IAYB_page01.indd 1 01/05/2014 14:29 Asia Business Week FP Ireland.pdf 1 01/05/2014 10:17
ASIABusiness Week Dublin UNLOCKING ASIA-IRELAND TRADE POTENTIAL 3-6 JUNE 2014 Round Room at the Mansion House JUNE 4TH 2014 - The Dublin Beijing Business Summit Dublin JUNE 5TH 2014 - The Asia Ireland Trade & Investment Summit - The Asia Matters Economic Innovation Award Dinner JUNE 6TH 2014 - The Fourth EU Asia Top Economist Round Table SPEAKERS INCLUDE The Lord Mayor of Dublin, Mr. Oisín Quinn, Mr. Richard Bruton, TD, Minister for Jobs, Enterprise and Innovation, H.E. Mr. Bui Thanh Son, Vice Minister of Foreign Affairs, Vietnam, Mr. David O’Sullivan, Chief Operating Officer, European External Action Service, Mr. Du Deyin, Chairman of the Standing Committee of Beijing Municipal People’s Congress (BMPC), Beijing Delegate, Mr. Kevin Toland, Chief Executive, Dublin Airport Authority, Mr. Jun Arima, Director General, Japan External Trade Organisation (JETRO) - London.
BOOKING NOW ON www.asiabusinessweek.ie
IAYB_page02-03.indd 2 01/05/2014 17:45 Asia Business Week FP Ireland.pdf 1 01/05/2014 10:17
The Ireland Asia Business Yearbook is published by Asia Matters in association with Business and Leadership Ltd ©Asia Matters CONTENTS
4 FOREWORD 30 MANUFACTURING ASIABusiness Week Dublin An Taoiseach Enda Kenny TD What can Europe and Ireland learn Executive director: Martin Murray from Lean in Toyota? [email protected] 6 INTRODUCTION +353 87 2688805 Chairman of Asia Matters Alan Dukes 34 SECTORS: FOOD AND Asia specialists: Ronan Lenihan, director of operations and sets the scene DRINK development and Stephanie FitzGerald-Smith, deputy director Huge opportunity for Irish companies, UNLOCKING ASIA-IRELAND TRADE POTENTIAL 8 NETWORKS for marketing and communications particularly in dairy, beef, pork and Enterprise Ireland intensifies its seafood activity in Asia 38 SECTORS: EQUINE 9 IRISH EXPORTS With its history and reputation for The Asia Trade Forum perspective thoroughbreds, Ireland has a lot to offer Managing director: Sam Hobbs 10 TOURISM [email protected] The ‘greening’ of Asian landmarks 40 SECTORS: EDUCATION + 353 1 6251425 and other key activities A key area of focus for the Irish 3-6 JUNE 2014 www.businessandleadership.com Government and individual institutes Editor: Sorcha Corcoran 12 FREE TRADE FOCUS Minister for Jobs, Enterprise and 42 INWARD INVESTMENT: ICT Round Room at the Mansion House Production editor: Karina Corbett Innovation Richard Bruton TD An interview with Derek Ding, Designer: Keith Wealleans discusses latest developments in managing director of Huawei Ireland Asia Matters is an independent, not-for-profit, non-political, educational EU-Asia free trade agreements 44 INWARD INVESTMENT: think tank based in Dublin focused on the EU-Asia and Ireland-Asia AVIATION LEASING business relationship. The chairman is Alan Dukes, former Irish minister 16 EMBASSY INSIGHTS JUNE 4TH 2014 Ambassadors of Ireland in key Asian Shinichi Hayashida, chairman of for finance. markets share latest developments Japanese-owned SMBC Aviation - The Dublin Beijing Business Summit Dublin Since its inception, Asia Matters has held high value EU-Asia events both Capital, discusses current trends 25 & 32 LEADERS’ INSIGHTS in Dublin and Tokyo. In 2014, Asia Matters will embark on an ambitious Observations from heads of 46 DUBLIN CITY COUNCIL schedule of events starting in June with ‘Asia Business Week Dublin’, professional services and law firms Dublin City’s strong engagement a joint initiative of Dublin City Council and Asia Matters. The C-summit with Asia JUNE 5TH 2014 style event focuses on how Ireland can increase business links and 28 COUNTRY FOCUS connectivity with key Asian stakeholders. Following this, Asia Matters will An update on Japan from Sean 82 CULTURE AND CSR hold its flagship event, the EU Asia Top Economist Roundtable, in London O’Driscoll, chairman and chief Gaelic games in Asia, business in September, and in Toyko and Beijing in November 2014. - The Asia Ireland Trade & Investment Summit executive of Glen Dimplex etiquette guide and Asia Matters’
support of Japanese children’s charity - The Asia Matters Economic Innovation Award Dinner Asia Matters works collectively with and complimentarily to Irish Government departments, agencies and business organisations for the greater good. It engages at a conceptual and multilateral level to create a greater circle of understanding and connectivity between senior Irish, COUNTRY PROFILES EU and Asian business and government opinion leaders. Asia Matters [54] China [56] Japan [58] Indonesia [60] India [62] Korea [64] JUNE 6TH 2014 strongly believes in Irish engagement with Asia within an EU context. Singapore [66] Vietnam [68] Myanmar [70] The Philippines [72] Thailand [74] Malaysia [76] Mongolia [78] Cambodia [79] Laos Based in Dublin, Business & Leadership is Ireland’s leading business [80] Brunei Darussalam - The Fourth EU Asia Top Economist Round Table publisher. We specialise in creating unique, engaging and thought provoking content for business leaders, and are the publishers of both the official magazine of the Institute of Directors in Ireland, Irish Director, and the global magazine of the IDA, Innovation Ireland Review. Our SPEAKERS INCLUDE targeted online business news platform www.businessandleadership. com delivers business news and leadership insights to almost 60,000 The Lord Mayor of Dublin, Mr. Oisín Quinn, Mr. Richard Bruton, TD, Minister for Jobs, Enterprise and Innovation, H.E. Mr. Bui Thanh Son, business users each month. As bilateral engagement increases, there is Vice Minister of Foreign Affairs, Vietnam, Mr. David O’Sullivan, Chief Operating Officer, European External Action Service, Mr. Du Deyin, greater demand for market insight and intelligence into the opportunities across Asia and we are delighted to partner with Asia Matters in the Chairman of the Standing Committee of Beijing Municipal People’s Congress (BMPC), Beijing Delegate, Mr. Kevin Toland, Chief Executive, producing the Ireland Asia Business Yearbook, bringing together key Dublin Airport Authority, Mr. Jun Arima, Director General, Japan External Trade Organisation (JETRO) - London. decision-makers in government and state agencies and business leaders to share their insights, experience and knowledge.
BOOKING NOW ON www.asiabusinessweek.ie Ireland Asia Business Yearbook 2014 3
IAYB_page02-03.indd 3 01/05/2014 17:45 FOREWORD CONTINUING connections
THE implications for Ireland of Asia’s rapid transformation and development are profound. Countries across Asia are home to the majority of the world’s population and economic output, and are increasingly influential global actors. The Government is committed to broadening and deepening Ireland’s relationships with these countries in order to increase trade, investment, education and cultural links with Asia. Since taking office in 2011, the Government has actively engaged in building relationships at the highest political level in Asia, through ministerial and other high level visits and meetings. These visits raise Ireland’s profile. We use them to highlight our strengths as a location for business and investment and to promote Ireland as a destination for education and tourism. I visited Japan in December 2013, accompanied by a trade delegation, and signed a joint declaration on wide ranging bilateral co-operation. My visit to China in 2012 launched a first bilateral strategic partnership agreement. Ten ministers have visited China since then. During the 2014 St Patrick’s Day period, Government ministers visited six Asian countries. The importance of Asia for Ireland is reflected in the Government’s decision in January 2014 to open three new diplomatic missions in the region. New embassies in Thailand and Indonesia and a consulate general in Hong Kong add to existing missions in Japan, Korea, China, Singapore, Malaysia, India and Vietnam. The State agencies have offices and agents across the region, and are strengthening their operations in areas of greatest potential return. As a small open economy, exports are key to Ireland’s economic recovery. Total exports of goods and services to Asia from Ireland in 2012 exceeded €15bn. Asian countries are increasingly important markets for Irish companies. The Government is working hard to increase opportunities and open doors for Irish business. Success in Asia requires long-term commitment, and developing relationships that match our strengths with Asia’s requirements. I look forward to continuing this work throughout 2014 and beyond.
An Taoiseach Enda Kenny TD
4 Ireland Asia Business Yearbook 2014
IAYB_page04-05.indd 4 01/05/2014 14:30
IAYB_page04-05.indd 5 01/05/2014 14:30 INTRODUCTION Why Asia matters for Ireland Chairman of Asia Matters Alan Dukes reflects on progress over the past two years
SINCE its establishment in urbanising at a rapid rate. During this period, the EU January 2012, Asia Matters has intensified its engagement with Asia and is currently has achieved notable success undertaking an ambitious programme of free trade agreements with the support of key (FTAs) with its partners across Asia, as well as negotiating the stakeholders. landmark EU-China Investment Agreement. As an independent, not-for- These developments, coupled with greater EU engagement, profit, Dublin-based think tank, represent a major opportunity for Irish companies to unlock Asia Matters focuses on further potential markets across Asia and Asian companies to increase developing EU-Asia business their engagement with Ireland to access the EU single market. and institutional relationships. I believe that Asia Matters has an important role in providing a As chairman, I am proud space for stakeholders to seize this unique opportunity. of the achievements of Asia This year marks a pivotal point in Asia Matters’ development, Matters in working collectively as the organisation sets out an ambitious programme of events with EU and Asian government in Dublin, London, Beijing and Tokyo. departments, agencies and business organisations to build In June this year, it will organise ‘Asia Business Week Dublin’ stronger relations with key partners. at the Round Room at the Mansion House. Asia Matters has engaged at conceptual and multilateral A joint initiative with Dublin City Council, and with Dublin levels to improve civic awareness and mutual understanding. Institute of Technology as academic partner, this will be a Within its first three years, Asia Matters has accomplished C-summit style event focusing on turning the vast potential of a great deal. Significant conferences have been convened in Asia-Ireland business relations into mutual beneficial growth, Ireland, the UK and Japan, linking Asian, European and Irish realising real economic growth and real employment for Ireland business and policy stakeholders at the very highest level. and its partners across Asia. Asia Matters’ flagship conference series, the EU Asia Top Working with respected partners on the ground in London, Economist Roundtable was organised in both Dublin (2012, Beijing and Tokyo, Asia Matters will deal with core bilateral 2013) and Tokyo (2013), featuring keynote addresses by An trade issues in our EU Asia Top Economist Roundtables in Taoiseach Enda Kenny TD; Minister for Jobs, Enterprise and September and November this year. The events will feature Innovation Richard Bruton TD; Jean-Luc Demarty, director thought leaders and policy-makers discussing the key topics of general, DG-Trade, European Commission; Prof Masahiro business, financial and trade relations between Asia and the Kawai, dean, Asian Development Bank Institute; Hiroyuki EU. Ishige, chairman and CEO, Japan External Trade Organisation; Asia Matters, as our name implies, deeply believes in the and Sean O’ Driscoll, CEO, Glen Dimplex. importance of engagement with Asia at all levels. We see a Speakers included top diplomats and representatives from need for Ireland to play a key stakeholder role in contributing major global organisations such as Huawei, Infosys, Nomura, to the development of EU-Asia trade relations that are mutually Barclays, OECD, Citibank and Philips. beneficial. Though our work focuses primarily on economics, As the world’s economic centre of gravity moves towards trade policy and business relations, we also strongly encourage Asia, Ireland must focus on the areas of global growth. Asia cultural respect and understanding as the foundation for true Matters plays a vital role in ensuring that stakeholders in partnership. It is our hope to use our shared knowledge to Ireland can connect with their Asian counterparts. innovate and overcome common societal challenges as we Asian economies, both developed and developing, have build solid futures for our countries through people to people experienced a period of unprecedented growth, undergoing relations. major societal shifts, moving millions out of poverty and
Voted Europe's Best Airline at the 2013 Skytrax Passengers Choice Awards
6 Ireland Asia Business Yearbook 2014 WIDE N Y O U R W O R L D
IAYB_page06-07.indd 6 01/05/2014 17:45 Voted Europe's Best Airline at the 2013 Skytrax Passengers Choice Awards WIDE N Y O U R W O R L D
IAYB_page06-07.indd 7 01/05/2014 17:45 NETWORKS On a mission Enterprise Ireland sees Asia Pacific as being so important it has increased the number of trade missions to the region this year, beginning in February with the first ever joint mission with Invest NI to Singapore
ASIA Pacific is an extremely important and priority region for resources in to understand the market well from the customer Enterprise Ireland and one that cannot be ignored by any Irish perspective.” company seeking to grow and internationalise, according to Kevin Enterprise Ireland launched a new ‘Market Access Grant’ last Sherry, head of international sales and partnering business unit at February, which provides Irish companies with up to €150,000 to Enterprise Ireland. research and develop new markets such as those in Asia. “Enterprise Ireland client companies grew exports to the region For the past number of years trade missions have been an by 17pc to reach a total of over €1bn for the first time in 2012. essential element in Enterprise Ireland’s long-term strategy of We expect to be reporting similar growth rates for 2013,” he says. fostering business relationships with key influencers and large “The main markets to date for our clients have been China, customers on the ground in the region, according to Sherry. Singapore, Japan, Malaysia and India, with the main sectors “The presence of An Taoiseach or Government minister lead- including aviation, financial services, ICT, life sciences, medical ing a trade mission is particularly valuable in Asia. The govern- devices and educational services.” (The food and drink sector is ment-to-government relationship is crucially important to provide covered by Bord Bia.) the platform from which to do business. Status and hierarchy Enterprise Ireland has a national network of nine regional tend to matter more in Asian countries, which adopt a top-down offices throughout Ireland and over 30 international locations. approach. The presence and involvement of An Taoiseach or a Eight of these are in Asia Pacific – in Australia, China, Hong minister secures meetings and interaction at a senior level that Kong, Japan, India, Malaysia, Singapore and South Korea. may not otherwise be achieved,” he says. A common feature of companies that are successful in Asian Last year, there were a number of high level visits to the region: markets is that they all remain committed to their chosen markets, an education-focused mission to China in March led by Minister have dedicated resources and take a focused and long-term for Education Ruairí Quinn TD; a trade and investment mission approach, Sherry notes. to China and Japan led by Minister for Jobs, Enterprise and “Irish companies that tend to do well offer a specific product or Innovation Richard Bruton TD; and a large trade mission to Japan service tailored to a specific need identified in an individual market led by An Taoiseach Enda Kenny TD in December. in Asia. Those that have transformed their value proposition to “We have increased the number of trade missions to Asia this meet the need of that particular market have achieved the highest year, starting last February with the first ever joint mission with growth rates, regardless of what end sector they are focused on. Invest NI to Singapore. There will be missions to China and Korea “Having ‘boots on the ground’ is a fundamental factor to being in June, China at the end of October and India in November,” successful in Asia. Companies must be prepared to put the adds Sherry.
Indian IT giant Tech Mahindra forged a partnership with AIMS Software, a subsidiary of Dublin-based Quest Computing, which that will see the Irish tech firm’s software deployed across Southeast Asia. The deal was announced during an Enterprise Ireland trade mission to Singapore. Pictured at the signing ceremony were (L–R): Arnab Chaudhuri, vice-president, Southeast Asia and India, AIMS Software; Minister for Jobs, Enterprise and Innovation Richard Bruton TD; Vincent Ryan, director, Quest Computing Ltd; Julie Sinnamon, CEO, Enterprise Ireland; Rohit Gandhi, head – Asia-Pac, India, Middle East and Africa, Tech Mahindra; and Ram Ramachandran, head – ASEAN, Tech Mahindra 8 Ireland Asia Business Yearbook 2014
IAYB_page08-09.indd 8 01/05/2014 14:31 IRISH EXPORTS On a mission Trading up While total exports to Asia declined last year, there still exists many opportunities to reverse that, according to the Asia Trade Forum
THE export trends to India and Japan were disappointing last Focusing on the potential for Irish exporters in individual Asian year, but there is much to be encouraged about elsewhere in markets, Kelly cites India as an example. Asia for Irish business, according to Hugh Kelly, head of the Asia “Forecast to become the world’s third largest economy by 2050, Trade Forum (ATF). India is a country that cannot be ignored with an industrious and “We are very concerned that total exports to Asia declined to increasingly well educated population that already exceeds one €5.24bn last year but this only serves to highlight the importance billion. of initiatives such as the ATF. “There are still many challenges to doing business there, such “We welcome the opening of the new Irish diplomatic embas- as the different culture, under-developed infrastructure, the many sies and missions in Indonesia, Thailand and Hong Kong as well different regional languages spoken and tariff and non-tariff trade as the appointment of additional Enterprise Ireland staff on the barriers,” he explains. ground in Asia where they provide valuable support to indigenous “However, there are equally many opportunities as companies Irish exporters. such as Connolly’s Red Mills, Weddings Online and Contracting “On a positive note, the value of food and drink exports to Plus have demonstrated. It is important for Irish companies to Asia overall rose 28pc in 2013 compared to 2012; in China they have realistic expectations in terms of return on investment when climbed by 40pc, in Singapore by 18.5pc, in Malaysia by 55pc entering the market and to realise that if they want to be estab- and Korea by 11.5pc. Now we need to replicate this success in lished in India in three or four years’ time, they need to start now.” other sectors.” Since the Irish Exporters Association (IEA) set up the ATF in Regarding sectoral opportunities in the region, Kelly says they 2011, over 1,000 people have attended its seminars on doing depend on the Asian market in question. “In some markets there business in Asia and almost 100 companies have gone on its are significant infrastructural and heavy industry opportunities as business visits to India in 2012 and China and Malaysia last year. CRH, ESB International, Suretank and PM Group have shown. It is now in the fourth year of its mentoring programme, which “In others, there is strong demand for hi-tech products and ser- is part of the masters in international business run by Professor vices that Steripack, Openet, Dortek, Dimplex, Park Aviation and Sean Cassidy at the UCD Smurfit School of Business. BMR Slendertone have all enjoyed. “Up to 60 students each year work with IEA member compan- “There are significant opportunities for all our food exporters in ies to develop market entry strategies into Asia through this pro- almost all Asian markets. Companies trading and operating very gramme,” says Kelly. successfully in Asia include the likes of Errigal, Glanbia, Glenmar “This year in February we launched a similar programme in the Shellfish and Irish Dairy Board. The lifting of the ban on Irish beef Kemmy School of Business, University of Limerick, and in March into Japan was significant and the removal of dairy quotas in 2014 we launched a new partnership with the School of Asian Ireland next year will open the door for much increased trade with Studies at University College Cork.” China.”
Pictured: Head of the Asia Trade Forum Hugh Kelly and Minister of State for Trade and Development Joe Costello TD at the launch of the forum
Ireland Asia Business Yearbook 2014 9
IAYB_page08-09.indd 9 01/05/2014 14:31 TOURISM
Pictured (L–R): Minister for Tourism Leo Varadkar TD; Niall Gibbons, CEO of Tourism Ireland; Vishal Suri, deputy chief operating officer, Kuoni India; and H.E. Radhika Lal Lokesh, Indian ambassador to Ireland at Tourism Ireland’s first ever India seminar, which took place in Dublin earlier this year
Tourism Ireland has been engaging in Promoting Collection of Villages Villages of Collection
® a number of promotional activities to maximise Ireland’s tourism opportunity in potential Asian markets Chic Outlet Shopping
CHINA and India continue to be the two main Asian markets two million fans worldwide); and in China it has about 233,000 targeted by Tourism Ireland and last year 19,000 Chinese visitors followers on social networks, including Sina Weibo. and around 21,000 Indian visitors came to Ireland, according to the According to Tourism Ireland CEO Niall Gibbons, the agency has agency’s estimates. also been capitalising on the Government’s short-stay Visa Waiver In China, Tourism Ireland focuses mainly on three geographical Programme, introduced in 2011, which has been a real boost in help- areas: Shanghai (eastern China), Beijing (northern China) and ing to raise awareness of the island of Ireland in both China and India. Guangzhou (southern China), while in India the target markets “The scheme enables travellers from 17 countries, including
include the 25–55 year olds, high net worth segment from Mumbai, China and India, who enter the UK on a valid visa to also travel Kildare Village. A member of the Village 2014 04/14 price © Kildare retail *on the recommended New Delhi and Bangalore; as well as business travellers and family to Ireland – without requiring a separate visa. The extension of groups. the Visa Waiver Programme to October 2016 provides the perfect Tourism Ireland in China undertook a particularly busy pro- opportunity for Chinese and Indian tour operators to offer Ireland LIKE SHOPPING. BUT BETTER. gramme of activity around the St Patrick’s Day period this year. packages to their clients, or to add Ireland to their current British This culminated in the ‘greening’ of a section of the Great Wall packages,” he explained. The finest designer boutiques. of China, as well as the Oriental Pearl Radio and TV Tower in “Tourism Ireland’s overall strategy in China and India involves All in one place. With up to 60%* off. Shanghai, and the Pudong Shangri-La Hotel old and new towers, establishing and consolidating relationships with key intermediaries also in Shanghai, on 17 March. – including tour operators, travel agents, airlines and media. For In late 2013, the agency’s largest ever sales mission to China example, last summer we arranged for China’s No 1 travel blogger took place, involving 20 Irish tourism companies going to meet Fan Yibo to spend a week touring Ireland – he has almost 400,000 7 FOR ALL MANKIND · ANYA HINDMARCH · BROOKS BROTHERS with 450 travel agents and operators in Beijing, Shanghai and followers on Sina Weibo and his blog has received more than 77 CATH KIDSTON · DIESEL · FURLA · GERARD DAREL HACKETT · HOBBS · HUGO BOSS · JACK WILLS Guangzhou. million clicks to date.” JAEGER · L.K.BENNETT · LINKS OF LONDON Meanwhile in March of this year, a delegation of Irish tourism There have been a number of developments recently that augur L’OCCITANE · LOUISE KENNEDY · LULU GUINNESS enterprises took part in a sales mission to India, meeting and con- well for tourism to Ireland from India and China. For example, PANDORA · THOMAS PINK · WOLFORD and many more cluding deals with more than 300 top Indian tour operators and trav- Tourism Ireland and VisitBritain announced a new agreement to el agents, through a series of workshops, sales calls and networking boost tourist numbers from long-haul markets such as China and events in Mumbai and Delhi. India. Under the agreement the two organisations will work more Online and social media activity is an important element of closely together to promote the island of Ireland and Great Britain as Tourism Ireland’s promotional programme and it recently launched destinations to be visited as part of a single holiday. the Chinese and Indian versions of the country’s international web- In addition, in March, Ireland was named ‘best potential destin- site Ireland.com. ation’ for 2014 at an awards ceremony in Shanghai organised by Tourism Ireland has almost 95,000 Facebook fans in India (over Ctrip, China’s largest online travel agency. KildareVillage.com
10 Ireland Asia Business Yearbook 2014 LONDON DUBLIN PARIS MADRID BARCELONA MILAN BRUSSELS FRANKFURT MUNICH SUZHOU, CHINA
IAYB_page10-11.indd 10 01/05/2014 15:35 Asia Business Yearbook 2014.indd 1 15/04/2014 11:22
Collection of Villages Villages of Collection
®
Chic Outlet Shopping Kildare Village. A member of the Village 2014 04/14 price © Kildare retail *on the recommended
LIKE SHOPPING. BUT BETTER.
The finest designer boutiques. All in one place. With up to 60%* off.
7 FOR ALL MANKIND · ANYA HINDMARCH · BROOKS BROTHERS CATH KIDSTON · DIESEL · FURLA · GERARD DAREL HACKETT · HOBBS · HUGO BOSS · JACK WILLS JAEGER · L.K.BENNETT · LINKS OF LONDON L’OCCITANE · LOUISE KENNEDY · LULU GUINNESS PANDORA · THOMAS PINK · WOLFORD and many more
KildareVillage.com
LONDON DUBLIN PARIS MADRID BARCELONA MILAN BRUSSELS FRANKFURT MUNICH SUZHOU, CHINA
IAYB_page10-11.inddAsia Business Yearbook 11 2014.indd 1 01/05/201415/04/2014 15:3511:22 FREE TRADE FOCUS
Steady progress
Minister for Jobs, Enterprise and Innovation Richard Bruton TD outlines the current state of play regarding free trade agreements between the EU and Asia and what this means for Ireland
IT is widely expected that by next year over 90pc of future Making inroads into relatively unfamiliar export markets global economic growth will take place outside Europe. Much across Asia is certainly not as straightforward as exporting to of this will be propelled by dynamic economies in Asia. In that the EU’s single market. Nevertheless, for exporters that take region China alone could account for a third of this economic the time to carefully plan and invest for these distant export expansion. markets, trade and investment agreements certainly are of China is often seen as the regional powerhouse because significant help in making it easier and less costly to win of its size, economic growth and its potential as economic valuable export business. transformation continues apace. And we have worked hard to My department is always keen to hear from exporters about develop stronger links with it. how these agreements can help either specific companies or As many of our traditional export markets of the UK, the sectors looking to build more business and expand their Asian eurozone and North America have suffered prolonged economic footprint. difficulty over recent years, the combined growth rates of major These trade deals not only remove import tariffs, but also Asian economies such as India, Indonesia and Malaysia, as tackle special rules and technical standards that are often well as China, offer scale and long-term growth potential for our designed to make it more difficult for exporters to do what is ambitious exporters. most natural for them – win business, do deals and grow their The reorientation of our exporters to Asia is slowly and companies. steadily taking place. This is underpinned by the range of free I look forward to the trade agreement with Singapore quickly trade agreements (FTAs) being negotiated with key economies coming into effect because it is an important gateway economy in the region. for the rest of Asia, and for those being negotiated with The first of these between the EU and Korea came into effect Vietnam, Thailand and Indonesia to be concluded in as short a in 2011. Last year trade in goods with Korea grew by 36pc time frame as possible. compared with 2010, the year before the agreement started to To reflect the importance of Asia as a new source of remove trade barriers between our two economies. diversified export potential the Government recently decided to
12 Ireland Asia Business Yearbook 2014
IAYB_page12-13.indd 12 01/05/2014 17:51 FREE TRADE FOCUS
open new embassies in Thailand and Indonesia. These will give respectively and providing for strong protection to investors and more support on the ground to exporters. their investments. They will also complement the work of my department in The EU has backed China joining the talks on the WTO Trade negotiating trade agreements and the work of our lead export in Services Agreement (TiSA). promotion agency Enterprise Ireland in supporting our exporters. The trade mission to Japan at the end of 2013 was a India significant step in a strategic engagement with that country. As Despite some progress, negotiations have stalled and work will one of the wealthiest economies in the world our exporters are not progress until after the elections in India. Both sides are a close fit with its import needs in terms of technology, services aiming to find solutions that are mutually acceptable to achieve and food. Prospects there will be considerably enhanced when an ambitious outcome, which would give an important boost to the FTA with Japan is concluded, giving our exporters a strategic trade between the EU and India. advantage that others will not have. I believe this could well be a new heartland of activity for our Asia destined exports. Indonesia The EU and Indonesia signed a Partnership Co-operation THE EU AND ASIA Agreement in 2009. Intense contacts have taken place since The EU is the world’s biggest market and trading bloc and Asia 2011 to explore the possibility to further deepen EU-Indonesia is now the EU’s main trading partner, accounting for a third of relations by way of a Comprehensive Economic Partnership total trade and this figure continues to grow. Agreement (CEPA). Steady In terms of investment, a quarter of EU outward investment is going to Asia while inward investment is growing fast. Japan Asia is important to Europe and will be so even more in The opening of FTA negotiations was announced on 25 March the future. In economic terms we know that recovery at home 2013. There have been five rounds of negotiations and an depends on the ability to harness growth and open new markets, initial exchange of offers has been made. The EU is currently many of which are in Asia. The EU is building up its engagement reviewing progress achieved during the first year of talks and progress in and with Asia. assessing the implementation of commitments made by Japan But Europe is also important to Asia – its future growth on the elimination of non-tariff barriers. depends on access to EU markets. The EU remains the largest economy in the world, with a Laos per capita GDP of €25,000 for its 500 million consumers. That The EU works closely with Laos under the framework of the represents a €12.6trn economy. Only the US (€11.5trn) is in the EU-ASEAN Co-operation Agreement to ensure an effective same league. environment for trade and investment relations.
EU TRADE NEGOTIATIONS Malaysia The following is a round-up of the state of play regarding FTA negotiations were launched in September 2010. Since negotiations between individual Asian countries and the EU. elections in Malaysia in May 2013 there has been no further progress. Burma/Myanmar In March 2014 negotiations were launched on an Investment The Philippines Protection Agreement between the EU and Myanmar/Burma. A pre-scoping exchange of views has taken place. This will improve the protection and fair treatment of investors from both sides and will thus contribute to attracting investments Singapore to Myanmar/Burma and the EU. The FTA negotiations were successfully concluded in December 2012 and the agreement was initialled in September 2013. Cambodia Negotiations on investment protection, based on a new EU The EU works closely with Cambodia under the framework of competence under Lisbon Treaty, started later than the FTA and the EU-ASEAN Co-operation Agreement to ensure an effective are ongoing. environment for trade and investment relations. Thailand China The FTA negotiations were launched in March 2013. The fourth The launch of negotiations on a comprehensive EU-China round of negotiations took place in April 2014. Investment Agreement was announced at the 16th EU-China Summit, which was held in November 2013. Vietnam The agreement will provide for progressive liberalisation Negotiations were launched in June 2012 and have entered a of investment and the elimination of restrictions for investors substantial phase. The seventh round of negotiations took place to each other’s market. It will provide a simpler and more in March 2014 and the eighth round is scheduled for June 2014. secure legal framework to investors of both sides by securing Both sides aim to conclude swiftly. predictable long-term access to EU and Chinese markets
Ireland Asia Business Yearbook 2014 13
IAYB_page12-13.indd 13 01/05/2014 17:46 FOREIGN AFFAIRS Why do over 70% of companies setting up in Ireland choose us? A fledgling friendship
Chairman of the Joint Committee on Foreign Affairs and Trade Pat Because we’re the Number One corporate bank in Ireland. Breen took part in the Presidential Friends of Indonesia programme in August 2013 and now Jakarta is set to have an Irish embassy Our dedicated FDI team offer a leading service to international corporates with specific expertise in supporting Asian part in the seven-day trip and his companions included a businesses investing in Ireland. Russian music composer, a journalist from South Africa, a university professor from Japan and an Australian community We have extensive experience of both leader. The programme began with delegates attending the the local investment market and the varied Independence Day flag hoisting ceremony at the State Palace requirements of international investors. in the capital Jakarta presided by President Susilo Bambang Yudhoyono. “I had the opportunity to meet the president on a one-to-one basis and have dinner with him. We discussed the recession and he was very interested to hear Ireland’s success story in terms of turning the economy around as Indonesia now looks outward for business. At the time Ireland was planning to exit the EU bailout,” Breen explains. “It was important for me to visit Indonesia as it is a dynamic country with a lot to offer with a huge population of 240 million people, making it the fourth most populated country in the world after China, India and the US and the 16th largest economy in the world in terms of GDP.” During the trip, Breen got to meet BJ Habibie, a famous former president of the country whose life story was turned into a book and film, as well as gaining an insight into the logistics of holding elections in the world’s third largest democracy at the Election Commission of Indonesia. The programme also gave him the opportunity to brief Indonesia’s Minister for Foreign Affairs Marty Natalegawa on Ireland’s reputation and promote the idea of an Irish embassy in Jakarta and an Indonesian embassy in Dublin to him. Breen had been lobbying for some time for an Irish embassy in Jakarta and earlier this year the Irish Government announced that this was to become a reality. The decision on who should To experience why we are different contact: Indonesia’s Minister for Foreign Affairs Marty Natalegawa and be ambassador has gone to Cabinet and is expected to be Pat Breen, chairman of the Joint Committee on Foreign Affairs revealed soon. and Trade in Ireland “Having an ambassador in Jakarta is a very exciting prospect. Derek Collins 田琛 | Chen Tian It will be a platform to promote exports, tourism, investment Director 董事助理 | Director Assistant CHAIRMAN of the Joint Committee on Foreign Affairs and and education, and hopefully lead to more ministerial visits as Bank of Ireland Corporate Banking 爱尔兰银行企业合作部 | Bank of Ireland Corporate Banking Trade Pat Breen was the only person from Ireland, and indeed well as high level visits from Indonesia to Ireland,” he notes. Tel +353 (0)76 624 4595 Tel +353 (0)76 624 4590 Europe, represented on the Presidential Friends of Indonesia Regarding tourism, Breen highlights that research released in programme in August 2013. April this year by Visa Europe showed that Indonesians spend This programme, which takes place each year to coincide more per Visa card transaction than any other nationality in Email [email protected] Email [email protected] with Independence Day celebrations on 17 August, brings Ireland with an average spend per transaction of €170.71. together 10 key people from the worlds of policy, industry, “This is an important year for Indonesia as there will be culture and art from various countries, in order to give them a a general election and a presidential election and it also Corporate Banking deeper understanding of Indonesia’s culture and economy. represents 20 years since diplomatic relations with Ireland first Breen was invited by the Ministry of Foreign Affairs to take began,” he says. Bank of Ireland is regulated by the Central Bank of Ireland. In the UK, Bank of Ireland is authorised by the Central Bank of Ireland and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available from us on request. 14 Ireland Asia Business Yearbook 2014 Bank of Ireland incorporated in Ireland with limited liability. Registered Office - Head Office, 40 Mespil Road, Dublin 4, Ireland. Registered Number – C-1.
IAYB_page14-15.indd 14 01/05/2014 17:54 D4988_BOI CB Asia Matters advert 210x273 APRIL 2014 FINAL.indd 1 25/04/2014 15:42 Why do over 70% of companies setting up in Ireland choose us?
Because we’re the Number One corporate bank in Ireland.
Our dedicated FDI team offer a leading service to international corporates with specific expertise in supporting Asian businesses investing in Ireland.
We have extensive experience of both the local investment market and the varied requirements of international investors.
To experience why we are different contact:
Derek Collins 田琛 | Chen Tian Director 董事助理 | Director Assistant Bank of Ireland Corporate Banking 爱尔兰银行企业合作部 | Bank of Ireland Corporate Banking Tel +353 (0)76 624 4595 Tel +353 (0)76 624 4590 Email [email protected] Email [email protected]
Corporate Banking
Bank of Ireland is regulated by the Central Bank of Ireland. In the UK, Bank of Ireland is authorised by the Central Bank of Ireland and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available from us on request. Bank of Ireland incorporated in Ireland with limited liability. Registered Office - Head Office, 40 Mespil Road, Dublin 4, Ireland. Registered Number – C-1.
IAYB_page14-15.inddD4988_BOI CB Asia Matters 15 advert 210x273 APRIL 2014 FINAL.indd 1 01/05/201425/04/2014 15:2315:42 IRISH EMBASSY INSIGHTS
Growing connections Ambassador of Ireland in Japan John Neary outlines how bilateral and other ties have become closer between Ireland and Japan in recent years
IRELAND and Japan have a warm and close relationship. Our Already we are beginning to see results from these visits with partnership is based on shared values and goals. Although we a new interest in forming academic partnerships and educational are very far apart, situated at opposite ends of the Euro-Asian exchanges between Irish and Japanese universities. The new landmass, we have many traits in common. We both extend a programme established by Science Foundation Ireland to promote warm welcome to visitors and we both attach a high priority to research links between Ireland and Japan is also leading to new family ties and close friends. connections in this area. We both share a determination to contribute to world peace The economic relationship between Ireland and Japan con- and security through active participation in international organi- tinues to be a very substantial one. Japan is Ireland’s 11th lar- sations such as the UN and providing assistance to developing gest trading partner and the sixth largest source of foreign direct countries. investment in Ireland. Japanese companies employ around 3,000 Since diplomatic relations were established in 1957, the con- people in Ireland. nections between Ireland and Japan have grown significantly. In In Japan, the Irish embassy works closely with Enterprise recent years, the bilateral ties have become even closer. Ireland, IDA Ireland and Bord Bia to promote economic co-oper- In June 2013, Prime Minister Abe visited Dublin becoming the ation. Together we form ‘Team Ireland’ and we offer a seamless first ever serving Japanese Prime Minister to do so. In December and comprehensive package of support to Irish companies seek- 2013, Taoiseach Enda Kenny TD paid a return visit to Japan. ing to enter the Japanese market and to Japanese companies During that visit, the two leaders adopted a joint declaration considering Ireland as a European base. entitled ‘Partnership for Innovation and Growth’, which will provide Japan is not an easy market for Irish companies but there is a framework for developing co-operation between the two coun- enormous potential here and companies with the right product or tries into the future. service and the right approach can do very well. There are num- The declaration identifies trade, investment and research, erous examples of Irish companies that have shown the way in development and innovation as key drivers for economic growth, this regard. particularly in areas such as agri-food, financial services, ICT, life As Ambassador of Ireland in Japan, I would like to continue sciences and clean technologies. to work closely with my Ireland House colleagues and with Irish It also sees education, culture and people-to-people exchanges companies to promote even closer relations between Ireland and as important ways of developing the relationship between Ireland Japan that will benefit both our countries. and Japan, building on the Memorandum on Co-operation signed in May 2013 by the Japanese and Irish Ministers for Education.
16 Ireland Asia Business Yearbook 2014
IAYB_page16-23.indd 16 01/05/2014 14:33 IRISH EMBASSY INSIGHTS
Strengthening ties Ambassador of Ireland to Vietnam Damien Cole is committed to improving Ireland’s reputation as a business partner and promoting the relationship between the two countries
AS Ambassador of Ireland to Vietnam since 2011, I have been throughout Asia over the next few decades. Ireland’s expertise delighted to see the ties of friendship between our two countries in this sector is well recognised in Vietnam, with VietJet air, the strengthen over the past three years. Ireland and Vietnam have largest low cost carrier in Vietnam, leasing many of their aircraft important historical and cultural similarities, and while we are geo- from Ireland. graphically distant, our shared love of music, family and our warm With the support of Enterprise Ireland, a number of aviation culture of hospitality bring us closer together. service providers are now working with Vietnamese partners. Over the past few years, our trade with Vietnam has been This sector has strong growth potential over the next few years increasing steadily, up 24pc in 2013 over the previous year, and as Vietnam’s aviation sector liberalises and expands to cope with with huge potential for further development, particularly in the the increasing numbers of its young population who want to travel fields of aviation, ICT and education. both domestically and internationally. This year Irish companies will also begin to export pork prod- Our programme of development co-operation remains a key ucts to Vietnam, tapping into a market of over 90 million people. component of the bilateral relationship, and we work closely Our reputation as a destination for trade and inward investment, with the Government and people of Vietnam to help reduce rural as one of the friendliest places in the world to do business and poverty, deal with the legacy of conflict, and share our economic one of the most open economies in the world has been hugely and business expertise. attractive to the Vietnamese. In March 2014, we welcomed Minister Kathleen Lynch TD Ireland’s skills development model, with strong links between a on an inward trade visit focused on education and ICT. While dynamic education sector and cutting-edge research and industry, she was in Vietnam, she participated in the signature of new is extremely attractive to Vietnam as it seeks to train the skilled agreements for partnership and knowledge exchange between a engineers and technicians it needs for its future development. number of leading Irish and Vietnamese colleges. She also visited Increasingly, Ireland is also a destination for international some of the Irish companies working in Vietnam, including in the students from Vietnam. Since 2011 as part of our Overseas rapidly expanding ICT sector. Development Aid programme in Vietnam (Irish Aid), we are Irish companies have a lot to offer the Vietnamese market, providing up to 30 scholarships annually for talented young which after a period of slow growth is beginning to recover strong- Vietnamese to study in Ireland. ly, driven by the entrepreneurial culture and dynamism of the Students returning from this programme have formed an active Vietnamese people. alumni association in Vietnam, which is chaired by Deputy Prime The EU is also on track to conclude a free trade agreement Minister Hai, who was himself trained in Ireland at both Trinity with Vietnam by the end of 2014, which will open up further College Dublin and University College Dublin. We have also seen opportunities for Irish companies. I am committed to improving a big increase in the number of Vietnamese students studying in Ireland’s reputation as a business partner, and promoting the rela- Ireland on a self-funded basis, with applications more than doub- tionship between Ireland and Vietnam. ling since 2011. The aviation sector is going to be a major area of growth
Ireland Asia Business Yearbook 2014 17
IAYB_page16-23.indd 17 01/05/2014 14:33 IRISHprofile XX EMBASSY INSIGHTS
Raising awareness Ambassador of Ireland to India Feilim McLaughlin believes the Irish are good at building relationships, which is essential for doing business in India
THE overall priority is to improve Ireland’s visibility in India and arch-rivals England and Pakistan. Irish cricketer Kevin O’Brien this is central to the joint strategy agreed by the embassy and is the India brand ambassador for education in Ireland and he State agencies. Encouraging Indians to consider Ireland as a attracts enormous interest whenever he visits. business partner, an investment or tourism destination, or as a Next year’s Cricket World Cup, at which Ireland has been place to study, is much easier when people have some sense of drawn in India’s group, will be a unique opportunity to raise our who and what we are. profile. The embassy and State agencies have been working togeth- I think our easy-going and pragmatic nature is something that er over the last couple of years to increase the level of press other nationalities find appealing. We tend to be good at building coverage on Ireland, but also to engage with key individuals in relationships, which is essential to success in business and diplo- our priority sectors. There has been a particular push in the tour- macy. ism and education sectors, with Enterprise Ireland and Tourism While overall we would see the services sector as probably the Ireland doing some excellent work in promoting Ireland to an one with most potential, a number of Irish companies have been Indian audience. We have also been working with the IDA in very successful in India in recent years in industries ranging from engaging with hand-picked members of the business community specialist animal feeds to construction materials. and making them aware of what Ireland offers. India isn’t the easiest place to do business and companies The most significant development has been a remarkable need to do their research before entering the market. Ideally increase in the numbers of Indians choosing Ireland for third-level they should have a resident presence or at least be very regular study or as a holiday destination. The number of students has visitors. It is hard to over-emphasise the importance of relation- almost doubled in the last two years, while there is consistent ships in doing business in India – you will need to get to know growth in tourist numbers of close to 20pc per year. We are also your partners and customers at a personal level if you are to be seeing more and more Indian companies looking at Ireland as a successful and that takes time. base for doing business in both the EU and North America, as The focus of the embassy and agencies is very much on well as Irish companies exploring the possibilities of doing busi- encouraging Indian companies to see Ireland as a gateway to ness in India. the EU and North American markets. Ireland is small by Indian There is definitely a greater awareness of Ireland as a centre standards – there are four times as many people in the Delhi of excellence in advanced technologies. In the past we would region as in the whole island of Ireland – but we offer access to have been best known in India for the role of the Irish in setting two large, well developed and affluent markets. We are halfway up schools across the sub-continent. That is slowly changing and between India and North America, both geographically and in an image of Ireland as a young, dynamic country with a particular terms of time zones, and are an ideal location to service both the expertise in sectors such as pharmaceuticals and ICT is begin- EU and US/Canada. Our strengths in sectors such as pharma, ning to emerge. life sciences more generally and ICT are a big selling point as we Of course we are best known to the majority of Indians for offer clusters in sectors in which India is strong. our cricket team and famous World Cup victories over India’s
1818 Ireland Ireland Asia Asia Business Business Yearbook Yearbook 2014 2013
IAYB_page16-23.indd 18 01/05/2014 14:33 IRISH EMBASSY INSIGHTSXX profile
City in transition As the economy in Shanghai changes direction, opportunities for Ireland are set to expand further, according to consul general Austin Gormley
SHANGHAI is China’s primary commercial, financial and shipping festivals in Shanghai in recent years, which has attracted hub and it is still growing at a brisk pace. As Shanghai and the thousands of enthusiastic participants and wide media coverage; wider region continue the transition from lower value exports and Irish participation in theatre and film festivals; and cultural and heavy industry towards an economy driven by innovation, con- literature competitions at secondary and higher education levels. sumption and services, the opportunities for Ireland will expand We have also promoted a strong presence on Chinese social further. media. Already there are over 20 Irish companies with a presence here The sister-city relationship between Cork and Shanghai plays a and we expect more business in future in areas such as industrial key role in promoting civic, business, cultural and education exchan- design and engineering, clean-tech, pharmaceuticals and medical ges. The 10th anniversary of this partnership is celebrated next year devices, software, aviation and travel technologies, and financial and this will no doubt be a catalyst for further projects and ideas. and education services. The coming years promise more change for Shanghai with the Food and beverage exports are growing significantly, as they establishment of the Free Trade Zone last year to pilot further are elsewhere in China, as demand for high quality and safe dairy liberalisation of foreign investment conditions, RMB trading and ingredients, meats and seafood remains high. financial sector reform. Shanghai will also serve as a test-bed for We also expect opportunities to attract more companies who reform of state-owned enterprises to bring greater competition want to invest in Ireland as a gateway to the EU. A number of and transparency. Major new projects such as Disney World, a private and state-owned companies with operations in Shanghai new international shipping and financial hub on the north Bund, in the areas of telecommunications and financial services have and the development of the Hongqiao central business district and already established operations, and renewed central government exhibition centre promise to underpin the development of this city support for outbound investment should bolster this trend. of 24 million people up to 2020 and beyond. The consulate general was established in 2000, mainly to China is a complex market but many companies find the support our trade and investment effort working very closely with Yangtze River basin region, which has a strong track record in other Ireland House team members here in Enterprise Ireland, facilitating trade and investment, a profitable entry point. I, along IDA Ireland, Bord Bia and Tourism Ireland. with our State agencies and our embassy, look forward to con- The consulate also engages in a variety of public diplomacy tinuing to support Irish companies and higher education institutes and cultural initiatives to boost the awareness and reputation in consolidating existing business and in developing new markets of Ireland – for example, we have supported St Patrick’s Day and relationships.
IrelandIreland AsiaAsia BusinessBusiness YearbookYearbook 20132014 19
IAYB_page16-23.indd 19 01/05/2014 14:33 IRISHprofile XX EMBASSY INSIGHTS
Forging links Ambassador of Ireland to China Paul Kavanagh believes there have been major developments in relationship between Ireland and China
IRELAND enjoys excellent political relations with China. Since China’s top banks have opened offices in Ireland to grow their avi- the memorable visit of then Vice-President Xi Jinping to Ireland in ation leasing operations and Ireland has already attracted some February 2012, and the return visit of An Taoiseach Enda Kenny of the leading Chinese ICT investors and telecoms equipment TD to China in March of that year, there have been 12 ministerial suppliers. visits from Ireland to China. A significant recent development has been the launch of a In the other direction, Vice-Premier Ma Kai paid a successful China Ireland Technology Growth Capital Fund. Established visit to Ireland in October 2013. The opening of an Irish consulate jointly by Ireland’s National Pensions Reserve Fund and China general in Hong Kong this year, as part of the Government’s com- Investment Corporation, the fund will invest in growing Irish tech- mitment to expanding Ireland’s diplomatic footprint in Asia, is a nology companies with strategic ambitions to enter China and in sign of these strengthening ties. growing Chinese technology companies wishing to use Ireland as It was an honour for me as a young diplomat to be a member a base for their European operations (see page 52). of the team that opened Ireland’s first embassy in the People’s Bilateral cultural relations between Ireland and China are Republic of China following the establishment of diplomatic rela- stronger than ever. The success of Riverdance is a sign of the tions between the two countries 35 years ago this year. popularity of Irish culture in China, and Chinese language and Since my return to China as ambassador last summer, I have culture are now being mainstreamed in the Irish secondary school been greatly struck by the tremendous development that has curriculum. occurred in the relationship between our two countries over that There are over 160 agreements between Irish and Chinese period. education institutions, including joint programmes, collaborative On the economic front, Irish statistics indicate that two-way research agreements supported by Science Foundation Ireland, trade between Ireland and China was in the region of €8bn in as well as student and staff exchanges. 2013. This represents a growth of 125pc in 10 years with service Chinese tourists travelling in Europe are visiting Ireland in exports from Ireland to China expanding by 250pc in the same increasing numbers. Our scenery, historic castles and world- period. class golf courses are proving particularly popular. Many Chinese There are now around 90 Irish companies with a sales pres- tourists enjoy following in the footsteps of President Xi Jinping ence in China spanning sectors as diverse as aviation, software, by visiting the Cliffs of Moher. We are working closely with the education, clean-tech, dairy ingredients and financial services. Chinese authorities to promote improved air connectivity between The demand in China for high quality and safe food has trebled Ireland and China, which will facilitate closer business, tourism Ireland’s food and drink exports to China in just three years and and education links in both directions. China is now Ireland’s second largest market for dairy products. So the relationship is rich, multidimensional and ever stronger. Ireland also has a cluster of globally successful agri-technology The embassy’s role is to strengthen further these bilateral links companies, which are eager to support the development of the alongside our consul general in Shanghai and our colleagues in sector in China. the State agencies, as well as Irish Thoroughbred Marketing and As a long-established gateway to the EU for worldwide invest- Culture Ireland, and, of course, with the significant contribution ors, and as the sole English language country in the eurozone, of Irish businesses, institutions and community organisations Ireland is the perfect partner for Chinese companies that are represented in China. going global as part of the next phase of China’s opening up. Financial services and ICT links are growing apace. Some of
2020 Ireland Ireland Asia Asia Business Business Yearbook Yearbook 2014 2013
IAYB_page16-23.indd 20 01/05/2014 14:33 IRISH EMBASSY INSIGHTSXX profile
Lasting bond Ambassador of Ireland to Malaysia Declan Kelly describes the close bond between Ireland and Malaysia
THE warm relations between Ireland and Malaysia have of Irish firms in Malaysia, including Kerry Group, ESBI, Openet developed over many years and are in no small part due to our Telecom and medical packaging firm SteriPack. Malaysia is also links in education. Many Malaysians I meet fondly recall being a key partner for Ireland’s Islamic banking sector. taught at school by Irish priests and nuns, and we have a long In 2012, Malaysia’s CIMB bank established an Islamic fund and proud tradition of Malaysians studying at Irish medical at the International Financial Services Centre in Dublin, and schools. Malaysian firm Amanie Advisors established a presence there. Our close relationship was underlined when Ireland chose to Malaysia is seen as an attractive base for firms looking to estab- locate its first embassy in Southeast Asia in Malaysia in 1996. lish in Asia due to the relative ease of doing business there and Many well-known Malaysian doctors studied at the Royal the English language skills of the workforce. College of Surgeons in Ireland (RCSI) and Trinity College Dublin. The Irish community in Malaysia is active and growing. The University College Dublin (UCD), University College Cork and St Patrick’s Society of Selangor this year hosted its 89th annual the National University of Ireland Galway are also popular des- St Patrick’s ball, one of the largest in Asia, and the Penang Irish tinations. In Malaysia we now have two medical schools – RCSI- Association hosted its first St Patrick’s Festival. Kuala Lumpur’s Perdana University in Kuala Lumpur and Penang Medical College GAA club Orang Eire features men’s, women’s and children’s jointly operated by RSCI and UCD. teams with members of many nationalities. Last year the club Although Ireland is particularly well recognised in Malaysia for hosted a very successful Asian Gaelic Games, welcoming clubs the quality of its medical education, Malaysians are increasingly from Asia, the Middle East and Australia, and this year Orang Eire aware of our strengths in non-medical education also. In recent will host the Games once again. years Ireland has welcomed Malaysian students in a broad range The Asia Pacific Irish Business Forum (APIBF) takes place the of subjects at our universities and institutes of technology. same weekend as the games each year. This is a great oppor- We have at least 1,500 Malaysians studying in Ireland at tunity for Irish firms from throughout Asia, as well as firms consid- present, and we are looking to grow this number. The embassy ering expanding to Asia, to get together to discuss the opportun- will continue to work with Enterprise Ireland, Education in Ireland ities and experiences of doing business in the region. and Irish education institutions to foster and develop this valuable The success of last year’s APIBF was due in no small part to relationship. the sterling work of the Malaysia Irish Business Network, and I While trade figures between our two countries are healthy, look forward to another successful APIBF in October. there is certainly scope for further growth. We have a number
IrelandIreland AsiaAsia BusinessBusiness YearbookYearbook 20132014 21
IAYB_page16-23.indd 21 01/05/2014 14:33 DIT ad:Layout 1 28/02/2013 18:38 Page 1
IRISHprofile XX EMBASSY INSIGHTS
Closer relations Ambassador of Ireland to the Republic of Korea Aingeal O’Donoghue says that following the recent 30th anniversary of diplomatic relations Dublin Institute of Technology between Ireland and Korea, the relationship is stronger than ever Our research activities are focused on real-world problem-solving, With over a century of experience in teaching, social and technological development, and on innovation that THE relationship between Ireland and Korea is a strong and posi- Here in Seoul the embassy, Enterprise Ireland (EI) and IDA learning and research, Dublin Institute of Technology advances human knowledge and that makes real impacts on society tive one with a growing potential for trade and investment oppor- Ireland operate together in Ireland House. There has been a con- (DIT) is one of Ireland’s largest publically funded and economically. tunities. Our two countries share many of the same perspectives siderable strengthening of the agency presence here in the past doctoral awarding higher education institutions. It and policies on the international issues and global challenges and two years, with IDA Ireland re-opening its offices in 2012 and an combines the academic excellence of a traditional Research is built around four key thematic research areas: we work closely together in the UN and other international organi- expansion in the EI presence in the first half of 2014. university with professional, career-oriented learning • Information & Media Technologies sations. Sectors of particular interest include medical and pharmaceut- and research. DIT specialises in developing graduates • Materials Technologies Last year marked the 30th anniversary of diplomatic relations ical products, internationally traded services, the agri-food sector, for productive leadership roles both nationally and • Environment & Health between our two countries. An important element of the anniver- ICT, life sciences and engineering. internationally. The core values reflected in its mission • Society, Culture & Enterprise sary celebration was the establishment of a memorial in Seoul to Building on recent visits from the Minister for Transport, emphasise student-centred learning, useful those of Irish birth and heritage who fought in the Korean War, a Tourism and Sport Leo Varadkar TD, CEO of IDA Ireland Barry knowledge, rigorous processes of discovery and Close engagement both locally and internationally with society and the economy and active collaborations with industry and academic contribution that is now well recognised and much appreciated by O’Leary and the St Patrick’s Day visit of Minister for Children and critical enquiry while encouraging entrepreneurship institutions are essential components in everything DIT does. In the Korean government and people. Youth Affairs Frances Fitzgerald TD, planning is now well under- and promoting diversity. There is considerable interest in and recognition of Ireland’s way for a trade mission in June 2014. addition to many institutional bilateral agreements, DIT is a member return to recovery and growth, following the severe impact of the In addition to the well established community of business of the European Universities Association (EUA) and the International Association of Universities (IAU). global financial crisis on our economy. Our successful exit from people and Irish missionaries, there is an active and vibrant young DIT offers over 150 programmes at bachelor’s, master’s and the EU/IMF programme was warmly welcomed and had a lot of Irish community in Korea. Many of them come here to teach doctoral levels from our four colleges: Being a student in DIT is not all about study – we have almost 150 resonance in Korea, where memories of its own IMF programme English, but it also means we are building up a growing cohort • Arts & Tourism clubs and societies that offer everything from drama to soccer so in the late 1990s remain strong. of young Irish who know and understand Korea and how to work • Business you can pursue your interests while studying. Located in the centre Trade between Ireland and Korea, which had dipped during the and operate in this country. • Engineering & Built Environment of Dublin, students enjoy a vibrant and diverse cultural experience. crisis, recovered well in 2012 and 2013, with the services sector In the other direction, the working holiday visa scheme estab- • Sciences & Health in particular showing strong growth. lished in 2010 attracts a lot of interest from young Koreans and As a UNESCO designated City of Literature, European City of Science (2012) and home to all major political, social and sporting The EU-Korea free trade agreement (FTA) provides a positive each year 400 Koreans travel to Ireland under this scheme to With students from over 85 countries around the world you are organisations, Dublin has something for everyone. framework for further developing Irish-Korean trade and can give work, study and experience the best of Irish culture and tourism. guaranteed a true international experience in the heart of Dublin, exporters from Ireland and other EU member states a crucial Korea is a complex country, but despite our distance I meet Ireland’s cosmopolitan capital city. competitive advantage. The embassy and agencies actively mon- many Koreans who feel a strong affinity for Ireland and the Irish We look forward to welcoming you to Dublin and being a part of itor its implementation and we are ready to pursue any issues that people. Doing business here requires commitment and a will- DIT’s future. arise for Irish exporters under the FTA. ingness to invest time and energy in building relationships with Korea has been among the fastest growing OECD countries Korean partners. But Korea also offers rich opportunities and the during the past decade. It weathered the financial crisis better than embassy and agencies in Ireland House are ready to support you Dublin Institute of Technology many others and has rebounded with a growth rate at around 4pc as we build ever closer relations between Ireland and Korea. International Office since mid-2013. The new growth strategy of the President Park 143–149, Rathmines Road, Dublin 6, Ireland administration aims at fostering a ‘creative economy’. Tel: +353-1-402-3436 Email: [email protected] Web: www.dit.ie/international 2222 Ireland Ireland Asia Asia Business Business Yearbook Yearbook 2014 2013
IAYB_page16-23.indd 22 01/05/2014 14:33 DIT ad:Layout 1 28/02/2013 18:38 Page 1
Dublin Institute of Technology
Our research activities are focused on real-world problem-solving, With over a century of experience in teaching, social and technological development, and on innovation that learning and research, Dublin Institute of Technology advances human knowledge and that makes real impacts on society (DIT) is one of Ireland’s largest publically funded and economically. doctoral awarding higher education institutions. It combines the academic excellence of a traditional Research is built around four key thematic research areas: university with professional, career-oriented learning • Information & Media Technologies and research. DIT specialises in developing graduates • Materials Technologies for productive leadership roles both nationally and • Environment & Health internationally. The core values reflected in its mission • Society, Culture & Enterprise emphasise student-centred learning, useful knowledge, rigorous processes of discovery and Close engagement both locally and internationally with society and the economy and active collaborations with industry and academic critical enquiry while encouraging entrepreneurship institutions are essential components in everything DIT does. In and promoting diversity. addition to many institutional bilateral agreements, DIT is a member of the European Universities Association (EUA) and the International Association of Universities (IAU). DIT offers over 150 programmes at bachelor’s, master’s and doctoral levels from our four colleges: Being a student in DIT is not all about study – we have almost 150 • Arts & Tourism clubs and societies that offer everything from drama to soccer so • Business you can pursue your interests while studying. Located in the centre • Engineering & Built Environment of Dublin, students enjoy a vibrant and diverse cultural experience. • Sciences & Health As a UNESCO designated City of Literature, European City of Science (2012) and home to all major political, social and sporting With students from over 85 countries around the world you are organisations, Dublin has something for everyone. guaranteed a true international experience in the heart of Dublin, Ireland’s cosmopolitan capital city. We look forward to welcoming you to Dublin and being a part of DIT’s future.
Dublin Institute of Technology International Office 143–149, Rathmines Road, Dublin 6, Ireland Tel: +353-1-402-3436 Email: [email protected] Web: www.dit.ie/international
IAYB_page16-23.indd 23 01/05/2014 14:33 BUSINESS
EXTENDING IRELAND’S GLOBAL REACH Director of business representation at Ibec Mary Rose Burke outlines where Asia fits in to the priorities it has identified to further economic recovery in Ireland
IBEC’S new campaign ‘An Ireland that works’ incorporates five and reduce the regulatory burden. key policy priorities: reduce the tax burden; better government; Full implementation of the agreement with Singapore will also invest in the future; promote enterprise and entrepreneurship; present new opportunities. Agreements with Malaysia, Vietnam and extend Ireland’s global reach. and Thailand are also being pursued to open up new markets. Central to the aim of extending Ireland’s global reach is to Negotiations on an investment agreement with China should complete agreements with Asia and other trading partners to include strong provisions on market access, investor protection support trade and investment opportunities for Irish and EU busi- and enforcement of intellectual property rights protection. ness. A review of Ireland’s Trade, Tourism and Investment Strategy Ireland remains one of the world’s most open economies. Irish was completed in February 2014. It concluded that there is a business is increasingly global in focus, based on innovative need for an evolution of the concept of priority markets towards manufacturing and internationally traded services. Our prosper- a new approach that can provide a more strategic, up to date ity is determined by important economic and strategic ties with and nuanced direction for Ireland’s international trade, tourism, major global partners. investment and education efforts. Investment and trade success in Asia will be central to our China and Japan are identified as high value markets that economic recovery and we must continue to foster effective will deliver in the short term and for the foreseeable future. international links. Last year, total trade in goods with East Asia Singapore, South Korea and Malaysia represent markets that amounted to €10.3bn, with exports of €5.5bn and imports of are established and developing with a more medium-term focus. €4.8bn. This represents 9.6pc of goods exports and 6.3pc of Indonesia, Vietnam and Thailand are exploratory and high goods imports. potential markets that may deliver in the long term, with immedi- The rapid pace of economic development across Asia pre- ate sectoral opportunities in some cases. sents significant opportunities for Irish business across a range Looking at the potential of high growth Asian markets does of sectors including agri-food, engineering, life sciences and not, of course, mean reducing our focus on our key mature mar- internationally traded services. Equally, Asian economies are kets. looking to advance into the EU. We believe that it should not be an ‘either/or’ situation and Business stands to benefit from comprehensive free trade there is a pressing need to effectively avail of new as well as agreements (FTAs) negotiated by the EU with Japan and India. existing trading and investment opportunities in order to extend These FTAs have the potential to provide real market access our global reach.
24 Ireland Asia Business Yearbook 2014
IAYB_page24-25.indd 24 01/05/2014 14:33 LEADERS’ INSIGHTS
European domicile of choice for investment funds
Chairman of Matheson Michael Jackson on Ireland’s position
IRELAND is increasingly appearing on the radar of Asian particularly pleasing to see that Ireland is also now the clear business people. This is the case across many sectors, but espe- favourite amongst managers in the Asia-Pacific region, as well as cially in the rapidly evolving global investment funds industry. in other key growth growth areas such as Latin America. Indeed, Ireland is now the European domicile of choice for invest- The Asia-Pacific region is crucial in terms of future growth, and ment funds amongst Asia-Pacific-based asset managers, accord- it is one which our firm – and the Irish funds industry as a whole – ing to an independent Economist Intelligence Unit survey of global is paying particular attention to. asset managers, commissioned by Matheson. For the vast majority of managers to choose Ireland as a The independent survey, published in March 2014, places favoured jurisdiction to domicile funds is a clear vote of con- Ireland far ahead of its nearest rivals, meaning Ireland is now a fidence in the maturity and competitiveness of the Irish funds key hub in the thriving global funds industry. industry. This helps explain Ireland’s performance as the fastest Worldwide, 71pc of global asset managers said that they growing European UCITS domicile in recent years. It also helps would now choose Ireland as one of their top three European explain why we are now seeing a clear trend of funds moving to fund domiciles, if starting over. The survey found that the views Ireland from competing European domiciles such as Luxembourg. of Asia-Pacific asset managers are in line with their international The value of Irish domiciled funds is currently €1.3trn and colleagues, as 69pc said they would now choose Ireland as a top the funds industry accounts for over 12,000 jobs in Ireland. three fund domicile if starting over with their fund ranges. Remarkable growth rates are now widely predicted for the global Ireland placed far ahead of the next best jurisdiction for Asia- funds industry – largely due to key growth regions such as Asia. Pacific managers, which was Germany, with top three prefer- If the projected growth rates materialise, Ireland is well positioned ences from 46pc of managers. The UK came third for Asia-Pacific to attract a substantial share of that growth, along with the jobs managers with top three preferences from 42pc of managers. linked to servicing those funds. East and West, our economic Luxembourg came fourth, receiving top three preferences from fortunes are nowadays linked as never before – the growing 41pc of managers while France was fifth with 33pc. wealth of Asia now has a direct impact on jobs and growth here I was especially pleased to see the global nature of the in Dublin. preference for Ireland. We have long been aware that Ireland is the domicile of choice for US and UK managers, but it is
Ireland Asia Business Yearbook 2014 25
IAYB_page24-25.indd 25 01/05/2014 14:33 LEADERS’ INSIGHTS
A diverse approach Doing business in Asia requries different approaches to the various regions, explains Joe Tynan, partner at PwC Ireland
ASIAN markets provide a range of opportunities for Irish com- source of technology to add value to dairy products. panies. It is not a homogenous region and the different countries India is different again from China and Japan as there is a lot require different approaches. of interaction between it and Ireland but this is very much focused Japan, for example, is a very mature, conservative and rapidly on business outsourcing coming to Ireland and Irish companies ageing market, so a lot of opportunity exists in relation to assisted setting up development and shared services centres in India to living and making life easier for an ageing and relatively well-off reduce costs. population. Then you have smaller Asian countries such as Taiwan, which China, on the other hand, is going through an incredible growth is interesting because of its very sophisticated technology com- period and is really hungry for new applications and technologies panies. that can be deployed to their market. As a relatively small country it has to pursue export growth. In In many cases Chinese companies aren’t going to be all that a lot of cases, companies target China, but they also are eager to excited about coming to Ireland with their large domestic popula- export to other markets including the US and Europe. tion of more than 1.3 billion. The opportunities in China will often Aside from cultural and economic differences, Irish companies dwarf those in the eurozone. need to be aware that tax can be a challenge to be overcome In some cases, however, Chinese companies want to test when entering new Asian markets and one which will often trip themselves internationally and there are a few key sectors they them up in the beginning. are trading in. In particular, we see international expansion in ICT, Withholding tax is common in many Asian countries and there aircraft leasing and funds. are sales taxes that Irish companies may assume are like VAT, China has a large population and dairy is a critical natural but can actually be a cost to business. resource. It looks to Ireland as a source of dairy as well as a
26 Ireland Asia Business Yearbook 2014
IAYB_page26-27.indd 26 01/05/2014 16:36 LEADERS’ INSIGHTS
Global player China will be the world’s largest market, says Barrie O’Connell, partner, Local China Practice, KPMG in Ireland
CHINA is a particular priority for Ireland now in terms of fostering bad debt of certain sectors are being dealt with in a more market emerging business ties. This is not driven by bullish sentiment or oriented fashion. a passing trend. We are very aware of the significant challenges In general, the market is being given a more decisive role. For that China faces today, but as a major global economy it is here example, the rollout of fiscal and tax reforms, and continuing lib- to stay, and whether it takes another 10, 20 or 50 years, China eralisation of China’s financial sector (with Shanghai’s new Free will be the world’s largest market. Trade Zone being the pilot) represent both significant opportun- At our recent ‘China in 2014’ event in Dublin, our speakers, ities (and challenges) for Irish companies. including KPMG’s global chair for China matters Peter Fung, Secondly, the system’s stability relies on more than profits and mirrored this when they outlined some of the pros and cons that GDP growth. Realisation of this is cascading down from the coun- Western companies face in China today. try’s senior leadership. Provisional and city officials are increas- Three points in particular are worth repeating here: 1) the ingly assessed against social and environmental key performance impact of current reforms within China; 2) the genuine importance indicators – with Chinese business, state or private, also well of ‘people and planet’ alongside profits; and 3) the party’s own aware of this shift in emphasis. role in business networking. Thirdly, Westerners often misinterpret the role of the state and Firstly, with recent announcements on economic reform, sever- party within China, and consequently miscalculate when they al themes emerge. China’s leaders acknowledge that the growth are and are not a significant stakeholder. Much has been written rate and focus of recent decades is not sustainable. Pollution and about the need to ‘network’ in different Asian cultures, but in corruption are genuine threats that are now being more openly China’s case, the party itself can be seen as a huge and highly addressed. Investment is being refocused from infrastructure to effective network. greater domestic consumption. The overcapacity, bubbles and
Ireland Asia Business Yearbook 2014 27
IAYB_page26-27.indd 27 01/05/2014 16:36 COUNTRY FOCUS
Seeing a sea change
Prime Minister Shinzo Abe’s economic policies are having a hugely positive effect on Japan, according to chairman and chief executive of Glen Dimplex Sean O’Driscoll
HAVING visited Japan four times over the past year or so, was attended by 170 people, including influential leaders, policy- chairman and chief executive of Glen Dimplex Sean O’Driscoll makers, industry leaders and researchers. says the difference in atmosphere between March and September “We have done a huge amount of work right across the 2013 was the “most incredible change” he’s ever seen over a six- renewable energy sector in Japan, aiming to bring about month period in the country. significant strategic change in the market and encouraging and Glen Dimplex is the largest Irish company operating on the promoting the use of green technologies,” says O’Driscoll. ground in Japan, with annual turnover of around €70m, seven In terms of the change he witnessed last year, he says the offices, five distribution centres and 120 employees, having first atmosphere in Japan last March was similar to what it has been established a presence there in 2006. for the past 15 years, while in September it was something The Japanese company accounts for around 5pc of the Glen completely different. Dimplex Group and, according to O’Driscoll, is continuing to go “There was a real sense that Japan and the Japanese people from strength to strength. have their confidence back and can get on with life in a more It has evolved from being a provider of electrical thermal constructive way now. This is not a short-term rush of adrenaline, storage, radiant panel heaters and home appliances to positioning but seen as something sustainable by everybody I spoke to, itself in addition as key player in leading strategic change in the driven by the fact that Tokyo got the 2020 Olympics and that its market towards renewable energy. 50-year-old infrastructure is being rebuilt,” he says. For example, O’Driscoll spoke at a major green tech event in “Post 2020 there is a sense of Japan looking outwards more. Tokyo organised by the Embassy of Ireland, Tokyo and Japan The country is definitely in a positive, forward looking way again.” External Trade Organisation (JETRO) last December, which Part of this sea change in attitude has come as a result of
28 Ireland Asia Business Yearbook 2014
IAYB_page28-29.indd 28 01/05/2014 15:23 COUNTRY FOCUS
“The only negative is, Abenomics brought about a dramatic and significant weakening of the yen, which poses significant challenges to exporters generally from the point of view of pricing,” says O’Driscoll. However, generally speaking for Irish exporters, the message is the same now as it was a year ago, he adds. “Japan is a unique market, very unique. It’s about long-term relationships and to build those takes a long time. Japanese people like to physically see and get to know the people they’re doing business with. People do business in Japan. That is uniquely important and being present regularly is the most important thing for Irish exporters to do.” As an advocate of free trade and member of the EU-Japan Business Round Table (BRT), O’Driscoll says one of Glen Dimplex’s key objectives is to encourage a Japan-EU free trade agreement/economic partnership agreement. He attended the 16th annual EU-Japan BRT in Tokyo on 8 and 9 April this year and this was the principle item that was discussed. “There was a great sense at the round table that progress is being made and things are beginning to open up significantly on both sides,” he says. The most significant development in terms of Japan-Ireland relations over the past year in O’Driscoll’s view was the fact that in June Prime Minister Abe became the first serving Japanese premier to visit Ireland and he in turn invited An Taoiseach Enda Kenny TD to visit Japan last December. “Both of those visits have increased awareness of Ireland in Japan in a noticeable way. In fact, I believe our reputation and knowledge of Japan is significantly higher than it was a year ago – and that’s the opportunity [for Irish companies],” he notes. “Visits by prime ministers by definition bring attention and are undertaken for that reason. The Irish community in Japan really embraced that increased awareness and was highly motivated by it, as was the Irish ambassador H.E. John Neary and the State agencies – it has made what they have to do that little bit easier and represents the foundation on which we all have to build.” Focusing on specific opportunities for Irish business, O’Driscoll highlights the fact that it was announced during An Taoiseach’s visit last December that the Japanese market was opening to Irish beef for the first time in 15 years. “Ireland needs to look at how the entire food industry, including seafood indeed, can build on the Abenomics – the economic policies advocated by Prime Minister back of that development.” Shinzo Abe. There are two other areas offering significant growth Abenomics aim to revive the sluggish economy with ‘three opportunities, he adds – renewable energy and Japan’s aging arrows’: a massive fiscal stimulus; more aggressive monetary population. easing from the Bank of Japan; and structural reforms to boost “Japan has closed down all but two of its nuclear reactors, Japan’s competitiveness. putting in place significant investment for renewable sources of Since Abe’s cabinet was formed in December 2012 the TOPIX electricity. stock market index has risen by 40pc and the yen had depreciated “It also has one of the most rapidly aging and most wealthy by 20pc against the US dollar. Economic recovery has been populations in the world. This means big opportunities for products obvious month by month, with GDP growth estimated to reach and technologies that make life easier for older people. 1.25pc this year, according to the IMF World Outlook 2013. “There are already Irish companies working in such areas and at “The Japanese economy is clearly going to grow thanks to the Global Irish Economic Forum in Dublin last October one of the Abenomics. It is an extremely wealthy economy and there are lots recommendations the Irish Government accepted and is promoting of export opportunities for Irish businesses and these can only is to build and encourage Irish businesses to look at that sector in increase. Japan.”
Ireland Asia Business Yearbook 2014 29
IAYB_page28-29.indd 29 01/05/2014 15:23 MANUFACTURING
The lean
An Taoiseach Enda Kenny TD visiting Toyota’s Motomachi plant in Japan last December as part of the trade mission to the country philosophyThe lean Enterprise Ireland believes in taking on the Lean business perspective, rather than purely Lean manufacturing, because all the functions also need to be efficient
THE key differentiator between ‘Lean’ processes in Japan and a loom and weaving machine that identified broken threads, Europe is that in Japan there is less focus on hard automation motivated by trying to find ways to make it easier for his and more on the development of people, according to Dr Richard grandmother to produce cloth. Keegan, fellow of the Institute of Engineers and manager of the A production process centred on preserving value with less competitiveness department at Enterprise Ireland. work, Lean as a management philosophy is mostly derived from Keegan was first exposed to the concept around 16 years ago the Toyota Production System (TPS) and Japan is regarded as in his capacity as the European advisor to the EU-Japan Centre the home of Lean. Originally called ‘just-in-time production’, TPS for Industrial Co-operation when he went to a Toyota plant. is an integrated socio-technical system developed by Toyota that “Being an engineer and having the opportunity to see Lean best comprises its management philosophy and practices. practice in real life was an eye opener. The first thing I noticed “TPS came about because Toyota was battling against General was all the flashing lights and incredible technologies but I began Motors and Ford to service a very fragmented market with lots of to realise that underpinning it all was beautiful simplicity. variants in terms of sizes and applications of vehicles without the “People were actually engaged in terms of improving resources the Americans had,” Keegan explains. themselves and their processes. Simply defined, Lean comes Nowadays, Lean is focused on providing customers with the down to looking at what we’re trying to do, how are we doing it best possible products at the best possible prices, at the best and what can we do to improve it. possible quality levels and at the best possible delivery times. “What’s interesting in Japan is that companies have constantly Having started in the manufacturing area, Lean has spread right focused on developing their people and processes at the same along the value chain from sales through logistics, manufacturing, time and don’t see Lean as a chequebook solution. However, purchasing, administration, product design and development, and more and more of Europe’s leading companies are beginning back to sales. to realise that engaging the hearts and minds of people is more Last December, An Taoiseach Enda Kenny TD went to significant than simply utilising what are known as Lean tools.” Toyota’s Motomachi plant in Japan to meet senior executives The origins of Lean go right back to the 1920s when inventor from Toyota Motor Corporation as part of the trade mission to and founder of the Toyota Corporation Sakichi Toyoda developed Japan.
30 Ireland Asia Business Yearbook 2014
IAYB_page30-31.indd 30 01/05/2014 17:56 MANUFACTURING
He travelled with a delegation of Irish business leaders to “These visits expose those taking part to what good is and what the Toyota plant, including Julie Sinnamon, CEO of Enterprise really challenging means. What has been clear over the past four Ireland, CEO of Glen Dimplex Sean O’Driscoll and the Irish years is the plant’s focused and relentless approach to always Ambassador to Japan John Neary. trying to be better – the team keeps pushing themselves by The objective of the meeting was to learn from Toyota’s Lean looking at the facts as opposed to opinions,” says Keegan. production processes, and glean insights as to how this could be “In Ireland, we’re trying to take on the Lean business applied to industry in Ireland to support the country’s economic perspective, rather than purely Lean manufacturing in the belief recovery. that administration, sales, design and all functions also need to be “The visit marked the support given by Toyota to Irish efficient. Since our pilot in 2009, we’ve supported a total of 565 companies in the past and the relationship between them, as projects across all sectors in three different levels – ‘Lean Start’, well as showing the importance of best practice, efficiency and ‘Lean Plus’ and ‘Lean Transform’. effectiveness for Irish business going forward. It was a very “Our effort is in trying to understand and engage with best professional and insightful visit,” says Keegan. practice globally so our client base can access this and be able to “The Toyota plant in Wales had to go right through to the use it.” highest levels of the organisation to arrange the visit, explain the Achieving a national step change in manufacturing capability background and reasoning behind hosting it. Positive contribution is one of the three disruptive reforms outlined in the Irish The lean to society is one of Toyota’s core values and the tour of the Government’s Action Plan for Jobs 2014 and Lean is part of this. Motomachi plant was viewed in that light.” “In 2014, we will continue to roll out our Lean offering to Over the past four years, 1,000 Irish owner-managers have Enterprise Ireland clients as well as sharing knowledge with Local been to Toyota’s engine production facility in Deeside, North Enterprise Offices. Six visits to Toyota are planned this year, as Wales with the support of the Toyota Lean Management Centre well as visits to Audi and Bosch, which are also seen as leaders as part of Enterprise Ireland’s Lean programme. in the Lean space,” Keegan notes.
Ireland Asia Business Yearbook 2014 31
IAYB_page30-31.indd 31 01/05/2014 17:56 LEADERS’ INSIGHTS
Ireland - a connection to the EU and the world Brendan Jennings, Managing Partner, Deloitte outlines the benefits of Ireland as a business location
DESPITE the challenging economic environment over the past labour have become more competitive with costs down to 2003 number of years, Ireland has continued to attract significant levels. high end foreign direct investment (FDI) throughout the period. Ireland’s holding company regime encompasses a participation Ireland’s increased competitiveness in attracting FDI is highlighted exemption for capital gains arising on the sale of shares, a foreign by IBM’s 2013 Global Location Trends Report, which ranked tax credit regime generally leading to no Irish tax on dividends, no Ireland as the top destination in the world by quality and value of controlled foreign corporation regime, no thin capitalisation regime investments. and the ability to pay dividends free of withholding tax in listed or Over recent years, we have increasingly seen Ireland being tax treaty/EU controlled groups. used as a platform for both inbound and outbound Asian invest- If a company is seeking to overcome technological challenges ments. This is due to a number of factors, including access to to develop new products, processes, materials or certain services the EU market, Ireland’s beneficial double taxation agreement for its own use or its customers’ use, then it may qualify for gen- network and its favourable holding company regime. Many Asian erous Irish R&D tax credits, which broadly equate to a 300pc tax companies also operate leasing/financing operations in Ireland. deduction. Also the onshore intellectual property (IP) regime pro- With Forbes recently identifying Ireland as the best country vides for tax depreciation to be claimed on IP acquired by an Irish in the world for business in 2013, the future for FDI in Ireland is company for the purposes of its trade, to achieve a low effective brighter than ever. tax rate. Many companies have successfully amalgamated their A 12.5pc tax rate applies to all active trading profits and this supply chain management and IP management in Ireland. contrasts with some other jurisdictions, which offer full or partial Ireland is also one of the world’s major centres for cross-border tax holidays to certain companies only. leasing. This is demonstrated by the number of international leas- While the domestic market remains small, Ireland’s proximity to ing companies from virtually every major trading nation - including continental Europe and membership of the EU means that it is in many Asian companies - that have established operations in an ideal location for gaining access to the 28 countries of the EU Ireland. and other countries in the EMEA region. In addition to taxation incentives implemented by the Irish Ireland has signed 70 treaties to date with all major trading Government there are a range of services and a number of grants partners (including favourable treaties with China, Hong Kong, available to those considering FDI, which are afforded by IDA Japan, Singapore and South Korea) and the Government is cur- Ireland, Ireland’s inward investment promotion agency. rently negotiating with a number of other countries to continue to As Asian companies seek to expand and look to invest beyond add new countries to Ireland’s treaty network. their domestic markets, Ireland is well placed to attract further Over the past number of years, there has been a significant investment and is an ideal location for connecting Asia to the EU realignment of the Irish cost base. Business costs including and the rest of the world. energy, private rents, office rents, services, construction and
32 Ireland Asia Business Yearbook 2014
IAYB_page32-33.indd 32 01/05/2014 15:24 LEADERS’ INSIGHTS
Mark of quality Brian O’Gorman, managing partner, Arthur Cox, outlines economic trends in both Asia and Ireland and their implications for trade
THE increasing importance of Asian economies continues to be reflected in the sentiments of both Asian clients locating a pres- of interest to Ireland and indeed Europe generally. Recent reports ence in Ireland, and also Irish manufacturers entering the Asian show some development trends, at speeds faster than might have markets. been predicted. Irish goods exude an aura of quality and can command a pre- Three of the top five biggest economies, adjusted for purchas- mium price in many of these countries. From alcoholic beverages ing power parity (PPP) in the world are Asian. Results from the to dairy products or even homeware, the connotation associated latest World Bank’s research suggest China is poised to overtake with ‘produced in Ireland’ is that of a first-class product. Irish the US in terms of PPP adjusted GDP by the end of 2014. These manufacturers and producers are at a great advantage when figures and their impact on Ireland cannot be ignored. relying on their Irish name and the reputation of the country when Asia is an immense opportunity and challenge for Ireland – an seeking to enter into an Asian market. opportunity insofar as new growth markets for Ireland to trade and Trade, however, is not all in goods. The expertise and know- develop links with, and a challenge for those who do not adapt to how of the Irish is well respected and can command a fair price the global economic shift taking place. for the quality offered. We have seen first-hand how Ireland’s At Arthur Cox we see the opportunities presented by the offering in the education and training sector has both immediate various Asian countries as being distinct and varied. A mature and long-term potential to benefit both sides. economy such as Japan presents very different opportunities to Various educational institutions have set up joint programmes countries such as India or China, which are developing at a tre- or foreign campuses. Of more obvious and immediate benefit, the mendous pace. This is reflected in the trade flow between Ireland training and education can benefit developing Asian countries. and these countries. Deeper and more long term, however, are the developing human Japanese pharmaceutical, ICT and financial services compan- connections arising from these initiatives. People buy people, and ies have had a presence in the Irish economic scenery for many where there is a connection this will facilitate long-term trade. years. Recently, they have been joined by newcomers from China Conversely, we are seeing cultural programmes springing up in a number of fields, financial services and aviation financing in Ireland and facilitating cross-border interaction and communi- especially. cation. This will be a key area for growth because to understand Ireland’s reputation has recovered from its short dip and is a country, its market and its industry, we must understand its growing once more, and its ability to pull itself out of crises gives people and culture. some creditability to potential investors into Ireland. We see this
Ireland Asia Business Yearbook 2014 33
IAYB_page32-33.indd 33 01/05/2014 15:24 SECTORS – FOOD AND DRINK
Winning formula The food and drink sector is leading the charge in terms of Irish exports, with sales to Asia climbing 30pc overall in 2013 to reach €625m
ONE of the stand-out developments for Irish food and drink prepared to pay a premium price for quality products – if you exports in 2013 was the exceptional performance of the industry compare the price of infant formula for example, it retails at in China, which is now Ireland’s second largest dairy and third €12–€15 a can in Ireland while a premium imported infant largest pork market in the world. formula would retail at €40–€45 a can in China. Ireland Exports to China grew by over 40pc to sales of €415m in produces over 10pc of the world’s infant formula and this is an 2013. Now Ireland’s largest Asian market, China is the country’s area of significant potential in the region.” sixth largest market overall in the world, driven in particular by There has been a lack of confidence in domestically produced strong dairy and pork exports. products in China over the past few years, largely due to food Accounting for 6pc of Ireland’s total food and drink exports, scares – such as exploding watermelons due to chemical use sales to Asia climbed 30pc overall to reach €625m in 2013. (in 2011) or over 12,000 dead pigs floating down the Huangpu Director Asia at Bord Bia James O’Donnell says there are a river near Shanghai Huangpu river (in March 2013). number of reasons for China’s rising importance for Irish food “The Chinese government places great importance on food and drink and why it will continue to be a growing market for safety and major efforts are being undertaken to address the years to come. issues,” says O’Donnell. “The fact that Irish food and drink is “Around 300 million of China’s 1.35 billion population are stringently controlled by Government in terms of traceability and middle class and this is growing. When people move into other measures is very important.” the middle class they tend to consume more protein and are Particularly good for Ireland’s dairy sector is the fact that
34 Ireland Asia Business Yearbook 2014
IAYB_page34-37.indd 34 01/05/2014 17:58 SECTORS – FOOD AND DRINK
tastes are changing and this current generation of Chinese has of growth for example in infant nutrition in Asia, that’s an area been more exposed to products such as processed cheese of importance to us and an area where we have a number of through the likes of McDonald’s and Pizza Hut. relationships with key global customers.” There is an increased awareness of the health benefits of While Glanbia’s performance nutrition business is quite small dairy driven by messages such as that from previous Prime at the moment, Talbot says it is “clearly interested in that space” Minister Wen Jiabao, who said in 2006 that he had a “dream” to because there are a number of consumers who recognise the provide every Chinese person with a glass of “nourishing milk”. nutrition and the functionality of dairy and the role that even O’Donnell says that while it is starting from a low base, dairy aspects of dairy can play. consumption generally is going to grow in the market and “There are various proteins and minerals that can be China’s worries about food security will boost Ireland’s prospects harvested from dairy that can have particular properties that can of becoming a strategic partner in dairy into the future. be of interest in the Asian market,” she says. “China accounts for about 8pc of the farm land in the world, “That can be products that boost immune health or that but 20pc of the population, so it will be looking for strategic boost general health. And you have various regions of Asia that partners in various food and drink sectors. Closer links are recognise the role of prevention, for example, and the interaction already forming between Irish and Chinese companies.” of exercise and diet in maintaining a healthy lifestyle. So we will He cites the examples of Kerry Group’s partnership agreement be active in that space in Asia as indeed other regions,” she signed with Beingmate in October 2012 for the supply of Irish says. dairy ingredients for infant nutrition applications in China and Aside from dairy and dairy ingredients, O’Donnell says Glanbia’s landmark agreement with Shanghai-based food Ireland’s most important food and drink exports in Asia are beef, manufacturer Bright Group last year. pork, seafood and alcoholic beverages. Managing director of Glanbia Siobhan Talbot says the group’s primary markets today would be in the US and in Europe, but the Lifting of beef ban group is “a significant ingredients supplier into the Asia market A major breakthrough happened when Japan officially lifted its and has been for many years”. ban on Irish beef last December during the trade mission led by Winning “As a large scale dairy operation when you have the scale An Taoiseach Enda Kenny TD.
Sweet success in Japan good quality Irish ingredients like real Irish butter, hand-made Three years ago Irish confectionary company Broderick’s caramel, Irish oats and Belgian chocolate gives us a point of attracted a lot of interest from Japanese buyers at the difference in the market.” formula International Sweets and Biscuits Fair, the world’s largest Broderick’s is not selling into any other Asian markets at trade fair for sweets and snacks, held in Cologne, Germany. present, but it does have stockists in other parts of the world, However, none of the leads really amounted to anything including a strong presence in the Middle East and throughout until it started working with Japanese distributor Nishimoto Europe. Its UK sales have increased by 40pc over the past Trading Co, which loved what it had to offer, both in terms of two years. the quality of the product, but also its fun and quirky approach, Set up in the 1990s, Broderick’s is family-owned and according to co-founder and director Bernard Broderick. employs 50 people at its south Dublin-based bakery. “Japan is a challenging and meticulous market, and a difficult one to break into, but they guided us through the process, providing help and support at every stage. We feel incredibly grateful and loyal to this distributor for helping us as we view the Japanese market as having huge potential for us,” he says. Nishimoto Trading Co organised a trade food fair in Tokyo and included Broderick’s products, which led to the company gaining a listing with high-end retail chain Dean & Deluca. “During our first year trading with Dean & Deluca, we exported 200,000 of our wrapped chocolate bars and 250,000 of our mini-bite versions of the same bars to Japan,” Broderick explains. “We are now in our second year of trading and those figures have increased by 20pc. This is a relatively small contract but we view it as a very valuable one for Broderick’s in terms of positioning of our brand and potential growth within this huge market. Barry and Bernard Broderick. Image courtesy of The Irish “The fact that our bars are very quirky, and are made from Times
Ireland Asia Business Yearbook 2014 35
IAYB_page34-37.indd 35 01/05/2014 17:58 SECTORS – FOOD AND DRINK
Japan is the largest importer of beef in Asia, amounting to Current Irish exports also include a number of Irish artisan over 514,000 tonnes in 2012. Before Japan placed a ban on EU products such as Irish oysters, craft beers, farmhouse cheese, beef in 2001 following a Europe-wide outbreak of BSE, Ireland smoked mackerel, chocolates and confectionary (see panel). exported 3,000 tonnes of beef and offal to the market, valued at Focusing on seafood in Asia generally, O’Donnell says just over €10m. An Taoiseach said the lifting of the ban could Ireland is developing strong business in China and Korea. be worth around €15m a year to Ireland. “Shellfish, particularly live crab, is becoming popular in China, Cormac Healy of Ibec group Meat Industry Ireland says this while mackerel is selling well in Korea. represents “a further important step in the process of rebuilding “The online medium has become very important in terms of strategic international market access for Irish meat exports”. promoting Irish seafood. Bord Bia recently ran a banner ad on “Japan is already an important market for Irish pig meat and Chinese language website for business-to-consumer (B2C) with the lifting of restrictions on beef, Irish companies, many of online retail TMall promoting Irish seafood. which were represented on the trade delegation, will be exploring “Awareness levels of Irish seafood shot up as around 300 new export opportunities in this market in the coming months. million people clicked on the ad and over €100,000 worth of “The positive decision by the Japanese authorities to reopen seafood was sold in five days. Crab is the biggest selling item their market for Irish beef is important in its own right for this and we are also strongly pushing a new species boarfish.” market and will hopefully be a significant step towards access Bord Bia has established a food hub in Shanghai where a for Irish beef and lamb to markets in this region of the world.” number of Irish companies have hot desks, including four Irish The companies that took part in the trade mission last seafood companies – McBride Fishing, Carr Shellfish, Sofrimar December included Irish Dairy Board, Glanbia, Kerry Group, and Shellfish de La Mer. Dawn Pork & Bacon, Rosderra and Liffey Meats. These companies set up a joint venture company in 2012 “Japan imports 60pc of its food requirements and on a global called Jade Ireland Seafood, which has developed a new brand scale, the market is a significant importer of meat and dairy Ocean Jade to collectively target the Chinese market. products,” said Bord Bia chief executive Aidan Cotter during the “China and Asia generally are not for everyone as the trade mission. regulatory environment is very complex and currency and “Food security represents one of the greatest challenges payment risks exist. There is also the language and time barrier that the Japanese economy will face over the next decade. to contend with. The food hub in Shanghai is one way around Historically up to 50pc of Japan’s economic activity was that, allowing small groups of people with limited experience to dominated by agriculture while today this figure stands at learn from each other. Sharing of information is very important just 1pc and the urban population exceeds 90pc of overall for ‘Team Ireland’ in terms of driving export growth to the population. The Irish food and beverage industry is in a strong region,” says O’Donnell. position to cater to this increasing import demand, in particular “In the context of the Irish Government strategy Harvest 2020, within the meat, dairy and seafood categories.” there is a tremendous opportunity for growth in Irish food and Japan is the third largest destination for Irish food exports to drink exports to Asia – exports to China have doubled in the Asia. In 2012, they were valued at €36m, dominated by pork past three years. I believe we can achieve the same growth in (€14.4m), dairy (€8.1m) and seafood (€6.4m). the next three to five years.”
36 Ireland Asia Business Yearbook 2014
IAYB_page34-37.indd 36 01/05/2014 17:58 IRELAND…WHERE IT ALL BEGINS
ITM provide the highest level of assistance when
• Buying in Ireland
• Racing in Ireland
• Breeding in Ireland
Think Thoroughbred GORDON LORD BYRON (IRE), Irish Bred & Trained, ...Think Ireland! Purchased at Goffs for only €2,000, Group 1 winner in Australia, UK & France
Ballymany, The Curragh, Co. Kildare, Ireland. T:+353 45 443060 • E: [email protected] • www.itm.ie
MAKE THE ORDINARY
LOCATED IN THE HEART OF DUBLIN’S BUSTLING CITY CENTRE, OFFERING 150 STYLISH BEDROOMS AND SUITES. WITH STATE OF THE ART MEETING FACILITIES FOR UP TO 400 DELEGATES. FOR THAT WOW FACTOR, THE EXCLUSIVE 7TH FLOOR SKY SUITE OFFERS STUNNING PANORAMIC CITY VIEWS WITH ITS OWN PRIVATE BAR, PERFECT FOR AN EXCLUSIVE MEETING. EXTRAORDINARY
EXPERIENCE MORE FOR LESS AS WELL AS CLUB CARLSONSM POINTS FOR PLANNERS WITH THE RADISSON BLU ROYAL HOTEL, DUBLIN
RADISSON BLU ROYAL HOTEL, DUBLIN
Golden Lane, Dublin 8, Ireland T: +353 1 898 2900 [email protected] radissonblu.ie/royalhotel-dublin
Ireland Asia Business Yearbook 2014 37
IAYB_page34-37.indd 37 01/05/2014 17:58 SECTORS– EQUINE
Equine excellence Internationally recognised as a leader in its field, the Irish equine industry has a lot to offer Asia
IRELAND boasts a thriving equine industry and is one of the “Horses that are bred in Ireland are already performing very premier countries in which to invest in a thoroughbred enterprise well in numerous parts of Asia - indeed the current HK Horse of for a number of reasons, according to Elaine Hatton, general the Year is Irish bred Military Attack and the 2014 Hong Kong manager, Irish Thoroughbred Marketing. Derby was won by Irish bred Designs On Rome,” notes Hatton. “There is a wealth of history and tradition attached to the land, The office in Beijing is responsible for promoting the Irish racing yards and studs; most of the top European stallions stand bloodstock industry in China and works closely with the Irish here; the climate and land are very favourable to the raising one to ensure Ireland is the country of choice for Chinese and training of thoroughbred racehorses; there are world-class bloodstock investors. veterinarians, farriers, feed companies and a skilled workforce Ireland is now the largest producer of foals in Europe and the of passionate horse people,” she explains. fourth largest in the world, continues Hatton. “Given the sheer “All of this combines to make Ireland an ideal location in number produced, Ireland is naturally an exporting country with which to raise tough, sound and athletic thoroughbreds. It is a long history of exporting a top class equine product worldwide. no surprise then that Ireland is a base for many of the world’s “The total value of Irish bred horses exported from Ireland, leading bloodstock operations, including Coolmore Stud, Darley, through sale at public auction worldwide amounted to €205.4m Sheikh Hamdan Al Maktoum’s Derrinstown Stud, Prince Khalid in 2013, up 17.8pc on the previous year. In 2013 alone, Irish Abdullah’s Juddmonte Farms, HH The Aga Khan’s Studs, The horses were exported to 37 different countries. Haefner Family’s and Moyglare Farm. “Ireland is recognised the world over as a producer of top “This has contributed to Ireland becoming a nation that class breeding and racing stock. This was well advertised breeds and trains world champion racehorses such as Sea The throughout 2013 when Irish bred and trained horses once again Stars, New Approach and Dawn Approach.” enjoyed tremendous global success.” This equine expertise means Ireland has much to give Asia, believes Hatton. “Ireland has a lot to offer Asia in the form of Ireland’s role in Tianjin Equine Culture City administration assistance, education and specialised skills – this A milestone development for the Irish equine industry in Asia all comes before and along with animals and blood lines that last year was the announcement that Ireland was to help China have proven their ability the world over.” establish its first billion dollar national equine facility in a deal Having opened an office in Beijing in 2012, Irish that is expected to be worth US$50m to the Irish economy. Thoroughbred Marketing is committed to assisting in the The project to develop a Tianjin-based horse racing and development of a prolific racing industry in Asia. breeding industry was announced by Minister for Agriculture,
38 Ireland Asia Business Yearbook 2014
IAYB_page38-39.indd 38 01/05/2014 18:00 SECTORS – EQUINE excellence
Food and the Marine, Simon Coveney TD, who was in China on opportunities for many other Irish companies and individuals to a trade mission. participate in the project as it develops. It represented the first Chinese government involvement with Ireland will also host seven of China’s top agriculture an overseas joint venture in horse racing and breeding. graduates, who will spend two months at Coolmore learning The Tianjin Equine Culture City (TECC) facility includes: 4,000 about the industry and what is required to establish a top class horse stalls; a state-of-the-art horse clinic; 150 trainers’ offices; equine operation. five training tracks; two international standard race tracks; “This initiative should facilitate the development of a major grandstand; clubhouse; international equestrian college; and export market for horses from Ireland and has the potential to horse auction house. provide a range of business opportunities for companies and The first stage of the TECC was completed last year, while individuals in Ireland who can bring a wide range of expertise the entire world-class facility will be completed in 2015 so it is to the project,” Minister Coveney said at the announcement. fitting that in this, the Year of the Horse, that China’s start at the “Coolmore Stud is recognised as a world leader in thoroughbred highest level in the industry is well underway. Tianjin already breeding and is to be commended for their involvement in this hosted China’s richest ever race day last autumn, which included major project.” the inaugural RMB1 million Tianjin National Cup. Chairman of the Chinese government-owned Tianjin State The joint venture partners involved in developing the operation Farm Agribusiness Group Bai Zhisheng added: “Ireland is are the Tianjin State Farms Agribusiness Group; the TAK Group, a world leader when it comes to best in class trainers and a Malaysian development organisation; and Coolmore Stud. breeders and we are delighted to be partnering with Coolmore, Tianjin State Farms Agribusiness Group and the TAK Group are as it helps ensure our new national TECC project is firmly the overall partners for the project. established in Tianjin. We would like to accelerate the progress Ireland’s involvement in the project includes the initial of the development of TECC to get it completed, and with high establishment of a stud farm, stocked with broodmares sourced level partners this will help us achieve it.” in this country. The beginning of the breeding programme will Speaking on behalf of Coolmore Stud, JP Magnier noted involve importing over 100 mares in the next number of years, as that the equine industry is something Ireland is good at and well as the acquisition of stallions over the period. it is positive that one of the biggest markets in the world has Coolmore Stud was invited as the initial joint venture partner, recognised that and has chosen the country as its partner. but there will, according to the Department of Agriculture, be
Ireland Asia Business Yearbook 2014 39
IAYB_page38-39.indd 39 01/05/2014 18:00 SECTORS – EDUCATION
Enaam AlHashimi, DCU student from Saudi Arabia with Luiz Fernando Zago, IT Sligo from Brazil and Learning Yating Tao, IT Carlow from China at the Education in curve Ireland International Student Despite stiff competition, Ireland’s strong tradition in the Ambassador Programme education arena means it is forging strong links with Asian Awards Ceremony in Farmleigh in April 2014 markets
IRELAND’S education links with Asia are on the increase and While Ireland has a lot in its favour, it is up against serious have evolved in recent years into multifaceted relationships that competition. Being focused on engaging in the right way with encompass a wide range of touch points, from attracting overseas the respective markets is vital, says Donohoe. “In Malaysia, it’s students to faculty exchange and setting up joint programmes, important to engage with the scholarships bodies and we would according to Marina Donohoe, manager education, business and have good relationships with for example government agency Mara. consumer services at Enterprise Ireland and head of Education in “In India, educational agents are important so we need to be Ireland. able to influence them.” In China, meanwhile, the focus is on Due to their sheer size as source markets for students, engaging with agents and directly with schools and colleges. China, India and Malaysia are the three priority markets within “We have an education pathfinder or consultant whose been the Asia region as set out in the Government’s Building Global working with us full time in India and also in Malaysia and we Partnerships strategy for 2010–15, which focuses on the hope to have someone in China shortly. And we bring delegations internationalisation of Ireland’s higher education sector. out to those regions on a regular basis.” At least 400,000 students leave China each year to study Donohoe says the messaging will become increasingly targeted overseas, while the respective figures for India and Malaysia are in individual markets going forward. “So rather pitching a general estimated at around 250,000 and 80,000. ‘Come to Ireland, we’re a great place to study’, it’s increasingly The focus over the past three or four years has been on ‘Come to Ireland, we’re a great place to study technology or pitching the Ireland offer as a viable alternative to key competitors business’. such as the UK, Australia and Canada. “The offer is around Overseas student figures for 2012/13 are still provisional but, Ireland being an English speaking country and being a safe and according to Donohoe, there has been growth in numbers from secure place to study,” says Donohoe. Malaysia and India, while Ireland is holding its own in the Chinese Another selling point, she says, is Ireland’s strong tradition in market. the education arena. “Many of our institutions are in the top 200 and top 500 institutions in the world. We’ve got quality standards MORE THAN 150 RELATIONSHIPS and quality programmes. We have an infrastructure in education “It is encouraging that the relationship with China is getting that is of interest to a lot of these countries.” stronger in terms of the institutional links. There are 150-plus
40 Ireland Asia Business Yearbook 2014
IAYB_page40-41.indd 40 01/05/2014 18:01 SECTORS – EDUCATION
relationships between Irish higher education institutions and their “International education to Ireland is arguably worth in excess of Chinese counterparts and these are everything from student and €1bn a year in terms of the economic impact. We have achieved faculty exchange to research collaboration and joint programmes,” a lot and need to build on that,” says Donohoe. says Donohoe. Such collaboration is being boosted by Science Foundation Ireland’s International Strategic Co-operation Award initiative, A multifaceted strategy which is this year supporting partnerships between Irish higher Dublin Institute of Technology’s (DIT) Asia strategy is education institutions and organisations in Brazil, China, India and multifaceted, says its president Prof Brian Norton. “We have Japan with funding of €500,000 for each project. a lot of diverse links that are two-way and multifaceted. “These projects are building on the educational links already “We currently accredit programmes in China and Oman. in place in those markets, but making them meaningful in the We do joint delivery programmes for the pharmaceutical context of supporting the collaborative research piece. The manufacturing sector in Singapore. And we have institutions exchange of research students, scientists and PhDs strengthens in China accepting our students who spend a year there the foundation of the links that exist between both countries,” perfecting their skills in the Mandarin language. We also Donohoe notes. have strong research links with China. The Department of Education’s mid-term review of the 2010–15 “We’re in the early stages of developing a new institution plan, due to be launched shortly, will set out the strategy to 2016 in Hainan through which we will be providing hospitality and focus on six priority markets, namely India, China, Malaysia, programmes in the south of China. the US, Brazil and the Gulf. “More generally, we need an international community Engaging with alumni in Asian markets will become more within DIT to produce students who have some awareness, important in the future. “The alumni are important spokespeople some empathy for and some experience of working with for Ireland. The example that is always given is the deputy prime other cultures, because this economy in a connected world minister in Vietnam [Hoang Trung Hai], who is a Trinity-educated is always going to be working with other people.” graduate.” And educating overseas students who create communities curve One important step in this direction was the launch two years that are aware of Ireland when they return to their own ago of the Ireland Student Ambassador programme by Education countries cannot be underestimated, he says. “Getting a in Ireland. This year 50 international students from a range of presence is critically important from a whole and social countries, including India, China and Malaysia, are involved in dimensions. It’s far more than a ‘market’. It really comes the programme by using social media to talk about student life in down to issues of the nature of our education and of Ireland. Ireland’s soft power globally.”
History of engagement Four-year evolution Asia is seen as integral part of Dublin Business School’s The Farmleigh Fellowship launched its 2014 master’s in (DBS) strategy for growth outside of Ireland. “We’ve had business studies (MBS) in Asian business scholarship a considerable history of engagement in Asia in higher programme in April. education and we’re currently re-initiating that through two At the same time it has also announced its five-year projects,” says CEO Gerry Muldowney. strategy plan, which includes the development of a The first is a joint initiative in association with the reciprocal programme to attract young Asian professionals Malaysian government through Mara to develop an to Ireland to study and work with an Irish or Irish-based accountancy programme incorporating degree and company. professional accountancy pathways. The Farmleigh Fellowship is an Irish scholarship DBS has a long relationship with Mara that started in programme that was launched by a small community of the early 1990s and has so far seen more than 1,300 Irish business leaders in Singapore in 2010 to equip the Malaysian students graduating with DBS qualifications. next generation of emerging professionals with a world- “We’re now at the advanced stages of completing class ‘toolkit’ for business success in Asia. development of the project and will hopefully launch the Chairman of the board of directors Fred Combe said the programme in September 2014.” economic backdrop had dramatically changed since then. DBS is also involved in a partnership with Xiamen “Ireland’s recovery since then has been both dramatic University that has involved the institutions developing a and painful, but over the past three years we have seen joint curriculum that will see participating students spending incredible Irish opportunity and growth in this region, their final year in Ireland. “We expect our first cohort of underpinned by our 65 fellows and our 50 Farmleigh students to transfer to Dublin in September to complete sponsor companies.” their studies in accounting and finance and financial The overall Farmleigh Fellowship programme investment services,” says Muldowney. since 2010 has reached €3m.
Ireland Asia Business Yearbook 2014 41
IAYB_page40-41.indd 41 01/05/2014 18:01 INWARD INVESTMENT
Communications skills Having started out in rural areas of China, Huawei built its business internationally through partnerships and currently employs 75 people in Ireland
ESTABLISHING a presence in Ireland in 2004 was a strategic send personnel to developed countries.” decision for Chinese networking and telecommunications The company’s first official Europe headquarters outside of equipment and services company Huawei, according to Derek China was in the UK, established as a result of a partnership Ding, managing director of Huawei Ireland. with British Telecom. Although it was difficult in the beginning, Founded by engineer and ex-military officer Ren Zhengfei in Ding says business started to boom in Europe from 2004, and 1987, Huawei grew quickly in the domestic market by starting out especially in the period between 2007 and 2009 when Huawei built in rural areas and moving upwards to small and medium-sized up a lot of market share in the radio/wireless equipment space. towns and gradually to major cities such as Beijing and Shanghai. Huawei has built its business internationally through “Competition in 1988 in the technology sector globally was partnerships. To date around 45 of the world’s top 50 telecoms fierce, dominated by western European, Japanese or American companies have worked with the company, including Vodafone, companies and it was the very beginning of the open policy of France Telecom, T-Mobile and Bell Canada. government in China. No one believed at the time that Chinese In Ireland, Huawai started out in 2004 with a sales office and companies could do hi-tech things, which was why Huawei started but in more recent years recognised that Ireland was a good in rural areas. Technology giants preferred to stay in major cities, location to set up research and development (R&D) operations, whereas we started in small villages,” Ding explains. according to Ding. “We grew to be the No 1 among Chinese telecom providers “Ireland is a good place to have R&D because of its education very fast and around 1996 top management started to think we system, young talent, skilled workers, software development needed to go outside China to find business. Technicians and environment and support for foreign investment. We started with sales people were placed in Hong Kong, Southeast Asia and a facility in Athlone, Co Westmeath and last January opened R&D Africa, which was hugely successful because of a huge demand centres in Cork and Dublin and the plan is to employ 50 people in for telecoms infrastructure and in 2001/2002 Huawei started to R&D in Ireland within the next three years.”
42 Ireland Asia Business Yearbook 2014
IAYB_page42-43.indd 42 01/05/2014 15:27 INWARD INVESTMENT
Huawei currently employs 75 people in Ireland and to date top 10 ICT giants in the world have established their EMEA has accumulatively invested more than €50m in its operations in headquarters in Ireland. Athlone, Cork and Dublin since beginning. “This puts Ireland in a unique position and creates a good Initially the new R&D centres will focus on Huawei’s next environment as well as talent and knowledge of IT. Universities generation customer experience management product SmartCare, are fine-tuning their courses to match industry requirements. supporting the company in providing customer services to “There are very good IT companies in China that are now big telecoms operators both in Ireland and internationally. enough to build business outside the domestic market – in one It already has 16 R&D centres around the world, including in year some of them could be in the top 10 in the world. Huawei Bangalore, India, the US, Sweden and Milan and of its 150,000 established a big regional office in Germany and to move would employees worldwide, around 46pc are engaged in R&D. be too much upheaval now, however it would be the right time Ding says the company views Ireland as “a rising place” for it to to persuade other Chinese IT companies to locate their first invest as part of its global plan because information technology and headquarters in Ireland. communications technology are merging and software suppliers to “Huawei was a pioneer in terms of going abroad from China. the telecoms sector are becoming increasingly important. There are a lot of Chinese companies that are already very big “Ireland is the Silicon Valley of western Europe. If you look at but have no global footprint. We would always encourage other the Docklands area of Dublin it is full of the greatest technology Chinese companies to come to Ireland because it is English companies in the world such as Google, Facebook and Amazon. speaking, has a good innovation atmosphere and is a good hub There has to be a good reason behind these companies choosing from which to target Europe. There needs to be more promotion to locate in Ireland. It is a very good story to share. Eight of the of Ireland in China so enterprising companies know the benefits.”
Ireland Asia Business Yearbook 2014 43
IAYB_page42-43.indd 43 01/05/2014 15:27 INWARD INVESTMENT
Flying high
Chairman of Japanese-owned SMBC Aviation Capital Shinichi Hayashida discusses trends in the aviation leasing sector and his own company’s activities since setting up in Dublin two years ago
COMPLETED in May 2012, the acquisition by a Japanese engineering. It has also built up best-in-class support industries consortium made up of Sumitomo Mitsui Banking Corporation such as aircraft maintenance, retrofitting and painting. (SMBC), Sumitomo Mitsui Finance and Leasing (SMFL) and Other factors include a wide double tax treaty network – Sumitomo Corporation of Dublin-headquartered RBS Aviation agreements have been signed with 70 countries so far and Capital from Royal Bank of Scotland for US$7.3bn was the many of these provide for zero withholding tax on inbound lease largest ever sale of an aircraft lessor. rentals – as well as a low corporate tax regime. The country has Renamed SMBC Aviation Capital in June 2012, the company generally amicable transport regulations and easy access to is now the world’s fourth largest aircraft lessor by owned and global transport networks. managed fleet value, with 351 aircraft valued at over US$10bn “As an added bonus, Ireland is a place where you can enjoy and airline customers in over 40 countries around the world as the quality of life: good food and drinks, green environment, of April 2014. fresh air and, on top of everything, very friendly people,” says The deal was one in a series of high-profile investments by Hayashida. Asian entities in the Irish leasing market in recent years and Most major Japanese lessors now have operations in Ireland, reflects Ireland’s considerable reputation in the sector. including MUFJ, Mitsubishi, ORIX and Mizuho/Fuyo. And, in the An estimated 50pc of the world’s commercial aircraft fleet is past two years, three Chinese aviation operations have located now managed from Ireland, representing over €83bn in assets, their European headquarters in Ireland. The most recent of while nine of the top 10 global lessors have located here. these, announced in January 2014, is Bank of Communications According to SMBC Aviation Capital chairman Shinichi Financial Leasing (JY Aviation), which has set up its European Hayashida, it is not an exaggeration to describe Ireland as the HQ in Dublin to manage 21 aircraft from Ireland. The company global capital of the aircraft leasing business. “It is well known in is the leasing arm of Bank of Communications, which was our industry that Guinness Peat Aviation (GPA), an Irish aircraft founded in 1908 and is one of the largest banks in China. leasing company established back in 1980s and later acquired It joins ICBC and CDB, which both announced that they were by General Electric, was the pioneer of the business model,” he setting up their European headquarters in Dublin 2012. ICBC explains. Leasing is the leasing arm of ICBC Bank, the largest bank in On the back of this reputation and history Ireland has the world by total assets and market capitalisation and one of developed a number of advantages, including a large pool of China’s ‘Big Four’ state-owned commercial banks. The company highly skilled professionals specialising in the sector across a currently manages over 360 aircraft from its Irish operation. range of disciplines, including financing, accounting, legal and CDB Leasing (Sinoaero) is the leasing arm of China
44 Ireland Asia Business Yearbook 2014
IAYB_page44-45.indd 44 01/05/2014 14:41 INWARD INVESTMENT
planes and delivery will start from 2016 in the case of the Airbus 320neo and 2017 for the Boeing 737 MAX. “While this may start affecting the value/rent for the existing narrow body aircraft, we would expect to see these aircraft becoming increasingly important for the Irish based lessors,” he says. New generation wide body aircraft will also have an impact, he says. Following the successful introduction of the Boeing 787 Dreamliner, Airbus is now launching the A350 series and Boeing is focusing on the next generation 777 (777X). “These aircraft are expected to demonstrate higher market liquidity, compared to the current generation, as they have incorporated many aspects recommended by the lessor community with enhanced liquidity in mind. Up to now, lessors have been less receptive to owning wide body aircraft but this attitude may change going forward.” Another trend will be industry consolidation. “As the world demand for aircraft increases, the lessors who are keen to grow their market position are under pressure to acquire a large number of aircraft,” says Hayashida. “This means, literally, ‘size matters’ and we expect that some lessors are better positioned to procure the funding for such acquisition than others. This process will require deeper pocket shareholders and sponsors.” The recent €4bn takeover of ILFC by AerCap, which has operations in Shannon, has fuelled a growing expectation that more industry consolidation is on the way, adds Hayashida.
Development Bank, one of the China’s policy banks and under SMBC Aviation Capital in Ireland the direct jurisdiction of the State Council of People’s Republic of SMBC Aviation Capital is the third entity established in China. The company now manages a large fleet of aircraft from Ireland by Sumitomo Mitsui Financial Group (SMFG), which Ireland. set up a financing subsidiary in the 1980s, now called “Many Asian financiers have concluded that aircraft leasing is Sumitomo Mitsui Finance Dublin Ltd. In 2011, the group’s a highly promising sector and are expected to enter or expand in IT consulting affiliate JRI opened an operation in Tralee. this sector,” says Hayashida. Since June 2012 SMBC Aviation Capital has consolidated the existing aircraft leasing business Trends in the sector (headquartered in Amsterdam) of its parent companies. Meanwhile, China is seen as a huge growth market for SMBC has also established a branch office of SMBC aviation leasing in the coming years. According to IDA Ireland, Europe (SMBC’s London-based subsidiary bank) in Dublin Chinese airlines will need nearly 6,000 new airplanes valued at to promote the business co-operation between SMBC’s US$780bn over the next 20 years. debt financing and SMBC Aviation Capital’s operating “Even though China continues to roll out an impressive lease business. network of high speed trains, air transportation remains the The company’s strategy over the next few years has four practical means to move between these cities,” explains main strands, according to chairman Shinichi Hayashida. Hayashida. “We will continue to expand our existing bread and butter “The Chinese government understands this and is committed business: namely sourcing and placing aircraft to airlines to expand the air transportation sector. In this regard, we through leasing transactions,” he says. “As a source of envisage that the market will continue to require large numbers aircraft acquisition, we have concluded several large of aircraft and this is a good opportunity for us. Of course, purchase orders with manufacturers in the past and we Chinese lessors, many of which are owned by large domestic continue to seek opportunities to replicate such orders. banks, are rapidly expanding their fleets and the competition is “If there is an opportunity, we may consider corporate and will be intense.” acquisition or purchase of aircraft in bulk. As the Another trend that will impact on the market and Ireland’s industry is in the middle of dynamic transition, we feel aviation leasing sector over the next few years, according to that it is important that we are ready to move if suitable Hayashida, includes the introduction of the new generation opportunities arise.” narrow body aircraft. There is a large order book for these
Ireland Asia Business Yearbook 2014 45
IAYB_page44-45.indd 45 01/05/2014 14:41 LORD MAYOR INTERVIEW Destination Dublin Lord Mayor of Dublin Oisín Quinn believes Dublin has the potential to become the European launch pad for Asian companies
ONE of the most important outcomes of Dublin City’s twinning October I arranged for him to visit our Digital Hub, and he with Beijing in China in 2011 has been the setting up of the seemed very interested and impressed by the innovative ways it Beijing-Dublin International College, a joint venture by University supports digital enterprises on its campus to thrive.” College Dublin and the Beijing University of Technology, From 3 to 6 June 2014, the Mansion House will host the according to Lord Mayor of Dublin Oisín Quinn. first ever Asia Business Week Dublin, a joint initiative between “The International College is based on the Beijing campus Asia Matters and DCC focused on how Ireland can increase and the number of students is expected to grow to 3,000. I business with Asia. had the great honour of visiting the college and meeting the The week will involve the launch of commissioned economic incredibly dynamic students there when I was on an official visit research outlining the best ways to drive Ireland’s strategic to Beijing in 2013,” he says. focus to unlock further employment growth from trade with Asia The Lord Mayor also welcomed the Chinese students to the in sectors where Ireland has core expertise. It will promote Irish Mansion House in Dublin, his official residence, when they were foreign direct investment into Asia as the best method to grow in Dublin as part of their course. Asia markets for Ireland. One of Dublin City Council’s (DCC) key objectives is to make “Asia Business Week Dublin is a hugely important initiative Dublin a destination of choice for international students. for Dublin and I am delighted that it includes all the countries “Students from other countries have so much to offer the city of Asia in its remit. It has the potential to grow and become as in terms of vitality for example, and we want to make it easy for successful as the Web Summit,” says Quinn. them to fully engage in the general life of the city, beyond the college walls,” says Quinn. “There is significant interest from international student accommodation investors in developing high quality, professionally managed student accommodation in Dublin. This has great potential for the city.” From an overall economic perspective, Dublin’s twinning with Beijing is critical, Quinn continues. “As the capital city, Dublin’s twinning with Beijing has a national importance and we work closely with the Department of Foreign Affairs and Trade, the Irish embassy in Beijing, and the Chinese embassy in Dublin in building relationships between our two cities and countries,” says Quinn. “One of the key objectives for the city and nationally is to get a direct Beijing–Dublin flight and the Dublin Airport Authority, DCC and others have been working strongly together on this. “I found when I was visiting Beijing and meeting the relevant agencies there, that the status of the office of the Lord Mayor is an important boost in these persuasion strategies.” Cities throughout the world, including Dublin, are now key drivers of national economic growth and, in Quinn’s view, Dublin is Ireland’s only city of sufficient scale to be considered by the OECD and others as a globally competitive city. “In the same way that Ireland and Dublin became a gateway for US companies to access the European markets, we can now become the European launch pad for Asian companies,” he says. “When Vice-Premier Ma Kai of China came to Ireland last
46 Ireland Asia Business Yearbook 2014
IAYB_page46-51.indd 46 01/05/2014 18:03 DUBLIN CHAMBER Thriving times Dublin Chamber of Commerce has been helping Irish firms access Asia for years. Chief executive Gina Quin sees lots of opportunity for growth in China, India and Hong Kong
DOING business in the Far East can be very lucrative for Irish companies, but making the first steps into Asia can be a tricky and intimidating experience. Over the past two decades, Dublin Chamber of Commerce has seen a sharp increase in the amount of interest in Asian markets, particularly China, Hong Kong and India. China, in particular, has traditionally proved a tough market to access for Irish companies and an increasingly popular way to access China is to use Hong Kong as a launch pad. This was one of the main reasons for the setting up of the Ireland-Hong Kong Business Forum, a joint venture between the chamber and the Hong Kong Trade and Development Council, in 2002. The forum has been instrumental in giving chamber members an opportunity to network, explore business opportunities, exchange views and learn of developments in both Hong Kong and also China. The link between Ireland and Hong Kong was strengthened earlier this year with the news that a consulate is to open in Hong Kong – something that the forum had been calling for long and hard for many years. Meanwhile, direct links with China were strengthened considerably in 2011 with the twinning of Dublin and Beijing. As the largest business organisation in the Dublin region, Dublin Chamber has collaborated significantly with Beijing over recent years, helping to develop the business relationship between the two cities. “With the right access to information, our members are thriving in Asia. Ireland’s current trade strategy recognises China as a priority country for Irish exports and this is reflected in the increasing interest we are seeing from companies looking to expand their presence there. Relationship building is key to doing business in Asia,” says Gina Quin, chief executive of Dublin Chamber. members and businesses in India. The Ireland-India Business Dublin Chamber regularly organises business briefings and Association (IIBA) concentrates on the niche but rapidly matchmaking events for Chinese delegations travelling to developing areas in which Ireland and India can co-operate on Ireland. This typically sees the chamber bring in guest expert with great prospects for both. The IIBA fosters commercial links speakers and organise one-to-one meetings between delegates between Irish and Indian businesses, facilitating knowledge- and Dublin Chamber member companies. sharing and networking among Irish and Indian business “Through these relationships, and also via our 27 Enterprise communities. Europe Network (EEN) partners in China, Dublin Chamber is “Clean-tech is an exciting area for Irish businesses to well placed to support Chinese companies interested in entering be involved with and we are looking forward to seeing and the Irish and European marketplaces. The trade in services nurturing the development of this with our contacts in India. between Ireland and China has been developing significantly in With shared history, language, legal systems and values India recent years and has great potential for the future,” Quin adds. holds an exciting host of opportunities for Irish companies and Dublin Chamber also cites India as another territory that we look forward to assisting the realisation of this potential in offers great potential for collaboration between chamber the coming years,” says Quin.
Ireland Asia Business Yearbook 2014 47
IAYB_page46-51.indd 47 01/05/2014 18:03 ,
CHINESE NEW YEAR Combining cultures Now in its seventh year, the Dublin Chinese New Year Festival continues to further develop and improve existing connections between Ireland and China
DUBLIN Chinese New Year Festival (DCNYF) was established in 2008, the Year of the Rat, beginning a fresh 12-year cycle of the Chinese lunar calendar. Based in the Office for Integration at Dublin City Council, DCNYF is committed to celebrating Sino-Irish relations and showcasing Chinese culture and heritage to a new and wider audience while promoting integration in Ireland. Building on the success of previous years, the seventh DCNYF was launched in January 2014 welcoming the Year of the Horse, which is considered to be a fortunate year that brings luck, peace and blessings. DCNYF is also very pleased to welcome the new Chinese ambassador to Ireland Jianguo Xu and the new Irish ambassador to China Paul Kavanagh and wishes them the very best of luck and success in the years ahead. During festival periods, DCNYF delivers high-profile cultural programmes, including concerts, art exhibitions, crafts workshops, Chinese film screenings, sports tournaments, photography competition, storytelling, family activities and so on. Some highlights of DCNYF include:
• Chinese New Year Carnival hosting Chinese performances with dragon and lion dances, Tai Chi and martial arts displays, special musical entertainment to help ring in the New Year • Taste of China presenting food tasting, cooking demonstrations and daily recipes of authentic and Despite its achievements, DCNYF constantly reviews itself and traditional Chinese dishes maintains a strategic view over all aspects such as diversity • Voices from China promoting a series of lectures across and quality in programmes, robust digital presence, efficient multiple disciplines such as science, history, art and management and production, effective collaboration with culture stakeholders, sustainable development, and opportunities and • Sino-Irish Business Seminar sharing experiences and challenges ahead. stories within Sino-Irish business both in Ireland and China As Dublin celebrates twinning with Beijing and relationships between China and Ireland grow and deepen, DCNYF will Almost all of these events are free to the public. Here outlines continue to seek out evidence of past Sino-Irish connections the number of DCNYF events between 2008 and 2014: creating new expressions of intercultural exchange, and further develop and improve existing intricate rich connections Number of Festival Dates between the two nations. Events DCNYF would like to express sincere thanks to all partners 1 Year of the Rat 1–11 Feb 2008 18 2 Year of the Ox 23 Jan–1 Feb 2009 13 and sponsors who have been an enormous help in bringing 3 Year of the Tiger 12–21 Feb 2010 21 DCNYF into being. 4 Year of the Rabbit 1–14 Feb 2011 18 5 Year of the Dragon 20 Jan–3 Feb 2012 20 This is your Festival. This is your City. Welcome to 6 Year of the Snake 8–22 Feb 2013 16 DCNYF. Please visit www.cny.ie for more details or email 7 Year of the Horse 31 Jan–14 Feb 2014 18 [email protected].
48 Ireland Asia Business Yearbook 2014
IAYB_page46-51.indd 48 01/05/2014 18:03 ,
INTERNSHIPS Irish life Wei Rong, an employee of Beijing Municipal Bureau of Culture, recently did a two-month internship with Dublin City Council. She shares her experience
THANKS to my job, I have the opportunity to travel in the world sort the waste. The amount of municipal waste has increased and I have been to more than 20 countries in the past 10 years. dramatically in recent years in Beijing and protecting the From my work experience, I found that there are two environment has become a big challenge for the city. Beijing is important elements in cultural exchanges – communication and still in the initial stage of waste sorting and reduction. co-operation. The Irish Government and DCC are much more The internship in Dublin City Council (DCC) offers me both internationally-minded and open to receiving interns from opportunities to communicate and work with foreign colleagues different countries and providing job opportunities for non-Irish directly instead of through emails and calls. Staying in a foreign citizens than in China. country for a much longer period of time allows us to have My colleagues in the Office of Economy and International plenty of time and appropriate access to experience the daily Relations are working effectively as a team. People are working work and life of ordinary people, which I believe will give me in a relaxed atmosphere and the flexible working hours are very a better understanding of the Western ways of thinking and good, allowing people to work with their own plans. manner of working. I would say that Irish people are the nicest and most friendly I enjoyed the work and life here in Dublin very much. We’ve people I’ve ever met. There will be someone who will help direct been to lots of tourist attractions such as the Phoenix Park, St the way every time we get lost! Stephen’s Green, the Cliffs of Moher and the Giant’s Causeway. It’s very convenient to travel in Ireland since you can travel to anywhere in the country and back to Dublin in a single day. Our experience of travelling with the Paddywagon tour was pleasant and comfortable. I think the tourism industry in Ireland is much more mature than in China. Lots of scenery spots are free of charge. There are no extra charges and forced shopping during the trip in Ireland – these are still two headache problems in the Chinese tourism industry. The guides in Ireland are more professional and humorous and know how to communicate and interact with tourists. Culture and artistic activities in Dublin are abundant and diversified. I visited many culture-related places, including the National Gallery and the Chester Beatty Library and experienced several cultural activities in the past two months. The experience is enjoyable and impressive. The culture industry in Ireland is vibrant and works well as a driver of economic development. Dublin is good at creating cultural activities and knows how to use them as a tool of attracting attention – the Bram Stoker Festival and The Gathering are good examples. Home stay is a good idea for interns to get to know the ordinary life of Irish people. We enjoyed our stay with our host family and it helped us to adjust ourselves to the Irish way of living. The first thing we learned after we settled down with the host family was how to throw the rubbish out. The waste classification system runs better in Dublin than that of Beijing. Every house has three bins and people know perfectly how to
Ireland Asia Business Yearbook 2014 49
IAYB_page46-51.indd 49 01/05/2014 18:03 EXPERIENCE JAPAN Celebrating Japan Experience Japan aims to bring together all those who appreciate and want to discover more about Japan and Japanese culture, explains the festival’s director Hugo O’Donnell
ESTABLISHED in January 2010, Experience Japan aims to Our activities are family oriented and mostly free of charge. celebrate and promote Japan and Japanese-Irish culture and Working together and volunteerism, especially with the support heritage in Dublin and throughout Ireland. In doing this, it of the Japanese home and visiting students in our universities, marks the longstanding warm relations and friendships that are the hallmark of the success of the event. Our student exist between the people of Ireland and Japan. This year the performers and volunteers are one of the main reasons for the Experience Japan festival ran from 3–30 April, offering an success of Experience Japan. increased number of events. Adding up numbers for performers, supporters and A highlight of Experience Japan each year is the celebration volunteers, more than 250 people contributed to Experience of the centuries old custom Japanese ‘Hanami’ or flower- Japan 2014. We also drew on the support of the Japanese viewing in Farmleigh House and Estate in the Phoenix Park. Up Business Association, the Ireland Japan Association, the to 100,000 people have attended over the years – it is a perfect Japanese Culture Club, both of the Japanese Saturday Schools setting to celebrate and enjoy spring and ‘Sakura’ (cherry here in Ireland, and particularly the young adults from Dublin blossoms). Large numbers gather to enjoy events, including City University, University College Dublin and the Irish JET stage performances, martial arts, taiko drums, origami and craft Alumni Association. We are deeply indebted to the Embassy of workshops, and Cosplay fashion. Farmleigh is a special place Japan for all its support in making this success possible. for the Japanese community in Ireland as Emperor Akihito and Experience Japan is run with the support of Dublin City Empress Michiko stayed there for a four-day official visit in May Council, the Office of Public Works in Farmleigh, the Japan 2005. Business Society in Ireland, University College Dublin, Ireland Many other events were organised. The Japanese embassy in Japan Association and the Embassy of Japan in Ireland. conjunction with Access Cinema ran the Japanese Film Festival to coincide with Experience Japan. Over two weeks it visited seven locations (40 screenings) around Ireland, including Cork, Dublin, Galway, Limerick and Waterford. The Chester Beatty Library was the venue for two public seminars. An event for second-level students looking at Japanese and Irish high school life had a focus on cutting-edge trends, including spectacular Cosplay fashion. A Japanese studies seminar focused on gender representations in fine art, theatre and the development of ‘Science Women’ in Japan. This year as well, Experience Japan teamed up with the Asia Trade Forum of the Irish Exporters Association to hold a breakfast briefing on doing business in Japan. The festival’s aim is to bring together all those who appreciate and want to discover more about Japan and Japanese culture. In particular, we want to provide a platform for Irish-Japanese children to learn more about their culture and heritage. The festival has grown enormously in recent years, testifying to the wide and deep interest in all matters relating to Japan. For the future, we want to expand this model and reach out to many more individuals and groups from all sectors, education, tourism, business in all its forms, the arts, literature, media and many others. We also would like to work more outside Dublin around Ireland. Please contact us to discuss a proposal or an idea.
50 Ireland Asia Business Yearbook 2014
IAYB_page46-51.indd 50 01/05/2014 18:03 THE DIGITAL HUB Hub of activity The Digital Hub has evolved to become a project that is often showcased as a model of best practice. CEO of the Digital Hub Development Agency Edel Flynn gives an overview of its work and achievements to date
markets expect. As a result, companies such as Amazon, Etsy and Houghton Mifflin Harcourt (Riverdeep) chose The Digital Hub as the starting point for their entries into the Irish and European markets. They were able to test these markets, deploying small teams at first, and then rapidly scale their teams as their business models developed. The flexibility and environment offered at The Digital Hub perfectly suited their needs.
Achievements of The Digital Hub At present, there are over 70 growing enterprises at The Digital Hub, employing 900 high value workers. Almost 200 enterprises have progressed through the project since 2003. Since The Digital Hub was established, the DHDA has acquired an in-depth understanding of what digital enterprises need to not only survive, but to grow and scale. The project is frequently showcased as a model of best THE Digital Hub is a flagship project of the Irish Government, practice for international delegations looking for leadership in based in Dublin’s inner city. Its aim is to develop a world- digital clustering. In recent months alone, it has welcomed high class cluster of growing digital enterprises, competing with level delegations from China, Indonesia and South Korea, who international success stories, such as London’s Tech City and were aiming to discover how the story of The Digital Hub could Israel’s Silicon Wadi. The project was established in 2003 and is influence projects underway in their own countries. managed by State agency the Digital Hub Development Agency Over the past decade, the DHDA has excelled at spotting (DHDA). new and emerging digital trends, and facilitating the growth of these trends. In the mid-2000s, for example, The Digital Hub Supporting domestic digital talent to scale became home to a number of companies from Ireland’s nascent Ireland has a vibrant start-up scene and numerous innovative computer games industry. These companies – the likes of Gala programmes providing tailored supports for start-ups. However, Networks Europe, Havok and Goa Games – have since gone on in order to succeed and grow, companies need specific to achieve major global growth. As Ireland’s computer games supports once they have ‘graduated’ from their start-up sector has become more established, meanwhile, The Digital phase. The focus of The Digital Hub is on this next step of a Hub has moved on to explore and support new trends such as company’s journey to success. e-learning and e-health. Fostering a combination of domestic and international Over the 11 years of its existence, the DHDA has opened digital talent – and ensuring digital enterprises are supported eight world-class office buildings across the nine-acre Digital to develop beyond the start-up stage – is a priority area of Hub campus. Most recently, the agency announced a major work for The Digital Hub. Through links with the many start-up new property investment, worth over €40m. This will result in support programmes currently in operation, the project aims the creation of additional enterprise office space, as well as to attract the brightest and best fledgling digital enterprises to a housing development for almost 500 students. UK-based locate on its campus. company Knightsbridge Student Housing is behind the development. Perfect environment for growing global brands The Digital Hub also provides an ideal space for international companies looking to test the Irish and European markets. It offers flexible office space, flexible lease arrangements and the Further information about The Digital Hub is available at type of ecosystem digital companies looking to explore new www.thedigitalhub.com.
Ireland Asia Business Yearbook 2014 51
IAYB_page46-51.indd 51 01/05/2014 18:03 INVESTMENT COLLABORATION
summitSCALING THE A fund launched earlier this year will target companies operating in core technology sectors as the investment relationship between Ireland and China is further developed
A NEW US$100m China Ireland Technology Growth Capital Co-founder and general partner at Atlantic Bridge Capital Fund was launched in January 2014, marking a significant Elaine Coughlan noted: “We are already seeing strong interest development in terms of the investment relationship between from Irish technology companies in the Chinese market and Ireland and China. believe this new fund is uniquely positioned to add value to WestSummit Capital, a technology growth capital investor these companies as they scale in China.” based in Beijing with an office in Silicon Valley, and Atlantic Chairman of the Irish Exporters Association’s Asia Trade Bridge, a technology growth capital investor based in Dublin Forum Hugh Kelly described the announcement of this new with offices in London and Silicon Valley, will co-manage the fund as “a huge vote of confidence in Ireland’s future economic fund through the newly established Summit Bridge Capital. vitality”. Capitalised equally by the National Pensions Reserve Fund “Given that CIC only makes strategic investments which are and China Investment Corporation (CIC), the fund will make good for China, the statement that Irish and Chinese companies minority equity investments in fast growing technology com- in core technology sectors such as internet, software, semi- panies with a presence in Ireland that have an interest in China, conductors, and clean-tech will be targeted by the fund’s man- and in Chinese fast growing technology companies that have a agers, as well as a number of other technology areas, means presence or an interest in establishing a presence in Ireland as the fund’s strategy is uniquely positioned,” he says. a gateway into the European market. These other areas include agriculture, food, medical and It will target companies operating in core technology sectors financial services and this spectrum clearly offers the chance of such as internet, software, semiconductors and clean-tech, as a win-win solution for all, according to Kelly. well as in agriculture, food, medical and financial services. “Now that there is investment money on the table, China is “Ireland plays a critical role as a major hub of activity con- set to become a major market for Irish companies in terms of necting Europe with international markets, and as a centre of joint collaboration and market access; while Ireland’s techno- technology innovation in the region,” said Raymond Yang, man- logical prowess and investment climate, backed by CIC’s vote aging partner of WestSummit Capital. of confidence, place us at the top table in terms of attracting “China represents one of the largest and fastest growing mar- Chinese outbound investment into Europe. kets in the world for nearly every category of technology-related “Coming hot on the heels of the announcement of the estab- products and services. We believe that there is a highly attract- lishment of an a new Irish-domiciled exchange-traded fund ive investment opportunity for the China Ireland Technology (ETF) offering European investors direct access to China’s blue- Growth Capital Fund to further link these two dynamic chip stocks for the first time, the Year of the Horse could be a economies through a highly focused cross-border strategy.” very important year in Ireland-China relations.”
52 Ireland Asia Business Yearbook 2014
IAYB_page52-53.indd 52 01/05/2014 14:42 IAYB_page52-53.indd 53 01/05/2014 14:42 profile CHINA Continuing success
ECONOMIC OVERVIEW
CHINA is leading the way in the emerging markets in terms of and third-tier cities. economic growth. Although growth has eased from highs of more “In 2013 nearly 100 million Chinese tourists took holidays than 10pc, HSBC economists still predict a rise of around 7.5pc abroad, spending more money than any other nation. Though this year, with many other Asian economies also seeing growth in other Asian countries remain the most popular destinations for excess of 5pc. the Chinese, European locations are battling for a share by There are many reasons to think that China’s success will translating signs, hiring Mandarin-speaking staff and publicising continue, helping to underpin the global economy, notes Chris attractions.” Davies, CEO of Europe International, HSBC. “China is now the single biggest trader of goods in the world; BUSINESS SECTOR OPPORTUNITIES its middle class is growing; and last year the leadership set out Being a fast developing country with a mindboggling population ambitious reforms to nurture hi-tech industries, unlock private of 1.35 billion, admirable manufacturing capacity and a growing enterprise and encourage domestic consumption,” he says. middle class who can afford to consume imported quality “Announcements early in 2014 – including new measures products, China is Ireland’s largest trading partner in Asia and the to support small domestic enterprises and to develop key pilot fastest growing market in the world for Irish food and beverages. programmes in Qianhai and Shanghai to facilitate cross-border The Chinese economy and Irish economy are fairly flows of the Chinese currency – show change is happening fast.” complementary. China’s continued robust growth will create As China continues to grow, trading partners can benefit development opportunities for other members of the international from its success. In addition, China is broadening its overseas community, including steadily recovering Ireland. investment as well as being more open to those who want to do Great potential for mutually beneficial co-operation is to be business on the mainland. tapped in a number of fields, including ICT, life sciences and In 1980, just 20pc of Chinese people lived in cities. This has pharmaceuticals, agriculture, food and beverages, tourism, and risen to more than 50pc and is still increasing. Creating new financial services. cities means building houses, telecommunication and transport With their competitive edge in innovation, entrepreneurship networks, requiring raw materials, machinery and technology. and adaptability, Irish companies are generally in a good position Despite rapid development, China has fewer kilometres of to grasp the business opportunities emerging from China’s railway track than the US had in 1880. It has more than 80 continued development and its strategic partnership with Ireland. cities with a population of more than five million that have no Efforts should be made to make more Chinese consumers underground rail system. aware of the high quality of Irish products. “The average worker’s income in China is expected to increase The Chinese population is rapidly ageing, due to a lower seven-fold from close to $2,500 in 2012 to almost $18,000 by mortality rate and the one-child policy. China’s demographic shift 2050,” notes Davies. to an older society will have a profound impact on the Chinese “But China is starting to cater for all tastes across its population economy and investment opportunities in China. of over one billion with luxury and everyday imports: from China is also looking for investment channels and opportunities German cars, Scottish whisky or French couture for the super all over the world. Ireland has a good investment environment rich to baby goods, convenience foods and bicycles for second and can do better in attracting investment from China.
54 Ireland Asia Business Yearbook 2014
IAYB_page54-55.indd 54 01/05/2014 16:39 profile CHINA
AMBASSADOR INTERVIEW H.E. Xu Jianguo
China shares some key values with Ireland, including respecting elders and rankings, patience, politeness, modesty, and so on. The world has become a global village and it is increasingly easy for people to learn about and from each other. Through the implementation of reform and open- up policies, Chinese businesses have gradually adapted themselves to the international business etiquette, and the cultural barrier has been removed. The trade and investment between China Key facts... and Ireland is mainly based on mutual complementarity. In my view, ICT and other ■ National population: 1.35 billion hi-tech industries, the pharmaceutical ■ List of top five cities and population of industry, agri-food and financial sectors can offer the most opportunities to each: Irish businesses. – Shanghai: 23 million China has built its competitive edge and gained considerable experience – Beijing: 20 million in machinery, telecommunications, financial services and clean energy. – Tianjin: 14 million With a growing middle class, China’s consumption demand for high quality – Guangzhou: 13 million agri-food products will continue to grow. – Chongqing: 10 million Chinese companies are ready to come to Ireland for business ■ Area: 9.6 million sq km opportunities. I hope bilateral pragmatic co-operation can be advanced on a ■ Currency: renminbi, also referred to as mutually beneficial basis. RMB Efforts should be made in publicity and brand building to make Irish ■ Religions: Confucianism, Buddhism, products better known to the large Chinese population. Sophisticated Taoism, Christianity, Islamism campaigns should be conducted to polish the image of Ireland as a source ■ Language: Standard Chinese as well as of quality products. Once Chinese customers come to recognise the minority languages superior quality of Irish products, Irish companies will grow their market ■ Bilateral trade with Ireland: US$6.67bn in share. 2013 (13.2pc increase) ■ Irish exports to China: US$ 4.2bn in 2013 (10.5pc increase) ■ Amount of China exports to Ireland: NATIONAL FLAG US$2.47bn in 2013 (18.1pc increase) ■ GDP: US$9.2trn in 2013 (7.7pc growth) The flag of the People’s Republic of China ■ GDP (purchasing power parity (PPP)): is a red field charged in the canton (upper US$13,395.3 billion corner nearest the flagpole) with five golden ■ Real GDP growth: stars. The design features one large star, with four smaller stars in – 2011: 9.3pc a semicircle set off towards the fly. The red colour represents the – 2012: 7.7pc Communist Revolution; the five stars and their relationship represent – 2013: 7.7pc the unity of the Chinese people under the leadership of the Communist – 2014: 7.5pc (prediction/target) Party of China. Sometimes the flag is referred to as the ‘Five-star Red ■ GDP per capita (current prices): US$6,767 Flag’. ■ GDP per capita (PPP): US$9,869 ■ GDP share of world total: 11.47pc ■ NATIONAL DAY: 1 October 1949 (acccording to statistics of IMF in 2012Ð ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN ■ GDP sector breakdown: agriculture (10pc), CHINA AND IRELAND: 22 June 1979 industry (43.9pc), services (46.1pc)
Ireland Asia Business Yearbook 2014 55
IAYB_page54-55.indd 55 01/05/2014 16:39 profile JAPAN A New beginning
ECONOMIC OVERVIEW
PRIME Minister Shinzō Abe’s administration took office at the BUSINESS SECTOR OPPORTUNITIES end of 2012 and following the introduction of its economic policy As a major developed nation and the world’s third largest ‘Abenomics’, the Japanese economy entered a new phase of economy, Japan has played a central role in the global economy. development. With its highly skilled workforce, Japan has focused efforts on Over the course of 2013, stock prices rose by about 50pc and investment in research and development (R&D) – it has the the yen depreciated by about 20pc, resulting in a correction of the second highest R&D to GDP ratio. currency’s excessive appreciation. With its population of 127 million, Japan’s large domestic The impact on the real economy was also positive, reflected market provides foreign companies with great opportunities. It for example by improved corporate earnings and an increase in intends to strengthen its collaboration with foreign companies personal consumption. in addressing the global challenge of issues such as population Abenomics is based on three pillars: aggressive monetary aging and energy. policy; flexible fiscal policy; and a growth strategy that promotes As part of its growth strategy the Abe administration has private investment. determined to enhance foreign investment through such Steady progress is already being made in the implementation measures as regulatory reform driven by the establishment of of the Bank of Japan’s monetary easing programme and the National Strategic Special Zones, and the conclusion of economic government’s economic stimulus measures. partnership agreements with other countries. The strategy also As regards the growth strategy (promoting investment, aims to expand the market in new areas such as healthcare and strengthening the utilisation of human resources, creating the assisted living industry. new markets and global economic integration), the required In recent years, Japan has become increasingly important as legislation is being passed and is now entering the early stages of a gateway to the rapidly emerging Asian markets. Partnerships implementation. with Japanese companies offer foreign companies the potential In addition, to cover the growing social security costs arising to broaden the scope of their business not only in Japan but from Japan’s aging population, and to reduce the accumulated throughout Asia. debt, the rate of consumption tax was increased from 5pc to 8pc Talks are now underway between Japan and the EU on in April 2014. concluding an economic partnership agreement, which will greatly The government also formalised a 5.5trn yen economic stimulus contribute to the further expansion of trade and investment. package to minimise any negative impact on the economy Though the Japanese market is a mature and developed one, it resulting from the increase. is often said that once foreign enterprises enter it, they can enjoy a long lasting relationship with local partners, based upon mutual trust. 56 Ireland Asia Business Yearbook 2014
IAYB_page56-57.indd 56 01/05/2014 18:04 A New profile JAPAN beginning
Key facts...
■ National population: 1127.18 million AMBASSADOR INTERVIEW (source: Ministry of Internal Affairs and Communications, as of 20 February 2014 H.E. Chihiro Atsumi ■ Top five cities and population of each: In 2013, the leaders of Japan and Ireland (source: Ministry of Internal Affairs and exchanged reciprocal visits, making it Communications, Statistical Handbook of a special year in the history of relations Japan 2014): between the two countries. – Tokyo: 8.967 million When An Taoiseach Enda Kenny TD – Yokohama: 3.708 million visited Japan in December, the two leaders – Osaka: 2.663 million resolved to further strengthen bilateral – Nagoya: 2.248 million ties based on shared values, including – Sapporo: 1.92 million democracy and the rule of law, and issued ■ Area: 377,960 sq km (source: Statistical a joint statement entitled ‘Partnership for Handbook of Japan 2014) Innovation and Growth’. ■ Currency: yen The statement refers to: (1) the significant potential to increase trade ■ Religion/s: Shinto, Buddhism etc and investment in sectors such as agri-food, financial services, ICT, life ■ Language/s: Japanese sciences and clean technologies and (2) the promotion of closer research ■ Bilateral trade with Ireland: US$3,628m and development collaboration in the sectors of medical devices and ■ Irish exports to Japan: US$2,246m technologies, environmentally friendly technologies, and new ICT-based ■ Irish imports from Japan: US$1,382m services to improve older people’s quality of life. (source: CSO, 2013) Memorandums of understanding were also signed between JETRO and Note: services excluded. Value of exports IDA Ireland and Enterprise Ireland, with a view to strengthening bilateral and imports based on the average exchange economic cooperation. rate 2013 (€1 = US$1.328). There are over 60 Japanese companies currently operating in Ireland in ■ GDP (nominal): US$5,960bn industries such as pharmaceuticals, financial services and aircraft leasing, ■ GDP (purchasing power parity (PPP)): while in Japan about 50 Irish companies are active in areas including US$4,575bn (source: IMF World Economic aviation services, food and financial services. Outlook, October 2013) Japanese and Irish companies and research institutes are also ■ Real GDP growth (source *1-*3: Cabinet working together on R&D in such areas as big data analysis and assisted Office, Government of Japan, *4: IMF World independent living for older people. Economic Outlook, October 2013): – 2011: 0.5pc *1 – 2012: 1.4pc *2 NATIONAL FLAG – 2013 estimated: 1.5pc *3 The Japanese language name for Japan is ‘Nippon, – 2014 estimated:1.25pc *4 which literally means ‘origin of the sun’. The ■ GDP per capita: US$46,706 national flag of Japan is called the ‘Hinomaru’(‘sun ■ GDP per capita (PPP): US$35,178 circle’) and it has been used as a symbol of Japan ■ GDP share of world total (nominal): 5.5pc since the 16th century. (source: IMF World Economic Outlook, October 2013) ■ NATIONAL DAY: 23 December (Emperor’s birthday) ■ GDP sector breakdown: services (74.9pc), industry (23.9), agriculture, forestry and ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN fisheries (1.2pc) (source: Cabinet Office, JAPAN AND IRELAND: 5 March 1957 Government of Japan)
Ireland Asia Business Yearbook 2014 57
IAYB_page56-57.indd 57 01/05/2014 18:04 profile INDONESIA
Strength in stability
ECONOMIC OVERVIEW
THE largest economy in Southeast Asia with a GDP of more than In general, this stability in the macro economy and the financial US$1trn, Indonesia has recorded strong growth over the past few system is inseparable from the support of monetary, fiscal and financial decades. sector policies, which have been carried out consistently and prudently The national economy expanded from 5.63pc in the third quarter through increasingly solid co-ordination. of 2013 to 5.72pc in the fourth quarter as a result of stronger exports Coupled with political stability, youthful and vibrant society and in line with growing demand from leading trade partners, particularly reform minded, democratic government, the economic outlook of advanced countries. Indonesia as an emerging market, global powerhouse and investment Economic growth in Indonesia as a whole for 2013 was 5.78pc. destination has never been better. In 2014, strong domestic demand is expected to persist and exports are expected to perform more favourably in line with global econom- BUSINESS SECTOR OPPORTUNITIES ic recovery – growth in 2014 is projected to hit the lower end of the Important business opportunities in Indonesia exist in several key 5.8–6.2pc range. sectors. The major economic sector in Indonesia is manufacturing This strong domestic demand is supported by two structural and processing that contributes around 24.3pc of GDP and includes strengths – the advantageous demographic structure, as the middle the sub-sectors of food and drink, machinery and transportation, and income class is currently expanding and growing consumption and textiles. investment. The manufacturing sector is followed by the agricultural sector, Indonesia’s macroeconomic stability is also reflected in the low infla- which includes forestry, plantation, farming and fishery, and the trad- tion rate, which showed a declining trend and stayed within a target ing and hospitality sector. range of 4.5 ± 1pc. These together contribute around 14.3pc of the country’s GDP Meanwhile, stability in the financial system has been well maintained while mining accounts for 11.9pc. More than half of this comes from as the banking sector is becoming better at absorbing risk and con- oil and gas mining. tinues to effectively perform its intermediary role. 58 Ireland Asia Business Yearbook 2014
IAYB_page58-59.indd 58 01/05/2014 16:56 profile INDONESIA
AMBASSADOR INTERVIEW H.E. TM Hamzah Thayeb In principle, there are many similarities between Indonesia and Ireland in terms of values. Although we are hard workers, Indonesians attach a great importance to their family, just like Irish people. Indonesians are hospitable, while the Irish are naturally courteous and wel- coming to strangers. For Indonesians, it is also important to have a good and solid friendship with somebody before doing business. This process is time consuming and requires Irish businesses to present themselves more as Key facts... people rather than businesses. However, it will set the basis for a good busi- ness relationship with partners in Indonesia. ■ National population: 237.641,326 million As a developing country and a premier emerging market in Asia, Indonesia (2010 census) offers a multitude of opportunities for Irish businesses. For the years to come, ■ List of top five cities and population of Indonesia expects that Irish business will be interested in expanding in value each (2010): added sectors such as in mining and agriculture; the high growth domestic - Jakarta (capital): 9.6 million people demand industry and infrastructure projects. - Surabaya: 2.76 million people As an important global mining hub, Indonesia produces key commodities - Bandung: 2.39 million people such as coal, copper, tin, gold and nickel. - Bekasi: 2.33 million people In terms of agri-industry, it has become the world’s largest producer of palm - Medan: 2.09 million people oil and a leading global producer of high value agriculture commodities such ■ Area: 1,904,569 sq km as cocoa, rubber and coffee. Irish businesses can also invest in export oriented ■ Currency: rupiah industries such as textile, electrical, machinery and paper. The tourism sector ■ Religion/s: Islam, Christian, Roman is growing and promising, with around 8.8 million international visitors having Catholic, Hindu, Buddha, Confucianism come last year and 10 million projected for this year. ■ Language/s: Bahasa Indonesia (national Ireland is at the forefront of the digital economy, driven by hi-tech indus- language) tries, while having comparative advantage on manufacturing industries such ■ Bilateral trade with Ireland: US$174.8m as pharmaceuticals, metals and machinery, as well as transport infrastructure. (2012); US$171.8m (2013) Knowledge, expertise and technology in these sectors would be necessary to ■ Irish exports to Indonesia: US$109.8m advance a strong manufacturing base in Indonesia. (2012); US$115.8m (2013) Ireland being part of the EU will also continue to provide Indonesian busi- ■ Indonesian exports to Ireland: nesses and their products with a gateway to enter European markets. US$64.9m (2012); US$56m (2013) I am pleased to learn that the Irish Government plans to open an embassy in ■ GDP: US$867.5bn (2013) Jakarta in the near future. ■ GDP (purchasing power parity (PPP)): US$1.28bn (2013) ■ Real GDP growth: NATIONAL FLAG - 2011: 6.46pc The design of the Merah Putih, or red-and-white, national flag - 2012: 6.23pc of Indonesia is two equal horizontal bands, red on top and - 2013: 5.78pc white at the bottom. The red stands for courage and represents - 2014: 5.8-6.2pc the human body, while the white stands for purity and repre- ■ GDP per capita (current prices): sents the human soul. Together it stands for a complete human US$3.499 (2013) being, one that is pure and courageous. ■ GDP per capita (PPP): US$5.182 (2013) ■ GDP sector breakdown: agriculture ■ NATIONAL DAY: 17 August (Independence Day) (14.3pc), industry (46.9pc), services ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN (38.8pc) INDONESIA AND IRELAND: 4 September 1984
Ireland Asia Business Yearbook 2014 59
IAYB_page58-59.indd 59 01/05/2014 16:56 profile INDIA
growPower to
ECONOMIC OVERVIEW
WITH a population of over 1.2 billion, the Indian economy is the evident and tangible with no sector left untouched. third largest in terms of power purchase parity and 11th largest in India’s attractiveness as an investment destination is apparent terms of nominal GDP in the world. from the average net inflow that more than trebled during 2006– The economic policy in the 12th Five Year Plan 2012–17 aims 2011 to US$13.6bn from an average net inflow of US$ 3.8bn at sustainable and inclusive growth to ensure that the benefits of between 2001 and 2005. development percolate to all regions and sections of the society. Steady growth, rising demands, low labour costs, a sound The Indian economy is characterised by strong macroeconomic regulatory environment and regional development of second and fundamentals, recording 7.8pc growth during the period 2003 and third tier cities provide fresh business opportunities. 2012, reaching a peak of 9.7pc in 2007. Improvement in infrastructure is one of the focus areas for the The economy was not as adversely affected by the global government, including roads, airports, seaports, power plants recession of 2008 as other markets because of strong domestic and communications networks. In the 12th Five Year Plan the demand, the high rate of domestic savings, good performance of government has committed an investment of over US$1trn in the service sector and a high investment rate. infrastructure. Foreign direct investment (FDI) policy has been liberalised to On a sectoral basis, ICT, telecommunications and the make India more investor friendly. Sectoral caps on key areas automobile sectors have shown impressive growth. Recognising have been amended to stimulate FDI inflows. In 2013, India was the importance of a more dynamic, diversified and export rated the most favoured investment destination globally despite oriented manufacturing sector, the government unveiled the the downturn. National Manufacturing Policy, which calls for boosting the share The economic slowdown bottomed out last year. A spell of of manufacturing to 25pc of GDP. global financial turbulence caused capital outflows and pressure New manufacturing clusters and the transformation of the on the exchange rate but strong policy decisions stabilised the major transport corridors into economic corridors to promote currency, rebuilt reserves and narrowed the current account industrial activity provide immense opportunities for businesses. deficit. India is also fast emerging as partner of choice in drug After a slow growth rate of 4.8pc, the economy is projected development and manufacturing for global pharma giants and a to recover in the coming year. The export growth rate is also hub for generics with exports reaching over US$11bn. expected to pick up to 10.5pc as economies in US and Europe The need to build infrastructure also brings new opportunities regain momentum. for businesses in clean technologies, renewal energy, energy efficiency and environmental services. BUSINESS SECTOR OPPORTUNITIES Opportunities for business and investment in India are self- Source: www.ibef.org
60 Ireland Asia Business Yearbook 2014
IAYB_page60-61.indd 60 01/05/2014 16:54 profile INDIA AMBASSADOR INTERVIEW H.E. Radhika Lal Loke
India, with its booming economy and fast growing consumer market, is a key partner in Ireland’s emerging market growth strategy. There is a lot of potential in expanding business links in sectors such Power to as infrastructure development, technology and innovation, education, aviation-related technology, and food and beverages. In addition, India is one of the fastest growing tourist generating markets in the world. Last year, over 17 million Indians travelled abroad. The Irish travel industry can seize the opportunity and develop strong links and co-operative programmes with tour operators in India. The past few years have seen some of the major Indian IT and pharmaceutical companies investing in Ireland. These include TATA Key facts... Consultancy Services, HCL, Wipro, Ranbaxy, Workhardt, Reliance and engineering firm Crompton Greaves. ■ National population: 1 . 2 1 b i l l i o n ( 2 0 1 1 ) It is estimated that Indian companies employ more than 3,000 Irish people. ■ List of top five cities and population of It is evident that for Indian businesses, Ireland is an attractive and strategic each: gateway to expand into continental Europe. As an investment and trade – Mumbai: 18.41 million destination, Ireland offers opportunities in ICT, healthcare and life sciences, – Delhi: 16.31 million pharmaceuticals, financial and business services, textiles, garments, and – Kolkata: 14.11 million leather goods. – Chennai: 8.7 million Last year was a record year for the bilateral relationship with greater – Bangalore: 8.5 million investment flows and trade than ever before and growing tourism and ■ Area: 3 , 2 8 7 , 5 9 0 s q k m educational links. But there are several areas where the potential remains ■ Currency: Indian rupee untapped. Increased interaction is most important to take the relationship to ■ Religion/s: Hinduism, Islam, Buddhism, a higher level. This will entail more frequent high level visits and exchanges Christianity, Jainism, Sikhism, of business delegations from both sides, greater connectivity and a more Zoroastrianism, Judaism etc liberalised bilateral visa regime. ■ Language/s: 22 languages listed in eighth Schedule of the Constitution, Hindi and English are the official languages NATIONAL FLAG ■ Bilateral trade with Ireland: €667m (2013) The National flag of India (affectionately called ‘Tiranga’‘Tiranga’ ■ Irish exports to India: €36m (2013) meaning ‘tricolour’) has three equal horizontal bands –– ■ Indian exports to Ireland: €235m the top panel is IndiaIndia saffronsaffron (Kesari),(Kesari), thethe bottombottom panelpanel (2012) is India green andand thethe whitewhite middlemiddle bandband bearsbears atat itsits ■ GDP: US$ 1.842trn (2012) centre the Wheel of Law or Dharma Chakra in navy blue colour with 24 ■ GDP (purchasing power parity (PPP)): equally spaced spokes. It was adopted by the Constituent Assembly US$3818bn (2012) on 22 July 1947. Saffron stands for courage and sacrifice, white ■ Real GDP growth: symbolises truth, peace and purity and green represents prosperity, – 2010–2011: 9.3pc vibrancy and life. The Wheel of Law or Dharma Chakra appears on the – 2011–2012: 6.2pc abascus of the Sarnath Lion, Capital of Emperor of Ashoka. – 2012–2013: 5pc ■ 2013–2014 (predicted): 5.5pc ■ NATIONAL DAY: 26 January (Republic Day)/15 August ■ GDP per capita (current prices): (Independence Day) US$1.489 (2012) ■ GDP per capita (PPP): U S $ 3 , 8 1 3 ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN ■ GDP share of world total (at PPP): INDIA AND IRELAND: formal diplomatic links were established 5.67pc in 1947, India opened its embassy in Dublin in 1951 and the Irish ■ GDP sector breakdown: agriculture embassy in New Delhi was set up in 1964 (17.5pc – 2012), industry (26.2pc – 2 0 1 2 ) , s e r v i c e s ( 5 6 . 3 p c – 2 0 1 2 )
Ireland Asia Business Yearbook 2014 61
IAYB_page60-61.indd 61 01/05/2014 16:54 profile KOREA
Innovation nation
ECONOMIC OVERVIEW
HOME to global heavyweights such as Samsung and Hyundai, BUSINESS SECTOR OPPORTUNITIES Korea is the 15th largest economy in the world and ranks ninth A superb talent pool, a 50 million-strong domestic market with high worldwide in trading volume. purchasing power and a transparent regulatory environment make A member of the G20 and the OECD, Korea also belongs to the Korea both a safe harbour from which Irish businesses can anchor exclusive ‘20-50’ club, a term referring to just a handful of countries their Asian activities and a potent market in its own right. (the US, Japan, France, Germany, Italy and the UK) that have a In particular, its location at the heart of transportation networks in population of over 50 million and yet maintain a per capita income East Asia makes for an ideal foothold to launch into the rest of Asia. of over US$20,000. In the Ease of Doing Business Index generated by the World Korea is looking to the future by making the transition into a Bank that surveyed 183 economies, Korea ranked seventh in the creative economy, built on innovation and openness. world. The Korean government has vowed to push forward further Automobile, ICT, semiconductor and shipping are just some of deregulation, to facilitate mergers and acquisitions and support the industries where Korea has established global presence. With creative venture start-ups by injecting up to nearly US$4bn dollars the launch of the creative economy initiative by President Park by 2017. Geun-hye in 2013, Korea is looking to forge partnerships with Investment in research and development (R&D) is also strong. innovative businesses around the world. In that aspect, Ireland’s Korea is ranked first among OECD countries in terms of R&D comparative advantage in nanotechnology, ICT and life sciences intensity (R&D expenditure as a percentage of GDP). It came out place the co-operation between the businesses of two countries on on top again on Bloomberg innovation rankings that surveyed 215 a strong platform. countries and in the Innovation Union 2014 report, published by the In addition to Hyundai, Samsung, LG, POSCO and other Korean European Commission early this year. conglomerates, there are a number of small and medium-sized The only Asian country to have established free trade companies, accounting for 88pc of the employment in Korea, agreements (FTAs) with both the EU and the US, Korea has a with key technology or niche know-how, which can be invaluable global FTA network encompassing 45 countries, or 61pc of the total partners for Irish businesses. world economy. In particular, the Korea-EU FTA took effect in 2011, offering greater two-way access for both Korean and European (Irish) firms.
62 Ireland Asia Business Yearbook 2014
IAYB_page62-63.indd 62 01/05/2014 16:56 profile KOREA
AMBASSADOR INTERVIEW H.E. Park, Hae-yun
Since my arrival in Ireland in June last year, I have found a grain of truth in the saying that Koreans are the Irish of Asia. I was surprised to travel halfway around the world to discover a familiar gregarious and warm- hearted spirit in my Irish friends. In terms of business etiquette, I find that the Irish can be more casual. For instance, the Irish are quicker to adopt a first name basis Key facts... than Koreans. Yet, there is an emphasis on camaraderie and human relationships that underpins both cultures, which makes one ■ National population: 50 million approachable to the other as testified by the (2012 est) increasing number of visitors on both sides. ■ Top five cities Both countries have cutting-edge technology in sectors such as healthcare – Seoul (10.4 million) services, software development and cloud computing services and there – Busan (3.6 million) are ample opportunities for joint ventures, co-operative R&D projects and – Incheon (2.8 million) partnerships. – Daegu (2.5 million) I have come to know Irish companies that have created successful business – Daejeon (1.5 million) by combining their knowledge of the European market with hi-tech products ■ Area: 100,460 sq km manufactured by a small and medium-sized company in Korea. I have also come ■ Curency: won to know Korean companies that have started to import Irish food and beverage ■ Religions (2005 census): Buddhism products into Korea with great consumer response. These different cases (24pc), Protestantism (23pc), suggest that opportunity will only present itself to those who invest the time and Catholicism (8pc), other (0.8pc), no resources to develop partnerships and understand the market. religion (44.2pc) Korea and Ireland celebrated the 30th anniversary of the establishment ■ Amount of bilateral trade with of diplomatic relations in 2013. During the three decades, the two countries Ireland in 2013 in US dollars have seen an exponential growth in all aspects: number of visitors, cultural (sources: Korean International Trade exchanges, investment and trade. In particular, since the establishment of the Association): Korea-EU FTA in 2011, bilateral trade has been on a non-stop upward growth – Korean exports to Ireland: path. US$369m – Irish exports to Korea: US$833m – Total volume of trade: US$1,201m – GDP (nominal): US$1.19trn (2013) NATIONAL FLAG ■ GDP (PPP): US$1.66trn ■ Real GDP growth (Bank of Korea): Called Taegeukgi, the Korean flag has its roots – 2013: 3.0pc in traditional Korean philosophy on the origin ■ GNI per capita (2013): US$26,205 of the universe. In the centre, blue and red half- ■ GDP share of world total (IMF, 2012): circles, symbolising the cosmic forces of ‘yin’ and ‘yang’ respectively, 1.6pc are joined together to form a whole circle, a reference to the principle that ■ GDP sector breakdown (CIA the universe evolves from the fluid interaction and harmony between two Factbook, 2012 est): agriculture contrasting forces. The four trigrams surrounding the circle embody the (2.7pc), industry (39.8pc), services four universal elements: heaven, earth, fire and water. (57.5pc) ■ Trading volume: US$1.075trn ■ NATIONAL DAY: 3 October ■ DIPLOMATIC RELATIONS ESTABLISHED BETWEEN KOREA AND IRELAND: 4 October 1983
Ireland Asia Business Yearbook 2014 63
IAYB_page62-63.indd 63 01/05/2014 16:56 profile SINGAPORE Open for business
ECONOMIC OVERVIEW SINGAPORE adopts a market-based approach for sustainable and a strategic gateway for international companies to ride on the Asian inclusive growth and has a highly open economy, with external trade growth story. amounting to three times the country’s GDP. Coupled with a diversified economic structure and strong macro- BUSINESS SECTOR OPPORTUNITIES economic fundamentals such as low unemployment and consistent While its financial, logistics, and manufacturing sectors are globally budget surpluses, Singapore’s economy is robust and resilient. competitive, Singapore is also broadening its core industrial clusters Recording a healthy 4.1pc growth in its economy in 2013, Singapore to include industries such as biomedical sciences and consumer has an advantageous geographical location, excellent global connec- business. tivity and pro-business policies. Economic co-operation between the EU and Singapore can It has been consistently ranked by the World Economic Forum be expected to receive a boost following the conclusion of the (WEF) as one of the easiest places to conduct business. Singapore’s EU-Singapore Free Trade Agreement (EUSFTA) in 2013. extensive free trade agreements also provide companies with market Both EU and Singapore companies will benefit from improved connectivity. market access and greater commercial opportunities once the Collectively, these factors mean that Singapore is well placed to be EUSFTA enters into force.
64 Ireland Asia Business Yearbook 2014
IAYB_page64-65.indd 64 01/05/2014 16:54 profile SINGAPORE
AMBASSADOR INTERVIEW H.E. T Jasudasen Singapore and Ireland enjoy a warm friendship, underpinned by our common perspectives as small, outward looking states. We are both open and pro-trade economies, seeking to re-position ourselves for the knowledge-based economy Key facts... and attract investments from around the world. Historically, Singapore and Ireland have long ■ National population: 5.39 million (as of standing links that go back about 200 years. June 2013) Many Irishmen contributed greatly to Singapore, ■ Area: 716.1 sq km developing our towns, education, police force ■ Currency: Singapore dollar and other public facilities. ■ Religion/s: Buddhism (33.9pc), Islam This has generated a great reservoir of good- (14.3pc), Taoism (11.3pc), Christianity will between Ireland and Singapore. Coupled with similar pro-business poli- (11pc), Catholicism (7.1pc), Hinduism cies and infrastructure as well as sharing a common language, both Irish and (5.2pc), other religions (0.7pc), none Singaporean companies have found it easy to do business with each other. (16.4pc) Irish companies are strong in sectors such as pharmaceuticals, information ■ Language/s: Malay, Mandarin, Tamil technology services, consumer business and biomedical science, and we wel- and English are the four official lan- come them to use Singapore as a launchpad to access the greater Asian mar- guages in Singapore ket. ■ Bilateral trade with Ireland: US$1.43bn I am pleased to note that our bilateral trade totalled US$1.43bn in 2013, a 14pc (S$1.81bn) increase over the year before. This marks the third straight year of bilateral ■ Irish exports to Singapore: US$855.33m trade growth. (S$1.08bn) We should build on this positive development for greater economic collabora- ■ Singapore exports to Ireland: tion. For 2014, we hope to see a speedy ratification of the EUSFTA, so that both US$573.77m (S$724.48m) Irish and Singapore companies can start enjoying the substantial economic ■ GDP (at current market prices): benefits of the agreement. US$281.8bn ■ Real GDP growth (2011, 2012, 2013 and prediction for 2014): NATIONAL FLAG 6pc (2011), 1.9pc (2012), 4.1pc (2013), It consists of two equal horizontal sections of red above white. 2–4pc (2014 estimate) The upper left section contains a white crescent moon and ■ GDP per capita (current prices): five white stars, which form a circle. Red symbolises universal US$52,900 brotherhood and the equality of man, while white signifies per- ■ GDP share of world total: 0.388pc (2013 vading and everlasting purity and virtue. The crescent moon estimate) represents a rising young nation. The five stars stand for the nation’s ideals ■ GDP sector breakdown: manufacturing of democracy, peace, progress, justice and equality. (18.6pc), wholesale and retail trade (18.2pc), business services (15.6pc), ■ NATIONAL DAY: 9 August finance and insurance (12.2pc), trans- ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN portation and storage (7pc), construction SINGAPORE AND IRELAND: 2 December 1974 (4.4pc)
Ireland Asia Business Yearbook 2014 65
IAYB_page64-65.indd 65 01/05/2014 16:54 profile VIETNAM Dynamic market
ECONOMIC OVERVIEW
VIETNAM has successfully transformed from a centrally planned economy with heavy bureaucracy and subsidies to a socialist oriented BUSINESS SECTOR OPPORTUNITIES market economy characterised by strong dynamism and rapidly grow- Infrastructure, agriculture, energy, information technology and ing entrepreneurship. human resource development, including education and training, It has recorded average annual GDP growth of 7pc over the past continue to be the sectors that would offer the best opportunities for two decades (5pc in 2012 and 5.42pc in 2013). It is a highly open Irish businesses both in the short and long terms. economy, with international trade exceeding 160pc of GDP, and is the The ongoing state-owned enterprises equitisation (privatisation) world’s No 1 exporter of rice, coffee and black pepper, and a major process gives foreign investors good opportunities to participate in exporter of textiles, seafood, electronics, software, crude oil and furni- the restructuring of the national economy. ture. The 150th member of the World Trade Organisation, Vietnam is Vietnam is regarded as one of the top emerging economies invest- being integrated ever deeper into the regional and world economy ment destinations, one of the ‘Next 11’ emerging economic powers, as it continues to implement a number of existing multilateral and and one of the next BRICS, attracting an estimated US$6.5bn in FDI in bilateral free trade agreements (FTAs) and conclude new FTAs with each of the past five years. major trading partners. The Ernst & Young report on rapid growth markets (published in These include a bilateral FTA with the EU scheduled to be signed October 2012) calls Vietnam a rising star with GDP growth of 6pc a in late 2014, and the wide ranging and comprehensive Trans-Pacific year for the next 25 years, a GDP per capita increase of six times Partnership Agreement (TPP) expected to be concluded in 2014 over the next 25 years; and the number of households earning over also. US$30,000 rising from less than 6,000 in 2011 to more than 60,000 in 10 years’ time.
66 Ireland Asia Business Yearbook 2014
IAYB_page66-67.indd 66 01/05/2014 18:06 profile VIETNAM
AMBASSADOR INTERVIEW H.E. Vu Quang Minh Key facts... Vietnam and Ireland share a lot of common values. We both are nations that have had to ■ National population: 92 million fight hard and made great sacrifices for national ■ Top five cities and population of each: independence. Our peoples are at the same time – Ho Chi Minh city: 7.921 million peace loving, kind hearted and hard working. – Hanoi: 7.189 million We both have creative ideas in business. We – Hai Phong: 1.978 million both highly value education as key to trade – Da Nang: 1.051 million development. – Can Tho: 1.298 million The sectors offering the most opportunity ■ Area: 331,210 sq km to Irish businesses are IT, including software ■ Currency: Vietnam Dong (VND) development; agriculture and food process- ■ Religion/s: Buddhist 9.3pc, Catholic ing; dairy products; chemicals; plastics; oil and gas; pharmaceutical; textiles; 6.7pc, Hoa Hao 1.5pc; Cao Dai 1.1pc; education, including vocational training; infrastructure development; services; Protestant 0.5px, Muslim 0.1pc environment technology; energy; tourism; engineering; machinery; and equip- ■ Language/s: Vietnamese, English, ment. French, Chinese, Khmer Trade includes exports of agricultural and seafood products, textiles, foot ■ Bilateral trade with Ireland: €182.96m ware, telecom and IT products, furniture, education, and tourism. (US$254.75m) This year I would like to see a historic visit to Vietnam in 2014 by An ■ Irish exports to Vietnam: €94.47m Taoiseach Enda Kenny TD with an accompanying large trade mission followed (US$131.5m) by the establishment of Ireland-Vietnam Business Council. ■ Vietnam exports to Ireland: €88.49m (US$123.21m) ■ GDP: US$170bn NATIONAL FLAG ■ GDP (purchasing power parity (PPP)): The national flag of the Socialist Republic of Vietnam is rect- US$358.8bn angular in shape. Its width is equal to two-thirds of its length, ■ Real GDP growth: 5.89pc (2011), 5.03pc and in the middle of the red background is a bright five-pointed (2012), 5.42pc (2013), forecast 5.7pc yellow star. It was first used in the ‘Southern Uprising’ of 23 (2014) November 1940 against French rule. The red background repre- ■ GDP per capita (current prices): sents blood and also the revolution spirit, while the yellow fore- US$1,895 ground represents ‘the colour of our race’s skin’. The five points of the star ■ GDP per capita (PPP): US$4,001 represent the unity of intellectuals, peasants, workers, traders and soldiers. ■ GDP share of world total: 0.414pc ■ GDP sector breakdown: 19.3pc, 38.5pc, ■ NATIONAL DAY: 2 September 42.2pc ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN Sources: IMF, CIA, General Statistics Office VIETNAM AND IRELAND: 5 April 1996 of Vietnam
Ireland Asia Business Yearbook 2014 67
IAYB_page66-67.indd 67 01/05/2014 18:06 profile MYANMAR
Land of promise
ECONOMIC OVERVIEW
BORDERED by China, Thailand, India, Laos and Bangladesh, growth rate in 2012–2013, which exceeded the projected growth Myanmar is now in the midst of historic change, which is occurring rate of 6.7pc. Foreign direct investment, meanwhile, is on pace for at a pace that was almost unimaginable previously. a record year, after reaching US$1.8bn in just five months of the In the 1960s, it faced a bright future as a major rice exporter and 2013–14 fiscal year. one of Southeast Asia’s leading economies. Since then it fell far There are ongoing discussions on a number of bills, including the behind as the rest of the region transformed itself through market establishment of a special economic zone law, mining regulations oriented reforms and trade integration. and the revamping of the foreign investment law. Continued economic reforms in Myanmar were set by a series of The government is looking for potential investors. There are unprecedented milestones last year, including the announcement of numerous opportunities in the tourism industry, agricultural sector, two international telecommunications firms as winners of a tender garment industry, fisheries and livestock breeding sectors, gems to develop Myanmar’s mobile infrastructure, and the implementation industry, banking, financial sector, energy sector, and oil and gas of guidelines for the Foreign Investment Law. sectors. Economic and social reforms have been implemented with a Many promising business and investment opportunities are people centred approach. For economic development, there are now emerging. The government put in place solid foundations three prerequisites – financial capital, technology and human for a market economy to thrive, along with an investor friendly resource development. Myanmar is now inviting more foreign environment. investment to fulfil those requirements. The economic transition faces momentous challenges, but holds The government has achieved good results with a 7.3pc GDP even greater promise and opportunities in Myanmar.
68 Ireland Asia Business Yearbook 2014
IAYB_page68-69.indd 68 01/05/2014 18:08 profile MYANMAR
Key facts...
■ National population: 59.78 million (as of October 1, 2011) ■ Top five cities and population of each: – Nay Pyi Taw: 925,000 – Yangon: 4.6 million – Mandalay: 1.2 million – Mawlamyine: 438,861 NATIONAL FLAG – Bago: 244,376 ■ Area: 676,552 sq km The Republic of the Union of Myanmar adopted ■ Timezone: UTC/GMT +6:30 hours a new state flag on 21 October 2010. It was ■ Currency: kyat (MMK) introduced along with implementing changes ■ Religion/s: Theravada Buddhism to the country’s name, which were laid out in the 2008 constitution. The (89pc), Christians (4pc), Muslim (4pc), design of the flag has three horizontal stripes of yellow, green and red Hindu (1pc), other (1pc) with a five-pointed white star in the middle. The yellow colour symbolises ■ Language/s: Burmese (official solidarity, the green colour symbolises peace and tranquility, and the red language) and over 100 ethnic colour symbolises courage and decisiveness. The white star represents languages the union of the country. The proportions of the flag are 6:9 feet. ■ GDP:US$ 55.9bn (2012) ■ Real GDP growth: 7.3pc (2012/13) ■ NATIONAL DAY: Independence Day is the official national day ■ GDP per capita: US$1,096 (2012/13) annually celebrated in Myanmar on 4 January commemorating the ■ GDP per capita (purchasing power country’s Declaration of Independence from Britain on 4 January 1948 parity): US$1,700 (2013 est) ■ GDP share of world total: 0.09pc ■ DATE OF ESTABLISHMENT OF DIPLOMATIC RELATIONS BETWEEN ■ GDP sector breakdown: agriculture MYANMAR AND IRELAND: 10 February 2004 (33.6pc), industry (27.6pc), services (38.8pc) (2012/13)
Ireland Asia Business Yearbook 2014 69
IAYB_page68-69.indd 69 01/05/2014 18:08 profile THE PHILIPPINES
Resilient return
ECONOMIC OVERVIEW
THE Philippine economic story is one of resurgence and World Economic Forum’s Global Competitive Index and over 30 resilience. Despite the damage caused by Typhoon Haiyan, the places in the IFC Doing Business survey. Philippines grew by 7.2pc in 2013, the highest growth rate in The Philippines is better positioned and has avoided the pitfalls Southeast Asia and second highest in Asia. of other emerging economies, or even developed economies Prior to the typhoon, the Philippines was growing by 7pc or in the eurozone. It has made itself structurally stronger, better higher for five consecutive quarters and expanding for 60 straight prepared and more resilient against market volatility and external quarters – an uninterrupted run of growth for over 14 years. shocks, not to mention natural disasters such as Typhoon Many factors have been cited for the Philippine economy’s Haiyan. robust performance: dynamic business and private sector activity, sound fiscal management, solid economic fundamentals, and a BUSINESS SECTOR OPPORTUNITIES stable political environment. Irish firms should consider establishing operations in Philippine The sustained growth figures and economic performance Economic Zones as a springboard for the massive export market are likewise attributed to improved governance under the in Asia, most particularly the ASEAN, which will be a single administration of President Benigno Aquino III, whose economic economic community by 2015. policies have set forth a programme of institutional reforms, The Philippines is an ideal location to establish offshore passage of landmark laws, promotion of transparency and operations, as well as manufacturing operations for export into accountability, and support for broad-based growth. the ASEAN community due to its many comparative advantages, Reflecting such improved governance and dynamism, the including the young, dynamic, productive labour force with Philippines jumped eight places in The Wall Street Journal’s high level of education, its use of the English language as the Index of Economic Freedom last year, over 25 places in the business medium and its guaranteed labour peace.
70 Ireland Asia Business Yearbook 2014
IAYB_page70-71.indd 70 01/05/2014 16:49 profile THE PHILIPPINES
Key facts... ■ National population: 97.35 million (2013 projection) AMBASSADOR INTERVIEW ■ Top five cities by population: H.E. Enrique A Manalo – Quezon City: 2.76 million The Philippines and Ireland share values – City of Manila: 1.65 million in many aspects of life such as work, – Caloocan City: 1.49 million family and community, as well as sharing – Davao City: 1.45 million a common dominant faith. – Cebu City: 866,000 The sectors that offer the most ■ Area: approximately 300,000 sq km opportunity to Irish businesses in the ■ Currency: Philippine peso Philippines are information technology/ ■ Religions: Roman Catholic (82.9pc), business process management (IT/BPM), Protestant (5.4pc), Islam (4.6pc), Philippine particularly in the field of financial and Independent Church (2.6pc), Iglesia ni accounting services, software and mobile Cristo (2.3pc) application development; knowledge ■ Languages: two official languages – process outsourcing, particularly in the Filipino and English. Filipino is the national areas of engineering, architectural design and other creative services; language. English is also widely used and renewable energy; manufacturing in agribusiness and food processing; is the medium of instruction in education. aerospace including maintenance, repair and overhaul (MRO); public- Eight major dialects spoken by majority of private partnerships and infrastructure projects; wearables; and apparel the Filipinos – Tagalog, Cebuano, Ilocano, sourcing. Hiligaynon or Ilonggo, Bicol, Waray, In Ireland, the sectors that offer the most opportunity to Philippine Pampango, and Pangasinense businesses are electronics, food and agriculture products, information ■ Bilateral trade with Ireland: technology, tourism, renewable energy, garments, and wearables. US$375,880,000 (2012) ■ Irish exports to the Philippines: US$347,280,000 (2012) ■ Philippine exports to Ireland: NATIONAL FLAG US$28,600,000 (2012) ■ GDP: US$272.2bn (2013 estimate) The sun represents independence, and its eight rays ■ GDP (purchasing power parity (PPP)): represent the first eight provinces that revolted against US$454.3 billion (2013 estimate) Spanish colonial rule. The three stars represent the ■ Real GDP growth: 7.6pc (2010), 3.9pc country’s three main geographic regions: Luzon, (2011), 6.8pc (2012), 7.2pc (2013), Visayas and Mindanao. The white triangle represents 6.5pc–7.5pc (2014 projection) equality. The blue field represents patriotism and the red field valour.. ■ GDP per capita (current prices): US$2,587 (2012) ■ NATIONAL DAY: 12 June (Independence Day) ■ GDP per capita (PPP): US$4,700 (2013) ■ GDP share of world total: 0.5pc (2012) ■ DIPLOMATIC RELATIONS ESTABLISHED WITH IRELAND: GDP sector breakdown: services (57pc), 9 July 1946 industry (32pc), agriculture (11pc)
Ireland Asia Business Yearbook 2014 71
IAYB_page70-71.indd 71 01/05/2014 16:49 profile THAILAND
A leading player
ECONOMIC OVERVIEW
WITH a GDP of more than US$390bn, Thailand is the second is committed to maintain fiscal discipline under the Fiscal largest economy in Southeast Asia. Sustainability Framework. Public debt to GDP is currently at 46.1pc A free market, the country has a strong domestic market and a of GDP (February 2014), well below the level specified in the Fiscal growing middle class, with the private sector as the main driver and Sustainability Framework at 60pc of GDP. exports accounting for over 70pc of GDP. In terms of competitiveness, Thailand was ranked 37th among During the past five years, GDP grew on average by 3pc. In 148 economies by the World Economic Forum (WEF) in the 2013– 2014, GDP should continue to grow by 2.1–3.1pc and exports, as a 2014 edition of the Global Competitiveness Report. major engine of growth, by 3.4–5.4pc, according to estimates. According to the 2013 HSBC Expat Explorer Survey, Thailand is Thailand has been a leader in the region in terms of trade ranked first on economic and experience dimensions. Expats have liberalisation and facilitation with the rest of the world, starting with found Thailand to offer attractive income, spacious-sized properties its Asian neighbours. As a key player in ASEAN, Thailand offers with friendly service and world-class healthcare, all at affordable access to China and India, as well as to other East Asian countries prices. such as Japan and the Republic of Korea. In addition, Thailand’s expanding network of free trade BUSINESS SECTOR OPPORTUNITIES agreements (FTAs) with other countries has further opened up The government actively promotes foreign investments, especially access to markets both within and outside the region. These, those that contribute to the development of skills, technology and coupled with its strategic positioning, have made the country a innovation. regional centre for international travel and trade, as well as a hub Thailand is consistently ranked among the most attractive for various industries. investment locations in international surveys. Thailand has been ranked highly by the World Bank for ‘Ease of Opportunities for cross-border trade are ample and businesses Doing Business’ over the past nine years – currently it is 18th in the can benefit from various privileges offered by the Board of world and fifth in Asia. Investment (BOI). In addition, Thailand has recently reduced its The Thai economy is resilient to external and internal shocks corporate income tax to the competitive level at 20pc of net profit. thanks to its robust economic fundamentals with strong purchasing The government has emphasised attracting investment in six power, low and stable inflation (currently around 2pc) and low sectors that have been determined to be key to the country’s unemployment rate of 0.9pc, while foreign reserves remain high at developmental objectives – agriculture and agro-industry, around US$170bn. alternative energy, automotive, electronics and ICT, fashion, and Thailand’s fiscal policy continues to support the economy. value-added services, including entertainment, healthcare and Budgetary balance for fiscal year 2014 is currently set at 250bn tourism. baht deficit, or -1.9pc of GDP. Moreover, the government
72 Ireland Asia Business Yearbook 2014
IAYB_page72-73.indd 72 01/05/2014 18:08 profile THAILAND
AMBASSADOR INTERVIEW H.E. Mr. Pasan Teparak, Ambassador-designate of Thailand to Ireland
Over the past few years, relations between Thailand and Ireland have strengthened in all aspects. Impressively, bilateral trade statistics have shown a consistent increase in volumes. Thailand offers the best place for Irish investors as the gateway to ASEAN and beyond. Conversely, Ireland plays its part as a gateway to the EU. Key facts... The ongoing negotiations of the Thai-EU FTA, which is hoped to be concluded in the next few years, will definitely further expand our trade and ■ National population: 67.6 million investment ties. ■ Top five cities: I am glad to learn of the successful stories of – Bangkok (capital) Irish business and investment in Thailand, especially in the sectors of food and – Chiang Mai (north) agro-industry, medical, pharmaceutical and IT logistics. – Nakorn Ratchasima (north-east), Apart from business achievement, Thailand aims to promote cooperation – Khon Kaen (north-east) on education and research. Indeed, the memorandum of understanding on – Phuket (south) education cooperation due to be concluded and signed within this year will ■ Area: 514,000 sq km provide a framework to promote closer cooperation in this field. ■ Currency: baht Last year, we welcomed 66,000 Irish tourists and hope more will continue to ■ Religion/s: Buddhism, Islam, Christianity visit our country. We appreciate Ireland’s inclusion of Thailand as one of the ■ Language/s: Thai (English is also countries that are eligible for the visa waiver scheme, which will promote more widely spoken and understood) people-to-people contact between the two nations. ■ Bilateral trade: US$705.3m (+13.3pc) Last but not least, Ireland’s decision to open an embassy in Bangkok will (2013) mark an important milestone. ■ Irish exports to Thailand: US$280.4m (+0.5pc) (2013) ■ Thai exports to Ireland: US$424.9m (+23.7pc) (2013) NATIONAL FLAG ■ GDP: US$387.49m (2013), US$417bn (forecast 2014) The flag of Thailand is called Thong Trairong, ■ Real GDP growth: 7.8pc (2010), 0.1 meaning ‘tricolour flag’. The colours are said toto pc (2011), 6.5pc (2012), 2.9pc (2013), stand for nation-religion-king, an unofficial motto 2.1–3.1pc (forecast 2014) of Thailand. Red is for the land and people; white is for Buddhism; and ■ GDP per capita (current price): blue is for the monarchy. US$5,879/year, US$6,166/year (forecast 2014) ■ NATIONAL DAY: 5 December (HM King Bhumibol Adulyadej’s ■ GDP share of world total: 0.4pc Birthday) ■ GDP sector breakdown: agricultural ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED: (8.3pc), industry (40.2pc), services 27 January 1985 (51.5pc)
Ireland Asia Business Yearbook 2014 73
IAYB_page72-73.indd 73 01/05/2014 18:08 profile MALAYSIA
Reaching high
ECONOMIC OVERVIEW
MALAYSIA is an upper middle income, open and newly point for investments into the growing Southeast Asian region industrialised market economy. During the late 20th century, and offers a competitive business environment, world-class it underwent rapid development during a period of economic infrastructure and highly skilled labour force. prosperity. In recent years, Malaysia has continued to experience The Malaysian government has introduced special taxation growth with manufacturing playing a significant role in the state of and financial incentives to encourage foreign investment and the economy. in particular investments into research and development, and In addition, Malaysia is seeking to diversify its economy and promoted activities such as manufacturing, information and move towards an innovative knowledge-based system with science communications, biotechnology, healthcare, education and and technology at its heart, while it has become the world’s largest industrial-related technology. Islamic finance centre. Through its ministries and agencies such as Ministry of The promotion of tourism is another area where Malaysia is International Trade and Industry (MITI), Malaysia External Trade making considerable gains in promoting itself to the world. Development Corporation (MATRADE) and Malaysian Investment Under current Prime Minister Datuk Seri Najib Tun Razak, Development Authority (MIDA), the government also organises Malaysia is attempting to achieve high income status by 2020 trade exhibitions, conventions and trade missions to promote trade and to move further up the value-added production chain by and investment. attracting investments in Islamic finance, high technology industries, Malaysia offers vast business opportunities in the manufacturing biotechnology and services. and services sector, which include: oil, gas and energy; palm oil; financial services; tourism; business services; electronics BUSINESS SECTOR OPPORTUNITIES and electrical; wholesale and retail; education; healthcare; Education remains the bedrock of bilateral co-operation between communications content and infrastructure; and agriculture. Malaysia and Ireland. Ireland has always been an attractive Exports – particularly of electronics, oil and gas, palm oil, and destination country for Malaysian students, remaining within the top rubber – remain a significant driver of the economy. ten destinations. The services sector is a major contributor to the growth of the Malaysia is one of the tier one priority target countries for Malaysian economy. Areas offering opportunities for investors Education in Ireland, the first centre as part of the programme include IT services, shared services and business process having been opened there in 2012. outsourcing, regional headquarters, research and development With growth of 10pc, Malaysia showed the greatest increase in (R&D), education and environmental management. student numbers into Ireland in 2012 of all target countries. It is Being a progressive Islamic country, Malaysia is recognised as interesting to note that 75pc of Malaysian students in Ireland are a global leader in the areas of halal products and Islamic finance. studying medicine, a possible reason why Malaysian student tuition Malaysia’s halal certification has gained international recognition, accounts for the largest of any international education imports into which also meets stringent international health and safety Ireland (€34m). standards. Islamic finance possibilities are increasingly important, as An Business opportunities in Ireland for Malaysia are mostly focused Taoiseach Enda Kenny TD continues his initiative to make Dublin’s on manufacturing; agricultural; mining; and services sectors. IFSC the home of Islamic finance in Europe. Advanced science and technology is also another area that could In general, Malaysia provides a good proposition as an entry be further explored by business investors from Malaysia.
74 Ireland Asia Business Yearbook 2014
IAYB_page74-75.indd 74 01/05/2014 16:52 profile MALAYSIA
Key facts...
■ National population: 30,073,353 (July 2014 est) ■ List of top five cities and population of each: – Kuala Lumpur (capital): 1,674,621 – Johor Bahru: 1,386,569 – Georgetown: 520,202 – Ipoh: 767,794 – Kuching: 617,887 ■ Area Total: 329,847 sq km ■ Currency: the ringgit is the official monetary unit of Malaysia. It is divided into 100 sen (cents) and its currency code is MYR or RM ■ Religion/s: Islam (official) (61.3pc), Buddhist (19.8pc), Christian (9.2pc), Hindu (6.3pc) Confucianism, Taoism, other traditional Chinese religions (2.6pc) ■ Language/s: the official national language is the Malay language or locally referred to as Bahasa Malaysia, while the primary medium of communication employed in government, commerce and general media is English, which is a compulsory subject in the Malaysian education syllabus. There are also other ethnic languages widely practiced such as Chinese (in various dialects notably Mandarin, Cantonese, Hokkien, Hakka, Hainan, and Foochow) as well as Tamil and Hindi, which are mainly spoken by the Indians and Punjabis ■ Bilateral trade with Ireland: – 2011: US$0.775bn – 2012: US$0.513bn – 2013: US$0.39bn (January–November) NATIONAL FLAG ■ Irish exports to Malaysia: – 2011: US$0.576bn The flag of Malaysia, also known as – 2012: US$0.332 the Jalur Gemilang (stripes of glory), – 2013: US$2.566 comprises a field of 14 alternating red and white stripes along ■ Malaysian exports to Ireland: the fly and a blue canton bearing a crescent and a 14-point star – 2011: US$0.198bn known as the Bintang Persekutuan (Federal Star). – 2012: US$0.18bn – 2013: US$0.133bn The 14 stripes, of equal width, represent the equal status in the ■ GDP: US$312.5bn (2012) federation of the 13 member states and the federal government, ■ Real GDP growth: while the 14 points of the star represent the unity between these – 2011: 5.1pc entities. – 2012: 5.6pc – 2013: 4.7pc The crescent represents Islam, the country’s official religion; the – 2014: 4.5pc–5.5pc (expected) blue canton symbolises the unity of the Malaysian people; the ■ GDP (purchasing power parity (PPP)): US$525bn yellow of the star and crescent is the royal colour of the Malay (2013) rulers. ■ GDP per capita (current prices): US$10,500 (2013) ■ NATIONAL DAY: 31 August ■ GDP per capita (PPP): US$10,942 (2012) ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED ■ GDP share of world total: 0.6pc (2012) BETWEEN MALAYSIA AND IRELAND: 10 January 1974 ■ GDP sector breakdown: agriculture (11.2pc – 2013), industry (40.6pc – 2013), services (48.1pc – 2013)
Ireland Asia Business Yearbook 2014 75
IAYB_page74-75.indd 75 01/05/2014 16:52 profile MONGOLIA
Strategically located
ECONOMIC OVERVIEW
MONGOLIA operated as a Soviet-style centrally planned economy rapidly emerging China to the south, it provides easy access to the until the establishment of a new democratically elected government in large international markets of these two neighbours and important 1990. Since then it has transitioned into a market oriented economy, global players. with the private sector constituting over 75pc of the nation’s GDP. It is close to large commodity consumers in China, Siberia, Korea Over the past two decades, Mongolia has become a vibrant multi- and Japan, the industrial hub in Northwest China. Freight costs to party democracy with one of the world’s fastest growing economies. most North Asian markets from Mongolia are US$15–20 a mile The economy is expected to show double-digit growth again in 2014 lower than competitors. despite the unfavorable external environment. The medium-term pros- Mongolia’s mineral resources are world-class, including copper, pects are promising. coal, iron, zinc and fluorspar. It has over 6,000 occurrences of 80 Located between Russia (to its north) and China (to its south), plus minerals, some of the world’s largest deposits and the potential Mongolia possesses vast, untapped mineral assets, which have begun to become a major global commodities player. to be developed. The business environment has improved in recent years with The country is at the threshold of a major transformation driven by Mongolia now ranked 21st in leading nations with investment protec- the exploitation of its vast mineral resources. The share of mining in tion regulation. GDP today stands at 20pc, twice the ratio of a decade ago. It has the lowest tax environment in the region and an attractive environment for foreign direct investment and trade through an open BUSINESS SECTOR OPPORTUNITIES policy. Mongolia is a very strategic location for foreign investors. Bordering the resource-rich, vast Siberian region of Russia to the north and
76 Ireland Asia Business Yearbook 2014
IAYB_page76-77.indd 76 01/05/2014 18:09 profile MONGOLIA
AMBASSADOR PROFILE H.E. Tulga Narkhuu Key facts...
His Excellency Mr Tulga Narkhuu was appointed ■ National population: 2.9 million ambassador of Mongolia to Ireland in 2013. ■ Area: 1,564,116 sq km Prior to this, he held several positions with the ■ Currency: Tugrik Ministry of Foreign Affairs of Mongolia, includ- ■ Religion/s: Buddhism, Islam, ing director of the Department of International Shamanism, Christianity Organisations and director of the Department ■ Language/s: Mongolian for Americas, Africa and Middle East as ■ Irish exports to Mongolia: well as other diplomatic posts in New York, US$3,529,6000 (2013) Washington, Beijing and Singapore. ■ Mongolia exports to Ireland: US$72,000 Ambassador Narkhuu has a degree in inter- (2013) national relations from the Moscow State ■ GDP: US$11.8bn (2013) Institute of International Relations in Russia and holds a graduate diploma from ■ GDP (purchasing power parity): Monash University in Australia. US$15.44bn (2012) ■ Real GDP growth (2011, 2012, 2013 and prediction for 2014): NATIONAL FLAG 2011 – 17.5pc; 2012 – 12.4pc; 2013 – 12.5pc; 2014 – 10.3pc ■ NATIONAL DAY: 11 June – Naadam ■ GDP per capita (current prices): ■ DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED US$3,673 (2012) BETWEEN MONGOLIA AND IRELAND: 22 December 1998 ■ GDP per capita (PPP): US$5,900 (2013)
Ireland Asia Business Yearbook 2014 77
IAYB_page76-77.indd 77 01/05/2014 18:09 profile CAMBODIA Key facts...
■ National population: 15,458,332 (July 2014 est) ■ Top five cities and population of each province: – Phnom Penh (capital city): 2,234,566 ) – Kampong Cham: 1,680,694 – Kandal: 1,265,805 – Battambang: 1,036,523 – Prey Veng: 947,357 – Siem Reap:896,309 ■ Area: 181,035 sq km ■ Currency: riel ■ Religion/s: Buddhism ■ Language/s: Khmer (official language) ■ Amount of Irish exports to Cambodia: US$ 1,943,740.91 (2012) ■ Amount of Cambodia exports to Ireland: US$12,538,243.18 (2012) ■ GDP: $15.64bn (2013) ■ GDP (purchasing power parity (PPP)): US$39.64bn (2013) ■ Real GDP growth: – 2011: 7.1pc – 2012: 7.3pc – 2013: 7pc ■ GDP per capita (PPP): US$2,600 (2013 Encouraging est) ■ GDP share of world total: 0.04pc (2010) ■ GDP sector breakdown: agriculture investment (34.8pc), industry (24.5pc), service (40.7pc) (2011 est) ECONOMIC OVERVIEW
CAMBODIA’S growth over the past decade has been driven by a variety of key industries, including garment manufacturing, construction, agriculture and tourism. GDP climbed more than 7pc per year between 2010 and 2013. The garment manufacturing industry is a key sector for growth in Cambodia, accounting for about 70pc of total exports, according to 2012 figures. Other areas for potential growth include the exploitable oil deposits found beneath NATIONAL FLAG Cambodia’s territorial waters. Discovered in 2005, the oil deposits represent a The flag of Cambodia symbolises the potential revenue stream for the government. country’s slogan: ‘Nation, Religion, Mining is another sector attracting some investor interest and the government has King’. The two large blue stripes touted opportunities for mining bauxite, gold, iron and gems. Other important foreign represent royalty and the centre red exports include timber, rubber, rice, fish, tobacco and footwear. This is a reflection stripe represents the nation. The of the competitive cost of operations in Cambodia, the importance of the agricultural white temple stands for the nation’s sector and the abundance of both oil and gas, and timber resources across the religion. country. The tourism industry has continued to grow rapidly with foreign arrivals exceeding ■ NATIONAL DAY: two million per year since 2007 and reaching over four million visitors in 2013. 9 November ■ DATE WHEN DIPLOMATIC BUSINESS SECTOR OPPORTUNITIES RELATIONS WERE ESTABLISHED A major advantage of doing business in Cambodia emanates from the fact that the BETWEEN CAMBODIA AND government treats both local and foreign investors equally, whereby foreign investors IRELAND: 30 October 2009 can retain high percentage returns on investment in the country.
78 Ireland Asia Business Yearbook 2014
IAYB_page78-79.indd 78 01/05/2014 16:52 profile LAOS
Competitive advantage
ECONOMIC OVERVIEW LAOS has many competitive advantages, including social agribusiness both being huge growth industries. and political stability, high security, liberal trade and attractive Ireland has plenty of potential in terms of its fast growing and investment policies and laws, and low investment costs, in terms of advanced economy, so there is ample opportunity for matching land, labour and utilities. the businesses of the two countries in various sectors such as It is also rich in natural resources such as mining, energy agriculture, manufacturing, tourism and other related services. and agriculture. The economy is integrated regionally and There is scope to strengthen the two countries’ linkages by internationally, having become a member of international exchanging information in various areas, together promoting tourist organisations such as Unesco, the International Monetary Fund and business activities. and ASEAN. Having joined the World Trade Organisation in February 2013, Laos now has bilateral investment agreements with 27 countries. The Laos economy depends heavily on investment and trade Key facts... with its neighbours – Thailand, Vietnam, and, especially in the north, China. The World Bank recently upgraded its status from a low income to a lower middle income country. ■ Population: 6,803,699 (July 2014 est) ■ Top five cities and population of each province: BUSINESS SECTOR OPPORTUNITIES – Vientiane: 799,000 Laos’ economy is heavily dependent on capital intensive natural – Luang Prabang: 47,378 resource exports. The labour force, however, still relies on – Savannakhet: 66,553 subsistence agriculture, dominated by rice cultivation in lowland – Pakse: 88,332, areas, which accounts for about 25pc of GDP and 80pc of total – Xam Nua: 38,992 employment. The economy also has benefited from high-profile ■ Area: 236,800 sq km foreign direct investment in hydropower, copper and gold mining, ■ Currency: Kip (LAK) logging, and construction. ■ Religions: Buddhist (67pc), Christian (1.5pc), other and Laos is rich in natural resources with hydroelectric power and unspecified (31.5pc) ■ Ethnic groups: Lao (55pc), Khmou (11pc), Hmong (8pc), other (over 100 minor ethnic groups) 26pc (source: 2005 census) NATIONAL FLAG ■ Languages: Lao (official), French, English, various The current flag of Laos was ethnic languages officially adopted on 2 December ■ GDP: US$10.1bn (2013 est) 1975. The red represents ■ GDP (purchasing pwer parity (PPP)): US$20.78bn (2013 the blood of the people who est) struggled for national independence; the blue stands ■ Real GDP growth: for prosperity; and the white circle symbolises justice – 8.3pc (2013) and unity of the people towards the country’s bright – 7.9pc (2012 est) future. – 8pc (2011 est.) ■ GDP per capita (current prices): US$3,100 (2013 est) ■ NATIONAL SYMBOL: Elephant ■ GDP per capita (PPP): US$3,100 (2013 est) ■ NATIONAL DAY: 2 December, the ■ GDP sector breakdown: agriculture (24.8pc), industry establishment of the Lao People’s (32pc), services (37.5pc) Democratic Republic in 1975
Ireland Asia Business Yearbook 2014 79
IAYB_page78-79.indd 79 01/05/2014 16:52 profile BRUNEI DARUSSALAM
Key facts...
■ National population: 450,000 (approx) ■ Capital: Bandar Seri Begawan ■ Area: 5,765 sq km ■ Time zone: GMT + 8 ■ Currency: Brunei dollars ■ Religion/s: Islam (main) though Buddhism and Christianity are also practised On the up ■ Language/s: Malay (Official). English is widely spoken. Some Chinese dialects as well as indigenous languages are also used ECONOMIC OVERVIEW ■ GDP: US$17.7bn (approx) ■ GDP per capita (current prices): BRUNEI’S economy, buoyed by hydrocarbon revenues, has continued to grow, US$39,473 US (approx) enabling a new push to greater diversification and increased hiring of locals. ■ GDP sector breakdown: oil and gas The economy has been dominated by the oil and gas industry for more than 80 mining (56.51pc), manufacture of years. Hydrocarbon resources account for over 90pc of its exports and more than LNG (11.15pc), government (11.72pc), 50pc of GDP. Brunei is the fourth largest oil producer in Southeast Asia and the ninth private sector (20.62pc) largest exporter of liquefied natural gas in the world. The government maintains strong fiscal and current account surpluses and is looking to direct this towards future growth and diversification, especially in the downstream sector and bolster a private sector capable of generating jobs for locals. It has a low tariff regime and no capital gains or personal income tax. Under its Investment Incentives Order 2001, prospective investors will also enjoy a wide range of incentives, including up to a possible 20 years’ exemption from corporate tax.
BUSINESS SECTOR OPPORTUNITIES Several key industry clusters have been identified that have the potential to bring NATIONAL FLAG value added activities to Brunei and create spin-off opportunities. One of these sectors is manufacturing, which includes pharmaceuticals, food and ■ NATIONAL DAY: 23 February food ingredients, petrochemicals, integrated petrochemical refinery, downstreaming ■ DATE WHEN DIPLOMATIC industries, and renewable energy. RELATIONS ESTABLISHED The other is services such as ICT and supporting industries, for example logistics BETWEEN BRUNEI DARUSSALAM and oil filed support services. AND IRELAND: 1984
80 Ireland Asia Business Yearbook 2014
IAYB_page80-81.indd 80 01/05/2014 18:12 INNOVATION AND RESEARCH
An initiative announced last December is building on the extensive linkages that already Key facts... exist between the Irish and Japanese research communities Prof Mark Ferguson, director general of SFI and chief scientific adviser to the Government Science experiments
A consortium of Irish higher education institutions was awarded are fostering new important research collaborations between Irish €1.24m in funding to collaborate with Japanese counterparts based researchers and both academic and industry partners in through Science Foundation Ireland’s (SFI) International Strategic Japan.” Cooperation Award (ISCA) recently. The partnerships developed by the consortium will address six The group of Irish research bodies, led by NUI Galway, key areas that align with Irish and Japanese research priorities: will partner with 21 Japanese universities and a number of environmental and climate sciences and technologies; ICT companies and research institutes, with the aim of building and big data analytics; advanced manufacturing and materials; strategic partnerships to perform cutting-edge scientific research, imaging and optics; future healthcare including connected health; encourage more industry-informed research, and foster academic- and medical devices and regenerative medicine. industry interactions between Ireland and Japan. “Many Irish researchers already have significant interactions “This new initiative, supported by the Irish Government through with Japanese colleagues but until now there has not been a SFI, will build on the extensive linkages that already exist between framework to support those interactions and to convert them into the Irish and Japanese research communities,” said Taoiseach more tangible collaborations,” said project leader Prof Ciaran Enda Kenny, who announced the award on his trip to Tokyo last Morrison of NUI Galway. December. “The key goal of this initiative is to promote Irish science to “It will encourage a higher level of research engagement at both Japanese research institutions, in order to forge new collaborative an academic and industrial level with the ultimate aim of creating links between researchers in the two countries. Japanese innovative products, services and jobs to benefit both Ireland and research is very strong and Irish researchers can really benefit Japan, as well as tackling important social challenges such as from closer association with their Japanese counterparts.” caring for an ageing population and climate change. Importantly, Japan was included for the first time as a partner country under it will also help increase awareness of Ireland’s growing SFI’s ISCA initiative (which also includes China, India and Brazil) international standing in the area of research among potential new in 2013. partner organisations in Japan.” Under the consortium’s activities a number of research-led “Our focus on funding excellent scientific research with impact seminar programmes, industry workshops, academic workshops, is important for the economy and country,” said Prof Mark student and researcher mobility activities, and specific technical Ferguson, director general of SFI and chief scientific adviser training events will be conducted in Japan and Ireland over a two- to the Government. “Ireland continues to develop strategic year period. international partnerships. Through SFI’s ISCA programme we
Ireland Asia Business Yearbook 2014 81
IAYB_page80-81.indd 81 01/05/2014 18:12 GAA IN ASIA
Chairman of the Asian County Board Joe Trolan provides an overview of Gaelic games and their influence on business in Asia Let the games begin
GAELIC games have long been played throughout Asia, but in the ‘The 2013 Fexco Asian Gaelic Games’. past decade a lot has changed. The Asian County Board (ACB), Other companies such as First Derivatives, ESB International, which governs the different codes played, has placed a greater PCH International, Kerry Group and Diageo have all been involved emphasis in using the games to connect with the local population with the ACB and the AGG. and to utilise the GAA as a business springboard. The second component of the AGG is the Asia Pacific Ireland The games are played in 13 countries and there are over 25 Business Forum, which provides Irish businesses with an excellent different teams in Asia. From men’s and women’s football to hurling opportunity to potentially meet new partners or get introduced to and camogie, the games are an attraction to many Irish and non- local businesses. Irish. The forum is one of the largest of its kind in Asia and other Whether it is in Japan, Korea, China or Singapore the games international GAA bodies have copied its concept because of its draw the attention of people because of their fast-paced and excit- success in Asia. ing movement and skills. A further opportunity for business promotion is the attraction of Gaelic games are certainly a positive to promoting Irish culture to All stars tours to Asia. Within the past three years, the ACB has the local population. Another prominent aspect of the GAA in Asia brought the men’s football and hurling All Stars to Malaysia and is its strong business connection and network. China respectively, and most recently the LGFA All Stars visited The ACB places a lot of emphasis on helping to promote Irish Hong Kong and showcased some amazing football. All of these businesses throughout all of its annual tournaments. In particular, events gave local Irish and non-Irish businesses an opportunity to the annual Asian Gaelic Games (AGG), the main event of the become associated with the best of the GAA. year, helps to promote Irish business and allow superb networking A further positive of the games in Asia is the job creation from opportunities. both the ACB and its members. For example, coaches have been The AGG has attracted high-profile visits from players such as brought out from Ireland to work throughout Asia and players who Bernard Brogan, presidents of the GAA, Ladies Gaelic Football have come out for only a few years have been placed in jobs that Association (LGFA) and Camogie associations, as well as legends have seen them stay for much longer and go on to achieve further such as Brian Mullins and Mícheál Ó Muircheartaigh. success. With a long history of being at the forefront of promoting Irish The ACB and Gaelic games in Asia will continue to grow and businesses overseas, the AGG was one of the first tournaments without doubt the potential for business growth will be just as internationally to have a named sponsor with the most recent being exciting.
82 Ireland Asia Business Yearbook 2014
IAYB_page82-83.indd 82 01/05/2014 14:54 BUSINESS ETIQUETTE
Following his recent trip to Japan, executive director of Asia Matters Martin Murray provides some guidelines on business etiquette in that market Taoiseach Enda Kenny TD; Japanese Prime Minister Shinzo Abe; and Martin Murray, executive director, Asia Matters Process of protocol
BUSINESS CARDS AND GIFTS FOOD AND DRINK In Japan it is important to hold your cards in a business card Food and drink combine a big part of developing good working holder, preferably leather and not metal. Cards are the ‘face’ of a relationships in Japan. You should be adventurous, open to new person and should be treated with respect. tastes and learning. Like the French, Japanese people really Perhaps you could put your details on the back of an existing know their food so it is polite to ask about a particular dish that card with your name in Japanese – it is fine only to change your you enjoy. It’s good if you can use chopsticks, if not learn. name into katakana, the one of three Japanese character sets, Regarding conversation, it is polite to focus on seeking to which is used for foreign words. It is easy for any translation understand more about Japan and sharing insights into Irish cul- agency to do this quickly. ture. Cards are presented with both hands with logo/names faced up so it’s easy for the recipient to read and it is courteous to take LANGUAGE AND BODY LANGUAGE a moment – it is fine too to say the name, title and organisation No one expects you to speak Japanese but any sincere effort to to confirm that you note with whom you are talking. Again this is speak a few key words at the right time will be deeply respected. all in context – if four people hand you cards simultaneously at a Regarding body language, you will note lots of bowing (normally meeting or reception, it’s best just to acknowledge the names, for at 45-degree angle), but also nodding of heads during conver- example Tanaka san, Yamada san etc. sations to show that you are listening. Japanese often say ‘Hai’ Sometimes, for a scheduled private meeting, gifts will be in this context, which only means that ‘I hear what you are say- exchanged. It is best for you to have some small, quality item ing’. This is not to be confused with ‘Yes’ nor ‘I agree with you’. with your company or Dublin crest nicely presented in a box and Japanese like silence and will regularly take a moment to pause wrapped properly. Equally, if a Japanese visitor has an interest in and reflect on what has been said (known as ‘ma’ in Japanese). golf or whiskey, something specifically Irish will be appreciated. This is different to Western sense where silence can be seen as Alternatively anything with Dublin branding relating to Lafcadio awkward so it’s important not to simply jump in and talk, just take Hearn (Irish father, Greek mother – spent some of his formative a moment silently and nod reflectively, then continue. years in Dublin) would be good. He is famous in the West for his Normally in Japan, the most senior person will sit down or eat broader understanding of traditional Japanese culture, having first at a meal (not necessarily the person with the best English). written ‘Japan, An Attempt at Interpretation’ in 1904. Note that his Hierarchy and respect for same is important and occasionally you Japanese name is Koizumi Yakumo and known in Japan for writ- may have to explain the importance/role of a person, if it’s not ing historical ghost stories etc. clear from the title on their business card. This is why Japanese Note of caution – normally gift exchange is CEO to CEO or love as much detail as possible in advance of any meeting, to equivalent leaders. Be careful if giving gifts to group members allow an understanding of who are the hierarchical peers along with different hierarchical status as this could cause unintended with sharing this with the group to carefully agree who says what offence and awkwardness. in advance. It is important to see people off properly – bow and wait until their car is gone.
Ireland Asia Business Yearbook 2014 83
IAYB_page82-83.indd 83 01/05/2014 14:54 Garuda_2014_Ireland_Asia_Business_Yearbook.pdf 1 01/05/2014 12:18
CORPORATE SOCIAL RESPONSIBILITY Support acts
As part of its corporate social responsibility, Asia Matters hosted a group of Japanese teenagers on a special visit to Ireland last year, writes Asia Matters executive director Martin Murray
We would like to express our appreciation for the help and support of H.E. Ambassador John Neary and the staff of the Irish embassy in Tokyo; H.E. Ambassador Chihiro Atsumi and the staff of the Japanese embassy in Dublin; An Taoiseach Enda Kenny TD whom, despite being on holidays, kindly came back from Mayo to meet with the Japanese children in Government Buildings; Lord Mayor Oisín Quinn, who gave the group a person- al tour of the Mansion House; and Pat Breen TD, who also gave of his valuable time for a tour of the Oireachtas. Special thanks are also due to the Tohoku group leaders Motohiro Akai and Akira Nishikawa, Mauro Biondi and the team at Emerald Cultural Institute for their amazing work with the children; Peter McKenna, GAA, for the Croke Park quarter final tickets; Tim Whyte, Radisson Hotel Golden Lane for hosting the farewell reception; David Brennan, Dublin City Business Association for lunch; John Woolf, Dublin Airport Authority for helping with a smooth transit; Fergal Rogers and Viking Bus Tours for a fun Seeing is believing ride and the ponchos; Lorcan O’Connor, Carrolls Irish Gifts for the souvenir T-shirts; our volunteer photographers Phil Voon and Aga Kowalska; Ronan Harris and his team in Google for hosting Fly direct to Indonesia the CoderDojo led by Lindsay MacVean; and lastly our Japanese An Taoiseach Enda Kenny TD meeting volunteers, programme coordinator/interpreter Yui Shimazu, guide teenagers from the Japanese charity Mieko Conway, and drivers Yasuko Shikano and Yoshio Miyachi. You can fly direct from London to Jakarta, and onward to see Bali, Lombok, Bandung and the 17,508 exotic Support our Kids Finally, we would like to express our admiration and respect islands of the Indonesian archipelago, only with the award-winning national airline. for the children from Tohoku who visited Ireland: Masaki Konno, AT the request of the H.E. John Neary, Ambassador of Ireland to Ayaka Endo, Norie Kawai, Yu Uematsu, Misuzu Sato, Akane Japan, Asia Matters hosted a group of Tohoku teenagers from the Mori, Yuri Wakui, Saeka Fujisawa and Kaori Suda, who inspired Japanese charity Support our Kids, set up by Yukiatsu Akizawa in us with their strength of character and resilience. July 2013. Like many others, we wished to offer support to survivors suffering from the Great East Japan Earthquake and Tsunami, which struck Japan on 11 March 2011. I had prior experience in fundraising for the Japan Orphanage Foundation set up by Yugo Takahashi. Having stayed with the volunteers in Higashi Matsushima, I was struck by their work in helping children traumatised by the loss of loved ones to begin the road to recovery. Garuda Indonesia. Exceptional in every sense. To create a special experience for the Japanese children from Support our Kids, Asia Matters created a Dublin home stay pro- Call Garuda Indonesia UK on +44 1293 874 985 gramme with language training, excursions and cultural activities. Through the collective help of many people from both the Irish or visit www.garudaindonesia.co.uk and Japanese communities, the Tohoku children had a special time in Ireland, sharing their personal experiences of the disaster H.E. Ambassador Chihiro Atsumi and Asia Matters executive with Irish people and enhancing their own sense of self-esteem director Martin Murray with the teenagers and volunteers who and future life possibilities. took part in the Support our Kids CSR project
84 Ireland Asia Business Yearbook 2014
IAYB_page84-85.indd 84 01/05/2014 15:08 Garuda_2014_Ireland_Asia_Business_Yearbook.pdf 1 01/05/2014 12:18
Seeing is believing Fly direct to Indonesia
You can fly direct from London to Jakarta, and onward to see Bali, Lombok, Bandung and the 17,508 exotic islands of the Indonesian archipelago, only with the award-winning national airline.
Garuda Indonesia. Exceptional in every sense.
Call Garuda Indonesia UK on +44 1293 874 985 or visit www.garudaindonesia.co.uk
IAYB_page84-85.indd 85 01/05/2014 15:08 EMBASSIES ASIAN EMBASSIES IRELAND’S DIPLOMATIC ACCREDITED/PENDING REPRESENTATION IN ASIA ACCREDITATION TO IRELAND EMBASSY OF BRUNEI DARUSSALAM Counsellor, Charges D’Affaires a.i. DIPLOMATIC REPRESENTATION FOR DIPLOMATIC REPRESENTATION FOR 19/20 Belgrave Square, London SW1X 8PG CAMBODIA is handled by the embassy in LAOS is handled by the embassy in Tel: 004420 7581 0521. EMBASSY OF MALAYSIA Vietnam (Hanoi) Vietnam (Hanoi) Email: [email protected] Level 3A - 5A, Shelbourne House, Awaiting appointment of new Ambassador Shelbourne Road, Ballsbridge, Dublin 4 DIPLOMATIC AND CONSULAR DIPLOMATIC AND CONSULAR Mr Mohd Aziyan Abdullah Tel: 01 667 7280. INFORMATION FOR CHINA INFORMATION FOR MALAYSIA Deputy Head of Mission Email: [email protected] Embassy of Ireland Embassy of Ireland Web page: http://www.kln.gov.my/web/ 3 Ri Tan Dong lu The Amp Walk THE ROYAL EMBASSY OF CAMBODIA irl_dublin/homeAwaiting appointment of Chaoyang District 218 Jalan Ampang 64 Brondesbury Park, Willesden Green, new Ambassador Beijing 100600 50450 Kuala Lumpur London NW6 7AT Mr. Mohamed Yasin Tel: + 86 - 10 - 6532 - 2691/2914 Tel: +60-3-2161-2963 Tel: 004420 8451 7850. Counsellor, Charges D’Affaires a.i. Email: [email protected] Website: www.embassyofireland.my Email: [email protected] Website: www.embassyofireland.cn Ambassador: H.E. Declan Kelly Ambassador: H.E.Paul Kavanagh Web page: EMBASSY OF MONGOLIA DIPLOMATIC REPRESENTATION FOR www.cambodianembassy.org.uk 7 Kensington Court, London W8 5DL CONSULATE GENERAL OF IRELAND MONGOLIA is handled by the embassy in Awaiting appointment of new Ambassador Tel: 004420 7937 0150. Consulate General of Ireland Shanghai China (Beijing) Ms Ban Borom Email: [email protected] Suite 700A, Shanghai Centre Counsellor, Charges D’Affaires a.i. Web page: www.embassyofmongolia.co.uk 1376 Nanjing Road West DIPLOMATIC REPRESENTATION FOR Mr Tulga Narkhuu 200040 Shanghai PHILIPPINES is handled by the embassy EMBASSY OF THE PEOPLE’S REPUBLIC Ambassador Extraordinary and China Tel: 00 86 21 6279 8729 in Singapore OF CHINA Plenipotentiary Website: www.irishconsulateshanghai.cn 40 Ailesbury Road, Dublin 4 Consul General: Austin Gormley Honorary Consul General Tel: 01 269 1707 / 01 260 1119. Email: EMBASSY OF THE REPUBLIC OF THE 3/F Max’x building [email protected] UNION OF MYANMAR HONORARY CONSUL 70 Jupiter St Web page: http://ie.chineseembassy.org 19A Charles Street W1J 5DX Honorary Consul of Ireland Bel Air 1 H.E. Mr. Xu Jianguo Tel: 004420 7499 4340 Suite 1408 Makati City 1209 Ambassador Extraordinary and Email : [email protected] Two Pacific Place Metro Manila Plenipotentiary Web page: 88 Queensway Tel: 00 63 2 896 4668 www.myanmarembassyuk.co.uk Hong Kong Email: [email protected] EMBASSY OF INDIA H.E. Mr Kyaw Zwar Minn Tel: +852 2527 4897 Honorary Consul General: Noreen Trota 6 Leeson Park, Dublin 6 Ambassador Extraordinary and Email: [email protected] Tel: 01 497 0806/ 01 497 0987 / 01 496 Plenipotentiary Website: www.consulateofireland.hk DIPLOMATIC AND CONSULAR 6770. Email: [email protected] / Honorary Consul: Mr Harry O’Neill INFORMATION FOR SINGAPORE Web page: www.indianembassy.ie EMBASSY OF THE REPUBLIC OF THE Embassy of Ireland H.E. Mrs. Radhika Lal Lokesh PHILIPPINES DIPLOMATIC AND CONSULAR Ireland House, 541 Orchard Road Ambassador Extraordinary and 6-8 Suffolk Street SW1Y 4HG INFORMATION FOR INDIA Liat Towers, 8th Floor Plenipotentiary Tel: 004420 7451 1780 Embassy of Ireland C17 Malcha Marg Singapore 238881 Email: [email protected] Chanyakapuri New Delhi 110021 Tel: +65 6238 7616 EMBASSY OF THE REPUBLIC OF Website:philembassy-uk.org Tel: +91-11-49403200 Website: www.embassyofireland.sg Website: Ambassador: H.E Joseph Hayes INDONESIA H.E. Mr Enrique A. Manalo www.embassyofireland.in 38 Grosvenor Square, London W1K 2HW Ambassador Extraordinary and Ambassador: H.E.Feilim McLaughlin DIPLOMATIC REPRESENTATION FOR Tel: 004420 7499 7661. Email: kbri@ Plenipotentiary THAILAND is handled by the embassy in btconnect.com DIPLOMATIC AND CONSULAR Malaysia (Kuala Lumpur) Web page: www.indonesianembassy.org.uk EMBASSY OF THE REPUBLIC OF INFORMATION FOR INDONESIA H.E. Mr Teuku Muhammad Hamzah Thayeb SINGAPORE 9 Wilton Crescent, Belgravia, Honorary Consulate of Ireland, Thai Honorary Consuls: Ambassador Extraordinary and London SW1X 8SP Jakarta Stock Exchange Building, Honorary Consul of Ireland Plenipotentiary Tel: 004420 7235 8315. Tower I, 12th Floor, Thaniya Building, 4th Floor, Room 407 Email: [email protected] Jl. Jend. Sudirman Kav. 52-53, 62, Silom Road, Bangrak, EMBASSY OF JAPAN Web page: www.mfa.gov.sg/london Jakarta 12190, Bangkok 10500 Nutley Building, Merrion Centre, Nutley H.E. Mr T Jasudasen Indonesia Thailand Strength in Numbers Lane, Dublin 4 Ambassador Extraordinary and Tel: + 6221 515 1977 Tel: +66 2 632 6720 Tel: 01 202 8300 Plenipotentiary Email: irelandhonconsul.indonesia@gmail. Email: [email protected] Email: [email protected] com Website:www.irelandinthailand.com Matheson’s Asset Management and Investment Funds Group is the number Web page: www.ie.emb-japan.go.jp THE ROYAL THAI EMBASSY Honorary Consul: Mr Anangga W. Honorary Consul: Gary Biesty H.E. Mr Chihiro Atsumi 29-30 Queen’s Gate, London SW7 5JB Roosdiono one ranked funds law practice in Ireland, acting for 27% of Irish domiciled Ambassador Extraordinary and Tel: 004420 7589 2944. Phuket: Ms. Hélène Fallon-Wood investment funds by assets under management as at 30 June 2013. Plenipotentiary Email: [email protected] DIPLOMATIC AND CONSULAR Honorary Con0sul of Ireland Web site: www.thaiembassyuk.org.uk INFORMATION FOR JAPAN Tamarind Valley, 79/6 Moo.4, Soi Suksan Monterey Insight Ireland Fund Survey 2013 EMBASSY OF THE REPUBLIC OF KOREA H.E. Mr. Pasan Teparak Embassy of Ireland Viset Road, Rawai, Phuket 83130 Led by 10 partners, the practice comprises over 50 asset management The top-ranking funds advisory practice in Ireland 15 Clyde Road, Ballsbridge, Dublin 4 Ambassador Extraordinary and Ireland House 5F Thailand and investment fund lawyers and professionals in total, and incorporates a Tel: 01 660 8800. Email: irekoremb@ Plenipotentiary 2-10-7 Kojimachi Tel: +66 76 281 273 mofat.go.kr Chiyoda-Ku Fax: +66 76 281 084 Financial Times 2012-2013 dedicated Asia practice group headed by partner Shay Lydon. Tokyo 102-0083 Email: [email protected] Web page: http://irl.mofat.go.kr EMBASSY OF THE SOCIALIST REPUBLIC Matheson is the only Irish law firm commended H.E. Mr Hae-yun Park OF VIETNAM Tel: +81-3-32-63-06-95 Partners pictured from left: Shay Lydon, Joe Beashel, Michael Jackson, Ambassador Extraordinary and 12-14 Victoria Road, London W8 5RD Website: www.embassyofireland.jp DIPLOMATIC AND CONSULAR by the Financial Times for innovation in corporate Ambassador: H.E. John Neary Plenipotentiary Tel: 004420 7937 1912. INFORMATION FOR VIETNAM Elizabeth Grace, Tara Doyle, Liam Collins, Dualta Counihan, Aiden Kelly, Embassy of Ireland law, finance law and corporate strategy. Email: [email protected] Anne-Marie Bohan and Philip Lovegrove. DIPLOMATIC AND CONSULAR 2nd Floor, Sentinel Place, EMBASSY OF THE LAO PEOPLE’S Web page: www.vietnamembassy.org.uk INFORMATION FOR REPUBLIC OF KOREA 41A Ly To, Hoan Kiem District, DEMOCRATIC REPUBLIC H.E. Mr Vu Quang Minh Irish Tax Firm of the Year 2013 Embassy of Ireland Hanoi, Vietnam 74 Ave Raymond-Poincaré, 75 116 Paris Contact Shay Lydon at [email protected] or + 353 1 232 2735. Ambassador Extraordinary and 13F. Leema Building, Tel: + 84 4 3974 3291 International Tax Review Tel: 0033 145 530 298. Email: Plenipotentiary 146-1 Soosong-dong, Chongro-gu Website: www.embassyofireland.vn [email protected] Seoul, Korea 110-140 Ambassador: H.E. Damien Cole Client Choice 2013 Matheson. The law firm of choice for international companies Ambassador Extraordinary and DIPLOMATIC REPRESENTATION FOR Tel: +82-2-774-6455 International Law Office Plenipotentiary BRUNEI is handled by the embassy in Website: www.embassyofireland.or.kr and financial institutions doing business in and through Ireland. Mr. Boungnalith Southichak Singapore Ambassador: H.E. Eamonn McKee 86 Ireland Asia Business Yearbook 2014 Dublin London New York Palo Alto www.matheson.com
IAYB_page86-87.indd 86 01/05/2014 15:36 Strength in Numbers
Matheson’s Asset Management and Investment Funds Group is the number one ranked funds law practice in Ireland, acting for 27% of Irish domiciled investment funds by assets under management as at 30 June 2013. Monterey Insight Ireland Fund Survey 2013 Led by 10 partners, the practice comprises over 50 asset management The top-ranking funds advisory practice in Ireland and investment fund lawyers and professionals in total, and incorporates a Financial Times 2012-2013 dedicated Asia practice group headed by partner Shay Lydon. Matheson is the only Irish law firm commended Partners pictured from left: Shay Lydon, Joe Beashel, Michael Jackson, by the Financial Times for innovation in corporate Elizabeth Grace, Tara Doyle, Liam Collins, Dualta Counihan, Aiden Kelly, law, finance law and corporate strategy. Anne-Marie Bohan and Philip Lovegrove. Irish Tax Firm of the Year 2013 International Tax Review Contact Shay Lydon at [email protected] or + 353 1 232 2735.
Client Choice 2013 Matheson. The law firm of choice for international companies International Law Office and financial institutions doing business in and through Ireland.
Dublin London New York Palo Alto www.matheson.com
IAYB_page86-87.indd 87 01/05/2014 15:36 Asia Matters AFKL ad_Ireland Asia Business Yearbook_Mar2014 - FOR PRINT.pdf 1 25/03/2014 13:22:21
C
M
Y
CM
MY
CY
CMY
K
EVERY CORNER OF ASIA IS WITHIN YOUR REACH Thanks to the partnership between AIR FRANCE and KLM, along with our SkyTeam partners, we o er you one of the largest networks to Asia. Fly from Dublin or Cork and connect seamlessly via our hubs in Paris and Amsterdam. For more information, please contact your dedicated travel representative.