rice, wood products, rubber,

gemstones (rubies, sapphires),

natural gas

Source: World Bank, 2013-2015

@H2020SME_OTF

https://ec.europa.eu/easme/en/sme-instrument-s-overseas-trade-fairs-programme

https://www.linkedin.com/in/sme-instrument-overseas-trade-fairs

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