strengthening bkpm’s fdi attraction strategy › wp-content › uploads › 2018-05-09... ·...
TRANSCRIPT
1
www.wavteq.com
www.wavteq.com | www.incentivesmonitor.com | www.fdiprofessionals.com | www.fdiaccounting.com
company/wavteq @wavteq
1
TPSA program is executed by
Data ¦ Technology ¦ Consulting
Strengthening BKPM’s FDI Attraction Strategy
Results of BKPM Workshop and Key Discussions Points
Workshop facilitated by:
2
www.wavteq.com
W A V T E Q
OPENING REMARKS
“About WAVTEQ”
3
www.wavteq.com
Over 75 FDI consultants with lead generation teams in Austria, Canada, China, Germany, Hong Kong, India, Ireland, Japan, Korea, Spain, UK & USA
o WAVTEQ was founded in 2010 and has built the largest FDI consulting team worldwide with the most extensive global presence
o WAVTEQ has established operations in the major source countries and is co-owner of International Investment Services GmbH (Europe) and Research Consultants International Inc. (North America).
We have helped over 1,000 companies establish over $50 billion of greenfield investments covering all industries and types of project, including manufacturing, logistics, HQs, and R&D
WAVTEQ develops the world’s leading corporate expansion intelligence and corporate location
benchmarking databases and CRM systems 100% designed for EDOs/IPAs
WAVTEQ is the technology and consulting partner of fDi Intelligence, Financial Times, with the USA, Canada, UK,
Asia, and Middle East Franchises
ABOUT US
WAVTEQ company overview
4
www.wavteq.com
ABOUT US
WAVTEQ – the leading developer of FDI products & tools
Unique database tracking cost & quality competitiveness of nearly 1,000 countries, states & cities
in 65+ sectors with nearly 1,000 data points on each location. Includes operating cost and SWOT
models. Excellent for quickly understanding a location’s competitive position and for developing
value propositions. Developed by WAVTEQ for the Financial Times www.fdibenchmark.com
Unique global database which has tracked over $1.4 trillion / 6 million+ jobs of incentivised
greenfield projects since 2010. Includes advanced analysis tools to compare incentives worldwide,
an Incentives Calculator, incentives policy information, company database, and decision maker
contacts in investing companies. Includes investment and incentives Mapping tool. www.incentivesmonitor.com
www.fdi365.comfdi365 is a customized global online business intelligence platform. Has tracked since 2017, 2,700 business expansion leads. A Research Consultants International FDI Inc.
World’s leading business expansion database, developed by WAVTEQ for the Financial Times. Tracks real
time companies announcing, opening & considering greenfield FDI worldwide – an indispensable tool for
attracting investment. Tracked over $12 trillion of greenfield projectswww.fdimarkets.com
www.fdiprofessionals.com
Unique global database of 25,000+ location advisors and influencers to get your location on the
Investor’s Map and build business networks globally. Use the Client Access feature to provides
investors with access to FDI Professionals to make their project happen in your location. Includes an
interactive GIS Advisors Map which can plug-in to your EDO/IPA website. CRM compatible
Unique software & data tool to track & measure inward investment successes, qualify projects,
measure the involvement of your EDO/IPA and the quality of FDI attracted. Measures organizational
performance and return on investment of IPAs/EDOs. Includes an Interactive GIS Investment Map.
Can be provided as an online location promotion tool through an API to a dedicated website to present
FDI Accounting data to the world (e.g. see www.dubaifdimonitor.com ). Licensed by Select USA, Dubai
FDI and other EDOs and IPAs .
www.fdiaccounting.com
World’s first CRM systems designed and created specifically for IPAs and EDOs. Very easy-to-use, cloud-based and with a very flexible structure designed to minimize customization costs. Ready to use for lead generation, investment facilitation and aftercare/BRE
5
www.wavteq.com
ABOUT US
Thought leadership in how to attract FDI
₊ WAVTEQ's team is at the forefront of knowledge on FDI, with over 100 FDI publications and training guides. WAVTEQ provides a free publication portal for FDI studies subscribed to by over 1,000 EDOs and IPAs. Our most recent publications are shown below
₊ These studies used extensively by IPAs and international organizations to inform their investment promotion strategies and training needs
Download our training guidelines and latest studieswww.wavteq.com/publications
6
www.wavteq.com
ABOUT US
Guidelines for Investor Enquiry Handling
7
www.wavteq.com
ABOUT US - Recent FDI consulting clients (2013 - 2018)
National and international organizations
8
www.wavteq.com
SESSION 1: WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)?
9
www.wavteq.com
1. Vision and mission statement
2. Strategic objectives
3. Benchmarking and image building
4. Sector and market strategies
5. Marketing and promotion
6. Product development: activities to improve the local investment climate
7. Budgets and resource allocation
8. Organization of resources: organizational diagram showing each department with functions and staff members and their responsibilities
9. Key performance indicators (KPI’s) for monitoring and evaluation
10.Action plan: short-term, medium-term and long-term actions required for each target and goal, outlining investment promotion tools and budgets
WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)?
Investment promotion strategy – 10 key components
10
www.wavteq.com
1. Why attract FDI / objectives in attracting FDI?
oCapital inflows, job creation, tax income, technology transfer
oBigger picture: how to maximize the benefits?
oGDP growth, exports
oRegional development
2. What type of FDI is BPKM is trying to attract?
oGreenfield, Brownfield, M&A (increasing mode so we need strategy)
3. How much FDI does BKPM want to attract?
o765 trillion – FDI and DDI- 60% FDI realization –commitment figures approx. 3x higher
o(2017 $30 billion)
WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)?
Group brainstorm – BKPM’s FDI strategy
11
www.wavteq.com
The type of FDI to target depends on the desired benefits
o The type of FDI to target also depends on:+ The sectors in the economy (e.g. R&D and tech sectors are driven more M&A and
NFI/NEM types of FDI)+ The existence of local firms both suitable for, and which have a clear desire for,
engaging in M&A and/or NFI/NEM transactions with foreign investors + The capability of the IPA to promote and facilitate non-Greenfield types of FDI
WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)?
Economic development benefits by type of FDI
Type of FDI
Job creation
Fixedcapital
formationTechnology
Access to export
markets
FX earnings
Long term finance
Greenfield FDI
High High High High High High
M&A Low Low Low High High Medium
NFI/NEM Medium Medium High High Low Low
Source: WAVTEQ
12
www.wavteq.com 12
KEY PERFORMANCE INDICATORS
IPA performance – example targets to monitor
Source: ESCAP (2017)
Example key performance indicators for an IPA
It is expected that IPAs will increasingly target FDI to achieve the UN Sustainable Development Goals (SDGs) relevant for their location
“The quality of inward FDI is more important than its quantity. FDI quality cannot be assessed simply by looking at aggregate FDI statistics”
Columbia FDI Perspectives, Perspectives on topical foreign direct investment issues, No. 184 (October 10, 2016)
13
www.wavteq.com
SESSION 2: WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
14
www.wavteq.com
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Framework for identifying target sectors
TARGET SECTORS
1. Economic development
objectives
2. Competitive position
3. Market demand
WAVTEQ Three Force Model of target sector identification www.wavteq.com/publications
15
www.wavteq.com
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Sectors where Indonesia has a RCA>1 for FDI projects (2014-March 2018)
Beverages 2.71
Coal, Oil and Natural Gas 2.29
Hotels & Tourism 2.24
Ceramics & Glass 2.12
Metals 1.82
Warehousing & Storage 1.72
Wood Products 1.56
Building & Construction Materials1.52
Food & Tobacco 1.40
Consumer Products 1.38
Consumer Electronics 1.31
Chemicals 1.30
Automotive Components 1.29
Renewable energy 1.28
Healthcare 1.23
Non-Auto Transport OEM 1.21
Automotive OEM 1.21
Minerals 1.13
Real Estate 1.04
Space & Defence 1.02
Business Machines & Equipment 1.00
Communications 1.00
Transportation 0.94
Plastics 0.91
Indust. Mach, Equip & Tools 0.88
Pharmaceuticals 0.87
Electronic Components 0.83
Rubber 0.82
Software & IT services 0.81
Leisure & Entertainment 0.81
Aerospace 0.70
Business Services 0.64
Financial Services 0.58
Textiles 0.55
Medical Devices 0.43
Biotechnology 0.41
Semiconductors 0.25
Paper, Printing & Packaging 0.23
Engines & Turbines 0.00
Source: WAVTEQ based on fDi Markets data
Indonesia has a RCA mainly in low-technology and a few medium tech sectors – not in high tech sectors
16
www.wavteq.com
What should be the key sectors (and subsectors) to target for FDI into Indonesia?1. Infrastructure – energy, mining, transportation, electricity – conventional
and renewables especially solar (all priority ED objectives)
2. Manufacturing – food (exports), industrial machinery, heavy industry (value added), textiles (jobs), pharma and chemicals (import substitution, lower costs for other sectors, high tech), electronics, automotive (capital investment, jobs, exports, local linkage)
3. Maritime – cold storage, fish processing, harbor, ship and boat building
4. Agriculture – cattle, livestock (food security)
5. Tourism – hotels, restaurants, travel agents, SEZs (priority ED objectives)
6. Lifestyle/Digital – e-commerce, software development, retail, film, creative industries
7. Services – financial, professional (increases competitiveness of all sectors, knowledge-transfer, high income – but min. FDI threshold too high perhaps!), and education
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Group brainstorm – what sectors to target for FDI?
17
www.wavteq.com
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Indonesia’s competitive sectors for FDI – Chemicals
Source: Developed by WAVTEQ for TPSA project
18
www.wavteq.com
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Indonesia’s competitive sectors for FDI – Machinery
Source: Developed by WAVTEQ for TPSA project
19
www.wavteq.com
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Indonesia’s competitive sectors for FDI – IT
Source: Developed by WAVTEQ for TPSA project
20
www.wavteq.com
WHAT SECTORS SHOULD BKPM TARGET FOR FDI?
Indonesia’s competitive sectors for FDI – Technical services
Source: Developed by WAVTEQ for TPSA project
21
www.wavteq.com
SESSION 3: WHAT COUNTRIES SHOULD BKPM TARGET FOR FDI?
22
www.wavteq.com
WHICH COUNTRIES SHOULD BKPM TARGET FOR FDI?
Framework for identifying target countries for FDI
22
1. Is the country a major investor in your target
sectors?
2. Does the country have a track record of FDI in your
country/region?
3. What are the “distance” costs – geographic & cultural
proximity?
4. What is the size, growth and type of FDI from the
country?
Target countries
Source: WAVTEQ
Framework for identifying target countries for FDI
23
www.wavteq.com
WHAT COUNTRIES SHOULD BKPM TARGET FOR FDI?
$m greenfield FDI by source country globally (2014-March 2018)
Source Countries Un
ited
Stat
es
Ch
ina
Jap
an
Ger
man
y Fran
ce
UK
Sou
th
Ko
rea
Sin
gap
o
re Spai
n
Ital
y
UA
E
Can
ada
Swit
zerl
and
Ho
ng
Ko
ng
Taiw
an
Ru
ssia
Net
her
la
nd
s
Ind
ia
Mal
aysi
a
Thai
lan
d
Luxe
mb
ou
rg
Au
stra
li
a Den
mar
k Sau
di
Ara
bia
Real Estate 41980 82258 40281 5711 4846 12511 4098 48198 743 625 41460 8885 217 18156 4530 1 3644 8446 15215 13322 25576 22055 226 7859
Coal, Oil and Natural Gas 65919 42268 29705 5538 30751 16213 11213 7638 7739 17948 9488 3295 3710 4607 50 47833 8286 9157 9962 8620 1056 4896 13568
Alternative/Renewable energy26038 27242 8731 17733 18228 11446 11197 4976 19510 24385 2168 16912 1716 1580 2787 449 2550 6099 4033 8046 1628 689 7999 2942
Communications 72119 15420 6402 2403 6791 14279 4542 5605 13111 2075 1013 1887 719 2295 3052 1158 4369 1175 987 53 3900 1900 173 482
Automotive OEM 22688 16241 22570 37998 10548 4759 10396 127 542 2570 180 667 7 2157 1982 1504 66 4782 2634 7 95 3 1 13
Chemicals 21033 11562 8616 12097 8661 1811 8056 1636 445 401 1382 3061 9015 1844 1835 646 6051 2178 2000 603 567 590 3285 11129
Metals 9177 28812 11815 4357 1303 16418 7456 830 2962 2939 437 12989 2073 1046 1650 391 1683 2913 250 11 4905 1299 124 48
Food & Tobacco 20251 7268 5227 18827 9515 3649 1625 1200 1636 1595 2815 1810 7552 1653 816 520 2842 508 1721 2988 154 450 2055 754
Textiles 16236 5775 5019 6517 16209 7691 3667 2014 8698 16314 422 3305 1756 2512 2832 115 1321 1586 45 99 311 1641 1555 108
Financial Services 19514 4528 5828 4238 5225 12612 3592 2727 3469 1996 7157 3820 5852 3163 3614 2049 1684 1430 1134 839 867 2499 486 436
Consumer Products 25318 1952 4089 5117 15177 5137 4660 590 4919 4413 1156 856 8525 1804 706 140 4437 1419 829 411 1422 1842 5897 182
Transportation 17143 8398 5387 21591 5353 8237 856 1121 1721 1120 2259 3537 3846 1394 864 3993 3634 922 767 629 586 297 3706 212
Software & IT services 52415 2275 2694 6524 6632 8445 446 1231 997 622 533 3687 1788 669 479 1154 2202 4860 82 24 157 1671 713 22
Automotive Components 12285 4515 18085 22918 4638 2776 3897 56 1526 1273 47 3592 778 763 684 263 1979 69 112 701 232 1 15
Electronic Components 10974 6638 6183 5444 1429 4826 14439 485 490 517 36 1414 2276 2560 22709 17 1102 75 19 44 3 144 120
Hotels & Tourism 15088 2778 1998 1016 4208 4000 423 3301 9832 61 1713 1648 1354 5345 75 5 201 598 1205 2832 5 913 2 179
Business Services 15727 2029 2094 1955 3876 11729 914 988 3599 449 441 1010 1413 407 138 129 1505 2437 2553 133 456 1453 489 52
Warehousing & Storage 2858 5800 4138 4439 3085 1153 1019 1652 1199 31 5909 272 1653 3494 208 4354 423 743 173 221 147 4615 174
Industrial Machinery, Equipment & Tools8540 5234 7021 7598 1413 1783 796 174 711 1672 93 850 3978 342 1483 30 973 398 46 28 58 189 606 18
Semiconductors 13985 289 1566 4455 69 589 9239 48 3 8 65 690 2563 8513 512 6
Pharmaceuticals 8245 816 2058 3440 2610 3729 1817 33 509 239 495 991 2747 60 97 232 133 1777 16 62 581 1796 237
Plastics 4281 1556 6765 4087 609 662 2007 188 702 470 1399 393 971 1961 1178 87 523 1483 72 174 466 162 404 291
Building & Construction Materials2452 6720 354 1784 2930 597 345 350 1290 737 22 138 2691 28 608 3 123 120 1470 227 84 1038
Leisure & Entertainment 7437 1011 1354 40 2509 4087 627 663 609 376 323 3337 257 3 132 89 489 166 659 3 38
Rubber 2028 4553 4226 3224 1852 246 2355 588 163 1068 88 385 82 1010 107 119 1062 406 161 123 81 146
Aerospace 9553 638 518 1195 2959 2505 107 361 54 368 51 713 459 375 195 466 3371 408 20 106 200 54 5
Paper, Printing & Packaging 2252 5847 944 1368 112 787 4 9 637 1007 1 840 492 213 12 90 101 158 172 28 99 216
Beverages 6716 1127 88 388 1351 96 74 263 147 96 130 1089 114 4175 1914 8 67 125 134
Biotechnology 7413 611 746 2562 939 825 454 440 425 101 135 297 1267 94 96 83 199 11 1 701 293
Non-Automotive Transport OEM1278 1280 2241 2593 917 383 3876 39 103 185 700 453 3 746 24 153 377 172 10 15 64
Consumer Electronics 1645 1624 695 1617 79 748 4521 53 63 371 174 46 109 152 303 0 146 61 16 1 63
Ceramics & Glass 2198 1862 2680 1120 1052 109 329 228 891 68 85 67 504 469 18 26 16 3 7
Medical Devices 4819 308 1034 2701 112 491 62 127 66 68 73 276 12 218 7 840 116 127 85
Business Machines & Equipment4159 389 2008 192 100 293 78 1 124 15 5 60 995 1419 52 6 1 14 112
Wood Products 324 286 217 289 185 164 166 149 62 47 656 516 233 65 6 76 40 29 15 1
Minerals 748 149 83 221 377 593 3150 366 514 52 152 29 140 119 24 129 324
Healthcare 1852 125 577 254 209 309 90 1351 413 122 559 164 8 19 50 0 248 350 109 50 78 20 128
Engines & Turbines 1939 444 228 1357 134 288 70 22 180 20 26 20 5 127 46 822
Space & Defence 627 82 3 222 362 695 17 8 0 109 94 30 31 54 184 0
Total 559252 309581 225306 224826 176391 168926 119553 91536 90038 87086 82330 79889 70933 66478 65061 62130 61978 57665 46163 43183 42827 42326 42131 39025
Source: fDi Markets, FT
24
www.wavteq.com
WHICH COUNTRIES SHOULD BKPM TARGET FOR FDI?
Identifying key source countries in target sectors
Source Countries
Construction
Creative Industries
EnergyRenewable
Energy
Food, Beverages & Tobacco
ICT & Electronics
Life sciences
Physical Sciences
Professional &
Financial Services
TourismTransport Equipment
ALL SECTORS
United States 5 1 1 2 1 1 1 2 1 1 3 1
Germany 9 7 8 4 2 6 2 4 10 11 1 2
Japan 3 5 6 9 5 4 4 5 7 10 2 3
China 1 4 2 1 4 5 6 1 14 7 4 4
France 6 3 5 5 7 8 5 9 3 4 5 5
UK 7 2 4 7 3 7 3 3 2 3 7 6
Korea 11 11 14 12 10 3 13 7 12 14 6 7
Taiwan 13 14 16 11 16 2 15 16 16 15 10 8
Singapore 2 6 9 15 12 12 8 10 13 6 15 9
Switzerland 12 13 13 13 6 13 7 8 6 12 12 10
Spain 16 9 11 3 11 15 12 14 5 2 13 11
Italy 15 16 7 6 13 14 14 15 15 16 11 12
Hong Kong 8 15 15 10 14 10 16 11 11 8 14 13
Canada 10 8 3 8 8 11 11 6 8 9 9 14
India 14 10 12 14 15 9 9 12 4 13 8 15
UAE 4 12 10 16 9 16 10 13 9 5 16 16
Source: WAVTEQ based on fDi Markets data
Global rank of countries for outward FDI in different sectors (top 5 countries highlighted)
25
www.wavteq.com
What should be the key countries to target for FDI into Indonesia?
1. Japan (no. 1 votes by participants)
2. China and HK (no. 2)
3. US (no. 3)
4. South Korea
5. Singapore (a lot maybe by other foreign companies in Singapore)
6. Australia, UK, Germany, France, Canada in specific sectors
WHICH COUNTRIES SHOULD BKPM TARGET FOR FDI?
Group brainstorm – what countries to target for FDI?
26
www.wavteq.com
SESSION 4: WHAT’S NEW IN INVESTMENT PROMOTION?
27
www.wavteq.com
What activities does BKPM conduct to attract FDI?
1. Investment seminars with social media
2. Trade shows / exhibitions
3. 1:1 meetings
4. Networking events
5. Site visit programs
6. High level events
7. Regional investment forum
8. Advertising in international media
9. Social media accounts
10. Film about investing in Indonesia
11. Representative offices overseas
12. Video conference with potential investors
WHAT’S NEW IN INVESTMENT PROMOTION
Group brainstorm – BKPM FDI attraction activities?
28
www.wavteq.com
WHAT’S NEW IN INVESTMENT PROMOTION
The changing IPA model
Traditional IPA model
▪ Remit for greenfield/expansion ▪ Property portfolio▪ Grants and incentives expertise▪ Project facilitation▪ Planning/permitting▪ Enquiry handling▪ Mass marketing at events and
advertising▪ Geographical focus of sales▪ Public sector/administrative skills▪ Tourism feel to marketing materials
New IPA model
▪ Remit for all forms of investment▪ Access to inventory of skills and
technologies in region▪ Relationships with clusters (science
parks, academics, companies)▪ Project and account management▪ Involvement of private sector experts
in sales process▪ Highly focused proactive marketing to
specific sub-sectors▪ Outsourced lead
generation/qualification▪ Key accounts/strategic companies▪ Business advisory skills▪ Customized business propositions for
investors
29
www.wavteq.com
WHAT’S NEW IN INVESTMENT PROMOTION
Evolution of IPAs to broader functions & private sector practice
Cluster development
Government ‘proactive’
4th generation
SingaporeIreland
Czech Republic
Time
Private sector practices
Source: WAVTEQ
Investment Facilitation
1st generation
Indonesia?
Haiti
Vietnam
Proactive Targeting
3rd generation
Malaysia
Costa Rica Hong Kong
Thailand
US IPAs
Image building
Government ‘reactive’
2nd generation
Dubai
Chile
Turkey
30
www.wavteq.com
WHAT’S NEW IN INVESTMENT PROMOTION
Best IPAs in the world
Best IPAs in the world
Source: DCI (2017a) survey based on 331 US –based corporate executives
31
www.wavteq.com
The challenge: How to promote and facilitate FDI at the local level?
o It is at the local level that land, property, skills, infrastructure, clusters and often incentives will be assessed by investors
o The local level is the level that supply-chain linkages, cluster development, and skills development takes place, as demonstrated by Michael Porter
o Most countries, except the smallest countries, have diverse economic regions with strengths in different sectors, with specific investment opportunities for investors, and often with different economic development objectives reflecting the economic and social situation of each region
o It is challenging, if not impossible in large countries, for a national IPA to have comprehensive and constantly updated information on every region and investment opportunity across the country
WHAT’S NEW IN INVESTMENT PROMOTION
Global Affairs Canada – national-local coordination
The solution: The Invest Canada-Community Initiatives (ICCI) program
o Provides support to Canadian communities seeking to improve their capacity to attract, retain and expand FDI
o The key objectives are job creation, innovation, and exports.
o The program supports non-profit and public-private partnerships at the local community level
o The initiatives supported by the program must focus on supporting the attraction, retention, and expansion of FDI through specific types of activities
o Non-repayable contributions range from $3,000 to $300,000
o ICCI provides reimbursement of up to 50 percent of eligible expenses (the local IPA needs to co-fund the project)
o Since 2006, the program has supported over 416 municipalities and community organizations through 1253 projects valued at $42.2 million. In 2016, 87 organizations across Canada are receiving more than $3.7 million in funding from the Government of Canada
o The program prioritizes initiatives that focus on seven key target sectors and 23 target countries, to coordinate national and local investment promotion strategy
http://tradecommissioner.gc.ca/funding-financement/icci-icic/index.aspx?lang=eng
Source: WAVTEQ
32
www.wavteq.com
WHAT’S NEW IN INVESTMENT PROMOTION
Case study – Czech Invest
o The IPA has won many awards including having the best IPA website in the world (World Bank) and winning multiple times best European IPA of the year.
o In total, Czech Invest has secured over 1,500 approved FDI projects creating nearly 250,000 new jobs and $34.5 billion of FDI from 1993-2015
o Czech Invest launched a pilot ‘Supplier Development Program’ in 1999 and merged with the SME agency in 2003, which created stronger capacity to improve the capability of SMEs to work with MNEs investing into the Czech Republic
o The Czech Invest Supplier Development Program used the North East of England as a best practice example of how to develop the program, and investment officers from the North East of England IPA were seconded into Czech Invest to help develop the program
o Czech Invest has an annual target for value of sourcing (supply chain) contracts facilitated
o Since 2001, Czech Invest has mediated supplier contracts worth $250 million
33
www.wavteq.com
WHAT’S NEW IN INVESTMENT PROMOTION
Czech Invest – supplier development program
Supplier Development Program
o The Czech Republic has implemented a National Supplier Development Program
o The Government investment promotion agency, Czech Invest, has 13 staff reviewing the capability of local companies, raising their capability and then supporting their integration into the supply chains of multinational companies
o The program is modeled on the UK and Irish experience in the electronics and automotive sectors, and is supported by the European Union
o Focus on components & services in highest demand that can be supplied to a range of sectors (e.g. machined parts, packaging)
Implementation
o Aims to establish a “fast track” for selected Czech companies to gain approved supplier status and new business from the multi-national companies. Online database for multinational companies to find suppliers
o The supplier development program includes detailed consultancy, training and funding support in the utilization of technology, general management operations, certification, strategy and organizational change based on the European Foundation for Quality Excellence Model, and other methodologies including benchmarking suppliers against world-class performance standards to achieve continuous improvement
o The aim is to improve suppliers’ financial management, human resources management, production management, materials management & purchasing, and the impact of value engineering and quality engineering & control
Source: WAVTEQ
34
www.wavteq.com
The “FastStart” program
o Louisiana Economic Development (LED) developed a dedicated workforce training initiative called “FastStart” to support inward investors in Louisiana
o FastStart has been ranked as the best training program in the United States for seven years running by both The Economist and Business Facilities Magazine
o To date, FastStart has worked on 147 different projects in every region of the state. The services are offered at no cost to the company, and are part of the incentives package negotiated by LED
o To qualify for FastStart’s services, a company must first commit to creating a net of at least 15 new, permanent manufacturing jobs, or a net of at least 50 new, permanent service-related jobs
FastStart services for investorso Understand an inward investor’s skills and training needs: Training experts, with experience in the key
sectors being targeted, analyze the company’s current processes to understand the company’s operations and needs before they invest in Louisiana. A document is prepared outlining the analysis which would be signed-off by the investor
o Assist with recruitment: Following the company analysis, the skills & training team determines the employee competencies and behaviors that match the cultural and technical abilities needed by the company and provides comprehensive employee recruitment services
o Assist with pre-hiring: The skills & training team can assist with evaluation of candidates to help ensure the investor recruits the right staff
o Assist with training: The skills & training team can assist in delivering technical, team-based and soft-skills training programs custom designed, sequenced and delivered to engage new employees
WHAT’S NEW IN INVESTMENT PROMOTION
Louisiana Economic Development (LED) – skills & training
34Source: WAVTEQ
35
www.wavteq.com
SESSION 5: DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
36
www.wavteq.com
Overview of key business development
techniques
W A V T E Q
37
www.wavteq.com
Meetings with qualified investors
You will be meeting companies pre-qualified as having investment opportunities.
Note that the actual size and timing may only be revealed during the meeting
90%
Industry knowledge
By speaking with investors you can get good knowledge of the opportunities and
challenges facing the industries of companies you are meeting50%
Raising brand / location awareness & imageThis will only be for investors you meet face to face. But companies speak to
other companies so if you make a great impression it can be good promotion25%
PROS AND CONS OF OVERSEAS MISSIONS
Why conduct Road Shows?
Networking with a high number of investorsYou typically can meet 8-15 companies on a 1 week road show depending on
number of cities you are visiting, locations of investors, congestion & logistics etc.
Always focus on quality not quantity and always arrive to meetings early!
40%
Meeting decision makers for location expansion
You will be meeting senior decision makers at their HQ. Note that the level of
seniority may depend of the seniority of people you send to meet the company
95%
Source: WAVTEQ experience
38
www.wavteq.com
PROS AND CONS OF OVERSEAS MISSIONS
Developing a Road Show strategic plan
Source: WAVTEQ
Companies highly time
conscious with barriers to
entry. If you can get
meeting with decision
makers very good but often
they prefer to meet at
major trade shows instead
Middle East
Business is almost
always done face-to-
face and only after
many meetings and
lunches typically
China
Essential to meet
the full team at
the companies
office with
consensual
decision making
culture
USA
Always appreciated
by investors but
many decision
makers also happy
to do virtual
meetings
Japan
Japanese business
proverb: “you need
to sell your face
before your
product” . Virtual
meetings rarely take
place or work well
Germany
39
www.wavteq.com
Networking with a high number of investors
Attending major trade shows allows the EDO/IPA to meet with a high number of
investors – “walking the floor” can result in typically 20-50 investor conversations
90%
Meetings with qualified investors
Typically 10-15 meeting should be setup in advance with pre-qualified investors.
The pool of investors is limited by which companies attend the show.
Furthermore, meetings are often very short – a bit like speed dating!
50%
Meeting decision makers for location expansionC-Level and President/SVP level executives generally do not attend trade shows.
In most trades shows the objective is to get a referral to the decision-maker25%
PROS AND CONS OF OVERSEAS MISSIONS
Why attend Trade Shows?
Raising brand / location awareness & imageHaving a booth at the show and related marketing and PR activities can raise the
profile of the location subject to: (1) high impact booth; (2) high profile participants
from the EDO/IPA; (3) excellent marketing. Typically big budget needed to stand out.
40%
Industry knowledge
Attending leading industry specific trade shows is a great way to keep up-to-date
with the latest industry trends
95%
Source: WAVTEQ experience
40
www.wavteq.com
PROS AND CONS OF OVERSEAS MISSIONS
Developing a Trade Show strategic plan
Source: WAVTEQ
Very effective as
Germany is leading hub
for trade shows and the
Germany economy is
decentralized with no
central business hub
Middle East
Major hubs attract
high number of
companies – good
for targeting FDI
from this diverse
region
China
C-level
executives often
attend. Generally
hard to setup
meetings pre-
show
USA
Vast number of
shows &
companies
attending.
Typically not
decision makers
Japan
Decision-makers
for FDI rarely
attend. Japanese
firms prefer 1:1
meetings/seminars
Germany
41
www.wavteq.com
Networking with a high number of investors
Great way to network with investors – and investors you have specifically
targeted to attend the seminar/event so should be the right companies
90%
Meetings with qualified investors
You can often arrange meetings with investors around a seminar or event – either
during or after a big event on in the days after a smaller seminar but it is not as
effective as conducting direct visits to the company HQ
50%
Industry knowledge The seminar is more about your presenting the industry-specific opportunities in
your location but you should always invite your existing investors to speak at the
seminar and this can impart good industry knowledge
25%
PROS AND CONS OF OVERSEAS MISSIONS
Why organize Special Events?
Meeting decision makers for location expansionYou will invite senior decision makers to attend but who actually attends is not
guaranteed. Normally a mix of senior and middle management 40%
Raising brand / location awareness & image
Great way to raise the brand of your location in a specific market especially if
combined with PR and media interviews and you have high level speakers. Can be
an effective way to first enter a market as part of an FDI promotion strategy
95%
Source: WAVTEQ
Effectiveness
42
www.wavteq.com
PROS AND CONS OF OVERSEAS MISSIONS
Which countries are best for doing Events in?
Source: WAVTEQ
Highly effective for lead
generation and general
promotion of your
location. After work
events are generally best.
G2B meeting best at
company offices
China
Very effective.
Given volume of
companies, large
scale events
possible. G2B
meetings can be
done at events
UK
Can be effective,
especially
Roundtables and
Seminars but
note that drop-
out rates are
often high
USA
Can work well
especially in key
clusters (e.g. San
Fran). Typically
straight after work.
Logistics very
important so easy to
get to the venue
Germany
Generally not very
effective and hard
to get decision
makers to attend
Japan
43
www.wavteq.com
CASE STUDY – Three major FDI Events and B2B Meeting Program in China
Global Affairs Canada
Project SummaryWAVTEQ was awarded the contract to conduct the investor recruitment and meeting set-up for three events in China taking place in March 2017 in Beijing, Tianjin, and Qingdao.
Activities 1. WAVTEQ identified and targeted over 1,000 companies
including through social media 2. WAVTEQ organized in the full the meeting itinerary for
Chinese companies to meet with Canadian cities attending the conference (all the major cities in Canada) and Global Affairs Canada
3. WAVTEQ’s China team attended each event to facilitate on-the-ground meetings between city economic development organizations and Chinese investors
Results1. WAVTEQ secured 380 delegates (150 Beijing, 130 Tianjin,
and 120 Qingdao) – exceeding targets by 150%2. WAVTEQ also exceeded the target of 75 meetings to be setup
- in total 229 1:1 meetings were conducted3. Over one-quarter of all delegates, meetings and leads came
through social media channels4. Global Affairs Canada reported that 77 FDI prospects were
generated from the three events and B2B meetings5. This contract followed another successful contract WAVTEQ
delivered for Invest in Canada to recruit investors and set-up meetings for an FDI event in Beijing in 2013
“The seminars in all 3 stops were at or over capacity, hence far outreaching our targets. We were very pleased with the turnout and number
of companies represented at the events…We want to thank you and the team in China for all of your support and assistance in delivering a challenging task. We greatly appreciated the
level of service and efforts put in by the team in implementing the project”
(Global Affairs Canada)
44
www.wavteq.com
CASE STUDY – Abu Dhabi India Week
Abu Dhabi Department of Economic Development – India Week
Project SummaryWAVTEQ was awarded a contract in a competitive tender to organize in full “Abu Dhabi India Week” taking place in February 2018, which includes organizing two major FDI events in Mumbai and New Delhi and organizing a B2B and G2B meeting program.
Activities and Results1. Events Investor Recruitment – recruit 160 delegates to
attend the two events2. B2B Program – Setup of 60 meetings with Indian firms for
ten Abu Dhabi companies3. G2B Program –Set up of 100 meetings with Indian firms for
25 Abu Dhabi public sector organizations attending India Week
4. Media, PR and Marketing - Provide Audio visual, interactive and technical set-up & support; roll-up for the registration, events brochure, badges/name cards and other related printing costs; Photography; and Marketing materials and other content development for the events
5. Event & project management - Provide event management services including the organization and operational management of the two Events and the B2B and G2B meeting program
45
www.wavteq.com
SOCIAL MEDIA FDI STRATEGY – CASE STUDIES
Abu Dhabi Department of Economic Development – India Week
Activities and Results
Social Media Marketing: WAVTEQ’s Marketing team launched a social media campaign in the build up and throughout India Week. This consisted of relevant, relatable content which created a ‘buzz’ around the event and boosted engagement with the Abu Dhabi brand. Abu Dhabi India Week took place in January 2018
WAVTEQ’S social media marketing campaign provided positive results (results based across all channels)o The events Twitter hashtag (#) ‘trended’ on each day of India
Week – 6th highest in India!!!o 2M+ Tweet impressionso 10,000+ profile visits o 100+ new followerso 500 + website visits
Social Media supporting the following results:1. Events Investor Recruitment – 160 delegates attended 2 FDI
events promoting Abu Dhabi2. B2B Program –60 meetings with Indian firms for 10 Abu
Dhabi companies3. G2B Program – 100 meetings with Indian firms for 25 Abu
Dhabi public sector organizations attending India Week
Social Media and PR
India Week Trending
46
www.wavteq.com
CASE STUDY – Global Lead Generation, Investor Recruitment, and B2B Meeting Program
Shurooq / Invest in Sharjah
Project SummaryWAVTEQ was contracted to run a global lead generation programme in 2016 to:1. Help Identify companies planning to invest in the GCC region
within the next 2 years2. Recruit qualified prospects to attend the Sharjah FDI Forum in
Sept 2016 3. Setup face-to-face meetings between Shurooq and high
potential investors around the FDI Forum
Activities4. WAVTEQ organized 10 country teams to identify and engage
with over 1,000 companies in 30 countries over 6 monts We supported companies with Q&A on investing in Sharjah
5. WAVTEQ attended the FDI Forum to facilitate meetings between investors and the client
6. WAVTEQ’s CEO was an expert on a panel discussing FDI
Results7. WAVTEQ identified 51 client approved qualified leads, with a
profile on each company provided8. WAVTEQ secured 25 B2B meeings with Shurooq staff9. Investment successes from the campaign include one
company planning a manufacturing facility, two major retails brands opening multiple stores in the Emirate and at least 5 further concrete project opportunities
10. Fresh Foods, a company who visited the event has announced a manufacturing facility with an investment of $7.5 million.
47
www.wavteq.com
BKPM’S BUSINESS DEVELOPMENT PLAN
48
www.wavteq.com
Key sectors to be targeted o Top 5 priority target sectors
+ Tourism+ Infrastructure – energy and
transportation+ Digital economy+ Import substitution manufacturing+ Automotive+ Electronics
o Secondary target sectors+ Xx+ Xx+ Xx+ Xx+ xx
DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
Group exercise - BKPM’s business development plan
Key countries to be targeted o Top 5 priority target countries
+ China+ Japan+ US+ Singapore+ Korea
o Secondary target countries+ Germany + UK+ France+ Australia + India?
49
www.wavteq.com
Annual plan for proactive investment promotion activities (lead generation and marketing. Typical structure includes:
1. Key sectors to be targeted 2. Key markets (countries) to be targeted 3. Strategic target investors4. Conferences/trade shows that will be attended 5. Road shows that will be conducted overseas6. FDI promotion seminars that will be held overseas 7. FDI conferences that will be held in Indonesia8. Marketing & communication activities9. Clear schedule of when activities and events will take place10. Key Performance Indicators (FDI and activity targets)
DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
Template for a one-year business development plan
50
www.wavteq.com
Conferences/trade shows that will be attended o Sector A
+ Xx+ Xxx+ Xx
o Sector B+ Xx+ Xx+ Xx
o Sector C+ Xx+ Xx+ Xx
o Sector D+ Xx+ Xx+ Xx
DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
Group exercise - BKPM’s business development plan
• Select very carefully which trade shows to attend to ensure there is a large pool of the right companies and decision makers to meet
• Setup meetings in advanced with pre-qualified investors
• Decide if a booth is really needed and if it will give an ROI – you don’t need a booth to meet investors
• Be results driven and have clear targets
51
www.wavteq.com
Road Shows and Seminars that will be conducted overseasoRoad Shows (Countries)
+ 5-6 road shows to key target markets meeting leading investors in the sector – ideally as part of a strategic company targeting program
oSeminars(Countries)+ China + Japan+ Korea+ Singapore (can also promote to intermediaries)+ ASEAN organized seminars (but low numbers of investors)
DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
Group exercise - BKPM’s business development plan
• Seminars should be part of an investor targeting / lead generation program • Government partners (e.g. Embassies, host country governments, business associations) can help but
they will just send invites to their list of contacts – it is not strategic • Seminars should always include a 1:1 meeting program at or after the seminar – partners cannot
generally set these up – either BKPM does or you work with in-market LG consulting firm• There should be PR and social media around the seminar • Social media is now a powerful recruitment tool
52
www.wavteq.com
Schedule of activities o Januaryo February o Marcho Aprilo May o Juneo Julyo August o Septembero October o November o December
DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
Group exercise - BKPM’s business development plan
53
www.wavteq.com
Key performance indicatorso Number of investors meetings (e.g. 350)
+ E.g. 10 road shows = 100 meetings+ E.g. 10 trade shows = 200 meetings+ E.g. 5 seminars = 350 attendees + 50 meetings
o Number of high quality FDI prospects (e.g. 100 prospects)+ E.g. 10 road shows = 30 prospects+ E.g. 10 trade shows = 20 prospects + E.g. 5 seminars = 50 prospects
o Number of announced FDI successes within 12-24 months (e.g. 30 successes)+ E.g. 10 road shows = 6 successes+ E.g. 10 trade shows = 4 successes+ E.g. 5 seminars = 10 successes
o Jobs and capital investment in Indonesia within 12-24 months + E.g. $1 billion FDI+ E,g. 10,000 direct jobs + E.g. $1 billion multiplier impact on domestic investment+ E.g. 20,000 indirect jobs + Compare above to budget needed to deliver the Business Development Strategy + Every year the pipeline will grow and the no. successes will increase – exponential
DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN
Group exercise - BKPM’s business development plan
54
www.wavteq.com
To our client
location &
our team
representatives
Telephone or
face to face
meeting with
decision
makers
Establish level
of interest and
key barriers/
triggers to FDI
Nurture
companies
through
regular contact
& updates
Contact
Introduce
Qualify
Nurture
Meet
Reaching the
right decision
makers
Close
Work as “one
team” with our
client to close
investment
projects
Business development plan
Key to success - sustained investor follow-up
“Foreign investment is not a transaction; it is a relationship” (World Bank)
55
www.wavteq.com
Closing comments
Q&A
W A V T E Q
56
www.wavteq.com
+44 7557 [email protected]@wavteq/company/wavteq
Keep in touch
Contact WAVTEQ
London
Cork
Ottawa
Vienna
Tokyo
Seoul
Beijing
Shanghai
Hong KongPhoenix
Montreal
San Francisco
Madrid
Bangalore
Mumbai
Berlin