Irish Exporters Association / Asia Trade Forum Flagship Business Visit to China (Suzhou / Hangzhou Shanghai) June 23rd to June 28th

Irish Exporters Flagship Business Visit to Suzhou and Hangzhou, China, June 23rd to June 28th

Overview

The Asia Trade Forum, an initiative of the Irish Exporters Association established to increase two-way trade with Asia, is delighted to announce a Business Visit in June 2013 to two of China’s most fabled and leading business cities, Suzhou and Hangzhou.

The visit will encompass the two cities of Suzhou and Hangzhou, both on the Yangtze River Delta and 30 minutes from Shanghai. Typically, Business Visits tend to focus on Tier 1 cities such as Beijing, Shanghai and Shenzhen. Both Suzhou and Hangzhou are highly competitive cities, with rapid economic development. In addition, they both offer a consumer market with above average disposable incomes. They are ideal gateways to China for your business.

The visit will take place from 23rd to 29th June in partnership Grant Thornton, William Fry, RBS/Ulster Bank, Enterprise Ireland, Euler Hermes, FcM Travel, and Etihad Airways.

The purpose of the Business Visit is to:

  1. Showcase exporting or partnering opportunities in Yangtze River Delta economic region.
  2. Showcase Chinese companies who wish to trade with Ireland.
  3. Highlight the growing indigenous Irish companies operating in China.
  4. Provide a platform for Irish and Chinese businesses to exchange trading opportunities.
  5. The event will include seminars, roundtable workshops, and 1:1 meetings with perspective customers and partners.

Dates / Schedule:

Sunday 23rd June

A.M.:  – Depart Ireland Etihad Airways

Monday 24th June

A.M.: – Arrive in Shanghai Pudong International Airport / transfer to City of Suzhou by road
P.M.: – Arrive City of Suzhou

[Distance from Shanghai Pudong International Airport to Suzhou is about 120km (similar to driving from Dublin to Enniscorthy)

Tuesday 25th June

All-Day: – Gain real hands-on experience of the Suzhou / China business environment; find out what opportunities are on offer:

Match-making with potential buyers, suppliers, and partners

Wednesday 26th June

A.M. –Gain real hands-on experience of the Suzhou / China business environment, find out what opportunities are on offer:

Match-making with potential buyers, suppliers, partners

P.M. Depart City of Suzhou / Transfer overland to City of Hangzhou

[Distance from Suzhou to Hangzhou is about 166km (similar to driving from Dublin to Belfast)]

Thursday 27th June

All-Day:- Gain real hands-on experience of the Hangzhou / China business environment; find out what opportunities are on offer: Match-making with potential buyers, suppliers, and partners

Friday 28th June

A.M. – Gain real hands-on experience of the Hangzhou / China business environment, find out what opportunities are on offer: Match-making with potential buyers, suppliers, partners

P.M. – Wrap up / Tour of West Lake

Evening – Head to Shanghai Pudong International Airport / Return to Ireland
[Distance from Hangzhou to Shanghai Pudong International Airport is about 200km (similar to driving from Dublin to Tipperary)]

Accurate China Insight - Irish Exporters Association - Asia Trade Forum Flagship Business Visit to Suzhou Hangzhou and Shanghai China June 2013

Business Visit Participation Fees and Details

The participation fee to take part on the mission is €500 plus 21.5% VAT per company.  The following will be included as part of the participation fee:

  • Seminars, business networking events and quality 1:1 match-making meetings (utilising the combined resources of local government and on the ground Irish Exporters Association expertise).
  • Group lunches and evening receptions in both cities.
  • Company profile and business visit brochure.
  • Organisational and logistical support including transfers and transport in China.
  • Negotiated group rates in hotels.

Travel Agency Support

Registration for the business visit opens on Tuesday 14th May, please visit http://www.asiatradeforum.org to register.

Final deadline for registration is Friday 7th June.

Travel Information & Visa

Information on travelling in China and vaccine requirements in available from the Department of Foreign Affairs on http://www.dfa.ie/home/index.aspx?id=402

business visa must be obtained through the Chinese Embassy visa service.

You will be required to include the following:

  • Passport valid for at least 6 months with 2 blank pages facing each other
  • 1 passport photo
  • Company Letter- stating 12 mth multiple visa
  • Invitation letter (to be arranged by ATF)
  • Application form and additional business form (attached).

Processing time is 10 working days. There is a same day service available for Irish passport holders for an additional €125. The IEA Consular Service can assist with visa applications.

What makes the Asia Trade Forum Business Visit to China Different?

  • Irish Exporters Association / Asia Trade Forum, having hosted many high-level delegations from these two cities over the years, have excellent relationships with local governments in Suzhou and Hangzhou
  • China isn’t a single market: 5 megacities with populations of over 10,000,000; 14 cities with populations of over 5,000,000 (including Suzhou and Hangzhou), and 41 cities with populations of over 2,000,000. The Yangtze River Delta economic powerhouse is a market place of 88,000,000 people
  •  The Irish Exporters Association / Asia Trade Forum is in a unique position to work with practical and enthusiastic local governments, Irish business associations and Irish businessmen and businesswomen working on the ground in China to deliver a constructive Business Visit focused on quality match-making and business lead generation
  • The Irish Exporters Association / Asia Trade Forum are very conscious of the cost constraints holding many Irish companies back from engaging with China. This will be a very focused Business Visit aimed primarily at developing inroads into China’s Tier 2 city markets where strong local government relationships are critical.

Introducing Suzhou and Hangzhou

Chinese Proverb:

“In heaven there is paradise, on earth Suzhou and Hangzhou”

About Suzhou

A city built in 514 B.C.; Suzhou has long been one of China’s richest cities. Immediately west of Shanghai is strategically situated in the Yangtze River Delta region, China’s economic epicentre. Suzhou is also located in Jiangsu Province, which has the highest GDP per capita of all Chinese provinces, and the second highest GDP.

Suzhou Development

Municipality population:   10,500,000

Urban population:   4,074,000

Average temperature in June:    23 degrees

Average annual income:    Approx €13,000

According to Forbes ™ China, in 2011 Suzhou was China’s “best business city”, while in 2012 Suzhou was the “most innovative city” in China. Suzhou is also the 2nd largest manufacturing industry base in China, producing, for example, 40% PC sets, 65% mouses, 30% micro-cameras, 10% PC boards of world supply

Suzhou’s ranking among major cities of China 2011 / 2012:

– Patent Applications     NO.1

– Government Service     NO.1

– Patents Grant     NO.2 (2011)

 Best Business Environment     NO.3

– Overall Competitiveness     NO.5 (2012)

– G.D.P     NO.5 (2012)

–  Total Exports     NO.3

–  Total Imports and Exports     NO.4

Irish companies including GlanbiaPM GroupEPS ElectronicsElement Six, etc, have already either invested in Suzhou operations, partnered with Suzhou-based companies, or sold products and services to companies based in Suzhou.

About Hangzhou

Legend has it that Marco Polo called the former imperial capital of China, Hangzhou: “without doubt the finest and most splendid city the world“.

Hangzhou is known for its high level of education, advanced technology industries, considerable wealth and the fabled West Lake scenic area. Four of China’s best known brands were born, and are headquartered in Hangzhou Alibaba and Taobao (which is why Hangzhou is referred to as China’s e-commerce capital), Wahaha (mineral water), and Geely (owner of Volvo electric car research).

Hangzhou

Municipality population:     8,700,000

Urban population:     6,242,000 (10th largest in China)

Average temperature in June:     23 degrees

Average annual income:     Approx €10,000

Ranked by Forbes™ in December 2012, as the second “best city for business” in China, after Shanghai, Hangzhou has benefited almost disproportionately from the spread of wealth, development, and investment from Shanghai, which is 2 hours north. For example, Hangzhou already has 108.5 millionaires per 100,000 residents, China’s highest concentration of wealth.

The provincial capital of central Zhejiang Province, which is considered China’s technological and entrepreneurial heartland, Hangzhou is also situated on the southern wing of the Yangtze River Delta region, where it ranks 2nd in terms of economic prosperity.

Hangzhou’s ranking among major cities of China 2011 / 2012:

  • Patent Applications     NO. 1 (of Provincial Capitals 2011)
  • Government Service     NO.2
  • Patents Grant     NO.2 (2012)
  • Best Business Environment     NO.2
  • Overall Competitiveness     NO.8 (2012)

Kerry Group is one of a number of Irish companies who have already either invested in Hangzhou operations, partnered with Hangzhou-based companies, or sold products and services to companies based in Hangzhou

Sector-related Market Opportunities for Irish companies in Suzhou and Hangzhou

  • Software, e-commerce, animation, gaming design and testing
  • Precision machinery manufacturing
  • ICT
  • Services industry
  • Cleantech / Environment protection
  • Automobiles
  • Bio-pharmaceutical / medical
  • Retail
  • Government
  • Horticulture
  • Chemicals
  • Food, etc…

Note: Do not be put off if your business sector does not appear in the list above, as it is the intention of Irish Exporters Association / Asia Trade Forum to try to assist every company interested in tapping the China market to find potential partners / clients.

Estimated Travel Costs

Once the registration fee has been received and the registration form completed, FcM travel will offer a negotiated package to delegates.  However costs may vary according to individual itineraries and exchange rate.  The costs are based on the first 20 places on the visit.

The FcM travel cost will be approx. €1800 to include:

  • Etihad Flight    (Departure from Dublin:  Sunday 23rd. Arrive in Dublin Saturday 29th)
  • Transfers and internal transport
  • Lunch and evening receptions (2 in each city)
  • 4* Hotel Accommodation

For further information contact:

Ashley Beston, Asia Trade Forum Manager,

Irish Exporters Association ashleybeston@irishexporters.ie  or 01- 642 4170

Niall O’Reilly, Director for China, Irish Exporters Association,

niall@accuratelimited.com

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (ExportImport, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

Accurate Group China Office : 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Accurate Group Ireland Office: 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

Accurate China Insight: Entering The Dragon’s Den

Huge Opportunities lie waiting for Irish businesses in China, but know your market

From Ireland’s ‘Business and Finance’ magazine’s ‘Enterprise Insight’ supplement, Q2 2008 edition, by Niall O’ Reilly

The world’s second largest economy China, is now the largest market in Asia, and outside the Euro Zone only second to the USA for Ireland’s exports. According to the latest figures from the Central Statistics Office (CSO) exports to mainland China (excluding the Hong Kong Special Administrative Region) for the first two months of 2008 totalled €324.6 million, a year-on-year increase of 112%.  Exports to the Hong Kong Special Administrative Region over the same period reached €110 million.

 

In the face of the current global economic downturn, a difficult exchange rate and other cost base factors, including the flight of manufacturing processes to low overhead, low material cost countries in Asia and Eastern Europe, as our manufacturers struggle to maintain productivity, the rise in our exports to China is a major achievement and presents convincing evidence that Ireland is at last starting to hit the mark in China business. Given that over the past decade the development of our economic and trade relations with China has been a top priority the Irish Government will maintain that its Asia Strategy, with its particular emphasis on China, is the key reason for  this positive development. What the CSO figures do not reveal, however, is how indigenous Irish businesses are performing compared to multinationals businesses based in Ireland.

 

China’s rise to become Ireland’s eight largest export destination is directly linked to its own export prowess and the craving for technology, infrastructure equipment and knowhow by Chinese enterprises that cannot be satisfied by domestic suppliers. From this perspective it is not surprising that the majority of our exports to China should consist of the information communications technology, machinery and equipment China requires to fuel its heady growth. Buoyed by breakneck 7% to 8% GDP growth in China over the past 10 years, a trend that shows little sign of abating, so long as businesses based in Ireland stay ahead of the technology curve and maintain their competitiveness exports to China will only continue to expand, thus strengthening China’s position as a major export market for Irish produce.

 

Looking ahead, where are the China market opportunities for Irish exporters?

 

Ireland commands a very strong position in the world trade rankings for internationally traded services. Recently published statistics by the World Trade Organisation 2006 show Ireland as the 12th largest services exporter, commanding a 2.6% share of world trade, while services exports now account for 35% of our total export trade. China has only opened up the service market to any great extent over the past four years and there are clearly significant additional market opportunities now for Irish service exports in engineering consultancy, aviation services, information communication technology, education and tourism services. The latter two service sectors are particularly significant given the rise in the spending power of the Chinese consumer.

 

According to the China National Bureau of Statistics, in 2007, China’s retail spending rose 16.8 percent to 8.92 trillion Yuan (US$1.24 trillion), thus adding credence to a widely held view that Chinese demand will this year for the first time become the main driver of world economic growth, with the increase in its domestic spending in current dollar terms contributing more to global growth than US domestic demand. As such, Irish suppliers should be relishing lucrative domestic sales opportunities presented by an increasingly affluent population.

 

Located two hours south of Shanghai is the prosperous city of Hangzhou, Marco Polo’s ‘paradise on earth’, which Forbes ™ Magazine has repeatedly rated as China’s premier business centre. With a registered population of 6.7 million inhabitants and an urban per capita income of RMB21,689, Hangzhou provides the ideal glimpse into the phenomenal growth in the purchasing power of China’s increasingly affluent middle class.  Not only do Bentley, Maserati, Ferrari, and Prada showrooms do a thriving business here, even more remarkable is the thirst to travel abroad whether as tourists, with Paris and London high on the list of preferred destinations, or graduate students from the third ranked university in China, Hangzhou’s Zhejiang University, seeking further education in the best schools in Europe and the USA. 

 

As individual prosperity rises so too are people becoming increasingly concerned about their living conditions. Recognising such anxieties, and looking ahead to population growth of close to 20 per cent over the next five years, in addition to the huge infrastructure building projects already underway, the Hangzhou Municipal People’s Government is actively encouraging projects focused on providing fuel efficiency, cleaner water, better sanitation, and power generation, all of which whether in material or service form present significant opportunities for Irish suppliers. 

 

As patterns of consumption change, to reflect those found in wealthier countries, such as higher levels of meat consumption, the opportunities for Irish suppliers in the development of both the food ingredients market, such as diary fats and proteins, standard cereal and grain products and flours, vegetable oils, or standardised high-quality meat products, and markets for the products of large scale cropping and livestock activities, become all the more apparent. In 2005, Kerry Group quick to seize the market opportunity established its state-of-the-art China manufacturing, technical and administrative facilities in Hangzhou.

 

However, remove the rose-tinted glasses and it quickly becomes apparent that in China the size of the opportunity is only matched by the difficulty in weighing up the risk, as the great challenges for any Irish supplier in entering what is still a relatively immature market quickly become apparent.  China’s rapid growth since its 1978 opening to the world has not necessarily meant greater transparency.

 

Making sound business decisions can be very difficult when there is little timely information available, and when the information available is either unreliable, or misleading.  What’s more, a simple misunderstanding of local business practices, which can be very different from what is taken for granted in Ireland, can harm efforts to develop solid business relationships and leverage them into strategic opportunities. As Kerry, CRH and Glen Dimplex have found, there is an inherent need for proximity to the customer base  for supplying many services. However, this forces small and medium exporter into the high cost of establishing a commercial presence in the China.

 

Rather than going it alone, working with either the Irish Exporters Association, Enterprise Ireland, or some of the more experienced homegrown market-entry consultancy practices with experts based on the ground in China, and their ability to access key business and government decision-makers,  will greatly assist Irish businesses in getting the most out of the unprecedented opportunities available in China.”

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (Export, Source, Import, Partner Due Diligence) Consultants doing business in China for over 20 years

China Office : 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830