Council of Great Lakes Governors Co-Chairs: Illinois Governor Pat Quinn and Michigan Governor Rick Snyder
Conference of Great Lakes and St. Lawrence Governors and Premiers Conference formed in June, 2015 Chief executives of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Ontario, Pennsylvania, Québec and Wisconsin are working as equal partners to grow the region’s $5 trillion economy and protect the world’s greatest freshwater system. The Council of Great Lakes Governors Council of Great Lakes Governors Co-Chairs: Illinois Governor Pat Quinn and serves as secretariat. Michigan Governor Rick Snyder
Regional Leadership Global Impact LONDON, UNITED KINGDOM United Kingdom BERLIN, GERMANY Germany Toronto, Canada CHICAGO, ILLINOIS New Delhi, India Shanghai, China Mexico City, Mexico Trade Office Tourism Office São Paulo, Brazil Sydney, Australia Santiago, Chile Johannesburg, South Africa Headquarters Trade Office
CGLSLGP Trade Missions have assisted over 330 Great Lakes companies to export their products and services to 20 international markets Abu Dhabi, Argentina, Australia, Brazil, Chile, Czech Republic, Colombia, Dubai, Germany, India, Indonesia, Mexico, New Zealand, Peru, Poland, South Africa, Qatar, Québec, Thailand, Turkey, Vietnam, UAE and the United Kingdom
Doing Business in Southeast Asia By Orissa International For CGLSLGP 5
ABOUT ORISSA INTERNATIONAL OUR BACKGROUND Sarath Menon Managing Director, Orissa International Founded Orissa International in 1997, a trade • consultancy headquartered in Singapore, with offices across Southeast Asia Well known within government trade promotion • circles in US, Europe and Asia Previously Country Director of the US-Asia • Environmental Partnership (USAEP) program in Singapore Has served as a member of the Board of Governors of • the American Chambers of Commerce for a 5 year term; Co-chair of the Entrepreneur Committee within the chamber Past President of the American States & Ports • Association (ASPA), a grouping of US states and ports with a presence in Southeast Asia 6
ABOUT ORISSA INTERNATIONAL OUR BUSINESS IS HELPING COMPANIES ENTER NEW MARKETS Established in 1997 • Headquartered in Singapore, with in-country trade • consultants in Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines Provide trade promotion and investment attraction services • to economic agencies and companies Over 15 economic development agencies from around the • world directly engage us for trade advisory and investment attraction services A strong track record in guiding companies with their initial • entry into a new market Worked with more than 1000 companies in multiple sectors • over the last 18 years 7
OUR UNIQUE SELLING PROPOSITION MULTI-COUNTRY – MULTI-SECTOR Environment Our distinctive proposition stems • Medical from our experience working with a diverse set of clients in a variety of industry verticals. FMCG This has allowed us to acquire • knowledge on various sectors and ICT Energy geographies over the past 18 years, while becoming familiarized with their unique characteristics Manufacturing Infrastructure Aerospace 8
OUR CLIENTS TRADE PROMOTION AGENCIES OUR CREDENTIALS U.S. Europe We have been identified by a US state government We have received the highest level accreditation by export as one of their best export consultants globally Swiss Global Enterprise for the quality of our work based on feedback they received from companies they helping Swiss exporters seeking to enter the Southeast referred to us Asian markets 9
KEY MARKETS IN SOUTHEAST ASIA 10
SOUTH EAST ASIA 11 Source: ASEAN Secretariat
EMERGING & DEVELOPING ASIA IN NUMBERS REAL GDP GROWTH GDP PER CAPITA POPULATION (Million Projections (USD - 2014) - 2014) 2014 2015 2016 ADVANCED ASIA Japan 0.9 0.8 0.8 $37,540 127.06 Korea 3.7 4.0 4.0 $28,739 50.44 Australia 2.8 2.9 3.0 $62,822 23.60 Hong Kong SAR 3.0 3.3 3.5 $40,304 7.26 Singapore 3.0 3.0 3.0 $56,113 5.50 New Zealand 2.8 3.0 3.0 $44,294 4.54 EMERGING & DEVELOPING ASIA China 7.4 7.1 6.8 $7,572 1,367.52 India 5.6 6.4 6.5 $1,626 1,259.70 ASEAN-5 Indonesia 5.2 5.5 5.8 $3,404 251.49 Malaysia 5.9 5.2 5.0 $11,062 30.46 Philippines 6.2 6.3 6.0 $2,913 99.43 Thailand 1.0 4.6 4.4 $5,550 68.55 Vietnam 5.5 5.6 5.7 $2,073 90.63 Selected Asian Economies: Real GDP Growth, GDP Per Capita & Population 12 Sources: IMF World Economic Outlook, 2014
7 TH LARGEST ECONOMY IN THE WORLD Rank Country GDP (US$ million) 1 United States 17,419,000 2 China 10,360,105 3 Japan 4,601,461 4 Germany 3,852,556 5 United Kingdom 2,941,886 ASEAN US$ 2.46 6 France 2,829,192 trillion 7 Brazil 2,346,118 8 Italy 2,144,338 9 India 2,066,902 10 Russia Federation 1,860,598 Indonesia (ranked 16) 883,538 World 77,868,768 Source: World Development Indicators, The World Bank (As of Jul 2015) 13
SOME INTERESTING FACTS ABOUT ASEAN Aviation - posted the Major global hub One of the fastest highest RPK growth in of manufacturing growing consumer the world, for the and trade market in the world past 10 years 3rd largest region Boom in trade of household income of medical devices and above $10,000 by demand for 2018 healthcare services High smartphone penetration – Rich reserves of Consumers digitally natural resources well-connected 6th largest single Huge middle marketplace for Income class vehicle sales by 2018 No barriers to entry Loosening restrictions Massive expansion of for foreign exporters on foreign ownership retail landscape 14 Source: ASEAN Secretariat
THE ASEAN ECONOMIC COMMUNITY (AEC) The AEC is an initiative of ASEAN. It aims to create a common market and production base, with barriers to trade eliminated by 2015. However, it does not go as far as harmonizing monetary policy or a common currency as the EU has with its economic union. The AEC promotes the flow of goods, services, investments, skilled labor, and capital across the region – with a view to creating single market. Benefits include the economies of scale available to US SMEs through the AEC initiative. As the regional market expands, local distributors want to sell to potential customers further afield. AEC STRATEGIC AIMS Region Fully Integrated into A Single Market/ Highly Competitive Region of Equitable Global Economy Production Base Economic Region Economic Development 15
STRONG US – ASEAN ECONOMIC TIES ASEAN countries are collectively the United States’ • 4 th largest trading partner Trade in goods expanded 5% in 2015 and now tops • $226 billion During the Obama Administration, trade in goods • with ASEAN countries has expanded by 55% More than 500,000 American jobs are now • supported by trade in goods and services with ASEAN U.S. companies have been the leading source of FDI • in ASEAN. With a stock of over $226 billion, U.S. FDI in ASEAN has nearly doubled since 2008 FDI from ASEAN countries in the United States was • $24.2 billion in 2014 Source: ASEAN Information Center - Thailand; US Office of the Press Secretary 16
US – ASEAN ECONOMIC TIES GROWING STRONGER 4 ASEAN countries -- Brunei, Malaysia, Singapore • and Vietnam - are part of the Trans-Pacific Partnership (TPP) US has Trade and Investment Framework • Agreements or other formal trade dialogues with 9 of the 10 ASEAN countries and separately with ASEAN as an institution The Sunnylands Summit – the first standalone • US-ASEAN summit in November 2015 US-ASEAN Connect Centers in Jakarta, Singapore, • Bangkok – new US initiative to increase commercial engagement Source: Asia Times 17
EXTERNAL ECONOMIC RELATIONS ASEAN-Russia ASEAN-China FTA ASEAN-EU ASEAN-US TIFA ASEAN-Korea FTA ASEAN-Japan CEP ASEAN-Pakistan ASEAN-GCC ASEAN-India FTA TPP US, Canada, Peru, Chile, ASEAN-Australia- New Mexico, Australia, NZ, Japan Zealand FTA Singapore, Malaysia, Vietnam, Brunei 18 Source: Conference on Asia Pacific Regional Economic Integration & Architecture , 2010
INDONESIA Source: Destination 360 19
INDONESIA – KEY FACTS GDP Growth Rate % Population Country 2015 2015 2016f 2017f Indonesia 257.6 million 4.8 5.2 6.0 Business Legal & Political Economic Trade Environment Poor infrastructure; Largest economy in SEA World’s third largest Very active in rampant corruption GDP US$888bn, democracy concluding FTAs Member of the G20 Recent liberalization of a number of protected Young demographic sectors Comprehensive push Imports have tripled profile; growing middle for decentralization class; rising income in the last 10 years Tax breaks for levels investment in export- oriented industries Major sectors: Key imports electrical manufacturing, mining, Occasional lapses in equipment, iron & construction, transport, Cumbersome rule of law steel, machinery, communication, bureaucracy vehicles, plastics finance 20 Source: World Bank; ADB
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