Figure 2 Flowchart Approach to Industrial Cluster Policy In

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Figure 2 Flowchart Approach to Industrial Cluster Policy In The Asian Model of the Industrial Cluster Policy For the Global Value Chain October 10, 2015 Akifumi Kuchiki Nihon University 1 Only 300 hectares in Iran for Industrial agglomeration! Iran will start its growth from 300 hectares! (3 Km2) Objective: In Iran, we will create China’s Shenzhen !!! Industrial agglomeration in Asia: Kaohsiung in Taiwan in the 1960s. Penang in Malaysia and Eastern Seaboard in Thailand in the 1980s. Shenzen in China in the 1990s Industrial Cluster Policy in Iran! Questions: 1. What kinds of the segments of an industrial cluster are built? 2. Is it an efficient sequence of forming the segments? 3. Who is a leader? Key words: segment, sequence, leader In other words, •The segments = The investment environment •Sequence = Prioritization •Leader = Human resource 5 Bases 1. Segments of industrial cluster Capacity Segment Infrastructure Roads Railways Airports Ports Communication Water supply Electricity Industrial zones Labor Unskilled labor Engineers Managers Institutions Liberalization Land ownership Foreign currency exchange Living environment Schools Hospitals Entertainment Shopping 6 Conclusions: The Asian model: Flowchart Approach: •1. Segments •2. The economies of sequence in forming the segments. •3. We must find a leader as an initial value of a sequence. industrial cluster (a bunch of grapes) 7 1. Industrial cluster A bunch of grapes 6 Kuchiki’s Definition: industrial cluster of the industry consists of two stages: Stage 1 is the stage of Agglomeration, Stage 2 is the stage of Innovation. 9 Sequence a b c d Belly 腹 Breast 胸 Heart心臓 Head 頭 Anchor Water Industrial firms Port supply zone 2. The economies of sequence 10 Today’s topics: Industrial clusters in Asia: 1. Automobile: Guangzhou, China 2. Electronics: Thang Long Industrial Park (TLIP) in Hanoi, Vietnam 3. Automobile: Eastern Sea Board in Thailand 11 Automobile Clusters = Global VC Beijing/Tianjin Korea Nagoya China Delhi Kyushu Shanghai India Guangzhou Bangkok/Rayong Mumbai Manila [Bombay] ASEAN Kuala Lumpur Jakarta 12 13 1.Guangzhou’s Automobile Industry Cluster 14 The Asian model: Flowchart Approach: (a) industrial zones (b) anchor firms (c) the related firms (suppliers) (d) segment building (e) leader 15 The Asian Model: Flowchart Approach Step Ⅰ: (a) Industrial zone Agglomeration (b) Capacity building(Ⅰ) 1. Infrastructure 2. Institutions 3. Human resources 4. Living conditions (c) Anchor firm (d) Related firms Step Ⅱ: (a) Universities / Research institutes Innovation (b) Capacity building(Ⅱ) 1. Infrastructure 2. Institutions 3. Human resources 4. Living conditions (c) Anchor persons (d) Cluster Source: A. Kuchiki and K. Yoshida 16 (a) Industrial Zones and Segment Building: 6 Industrial Zones 17 Zone East Auto-Industry Belt South of Guangzhou Northwest of Guangzhou Capacity Guangzhou Xingtang Huangpu Nansha Panyu Huadu Auto Economic & Industrial District International Automobile City Technological Processing Automobile High-tech Development Zone of Industry Park Industry District Zengcheng Base City A 110 thousand KVA (kilovolt A 500 thousand KVA Electricity Network with 6 Several 110 thousand VA Supplied by Shilou 110 15 transformer Infrastruct amperes) transformer substation transformer substation and of 110 KVA transformer transformer substations. KV Transformer substations with 110 KV and completed underground 4 transformer substations of substations, a 220 KVA Zhujiang Powerplant, with Substation ,and a new and a 220 thousand KV ure: electrical network with two- 110 thousand KVA. transformer substation and capacity of 1.2 million KW 110 KV transformer transformer substation. circuit electricity supply. Huangpu Power Plant of 1.1 and many thermal power substation is under Power supply rate to (ⅰ)Electri million KW (kilowatt). stations with 50-100 construction. enterprises reaches thousand KW. 100 % with daily supply city of 4,760,000 KW/h. Supply Xinhe Waterworks with daily Four large waterworks, Supplied by Guangzhou 3 main water pipes from Supplied by Shawan 3 waterworks with daily (ⅱ)Water capacity of 300,000 tons Dadun, Xizhou, Xinhe and Municipal Waterworks Shawan Waterworks are Waterworks with daily supply capacity of Shapu, providing daily serving the whole Park capacity of 560,000 tons. 200,000 tons and the Supply water capacity of 1.2 with daily supply of water quality reaches million tons. 250,000 tons. State’s sanitary standards. A modern wastewater disposal First stage of 300,000-ton Water and waste drainage Guangzhou Nansha City The project of drainage 150,000-ton/day waste (ⅲ)Sewag station enabling separate waste water disposal station system is under Wastewater Disposal system which adapt the water piping system treatment for underground water is under construction construction , which is Station, with daily handling rain water type drainage, e and sewage water available with first stage of capacity of the first stage of capable of 160,000 Da Shadi Wastewater 100,000 tons ton/day wastewater Treatment Disposal Station of daily disposal is under way capacity of 200,000 tons Close to Gunagnzhou Zone of Within 30-minute drive to Close to Guangzhou Yingdong Middle School Located in the southeast Gungzhou Institute of Human High Learning and Guangzhou South China University of University City where many and Nansha Central of the University City, Automobile of South University City. Various of Technology, Sun Yet-Tsen high educational and Primary School, etc only 20-minute drive China University of Resource: middle schools, primary schools, University, Guangdong research institutes are with rich human resource Technology, Gunagdong kindergartens and Japanese University of Foreign located, capable of available Transportation Education schools are located within the Studies, Guangdong supplying rich human Technology College, area Commercial College resources to enterprises Guangdong Peizheng Business School A sound environment of green Ecological residential areas, Residential areas including The area is composed of Modern residential areas The Sunshine Residential Living hills and clean water, with villa such as Country Garden Wanke City, Huangpu, Jinbi river and lake with nice with nice environment, Area is surrounded by gardens, noble residences and Phonix City, Jinxiu Heung Millenium are within the natural environment and excellent facilities, and favorable18 environment Condition tourist resorts Kong Xinjiang and area with average estate well-preserved natural convinient transportation Source: The Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality, A Foreign Investment Guide to Guangzhou Auto Industry, 2005. s : Xinshijie Residential Area price at 3,500 yuan /㎡ ecological zone network are available Segment: (b) Institutions: One-stop Services Procedure for Setting up Foreign-invested Enterprises Pre-verification of the name of the enterprise Verification of the project site and its impact on surrounding environment Submission of projecct feasibility study report, contact, articles of association Application for the organization code Acquirement of the Approval Certificate of the Foreign-invested Enterprise Application for the business license Engraving the seal of the enterprise Registration of foreign Signing of contract on land use / exchange;application for opening a Registration at the Customs Recruitment of employees contract on leasing of factory RMB account building Application for project construction; Registration at tax authority Handling of labor insurance Construction; Decoration Opening of an account with a bank Equipment installation Registration of finance and Examination and approval of statistics completed project Business operation Source: A Foreign investment Guide to Guanzou Auto Industry, 2005 19 (c) Anchor firms: Toyota Honda Nissan Joint venture company Guangzhou Toyota Motor Guangzhou Honda Dongfeng Nissan Motor Co., Ltd. Automobile Co., Ltd. Company Establishment 2004 September 1998 2004 May 2006 May Joint venture partner Guangzhou Automobile Guangzhou Automobile, Dongfeng Automobile (JVs with First Automotive Dongfeng Automobile Works in Tianjin) (Engines) Main products Camry Accord, Fit Sunny, Tiida Annual production 100,000 (2006) 240,000 (2004). 150,000 volume Production capacity is Second plant is under 300,000. construction. (Scheduled to complete in 2006. Location of Southern coast of Center of Guangzhou city. North of Guangzhou city. headquarters Guangzhou city (Nansha (Guangzhou Economic (Huadu district: 50 ㎢) district:797 ㎢) Development Zone) Agglomeration of Nansha district (12 Guangzhou Economic Huadu district components makers keiretsu companies), Development Zone Shunde district Foshan city (6 Keiretsu companies). Main components Japanese makers Japanese makers Taiwanese makers, makers Japanese makers Source: Based on Tsukada (2005), Kuchiki arranged partly. Notes: Korea Hyundai Motor and Guangzhou Automobile produce commercial vehicles in Huadu. (Total investment: 135 billion yen) 20 Hyundai Motor and Beijing Automobile Investment Co. produce passenger vehicles. (d) Related Firms: Suppliers: Anchor Firms: Honda, Nissan and Toyota => Agglomeration 21 NISSAN’s Agglomeration(2003-06) Company name Investor Products Foundation 1 Dongfeng Motor Corporation Nissan Motor Co., Ltd. Dongfeng Motor Corporation Passenger cars, commercial vehicles 2003 2 Unipres Guangzhou Corporation Unipres Corporation Car body components 2003 Yorozu Corporation, Shanghai Bao Steel Int. Economics 3 Yorozu Bao Mit Automotive Co., Ltd. Suspensions 2003 &Trading Co., Ltd., Mitsui &Co.,
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