Doing Business in Asia

Doing Business in Asia

Jari Hietala

Finpro’s Global Network – Asia and Russia

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Finpro’s Global Network – Australia, Malaysia,

Philippines and Singapore

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Sep 2009 © Finpro ry

Finpro’s Network in China

Key Facts 2011

Finpro Asia

• Aprox. 200 clients

• Aprox. 400 assignments

• China’s share 50%

• Focus Industries: ICT, Cleantech, Life Sciences, Forest- and

Maritime clusters, Engineering companies, Services

• Typical assingments:

– Sales channel development, Sales Accelerator

– Company establishments (the whole process)

– Selecting the right markets

30/10/2012 5 © Finpro

10/30/2012 Copyright @ 2010 FinChi 6

FINCHI – a platform of optimizing your

value in China entrance

Plug & Play style of equipped office space

State-of-art services assist your daily operation

Full access to local contacts and bussiness networking

No Registration or Injection Capital needed, but all local activities could

be realized with FinChi turn-key solution. www.finchi.cn

FinChi Innovation Center - www.finchi.cn

The Importance of Asia For

Finnish Companies

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Why to Asia?

WORLD GDP 2050

• According to Goldman Sachs, this is the most likely scenario of

World GDP in 2050

– Note the position of Asian countries

2050

Asia looks set to return to its natural

“half share” of the world economy

11

Source: Angus Madison’s “Historical Statistics for the World Economy:1-2004AD”, Deutsch Bank Global Market Research

Asia and Finland in 2010

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Australia

China

Hong Kong

India

Indonesia Japan

Korea

Malaysia

Philippines

Singapore Thailand Vietnam

Finland

-0,2

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

-10 0 10 20 30 40 50 60 70 80

Po

pu

lati

on

(b

illi

on

s)

GDP based on PPP per capita (thousands)

Asia and Middle East in 2010

The bubble size indicates GDP based on

PPP in 2010. The bubble size indicates

also the country's share of the total GDP

of all countries included in the graph.

Source: IMF, World Economic Outlook, September 2011

Note: Amounts in current international dollar

Asia 2016

3/4/2012 © Finpro 13

Source: IMF, World Economic Outlook, Sept 2011

Note: Amounts in current international dollar

Australia

China

Hong Kong

India

IndonesiaJapan

South KoreaMalaysia

Philippines Saudi Arabia SingaporeThailand

UAE

Vietnam

-0,2

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

-10 0 10 20 30 40 50 60 70 80

Po

pu

lati

on

(b

illi

on

s)

GDP based on PPP per capita (thousands)

Asia and Middle East in 2016E

The bubble size indicates GDP based on PPP in 2010. The bubble size indicates

also the country's share of the total GDP

of all countries included in the graph.

Finland’s exports and imports with Asia in 2010

0

500

1000

1500

2000

2500

3000

3500

4000

China Hong Kong Indonesia India Japan South Korea Malaysia Philippines Singapore Thailand Taiwan

Imports

Exports

Billions of Euros

Finnish Exports to Asia 2011 (excl. India)

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Special Charasterics of Asian Markets

• There is no one homogenous Asian market – analyze and select the right

markets for your company and products

• There is one common feature in all Asian markets: the Chinese business

culture – it’s not what you know but who you know – invest to establish and

maintain your personal contact network, Guanxi

• There are a lot of so called “opportunistic” trading houses, which are eagerly

looking for principals and suppliers from all over the world for example at trade

fairs

– It is not a big challenge to find a sales channel representative for any

company – the real challenge is to get business going

• Often the channel partners would like to represent your products in several

markets in Asia. Watch out as this has very seldom proved to be successful

• Verify your partners’ Guanxi

• There are also several Finnish (and European) channel partners available –

easy and safe option perhaps, but how does your end customer value them

compared to truly local companies?

• Asia is full of trading houses whose main sales argument is the price – it is

challenging to find partners capable for value selling

Thank You!

30/10/2012 17 © Finpro