Asia Development Strategies China and Vietnam Michael Violette, AmericanTCB

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Asia Development StrategiesChina and
VietnamMichael Violette, AmericanTCB
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Asia Development Opportunities and Experience

• Vietnam Conformity Assessment Conference
• China A Film Documentary

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Vietnam Conformity Assessment Conference
Vietnam Standards Development and the Impact on
Commerce

• Vietnams entry into the World Trade Organization
  
• Opening of the market for foreign investment
• The pressing need for infrastructure development
• Expansion of product and process verification

http//www.atcb.com/vietnam vietnam_at_atcb.com
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Industries Affected

• Pharmaceutical
• Food and Biological Testing
• Textiles
• Construction
• EMC and Product Safety (Electronics, IT and
  Wireless)
• Fire technology
• Pesticides
• Infrastructure, civil engineering (Uniform
• Plumbing Code, Uniform Mechanical Code)
• AE firms

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Mission and Goal

• Promote and further trade ties and US linkage on
  industry and regulatory levels

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Solicitations Support

• US Department of Commerce, US Consulate General
  HCMC
• ACIL
• ASEAN
• PAC
• US Governmental and Industry Conformity
  Assessment Authorities (NIST, ANSI)
• Institute of Electrical and Electronics Engineers
• Private Laboratories
• Manufacturing Interests

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China Prospects

• Growth Rates
• Investment
• Access Issues
• Our Experience
• Documentary Project

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Going North
Lights!
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China Business Outlook

• U.S. imports from China reached 243.5B in 2005.
• Chinas GDP grew 9.9 in 2005, surpassing 2
  trillion (US 13T)
• China plans to quadruple GDP in 20 years, which
  implies an average 7.3 annual growth

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China Business Outlook

• China has risen from the United States 11th
  largest export market five years ago to our 5th
  largest export market today.
• The U.S. trade deficit with China was 200B in
  2005, a 24 increase of 38B from 162B in 2004.
• The value of U.S. exports to China in 2005
  reached 34.7B, up 20.5 from the previous year.
  (Global imports reached 148B, up 36.)
• U.S. exports to China have increased by 80 since
  2001

Source US DOC
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Progress in Beijing
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US Exports to China
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Direct Foreign InvestmentVarious Markets
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GDP vs Population
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Markets
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RD Expenditure vs GDP
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US Exports To China
Product Value (USD) Change aircraft and
parts 3.84b 137.23 digital integrated
circuits 3.12b 17.8 soybeans 2.25b 3.25
- cotton 1.40b 1.51 - ferrous metal
scrap 1.26b 35.1 auto parts /
accessories 1.03b 72. 3 auto data
processing equip. 0.78b 0.2 copper
scrap 0.76b 42.31 aluminum
scrap 0.72b 92.5 Waste of paper
0.69b 42.79 Electric Apparatus 0.57b 7.
79
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Business Outlook
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Residences
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Challenges

• Intellectual Property Protection
• inability to systematically and vigorously
  enforce the law
• low administrative fines do not deter
  infringement
• Technical Barriers to Trade Implications for
  Customs
• development of technical standards aimed to
  protect non-competitive domestic industries
• lack of transparency in standards development
  process
• redundant testing requirements
• National Treatment
• industrial policies limit market access by
  non-Chinese goods

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WTO Commitments (December 2006)

• Reforms in
• Architecture, engineering and urban planning
  services
• Banking
• Distribution and retail
• Insurance
• Telecommunications

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Testing

• Capable

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Market Entry Options

• Direct Exports
• Sales Agent / Distributor
• Cooperative Service Center
• Resident Representative Office
• Wholly-Owned Foreign Enterprise
• 100 Foreign-Owned
• Foreign-Invested Commercial Enterprise (FICE)
• Distribution and sales (retail, primarily)

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Goals

• Start in known environment with trusted partner
  (Taiwan)
• Develop relationships in PRC
• Develop Local Support and generate solid revenue
  stream
• Pricing strategies

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SINOCES
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Money

• Wire transfers to PRC
• Salaries are 1/5th of equivalent US professionals
• Flow of money through Hong Kong
• Banking reform is imminent and necessary

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Necessities

• Must go and see
• Must develop relationships
• Must be realistic
• Must look at the objectives of the Chinese
  partners
• Must understand realities of banking and contract
  situations
• Must visit often as the situation and
  opportunities change

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Beer, Steve Art
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AmericanTCB Experience

• Started Exploring China Market Opportunities in
  1999
• Taiwan Office in March 2004
• Beijing Rep in May 2005
• Shenzen Agent in November 2005
• Shanghai Agent/Support in July 2006
• Rep Office in 2007 (Banking!)
• WOFE (?)

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Present Operation

• Hosting organization in TW
• Starting formal company in Shenzen
• Developing trade mission capabilities
• Training, seminars, service support
• Access Channel to EMC Test Laboratories in PRC

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Go See
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Documentary Project

• Capture the sights and sounds
• July 2006
• Qingdao (CES)
• Beijing
• Dong Guan
• Interviews

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Plans

• Solicit Support from Business Interests
• Develop story
• Targets
• Discovery Channel
• Sponsorship

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Themes

• Trusting your partner
• Business Opportunities in China Demographics
• Developing Business
• Language Culture
• Concerns IP the Environment
• Expectations
• Parting Advice

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Credits

• Production
• Liv Violette, McLeanPR Group
• Direction
• Jason Scadron, Collage Productions
• Editing
• Michael Farkas
• Co-Sponser Washington Labs
• Photos Marianne Koster