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Asia Development Strategies China and Vietnam Michael Violette, AmericanTCB

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Title: Asia Development Strategies China and Vietnam Michael Violette, AmericanTCB


1
Asia Development StrategiesChina and
VietnamMichael Violette, AmericanTCB
2
Asia Development Opportunities and Experience
  • Vietnam Conformity Assessment Conference
  • China A Film Documentary

3
Vietnam Conformity Assessment Conference
Vietnam Standards Development and the Impact on
Commerce
  • Vietnams entry into the World Trade Organization
  • Opening of the market for foreign investment
  • The pressing need for infrastructure development
  • Expansion of product and process verification

http//www.atcb.com/vietnam vietnam_at_atcb.com
4
Industries Affected
  • Pharmaceutical
  • Food and Biological Testing
  • Textiles
  • Construction
  • EMC and Product Safety (Electronics, IT and
    Wireless)
  • Fire technology
  • Pesticides
  • Infrastructure, civil engineering (Uniform
  • Plumbing Code, Uniform Mechanical Code)
  • AE firms

5
Mission and Goal
  • Promote and further trade ties and US linkage on
    industry and regulatory levels

6
Solicitations Support
  • US Department of Commerce, US Consulate General
    HCMC
  • ACIL
  • ASEAN
  • PAC
  • US Governmental and Industry Conformity
    Assessment Authorities (NIST, ANSI)
  • Institute of Electrical and Electronics Engineers
  • Private Laboratories
  • Manufacturing Interests

7
China Prospects
  • Growth Rates
  • Investment
  • Access Issues
  • Our Experience
  • Documentary Project

8
Going North
Lights!
9
China Business Outlook
  • U.S. imports from China reached 243.5B in 2005.
  • Chinas GDP grew 9.9 in 2005, surpassing 2
    trillion (US 13T)
  • China plans to quadruple GDP in 20 years, which
    implies an average 7.3 annual growth

10
China Business Outlook
  • China has risen from the United States 11th
    largest export market five years ago to our 5th
    largest export market today.
  • The U.S. trade deficit with China was 200B in
    2005, a 24 increase of 38B from 162B in 2004.
  • The value of U.S. exports to China in 2005
    reached 34.7B, up 20.5 from the previous year.
    (Global imports reached 148B, up 36.)
  • U.S. exports to China have increased by 80 since
    2001

Source US DOC
11
Progress in Beijing
12
US Exports to China
13
Direct Foreign InvestmentVarious Markets
14
GDP vs Population
15
Markets
16
RD Expenditure vs GDP
17
US Exports To China
Product Value (USD) Change aircraft and
parts 3.84b 137.23 digital integrated
circuits 3.12b 17.8 soybeans 2.25b 3.25
- cotton 1.40b 1.51 - ferrous metal
scrap 1.26b 35.1 auto parts /
accessories 1.03b 72. 3 auto data
processing equip. 0.78b 0.2 copper
scrap 0.76b 42.31 aluminum
scrap 0.72b 92.5 Waste of paper
0.69b 42.79 Electric Apparatus 0.57b 7.
79
18
Business Outlook
19
Residences
20
Challenges
  • Intellectual Property Protection
  • inability to systematically and vigorously
    enforce the law
  • low administrative fines do not deter
    infringement
  • Technical Barriers to Trade Implications for
    Customs
  • development of technical standards aimed to
    protect non-competitive domestic industries
  • lack of transparency in standards development
    process
  • redundant testing requirements
  • National Treatment
  • industrial policies limit market access by
    non-Chinese goods

21
WTO Commitments (December 2006)
  • Reforms in
  • Architecture, engineering and urban planning
    services
  • Banking
  • Distribution and retail
  • Insurance
  • Telecommunications

22
Testing
  • Capable

23
Market Entry Options
  • Direct Exports
  • Sales Agent / Distributor
  • Cooperative Service Center
  • Resident Representative Office
  • Wholly-Owned Foreign Enterprise
  • 100 Foreign-Owned
  • Foreign-Invested Commercial Enterprise (FICE)
  • Distribution and sales (retail, primarily)

24
Goals
  • Start in known environment with trusted partner
    (Taiwan)
  • Develop relationships in PRC
  • Develop Local Support and generate solid revenue
    stream
  • Pricing strategies

25
SINOCES
26
Money
  • Wire transfers to PRC
  • Salaries are 1/5th of equivalent US professionals
  • Flow of money through Hong Kong
  • Banking reform is imminent and necessary

27
Necessities
  • Must go and see
  • Must develop relationships
  • Must be realistic
  • Must look at the objectives of the Chinese
    partners
  • Must understand realities of banking and contract
    situations
  • Must visit often as the situation and
    opportunities change

28
Beer, Steve Art
29
AmericanTCB Experience
  • Started Exploring China Market Opportunities in
    1999
  • Taiwan Office in March 2004
  • Beijing Rep in May 2005
  • Shenzen Agent in November 2005
  • Shanghai Agent/Support in July 2006
  • Rep Office in 2007 (Banking!)
  • WOFE (?)

30
Present Operation
  • Hosting organization in TW
  • Starting formal company in Shenzen
  • Developing trade mission capabilities
  • Training, seminars, service support
  • Access Channel to EMC Test Laboratories in PRC

31
Go See
32
Documentary Project
  • Capture the sights and sounds
  • July 2006
  • Qingdao (CES)
  • Beijing
  • Dong Guan
  • Interviews

33
Plans
  • Solicit Support from Business Interests
  • Develop story
  • Targets
  • Discovery Channel
  • Sponsorship

34
Themes
  • Trusting your partner
  • Business Opportunities in China Demographics
  • Developing Business
  • Language Culture
  • Concerns IP the Environment
  • Expectations
  • Parting Advice

35
Credits
  • Production
  • Liv Violette, McLeanPR Group
  • Direction
  • Jason Scadron, Collage Productions
  • Editing
  • Michael Farkas
  • Co-Sponser Washington Labs
  • Photos Marianne Koster
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