Ventures Dialogue

Local expertise in providing high value-added services such as design of testing protocols and manufacturing processes positioned Hong Kong as a potential hub for testing and certification, the Deputy Commissioner for Innovation and Technology of the Hong Kong Special Administrative Region (HKSAR) Government, Mr Andrew Lai, said recently.

Speaking at the 30th anniversary dinner of the Gemmological Association of Hong Kong, Mr Lai said the local testing and certification industry for such things as jade, diamonds and other gemstones was well-established after a long history of development and possessed various advantages, including:

• a sound accreditation system;
• high international reputation;
• widely recognised services; and,
• the capability to win the confidence of overseas and local clients by acting as an independent third party in providing services to Mainland enterprises.

Mr Lai said the HKSAR Government would set up the Hong Kong Council for Testing and Certification in three months to enhance the professional standards and global recognition of local testing and certification services. The council will work with the industry in mapping out a three-year market-oriented development blueprint within six months after its establishment.

How’s that, you ask?  Can YouTube really be a key resource for my business? Well it could.  Foreign Affairs and International Trade Canada has just unveiled, not one, but two YouTube channels in which you can gain advice  to help expand your international business and stay in tune with the services available through the Trade Commissioner Service. 

One channel provides interviews aimed at sharing knowledge, advice and stories from experts and entrepreneurs.  Another channel provides videos on what the federal government is doing to promote international trade.  The site already has a few videos from Stockwell Day, Minister of International Trade and Minister responsible for the Asia-Pacific Gateway.

So the next time you’re caught on YouTube at work you have a legitimate reason, you’re doing research. 

For those of you who don’t know YouTube, it is a video sharing site on which users can upload and share videos  watch and share original videos worldwide.

Photo by nycGRAEME

Eastern Approaches…Maximising success with Emerging Market acquirers, is the title of a new report from PricewaterhouseCoopers (PWC).  It focuses on making the most of international trade transactions with emerging markets companies.  Emerging markets like China and India hold great potential and there are viable opportunities for the development of successful relationships.  But as the report points out, it is important to understand what drives the emerging market businesses, as they are likely to be different than domestic habits and vary from country to country.  The report first poses two interesting questions: Do “vendors understand emerging market purchasers and their respective cultures well enough to successfully negotiate the best deal for their business? What can you do to maximise the success of these cross border transactions?”

While this report is geared to Western European firms, it gives a summary of strategic rationales and how emerging market purchasers think.  It’s a quick read so, have a look, you might find something useful.  As it reads,

“By tailoring your sales documents to take into consideration the agenda of the EM [emerging market]purchaser, involving them in the process at the right time, communicating with them appropriately, and addressing cultural differences and potential expectation gaps, you will make your business more accessible to them, increasing the chances of taking the opportunity to the next phase of the deal and ultimately to a profitable close.”

  The report has an accompanying podcast that you might enjoy as well. 

Photo by Chaval Brasil 

This past Monday, Hong Kong and Mainland China agreed on a pilot program for the settlement of cross-border trade transactions using the renminbi.  This is one step forward for allowing the renminbi to be used for international payments.  The supplementary Memorandum of Cooperation, signed by Zhou Xiaocuan, Governor of the People’s Bank of China (PBoC), and Joseph Yam, Chief Executive of the Hong Kong Monetary Authority (HKMA) sets in motion the  preparations for the implementation of a pilot project,  arrangements for the cross-border settlement and clearing of renminbi funds, and amendments to current legal documents.

Using the renimbi is expected to bolster trade transactions between Hong Kong and China, as well as promote economic development, provide flexibility in their operations, and enhance Hong Kong’s financial system.  John Tsang, Hong Kong’s Financial Secretary was quoted in a HKMA press release: 

“Allowing trade transactions between the Mainland and Hong Kong to be settled in renminbi will not only strengthen the role of Hong Kong as a testing ground for the use of renminbi outside the Mainland, but is also conducive to trade activities and economic development in the two places.” 

This move can be seen as one stage in a long-term goal to make the renminbi convertible into other currencies, and as an alternative to western currencies, especially the US dollar.  The business community will need to take time to adjust.  For now, however, they will start small and aim for its dominance in Asia.  This is a lofty goal and will not happen over night of course.  An article from the New York Times has hinted that China might want convertibility to coincide with the government’s goal to make Shanghai a financial center by 2020.

Photo by  amy-wong.com

The public has spoken and 8.6 million passengers have ranked South Korea’s Incheon airport in Seoul as the world’s best airport.  The survey, taken upon by Skytrax, a research advisory firm for the air transport industry, was marked by the tightest race in the award’s 10-year history.  At one point it was looking like there would be a three way tie for first place.  Rounding off the top five airports include Hong Kong’s International Airport, Singapore’s Changi, Zurich, and Munich.  Passengers were asked questions based on 39 service and product criteria ranging from check-in, to transfers to departures. 

Incheon jumps up two spots from last year’s third place ranking surpassing the previous first and second place holders, Hong Kong and Singapore, respectively.  It is a relatively new airport having just opening its doors in 2007 after replacing Gimpo, South Korea’s former main international airport.   Gimpo is now used mainly for domestic flights, although it does have shuttle flights to Tokyo, Shanghai, and Osaka. 

Asia as a whole did quite well in this survey as of the over 190 airports in the ranking, six of the top 10 were in Asia. For this survey, the research firm also ranked airports by region, and on a category basis. 

Skytrax has been around since 1989 and its website has reviews for over 680 airports.   It is also known for it’s other surveys.  Readers will remember that back in April, Skytrax released other survey results where Hong Kong’s Cathay Pacific won the top prize as the world’s best airline.   

Photo from Wikipedia.org