Ventures Dialogue

“The decision will usher in a new economic world order that gives rising powers such as China, India, Brazil, South Korea and other emerging nations, more say in steering the global economy. It means the G20 will assume the role long played by the smaller club of wealthy G8 countries that includes the United States, Great Britain, France, Italy, Canada, Japan Germany and Russia.”

This was the main announcement from the G-20 meeting held in Pittsburgh where it was decided that the G-20 will now take on the role as the world’s main economic body, taking over from the G-8 and representing the importance that emerging markets have in the development of global economy.

HSBC has decided to relocate the group’s Chief Executive Michael Geoghegan’s principal office from London to Hong Kong.  The relocation is a  significant move for the bank, highlighting Hong Kong’s position as the focal point in Asia for global finance.

Hong Kong’s Chief Executive Donald Tsang welcomed HSBC’s decision, and described it as “a clear and timely ‘thumbs-up’ for Hong Kong as a stable, reliable and vibrant base for the banking industry in the wake of the global financial tsunami.” He said, “I am encouraged by HSBC’s commitment to Hong Kong and its confidence in our city as the best platform for tapping opportunities in emerging markets in Asia and, in particular, the Mainland.”

The relocation reflects the focus of HSBC towards emerging markets, and it also strengthens the unique and enduring bond between Hong Kong and HSBC.

The Hong Kong Special Administrative Region Government announced that a variety of electric vehicle (EV) models would be introduced into Hong Kong next year, reflecting the keen interest of overseas vehicle manufacturers in the Hong Kong market.

According to the city’s Secretary for the Environment, Mr Edward Yau, the Hong Kong Government has been pursuing collaboration with various EV manufacturers including Mitsubishi, Nissan and BYD. We also began the trial on Mitsubishi’s EV ‘i MiEV’ in May.

 ”So far the testing results have been positive. The first batch supply of ‘i MiEV’ will be launched progressively before April 2010. The Government will procure 10 units in this batch for deployment in different bureaus and departments. This will enable us to test the performance of EVs comprehensively under different operational environment,” Mr Yau said.

“Hong Kong is the first market in Asia, other than Japan, where ‘i MiEVs’ will be sold before April 2010. This is a good start. The supply will enable the extension of testing to the private sector. It will also help expose a wider section of the community to the EV driving experience. We hope that more EV manufacturers will follow the example in pitching Hong Kong as one of the priority markets for the introduction of EVs.” Mr Yau said.

Hong Kong remains as the 3rd easiest place to do business in the world, according to the World Bank’s  Doing Business 2010 Report (the Report) released recently.  The World Bank has adjusted Hong Kong’s overall ranking last year from 4th to 3rd due to changes in the methodology, data corrections and the addition of new economies. The top two performers are Singapore (1st) and New Zealand (2nd).  

In the Report, an ease of doing business index is compiled to track the number of regulatory procedures as well as the time and cost required for business firms to comply with different sets of government regulations across the globe.

A spokesperson at the HKSARG says they welcome the Report affirming Hong Kong’s leading position in terms of friendliness of business environment. The ranking reflects that Hong Kong remains one of the most attractive places for business.

The European Union and the United States “are stepping up their competitive game, and Canada must do the same or be left behind.” 

These are words of prodding from Canada’s Department of Foreign Affairs and International Trade in the article,  Ailing economic giant has Canada looking beyond U.S. for markets, by Mike Blanchfield and Andrew Mayeda, Canwest News Service. 

This piece discusses the shift taking place in Canada’s foreign policy away from the United States as a main priority to foreign markets such as China, India and Brazil.

Yuen Pau Woo  of the Asia Pacific Foundation of Canada also comments,

“But the Conservative government still has a lot of work to do to correct the impression they have neglected China and India.”

Photo by Klaus the BARRACUDA

Hong Kong is again ranked the world’s freest economy, scoring 8.97 (compared with 8.92 last year) out of 10 points, according to Fraser Institute’s “Economic Freedom of the World, 2009 Annual Report”.

The report ranks 141 economies on policies that support economic freedom. Hong Kong has held top place since the annual survey was introduced. The others in the top 5 this year are Singapore, New Zealand, Switzerland and Chile. The United States comes 6th. Mainland China is 82nd (up from 98th last year). Apart from the top overall ranking, Hong Kong ranks first in “freedom to trade internationally”, and third in “size of government”. Components or subcomponents with “full score” include “government enterprises and investment”, “top marginal tax rate”, “freedom to own foreign currency bank accounts”, and “taxes on international trade”, etc.

Meanwhile, Hong Kong remains as the 3rd easiest place to do business in the world, according to the World Bank’s “Doing Business 2010 Report” released recently. A Hong Kong SAR Government spokesperson says they welcome the Report affirming Hong Kong’s leading position in terms of friendliness of business environment. The ranking reflects that Hong Kong is one of the most attractive places for business.

Please click here to view the “Economic Freedom of the World, 2009 Annual Report”.

Please click here to view the World Bank’s “Doing Business 2010 Report”

Hubert Li is one of the lucky ones. Since opening the Hong Kong Wine Vault almost two years ago, he has been able to turn his passion for wine into a profession.
Mr Li’s wine-storage facility in Wong Chuk Hang, just outside the Aberdeen Tunnel, covers 30,000 square feet, spread over five floors, with three of those floors currently in use. The Vault, at present, has about 40 clients and some 150 cellars, with a total capacity of about 150,000 bottles.
A private collector, Mr Li was running out of space when the Hong Kong Government removed all duties on wine last year. A dinner table conversation with some like-minded friends soon led to a business built on what they saw as a golden opportunity.
“We originally started the business for our own use,” Mr Li explains. “But we have expanded because demand for such facilities has been so great. My partners had quite a lot of wine stored abroad, but the removal of the wine tax meant they wanted to bring it all here, so they could see it and sample it when they wanted.’’

Spawning Ideas

Mr Li says removing the wine duty first brought more attention to the wine industry – and then people started to think more about how they might become involved.
“It has made a huge difference in terms of interest and opportunities,” he says. “Without it, we never would have started our business.’’

Continue reading ‘Stellar Cellar Business’

Invitation to participate in the Hong Kong International Medical Devices and Supplies Fair, November 4 – 6, 2009

Organized by the Hong Kong Trade Development Council (HKTDC) and co-organized by the Hong Kong Medical & Healthcare Device Industries Association, the Hong Kong International Medical Devices and Supplies Fair will bring distributors, manufacturers and buyers of a wide variety of medical devices and supplies from around the world, under one roof at the same time, to discuss business co-operation, exchange intelligence and to capitalize on the timely opportunities created by the surging worldwide health expenditure including the recently-announced 850-billion yuan medical care reform package in China.

According to the World Health Organization, worldwide expenditure on health now exceeds US$4.1 trillion a year and has been increasing as a percentage of GDP among all major economies. This phenomenon has been further strengthened by outbreaks of bird flu, SARS and, most recently, H1N1 influenza.

Hong Kong has long been a leading international sourcing and trading hub as a result of its central geographical location. The new fair will be the focal point for manufacturers and distributors of medical devices and supplies, together with end-users from around the world, to reach out to their target markets.

Through the fair, manufacturers can line up with buyers from both mature and emerging markets. Many device manufacturers will come to source products from medical component manufacturers. They can also identify reputable distributors to gain a foothold in the lucrative Asia market, in particular the China market, given its strong domestic consumption and purchasing power. Continue reading ‘Market diversification opportunity for Canadian manufacturers and exporters of medical devices and supplies’

“The Time has come it get it done.”

This rather blunt, but some might say needed statement comes from Brian Mulroney, senior partner at the law firm Ogilvy Renault LLP, during a recent visit to Beijing.  In his remarks, printed in the National Post, Brian comments on the need to strengthen foreign investment in both countries and calls for a Canada-China Investment Agreement. The Agreement, he notes, the two countries have been working on for more than 10 years.

Brian also gives a bit of a history lesson as he describes how Canada prepared itself for foreign business and allowed greater access from foreign markets. He noted the adherence to certain economic models and also the acknowledgement at the time, for growth in policy development. 

Brian then looks to the future as Canada emerges from the recession, and comments on the importance of Asian markets in the economic recovery, the significance of the global value chains and also the need for countries to go beyond just economic responsibility.

To take a closer look at his comments, you can read the National Post’s article “The promise of a Canada-China alliance.”

Photo by storyvillegirl

Hong Kong Financial Secretary John Tsang put it simply in his February 2008 budget address. In announcing the abolition of wine duties in Hong Kong, he said the government wanted to spur an entire industry into action. The results have been impressive, to say the least.

In the year ending March 2009, Hong Kong’s wine imports soared to US$412.5 million. That’s a year-on-year increase of about 80 per cent – thanks to the scrapping of wine duties.

The Financial Secretary continues to spread the good word on wine in his travels this year. He’s eager to drum up business and to let the international market know just how vibrant the wine trade in Hong Kong has become.

“The wine industry predicts the Asia market to boom in the next decade,” Mr Tsang explained to a “Hong Kong – Asia’s Wine & Gourmet Centre” luncheon, held at a vineyard in the historic wine-growing region of Napa Valley, California, earlier this year.

“In the mainland of China alone, wine imports are estimated to reach US$870 million by 2017. This would account for 58 per cent of the projected market for wine in Asia, excluding Japan.

“Hong Kong,” he added, “is well placed to facilitate the growth of the wine market in our region.”

That’s putting it mildly. There has been an impressive growth in opportunities on the ground in Hong Kong, according to wine industry players, as well as a rapid rise in interest in wine among the general public. In short, the city is a getting a taste for the business of wine – and fast.

A report released in April this year by British industry consultants the International Wine and Spirit Record found that wine consumption in Hong Kong is expected to surge by a third, to 4.2 litres per capita by 2012, which would make it the highest in the region.

Urban Winery

That spells opportunity for companies such as 8th Estate. Hong Kong’s first “urban winery,” 8th Estate is situated in an industrial building in Hong Kong’s Ap Lei Chau district. Continue reading ‘Grape Expectations’