Ireland Asia Yearbook 2014

IAYB_page01.indd 1

01/05/2014 14:29

ASIA

Business 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 IAYB_page02-03.indd 2

www.asiabusinessweek.ie 01/05/2014 17:45

The Ireland Asia Business Yearbook is published by Asia Matters in association with Business and Leadership Ltd ©Asia Matters

Executive director: Martin Murray martin.murray@asiamatters.biz +353 87 2688805 Asia specialists: Ronan Lenihan, director of operations and development and Stephanie FitzGerald-Smith, deputy director for marketing and communications

CONTENTS 4 FOREWORD An Taoiseach Enda Kenny TD 6 INTRODUCTION Chairman of Asia Matters Alan Dukes sets the scene 8 NETWORKS Enterprise Ireland intensifies its activity in Asia 9 IRISH EXPORTS The Asia Trade Forum perspective

Managing director: Sam Hobbs shobbs@businessandleadership.com + 353 1 6251425 www.businessandleadership.com Editor: Sorcha Corcoran Production editor: Karina Corbett Designer: Keith Wealleans Asia Matters is an independent, not-for-profit, non-political, educational think tank based in Dublin focused on the EU-Asia and Ireland-Asia business relationship. The chairman is Alan Dukes, former Irish minister for finance.

Since its inception, Asia Matters has held high value EU-Asia events both in Dublin and Tokyo. In 2014, Asia Matters will embark on an ambitious schedule of events starting in June with ‘Asia Business Week Dublin’, a joint initiative of Dublin City Council and Asia Matters. The C-summit style event focuses on how Ireland can increase business links and connectivity with key Asian stakeholders. Following this, Asia Matters will hold its flagship event, the EU Asia Top Economist Roundtable, in London in September, and in Toyko and Beijing in November 2014.

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, EU and Asian business and government opinion leaders. Asia Matters strongly believes in Irish engagement with Asia within an EU context.

Based in Dublin, Business & Leadership is Ireland’s leading business 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 targeted online business news platform www.businessandleadership. com delivers business news and leadership insights to almost 60,000 business users each month. As bilateral engagement increases, there is greater demand for market insight and intelligence into the opportunities across Asia and we are delighted to partner with Asia Matters in the producing the Ireland Asia Business Yearbook, bringing together key decision-makers in government and state agencies and business leaders to share their insights, experience and knowledge.

10 TOURISM The ‘greening’ of Asian landmarks and other key activities 12 FREE TRADE FOCUS Minister for Jobs, Enterprise and Innovation Richard Bruton TD discusses latest developments in EU-Asia free trade agreements 16 EMBASSY INSIGHTS Ambassadors of Ireland in key Asian markets share latest developments 25 & 32 LEADERS’ INSIGHTS Observations from heads of professional services and law firms 28 COUNTRY FOCUS An update on Japan from Sean O’Driscoll, chairman and chief executive of Glen Dimplex

30 MANUFACTURING What can Europe and Ireland learn from Lean in Toyota?

34 SECTORS: FOOD AND DRINK Huge opportunity for Irish companies, particularly in dairy, beef, pork and seafood 38 SECTORS: EQUINE With its history and reputation for thoroughbreds, Ireland has a lot to offer 40 SECTORS: EDUCATION A key area of focus for the Irish Government and individual institutes 42 INWARD INVESTMENT: ICT An interview with Derek Ding, managing director of Huawei Ireland 44 INWARD INVESTMENT: AVIATION LEASING Shinichi Hayashida, chairman of Japanese-owned SMBC Aviation Capital, discusses current trends 46 DUBLIN CITY COUNCIL Dublin City’s strong engagement with Asia 82 CULTURE AND CSR Gaelic games in Asia, business etiquette guide and Asia Matters’ support of Japanese children’s charity

COUNTRY PROFILES [54] China [56] Japan [58] Indonesia [60] India [62] Korea [64] Singapore [66] Vietnam [68] Myanmar [70] The Philippines [72] Thailand [74] Malaysia [76] Mongolia [78] Cambodia [79] Laos [80] Brunei Darussalam

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 January 2012, Asia Matters has achieved notable success with the support of key stakeholders.

As an independent, not-forprofit, Dublin-based think tank, Asia Matters focuses on further developing EU-Asia business and institutional relationships.

As chairman, I am proud of the achievements of Asia Matters in working collectively with EU and Asian government departments, agencies and business organisations to build stronger relations with key partners.

Asia Matters has engaged at conceptual and multilateral levels to improve civic awareness and mutual understanding.

Within its first three years, Asia Matters has accomplished a great deal. Significant conferences have been convened in Ireland, the UK and Japan, linking Asian, European and Irish business and policy stakeholders at the very highest level.

Asia Matters’ flagship conference series, the EU Asia Top Economist Roundtable was organised in both Dublin (2012, 2013) and Tokyo (2013), featuring keynote addresses by An Taoiseach Enda Kenny TD; Minister for Jobs, Enterprise and Innovation Richard Bruton TD; Jean-Luc Demarty, director general, DG-Trade, European Commission; Prof Masahiro Kawai, dean, Asian Development Bank Institute; Hiroyuki Ishige, chairman and CEO, Japan External Trade Organisation; and Sean O’ Driscoll, CEO, Glen Dimplex.

Speakers included top diplomats and representatives from major global organisations such as Huawei, Infosys, Nomura, Barclays, OECD, Citibank and Philips.

As the world’s economic centre of gravity moves towards Asia, Ireland must focus on the areas of global growth. Asia Matters plays a vital role in ensuring that stakeholders in Ireland can connect with their Asian counterparts.

Asian economies, both developed and developing, have experienced a period of unprecedented growth, undergoing major societal shifts, moving millions out of poverty and

urbanising at a rapid rate. During this period, the EU has intensified its engagement with Asia and is currently undertaking an ambitious programme of free trade agreements (FTAs) with its partners across Asia, as well as negotiating the landmark EU-China Investment Agreement.

These developments, coupled with greater EU engagement, represent a major opportunity for Irish companies to unlock potential markets across Asia and Asian companies to increase their engagement with Ireland to access the EU single market.

I believe that Asia Matters has an important role in providing a space for stakeholders to seize this unique opportunity.

This year marks a pivotal point in Asia Matters’ development, as the organisation sets out an ambitious programme of events in Dublin, London, Beijing and Tokyo.

In June this year, it will organise ‘Asia Business Week Dublin’ at the Round Room at the Mansion House.

A joint initiative with Dublin City Council, and with Dublin Institute of Technology as academic partner, this will be a C-summit style event focusing on turning the vast potential of Asia-Ireland business relations into mutual beneficial growth, realising real economic growth and real employment for Ireland and its partners across Asia.

Working with respected partners on the ground in London, Beijing and Tokyo, Asia Matters will deal with core bilateral trade issues in our EU Asia Top Economist Roundtables in September and November this year. The events will feature thought leaders and policy-makers discussing the key topics of business, financial and trade relations between Asia and the EU. Asia Matters, as our name implies, deeply believes in the importance of engagement with Asia at all levels. We see a need for Ireland to play a key stakeholder role in contributing to the development of EU-Asia trade relations that are mutually beneficial. Though our work focuses primarily on economics, trade policy and business relations, we also strongly encourage cultural respect and understanding as the foundation for true partnership. It is our hope to use our shared knowledge to innovate and overcome common societal challenges as we build solid futures for our countries through people to people relations.

V S

6 Ireland Asia Business Yearbook 2014

IAYB_page06-07.indd 6

01/05/2014 17:45

Voted Europe's Best Airline at the 2013 Skytrax Passengers Choice Awards

WIDEN YOUR WORLD 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 Enterprise Ireland and one that cannot be ignored by any Irish company seeking to grow and internationalise, according to Kevin Sherry, head of international sales and partnering business unit at Enterprise Ireland.

“Enterprise Ireland client companies grew exports to the region by 17pc to reach a total of over €1bn for the first time in 2012.

We expect to be reporting similar growth rates for 2013,” he says.

“The main markets to date for our clients have been China, Singapore, Japan, Malaysia and India, with the main sectors including aviation, financial services, ICT, life sciences, medical devices and educational services.” (The food and drink sector is covered by Bord Bia.) Enterprise Ireland has a national network of nine regional offices throughout Ireland and over 30 international locations.

Eight of these are in Asia Pacific – in Australia, China, Hong Kong, Japan, India, Malaysia, Singapore and South Korea.

A common feature of companies that are successful in Asian markets is that they all remain committed to their chosen markets, have dedicated resources and take a focused and long-term approach, Sherry notes.

“Irish companies that tend to do well offer a specific product or service tailored to a specific need identified in an individual market in Asia. Those that have transformed their value proposition to meet the need of that particular market have achieved the highest growth rates, regardless of what end sector they are focused on.

“Having ‘boots on the ground’ is a fundamental factor to being successful in Asia. Companies must be prepared to put the

8 Ireland Asia Business Yearbook 2014

IAYB_page08-09.indd 8

resources in to understand the market well from the customer perspective.”

Enterprise Ireland launched a new ‘Market Access Grant’ last February, which provides Irish companies with up to €150,000 to research and develop new markets such as those in Asia.

For the past number of years trade missions have been an essential element in Enterprise Ireland’s long-term strategy of fostering business relationships with key influencers and large customers on the ground in the region, according to Sherry.

“The presence of An Taoiseach or Government minister leading a trade mission is particularly valuable in Asia. The government-to-government relationship is crucially important to provide the platform from which to do business. Status and hierarchy tend to matter more in Asian countries, which adopt a top-down approach. The presence and involvement of An Taoiseach or a minister secures meetings and interaction at a senior level that may not otherwise be achieved,” he says.

Last year, there were a number of high level visits to the region: an education-focused mission to China in March led by Minister for Education Ruairí Quinn TD; a trade and investment mission to China and Japan led by Minister for Jobs, Enterprise and Innovation Richard Bruton TD; and a large trade mission to Japan led by An Taoiseach Enda Kenny TD in December.

“We have increased the number of trade missions to Asia this year, starting last February with the first ever joint mission with Invest NI to Singapore. There will be missions to China and Korea in June, China at the end of October and India in November,” 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

01/05/2014 14:31

Trading up

IRISH EXPORTS

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 year, but there is much to be encouraged about elsewhere in Asia for Irish business, according to Hugh Kelly, head of the Asia Trade Forum (ATF).

“We are very concerned that total exports to Asia declined to €5.24bn last year but this only serves to highlight the importance of initiatives such as the ATF. “We welcome the opening of the new Irish diplomatic embassies and missions in Indonesia, Thailand and Hong Kong as well as the appointment of additional Enterprise Ireland staff on the ground in Asia where they provide valuable support to indigenous Irish exporters.

“On a positive note, the value of food and drink exports to Asia overall rose 28pc in 2013 compared to 2012; in China they climbed by 40pc, in Singapore by 18.5pc, in Malaysia by 55pc and Korea by 11.5pc. Now we need to replicate this success in other sectors.”

Regarding sectoral opportunities in the region, Kelly says they depend on the Asian market in question. “In some markets there are significant infrastructural and heavy industry opportunities as CRH, ESB International, Suretank and PM Group have shown.

“In others, there is strong demand for hi-tech products and services that Steripack, Openet, Dortek, Dimplex, Park Aviation and BMR Slendertone have all enjoyed.

“There are significant opportunities for all our food exporters in almost all Asian markets. Companies trading and operating very successfully in Asia include the likes of Errigal, Glanbia, Glenmar Shellfish and Irish Dairy Board. The lifting of the ban on Irish beef into Japan was significant and the removal of dairy quotas in Ireland next year will open the door for much increased trade with China.”

Focusing on the potential for Irish exporters in individual Asian markets, Kelly cites India as an example.

“Forecast to become the world’s third largest economy by 2050, India is a country that cannot be ignored with an industrious and increasingly well educated population that already exceeds one billion.

“There are still many challenges to doing business there, such as the different culture, under-developed infrastructure, the many different regional languages spoken and tariff and non-tariff trade barriers,” he explains.

“However, there are equally many opportunities as companies such as Connolly’s Red Mills, Weddings Online and Contracting Plus have demonstrated. It is important for Irish companies to have realistic expectations in terms of return on investment when entering the market and to realise that if they want to be established in India in three or four years’ time, they need to start now.”

Since the Irish Exporters Association (IEA) set up the ATF in 2011, over 1,000 people have attended its seminars on doing business in Asia and almost 100 companies have gone on its business visits to India in 2012 and China and Malaysia last year.

It is now in the fourth year of its mentoring programme, which is part of the masters in international business run by Professor Sean Cassidy at the UCD Smurfit School of Business.

“Up to 60 students each year work with IEA member companies to develop market entry strategies into Asia through this programme,” says Kelly.

“This year in February we launched a similar programme in the Kemmy School of Business, University of Limerick, and in March 2014 we launched a new partnership with the School of Asian Studies at University College Cork.”

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

Tourism Ireland has been engaging in a number of promotional activities to maximise Ireland’s tourism opportunity in Asian markets CHINA and India continue to be the two main Asian markets targeted by Tourism Ireland and last year 19,000 Chinese visitors and around 21,000 Indian visitors came to Ireland, according to the agency’s estimates.

In China, Tourism Ireland focuses mainly on three geographical areas: Shanghai (eastern China), Beijing (northern China) and Guangzhou (southern China), while in India the target markets include the 25–55 year olds, high net worth segment from Mumbai, New Delhi and Bangalore; as well as business travellers and family groups.

Tourism Ireland in China undertook a particularly busy programme of activity around the St Patrick’s Day period this year.

This culminated in the ‘greening’ of a section of the Great Wall of China, as well as the Oriental Pearl Radio and TV Tower in Shanghai, and the Pudong Shangri-La Hotel old and new towers, also in Shanghai, on 17 March.

In late 2013, the agency’s largest ever sales mission to China took place, involving 20 Irish tourism companies going to meet with 450 travel agents and operators in Beijing, Shanghai and Guangzhou.

Meanwhile in March of this year, a delegation of Irish tourism enterprises took part in a sales mission to India, meeting and concluding deals with more than 300 top Indian tour operators and travel agents, through a series of workshops, sales calls and networking events in Mumbai and Delhi.

Online and social media activity is an important element of Tourism Ireland’s promotional programme and it recently launched the Chinese and Indian versions of the country’s international website Ireland.com.

Tourism Ireland has almost 95,000 Facebook fans in India (over

Promoting

Kildare Village. A member of the Chic Outlet Shopping ® Collection of Villages

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

potential

two million fans worldwide); and in China it has about 233,000 followers on social networks, including Sina Weibo.

According to Tourism Ireland CEO Niall Gibbons, the agency has also been capitalising on the Government’s short-stay Visa Waiver Programme, introduced in 2011, which has been a real boost in helping to raise awareness of the island of Ireland in both China and India.

“The scheme enables travellers from 17 countries, including China and India, who enter the UK on a valid visa to also travel to Ireland – without requiring a separate visa. The extension of the Visa Waiver Programme to October 2016 provides the perfect opportunity for Chinese and Indian tour operators to offer Ireland packages to their clients, or to add Ireland to their current British packages,” he explained.

“Tourism Ireland’s overall strategy in China and India involves establishing and consolidating relationships with key intermediaries – including tour operators, travel agents, airlines and media. For example, last summer we arranged for China’s No 1 travel blogger Fan Yibo to spend a week touring Ireland – he has almost 400,000 followers on Sina Weibo and his blog has received more than 77 million clicks to date.”

There have been a number of developments recently that augur well for tourism to Ireland from India and China. For example, Tourism Ireland and VisitBritain announced a new agreement to boost tourist numbers from long-haul markets such as China and India. Under the agreement the two organisations will work more closely together to promote the island of Ireland and Great Britain as destinations to be visited as part of a single holiday.

In addition, in March, Ireland was named ‘best potential destination’ for 2014 at an awards ceremony in Shanghai organised by Ctrip, China’s largest online travel agency.

10 Ireland Asia Business Yearbook 2014

IAYB_page10-11.indd 10

01/05/2014 15:35

Asia

*on the recommended retail price © Kildare Village 2014 04/14

Kildare Village. A member of the Chic Outlet Shopping ® Collection of Villages

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

IAYB_page10-11.indd Asia Business Yearbook112014.indd 1

DUBLIN

PARIS

MADRID

BARCELONA

MILAN

BRUSSELS

FRANKFURT

MUNICH

SUZHOU, CHINA

01/05/2014 15/04/2014 15:35 11:22

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 global economic growth will take place outside Europe. Much of this will be propelled by dynamic economies in Asia. In that region China alone could account for a third of this economic expansion.

China is often seen as the regional powerhouse because of its size, economic growth and its potential as economic transformation continues apace. And we have worked hard to develop stronger links with it.

As many of our traditional export markets of the UK, the eurozone and North America have suffered prolonged economic difficulty over recent years, the combined growth rates of major Asian economies such as India, Indonesia and Malaysia, as well as China, offer scale and long-term growth potential for our ambitious exporters.

The reorientation of our exporters to Asia is slowly and steadily taking place. This is underpinned by the range of free trade agreements (FTAs) being negotiated with key economies in the region.

The first of these between the EU and Korea came into effect in 2011. Last year trade in goods with Korea grew by 36pc compared with 2010, the year before the agreement started to remove trade barriers between our two economies.

Making inroads into relatively unfamiliar export markets across Asia is certainly not as straightforward as exporting to the EU’s single market. Nevertheless, for exporters that take the time to carefully plan and invest for these distant export markets, trade and investment agreements certainly are of significant help in making it easier and less costly to win valuable export business.

My department is always keen to hear from exporters about how these agreements can help either specific companies or sectors looking to build more business and expand their Asian footprint.

These trade deals not only remove import tariffs, but also tackle special rules and technical standards that are often designed to make it more difficult for exporters to do what is most natural for them – win business, do deals and grow their companies.

I look forward to the trade agreement with Singapore quickly coming into effect because it is an important gateway economy for the rest of Asia, and for those being negotiated with Vietnam, Thailand and Indonesia to be concluded in as short a time frame as possible.

To reflect the importance of Asia as a new source of 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 more support on the ground to exporters.

They will also complement the work of my department in negotiating trade agreements and the work of our lead export promotion agency Enterprise Ireland in supporting our exporters.

The trade mission to Japan at the end of 2013 was a significant step in a strategic engagement with that country. As one of the wealthiest economies in the world our exporters are a close fit with its import needs in terms of technology, services and food. Prospects there will be considerably enhanced when the FTA with Japan is concluded, giving our exporters a strategic advantage that others will not have. I believe this could well be a new heartland of activity for our Asia destined exports.

THE EU AND ASIA The EU is the world’s biggest market and trading bloc and Asia is now the EU’s main trading partner, accounting for a third of total trade and this figure continues to grow.

In terms of investment, a quarter of EU outward investment is going to Asia while inward investment is growing fast.

Asia is important to Europe and will be so even more in the future. In economic terms we know that recovery at home depends on the ability to harness growth and open new markets, many of which are in Asia. The EU is building up its engagement in and with Asia.

But Europe is also important to Asia – its future growth depends on access to EU markets.

The EU remains the largest economy in the world, with a per capita GDP of €25,000 for its 500 million consumers. That represents a €12.6trn economy. Only the US (€11.5trn) is in the same league.

EU TRADE NEGOTIATIONS The following is a round-up of the state of play regarding negotiations between individual Asian countries and the EU. Burma/Myanmar In March 2014 negotiations were launched on an Investment Protection Agreement between the EU and Myanmar/Burma.

This will improve the protection and fair treatment of investors from both sides and will thus contribute to attracting investments to Myanmar/Burma and the EU. Cambodia The EU works closely with Cambodia under the framework of the EU-ASEAN Co-operation Agreement to ensure an effective environment for trade and investment relations.

China The launch of negotiations on a comprehensive EU-China Investment Agreement was announced at the 16th EU-China Summit, which was held in November 2013.

The agreement will provide for progressive liberalisation of investment and the elimination of restrictions for investors to each other’s market. It will provide a simpler and more secure legal framework to investors of both sides by securing predictable long-term access to EU and Chinese markets

respectively and providing for strong protection to investors and their investments.

The EU has backed China joining the talks on the WTO Trade in Services Agreement (TiSA).

India Despite some progress, negotiations have stalled and work will not progress until after the elections in India. Both sides are aiming to find solutions that are mutually acceptable to achieve an ambitious outcome, which would give an important boost to trade between the EU and India.

Indonesia The EU and Indonesia signed a Partnership Co-operation Agreement in 2009. Intense contacts have taken place since 2011 to explore the possibility to further deepen EU-Indonesia relations by way of a Comprehensive Economic Partnership Agreement (CEPA).

Japan The opening of FTA negotiations was announced on 25 March 2013. There have been five rounds of negotiations and an initial exchange of offers has been made. The EU is currently reviewing progress achieved during the first year of talks and assessing the implementation of commitments made by Japan on the elimination of non-tariff barriers.

Laos The EU works closely with Laos under the framework of the EU-ASEAN Co-operation Agreement to ensure an effective environment for trade and investment relations.

Malaysia FTA negotiations were launched in September 2010. Since elections in Malaysia in May 2013 there has been no further progress.

The Philippines A pre-scoping exchange of views has taken place.

Singapore The FTA negotiations were successfully concluded in December 2012 and the agreement was initialled in September 2013.

Negotiations on investment protection, based on a new EU competence under Lisbon Treaty, started later than the FTA and are ongoing.

Thailand The FTA negotiations were launched in March 2013. The fourth round of negotiations took place in April 2014.

Vietnam Negotiations were launched in June 2012 and have entered a substantial phase. The seventh round of negotiations took place in March 2014 and the eighth round is scheduled for June 2014.

Both sides aim to conclude swiftly.

Ireland Asia Business Yearbook 2014 13

IAYB_page12-13.indd 13

01/05/2014 17:46

FOREIGN AFFAIRS

A fledgling friendship Chairman of the Joint Committee on Foreign Affairs and Trade Pat Breen took part in the Presidential Friends of Indonesia programme in August 2013 and now Jakarta is set to have an Irish embassy

Indonesia’s Minister for Foreign Affairs Marty Natalegawa and Pat Breen, chairman of the Joint Committee on Foreign Affairs and Trade in Ireland

CHAIRMAN of the Joint Committee on Foreign Affairs and Trade Pat Breen was the only person from Ireland, and indeed Europe, represented on the Presidential Friends of Indonesia programme in August 2013.

This programme, which takes place each year to coincide with Independence Day celebrations on 17 August, brings together 10 key people from the worlds of policy, industry, culture and art from various countries, in order to give them a deeper understanding of Indonesia’s culture and economy.

Breen was invited by the Ministry of Foreign Affairs to take

part in the seven-day trip and his companions included a Russian music composer, a journalist from South Africa, a university professor from Japan and an Australian community leader.

The programme began with delegates attending the Independence Day flag hoisting ceremony at the State Palace 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 be ambassador has gone to Cabinet and is expected to be revealed soon.

“Having an ambassador in Jakarta is a very exciting prospect.

It will be a platform to promote exports, tourism, investment and education, and hopefully lead to more ministerial visits as well as high level visits from Indonesia to Ireland,” he notes.

Regarding tourism, Breen highlights that research released in April this year by Visa Europe showed that Indonesians spend more per Visa card transaction than any other nationality in Ireland with an average spend per transaction of €170.71.

“This is an important year for Indonesia as there will be a general election and a presidential election and it also represents 20 years since diplomatic relations with Ireland first began,” he says.

14 Ireland Asia Business Yearbook 2014

IAYB_page14-15.indd 14

01/05/2014 17:54

D4988_B

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 Director Bank of Ireland Corporate Banking Tel +353 (0)76 624 4595

田琛 | Chen Tian 董事助理 | Director Assistant 爱尔兰银行企业合作部 | Bank of Ireland Corporate Banking Tel +353 (0)76 624 4590

Email derek.collins@boi.com

Email chen.tian@boi.com 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.indd 15 advert 210x273 APRIL 2014 FINAL.indd 1 D4988_BOI CB Asia Matters

01/05/2014 25/04/2014 15:23 15:42

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 partnership is based on shared values and goals. Although we are very far apart, situated at opposite ends of the Euro-Asian landmass, we have many traits in common. We both extend a warm welcome to visitors and we both attach a high priority to family ties and close friends.

We both share a determination to contribute to world peace and security through active participation in international organisations such as the UN and providing assistance to developing countries.

Since diplomatic relations were established in 1957, the connections between Ireland and Japan have grown significantly. In recent years, the bilateral ties have become even closer.

In June 2013, Prime Minister Abe visited Dublin becoming the first ever serving Japanese Prime Minister to do so. In December 2013, Taoiseach Enda Kenny TD paid a return visit to Japan.

During that visit, the two leaders adopted a joint declaration entitled ‘Partnership for Innovation and Growth’, which will provide a framework for developing co-operation between the two countries into the future.

The declaration identifies trade, investment and research, development and innovation as key drivers for economic growth, particularly in areas such as agri-food, financial services, ICT, life sciences and clean technologies.

It also sees education, culture and people-to-people exchanges as important ways of developing the relationship between Ireland and Japan, building on the Memorandum on Co-operation signed in May 2013 by the Japanese and Irish Ministers for Education.

Already we are beginning to see results from these visits with a new interest in forming academic partnerships and educational exchanges between Irish and Japanese universities. The new programme established by Science Foundation Ireland to promote research links between Ireland and Japan is also leading to new connections in this area.

The economic relationship between Ireland and Japan continues to be a very substantial one. Japan is Ireland’s 11th largest trading partner and the sixth largest source of foreign direct investment in Ireland. Japanese companies employ around 3,000 people in Ireland.

In Japan, the Irish embassy works closely with Enterprise Ireland, IDA Ireland and Bord Bia to promote economic co-operation. Together we form ‘Team Ireland’ and we offer a seamless and comprehensive package of support to Irish companies seeking to enter the Japanese market and to Japanese companies considering Ireland as a European base.

Japan is not an easy market for Irish companies but there is enormous potential here and companies with the right product or service and the right approach can do very well. There are numerous examples of Irish companies that have shown the way in this regard.

As Ambassador of Ireland in Japan, I would like to continue to work closely with my Ireland House colleagues and with Irish companies to promote even closer relations between Ireland and Japan that will benefit both our countries.

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 delighted to see the ties of friendship between our two countries strengthen over the past three years. Ireland and Vietnam have important historical and cultural similarities, and while we are geographically distant, our shared love of music, family and our warm culture of hospitality bring us closer together.

Over the past few years, our trade with Vietnam has been increasing steadily, up 24pc in 2013 over the previous year, and with huge potential for further development, particularly in the fields of aviation, ICT and education.

This year Irish companies will also begin to export pork products to Vietnam, tapping into a market of over 90 million people.

Our reputation as a destination for trade and inward investment, as one of the friendliest places in the world to do business and one of the most open economies in the world has been hugely attractive to the Vietnamese.

Ireland’s skills development model, with strong links between a dynamic education sector and cutting-edge research and industry, is extremely attractive to Vietnam as it seeks to train the skilled engineers and technicians it needs for its future development.

Increasingly, Ireland is also a destination for international students from Vietnam. Since 2011 as part of our Overseas Development Aid programme in Vietnam (Irish Aid), we are providing up to 30 scholarships annually for talented young Vietnamese to study in Ireland.

Students returning from this programme have formed an active alumni association in Vietnam, which is chaired by Deputy Prime Minister Hai, who was himself trained in Ireland at both Trinity College Dublin and University College Dublin. We have also seen a big increase in the number of Vietnamese students studying in Ireland on a self-funded basis, with applications more than doubling since 2011.

The aviation sector is going to be a major area of growth

throughout Asia over the next few decades. Ireland’s expertise in this sector is well recognised in Vietnam, with VietJet air, the largest low cost carrier in Vietnam, leasing many of their aircraft from Ireland.

With the support of Enterprise Ireland, a number of aviation service providers are now working with Vietnamese partners.

This sector has strong growth potential over the next few years as Vietnam’s aviation sector liberalises and expands to cope with the increasing numbers of its young population who want to travel both domestically and internationally.

Our programme of development co-operation remains a key component of the bilateral relationship, and we work closely with the Government and people of Vietnam to help reduce rural poverty, deal with the legacy of conflict, and share our economic and business expertise.

In March 2014, we welcomed Minister Kathleen Lynch TD on an inward trade visit focused on education and ICT. While she was in Vietnam, she participated in the signature of new agreements for partnership and knowledge exchange between a number of leading Irish and Vietnamese colleges. She also visited some of the Irish companies working in Vietnam, including in the rapidly expanding ICT sector.

Irish companies have a lot to offer the Vietnamese market, which after a period of slow growth is beginning to recover strongly, driven by the entrepreneurial culture and dynamism of the Vietnamese people.

The EU is also on track to conclude a free trade agreement with Vietnam by the end of 2014, which will open up further opportunities for Irish companies. I am committed to improving Ireland’s reputation as a business partner, and promoting the relationship between Ireland and Vietnam.

Ireland Asia Business Yearbook 2014 17

IAYB_page16-23.indd 17

01/05/2014 14:33

XXEMBASSY INSIGHTS IRISH profile

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 this is central to the joint strategy agreed by the embassy and State agencies. Encouraging Indians to consider Ireland as a business partner, an investment or tourism destination, or as a place to study, is much easier when people have some sense of who and what we are.

The embassy and State agencies have been working together over the last couple of years to increase the level of press coverage on Ireland, but also to engage with key individuals in our priority sectors. There has been a particular push in the tourism and education sectors, with Enterprise Ireland and Tourism Ireland doing some excellent work in promoting Ireland to an Indian audience. We have also been working with the IDA in engaging with hand-picked members of the business community and making them aware of what Ireland offers.

The most significant development has been a remarkable increase in the numbers of Indians choosing Ireland for third-level study or as a holiday destination. The number of students has almost doubled in the last two years, while there is consistent growth in tourist numbers of close to 20pc per year. We are also seeing more and more Indian companies looking at Ireland as a base for doing business in both the EU and North America, as well as Irish companies exploring the possibilities of doing business in India.

There is definitely a greater awareness of Ireland as a centre of excellence in advanced technologies. In the past we would have been best known in India for the role of the Irish in setting up schools across the sub-continent. That is slowly changing and an image of Ireland as a young, dynamic country with a particular expertise in sectors such as pharmaceuticals and ICT is beginning to emerge.

Of course we are best known to the majority of Indians for our cricket team and famous World Cup victories over India’s

arch-rivals England and Pakistan. Irish cricketer Kevin O’Brien is the India brand ambassador for education in Ireland and he attracts enormous interest whenever he visits.

Next year’s Cricket World Cup, at which Ireland has been drawn in India’s group, will be a unique opportunity to raise our profile.

I think our easy-going and pragmatic nature is something that other nationalities find appealing. We tend to be good at building relationships, which is essential to success in business and diplomacy.

While overall we would see the services sector as probably the one with most potential, a number of Irish companies have been very successful in India in recent years in industries ranging from specialist animal feeds to construction materials.

India isn’t the easiest place to do business and companies need to do their research before entering the market. Ideally they should have a resident presence or at least be very regular visitors. It is hard to over-emphasise the importance of relationships in doing business in India – you will need to get to know your partners and customers at a personal level if you are to be successful and that takes time.

The focus of the embassy and agencies is very much on encouraging Indian companies to see Ireland as a gateway to the EU and North American markets. Ireland is small by Indian standards – there are four times as many people in the Delhi region as in the whole island of Ireland – but we offer access to two large, well developed and affluent markets. We are halfway between India and North America, both geographically and in terms of time zones, and are an ideal location to service both the EU and US/Canada. Our strengths in sectors such as pharma, life sciences more generally and ICT are a big selling point as we offer clusters in sectors in which India is strong.

1818 Ireland IrelandAsia AsiaBusiness BusinessYearbook Yearbook2014 2013

IAYB_page16-23.indd 18

01/05/2014 14:33

XX profile IRISH EMBASSY INSIGHTS

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 hub and it is still growing at a brisk pace. As Shanghai and the wider region continue the transition from lower value exports and heavy industry towards an economy driven by innovation, consumption and services, the opportunities for Ireland will expand further.

Already there are over 20 Irish companies with a presence here and we expect more business in future in areas such as industrial design and engineering, clean-tech, pharmaceuticals and medical devices, software, aviation and travel technologies, and financial and education services.

Food and beverage exports are growing significantly, as they are elsewhere in China, as demand for high quality and safe dairy ingredients, meats and seafood remains high.

We also expect opportunities to attract more companies who want to invest in Ireland as a gateway to the EU. A number of private and state-owned companies with operations in Shanghai in the areas of telecommunications and financial services have already established operations, and renewed central government support for outbound investment should bolster this trend.

The consulate general was established in 2000, mainly to support our trade and investment effort working very closely with other Ireland House team members here in Enterprise Ireland, IDA Ireland, Bord Bia and Tourism Ireland.

The consulate also engages in a variety of public diplomacy and cultural initiatives to boost the awareness and reputation of Ireland – for example, we have supported St Patrick’s Day

festivals in Shanghai in recent years, which has attracted thousands of enthusiastic participants and wide media coverage; Irish participation in theatre and film festivals; and cultural and literature competitions at secondary and higher education levels.

We have also promoted a strong presence on Chinese social media.

The sister-city relationship between Cork and Shanghai plays a key role in promoting civic, business, cultural and education exchanges. The 10th anniversary of this partnership is celebrated next year and this will no doubt be a catalyst for further projects and ideas.

The coming years promise more change for Shanghai with the establishment of the Free Trade Zone last year to pilot further liberalisation of foreign investment conditions, RMB trading and financial sector reform. Shanghai will also serve as a test-bed for reform of state-owned enterprises to bring greater competition and transparency. Major new projects such as Disney World, a new international shipping and financial hub on the north Bund, and the development of the Hongqiao central business district and exhibition centre promise to underpin the development of this city of 24 million people up to 2020 and beyond.

China is a complex market but many companies find the Yangtze River basin region, which has a strong track record in facilitating trade and investment, a profitable entry point. I, along with our State agencies and our embassy, look forward to continuing to support Irish companies and higher education institutes in consolidating existing business and in developing new markets and relationships.

Ireland Asia Asia Business Business Yearbook Yearbook 2013 2014 19 Ireland

IAYB_page16-23.indd 19

01/05/2014 14:33

XXEMBASSY INSIGHTS IRISH profile

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 the memorable visit of then Vice-President Xi Jinping to Ireland in February 2012, and the return visit of An Taoiseach Enda Kenny TD to China in March of that year, there have been 12 ministerial visits from Ireland to China.

In the other direction, Vice-Premier Ma Kai paid a successful visit to Ireland in October 2013. The opening of an Irish consulate general in Hong Kong this year, as part of the Government’s commitment to expanding Ireland’s diplomatic footprint in Asia, is a sign of these strengthening ties.

It was an honour for me as a young diplomat to be a member of the team that opened Ireland’s first embassy in the People’s Republic of China following the establishment of diplomatic relations between the two countries 35 years ago this year.

Since my return to China as ambassador last summer, I have been greatly struck by the tremendous development that has occurred in the relationship between our two countries over that period.

On the economic front, Irish statistics indicate that two-way trade between Ireland and China was in the region of €8bn in 2013. This represents a growth of 125pc in 10 years with service exports from Ireland to China expanding by 250pc in the same period.

There are now around 90 Irish companies with a sales presence in China spanning sectors as diverse as aviation, software, education, clean-tech, dairy ingredients and financial services.

The demand in China for high quality and safe food has trebled Ireland’s food and drink exports to China in just three years and China is now Ireland’s second largest market for dairy products.

Ireland also has a cluster of globally successful agri-technology companies, which are eager to support the development of the sector in China.

As a long-established gateway to the EU for worldwide investors, and as the sole English language country in the eurozone, Ireland is the perfect partner for Chinese companies that are going global as part of the next phase of China’s opening up.

Financial services and ICT links are growing apace. Some of

China’s top banks have opened offices in Ireland to grow their aviation leasing operations and Ireland has already attracted some of the leading Chinese ICT investors and telecoms equipment suppliers.

A significant recent development has been the launch of a China Ireland Technology Growth Capital Fund. Established jointly by Ireland’s National Pensions Reserve Fund and China Investment Corporation, the fund will invest in growing Irish technology companies with strategic ambitions to enter China and in growing Chinese technology companies wishing to use Ireland as a base for their European operations (see page 52).

Bilateral cultural relations between Ireland and China are stronger than ever. The success of Riverdance is a sign of the popularity of Irish culture in China, and Chinese language and culture are now being mainstreamed in the Irish secondary school curriculum.

There are over 160 agreements between Irish and Chinese education institutions, including joint programmes, collaborative research agreements supported by Science Foundation Ireland, as well as student and staff exchanges.

Chinese tourists travelling in Europe are visiting Ireland in increasing numbers. Our scenery, historic castles and worldclass golf courses are proving particularly popular. Many Chinese tourists enjoy following in the footsteps of President Xi Jinping by visiting the Cliffs of Moher. We are working closely with the Chinese authorities to promote improved air connectivity between Ireland and China, which will facilitate closer business, tourism and education links in both directions.

So the relationship is rich, multidimensional and ever stronger.

The embassy’s role is to strengthen further these bilateral links alongside our consul general in Shanghai and our colleagues in the State agencies, as well as Irish Thoroughbred Marketing and Culture Ireland, and, of course, with the significant contribution of Irish businesses, institutions and community organisations represented in China.

2020 Ireland IrelandAsia AsiaBusiness BusinessYearbook Yearbook2014 2013

IAYB_page16-23.indd 20

01/05/2014 14:33

XX profile IRISH EMBASSY INSIGHTS

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 developed over many years and are in no small part due to our links in education. Many Malaysians I meet fondly recall being taught at school by Irish priests and nuns, and we have a long and proud tradition of Malaysians studying at Irish medical schools.

Our close relationship was underlined when Ireland chose to locate its first embassy in Southeast Asia in Malaysia in 1996.

Many well-known Malaysian doctors studied at the Royal College of Surgeons in Ireland (RCSI) and Trinity College Dublin.

University College Dublin (UCD), University College Cork and the National University of Ireland Galway are also popular destinations. In Malaysia we now have two medical schools – RCSIPerdana University in Kuala Lumpur and Penang Medical College jointly operated by RSCI and UCD. Although Ireland is particularly well recognised in Malaysia for the quality of its medical education, Malaysians are increasingly aware of our strengths in non-medical education also. In recent years Ireland has welcomed Malaysian students in a broad range of subjects at our universities and institutes of technology.

We have at least 1,500 Malaysians studying in Ireland at present, and we are looking to grow this number. The embassy will continue to work with Enterprise Ireland, Education in Ireland and Irish education institutions to foster and develop this valuable relationship.

While trade figures between our two countries are healthy, there is certainly scope for further growth. We have a number

of Irish firms in Malaysia, including Kerry Group, ESBI, Openet Telecom and medical packaging firm SteriPack. Malaysia is also a key partner for Ireland’s Islamic banking sector.

In 2012, Malaysia’s CIMB bank established an Islamic fund at the International Financial Services Centre in Dublin, and Malaysian firm Amanie Advisors established a presence there.

Malaysia is seen as an attractive base for firms looking to establish in Asia due to the relative ease of doing business there and the English language skills of the workforce.

The Irish community in Malaysia is active and growing. The St Patrick’s Society of Selangor this year hosted its 89th annual St Patrick’s ball, one of the largest in Asia, and the Penang Irish Association hosted its first St Patrick’s Festival. Kuala Lumpur’s GAA club Orang Eire features men’s, women’s and children’s teams with members of many nationalities. Last year the club hosted a very successful Asian Gaelic Games, welcoming clubs from Asia, the Middle East and Australia, and this year Orang Eire will host the Games once again.

The Asia Pacific Irish Business Forum (APIBF) takes place the same weekend as the games each year. This is a great opportunity for Irish firms from throughout Asia, as well as firms considering expanding to Asia, to get together to discuss the opportunities and experiences of doing business in the region.

The success of last year’s APIBF was due in no small part to the sterling work of the Malaysia Irish Business Network, and I look forward to another successful APIBF in October.

Ireland Asia Asia Business Business Yearbook Yearbook 2013 2014 21 Ireland

IAYB_page16-23.indd 21

01/05/2014 14:33

DIT

XXEMBASSY INSIGHTS IRISH profile

Closer relations

Ambassador of Ireland to the Republic of Korea Aingeal O’Donoghue says that following the recent 30th anniversary of diplomatic relations between Ireland and Korea, the relationship is stronger than ever

THE relationship between Ireland and Korea is a strong and positive one with a growing potential for trade and investment opportunities. Our two countries share many of the same perspectives and policies on the international issues and global challenges and we work closely together in the UN and other international organisations.

Last year marked the 30th anniversary of diplomatic relations between our two countries. An important element of the anniversary celebration was the establishment of a memorial in Seoul to those of Irish birth and heritage who fought in the Korean War, a contribution that is now well recognised and much appreciated by the Korean government and people.

There is considerable interest in and recognition of Ireland’s return to recovery and growth, following the severe impact of the global financial crisis on our economy. Our successful exit from the EU/IMF programme was warmly welcomed and had a lot of resonance in Korea, where memories of its own IMF programme in the late 1990s remain strong.

Trade between Ireland and Korea, which had dipped during the crisis, recovered well in 2012 and 2013, with the services sector in particular showing strong growth.

The EU-Korea free trade agreement (FTA) provides a positive framework for further developing Irish-Korean trade and can give exporters from Ireland and other EU member states a crucial competitive advantage. The embassy and agencies actively monitor its implementation and we are ready to pursue any issues that arise for Irish exporters under the FTA. Korea has been among the fastest growing OECD countries during the past decade. It weathered the financial crisis better than many others and has rebounded with a growth rate at around 4pc since mid-2013. The new growth strategy of the President Park administration aims at fostering a ‘creative economy’.

Here in Seoul the embassy, Enterprise Ireland (EI) and IDA Ireland operate together in Ireland House. There has been a considerable strengthening of the agency presence here in the past two years, with IDA Ireland re-opening its offices in 2012 and an expansion in the EI presence in the first half of 2014.

Sectors of particular interest include medical and pharmaceutical products, internationally traded services, the agri-food sector, ICT, life sciences and engineering.

Building on recent visits from the Minister for Transport, Tourism and Sport Leo Varadkar TD, CEO of IDA Ireland Barry O’Leary and the St Patrick’s Day visit of Minister for Children and Youth Affairs Frances Fitzgerald TD, planning is now well underway for a trade mission in June 2014.

In addition to the well established community of business people and Irish missionaries, there is an active and vibrant young Irish community in Korea. Many of them come here to teach English, but it also means we are building up a growing cohort of young Irish who know and understand Korea and how to work and operate in this country.

In the other direction, the working holiday visa scheme established in 2010 attracts a lot of interest from young Koreans and each year 400 Koreans travel to Ireland under this scheme to work, study and experience the best of Irish culture and tourism.

Korea is a complex country, but despite our distance I meet many Koreans who feel a strong affinity for Ireland and the Irish people. Doing business here requires commitment and a willingness to invest time and energy in building relationships with Korean partners. But Korea also offers rich opportunities and the embassy and agencies in Ireland House are ready to support you as we build ever closer relations between Ireland and Korea.

2222 Ireland IrelandAsia AsiaBusiness BusinessYearbook Yearbook2014 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 With over a century of experience in teaching, learning and research, Dublin Institute of Technology (DIT) is one of Ireland’s largest publically funded doctoral awarding higher education institutions. It combines the academic excellence of a traditional university with professional, career-oriented learning and research. DIT specialises in developing graduates for productive leadership roles both nationally and internationally. The core values reflected in its mission emphasise student-centred learning, useful knowledge, rigorous processes of discovery and critical enquiry while encouraging entrepreneurship and promoting diversity.

DIT offers over 150 programmes at bachelor’s, master’s and doctoral levels from our four colleges: • Arts & Tourism • Business • Engineering & Built Environment • Sciences & Health With students from over 85 countries around the world you are guaranteed a true international experience in the heart of Dublin, Ireland’s cosmopolitan capital city.

Our research activities are focused on real-world problem-solving, social and technological development, and on innovation that advances human knowledge and that makes real impacts on society and economically.

Research is built around four key thematic research areas: • Information & Media Technologies • Materials Technologies • Environment & Health • Society, Culture & Enterprise Close engagement both locally and internationally with society and the economy and active collaborations with industry and academic institutions are essential components in everything DIT does. In addition to many institutional bilateral agreements, DIT is a member of the European Universities Association (EUA) and the International Association of Universities (IAU).

Being a student in DIT is not all about study – we have almost 150 clubs and societies that offer everything from drama to soccer so you can pursue your interests while studying. Located in the centre of Dublin, students enjoy a vibrant and diverse cultural experience.

As a UNESCO designated City of Literature, European City of Science (2012) and home to all major political, social and sporting organisations, Dublin has something for everyone.

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: international@dit.ie Web: www.dit.ie/international

IAYB_page16-23.indd 23

01/05/2014 14:33

BUSINESS

REACH EXTENDING IRELAND’S GLOBAL

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 key policy priorities: reduce the tax burden; better government; invest in the future; promote enterprise and entrepreneurship; and extend Ireland’s global reach.

Central to the aim of extending Ireland’s global reach is to complete agreements with Asia and other trading partners to support trade and investment opportunities for Irish and EU business.

Ireland remains one of the world’s most open economies. Irish business is increasingly global in focus, based on innovative manufacturing and internationally traded services. Our prosperity is determined by important economic and strategic ties with major global partners.

Investment and trade success in Asia will be central to our economic recovery and we must continue to foster effective international links. Last year, total trade in goods with East Asia amounted to €10.3bn, with exports of €5.5bn and imports of €4.8bn. This represents 9.6pc of goods exports and 6.3pc of goods imports.

The rapid pace of economic development across Asia presents significant opportunities for Irish business across a range of sectors including agri-food, engineering, life sciences and internationally traded services. Equally, Asian economies are looking to advance into the EU. Business stands to benefit from comprehensive free trade agreements (FTAs) negotiated by the EU with Japan and India.

These FTAs have the potential to provide real market access

and reduce the regulatory burden.

Full implementation of the agreement with Singapore will also present new opportunities. Agreements with Malaysia, Vietnam and Thailand are also being pursued to open up new markets.

Negotiations on an investment agreement with China should include strong provisions on market access, investor protection and enforcement of intellectual property rights protection.

A review of Ireland’s Trade, Tourism and Investment Strategy was completed in February 2014. It concluded that there is a need for an evolution of the concept of priority markets towards a new approach that can provide a more strategic, up to date and nuanced direction for Ireland’s international trade, tourism, investment and education efforts.

China and Japan are identified as high value markets that will deliver in the short term and for the foreseeable future.

Singapore, South Korea and Malaysia represent markets that are established and developing with a more medium-term focus.

Indonesia, Vietnam and Thailand are exploratory and high potential markets that may deliver in the long term, with immediate sectoral opportunities in some cases.

Looking at the potential of high growth Asian markets does not, of course, mean reducing our focus on our key mature markets.

We believe that it should not be an ‘either/or’ situation and there is a pressing need to effectively avail of new as well as existing trading and investment opportunities in order to extend 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 business people. This is the case across many sectors, but especially in the rapidly evolving global investment funds industry.

Indeed, Ireland is now the European domicile of choice for investment funds amongst Asia-Pacific-based asset managers, according to an independent Economist Intelligence Unit survey of global asset managers, commissioned by Matheson.

The independent survey, published in March 2014, places Ireland far ahead of its nearest rivals, meaning Ireland is now a key hub in the thriving global funds industry.

Worldwide, 71pc of global asset managers said that they would now choose Ireland as one of their top three European fund domiciles, if starting over. The survey found that the views of Asia-Pacific asset managers are in line with their international colleagues, as 69pc said they would now choose Ireland as a top three fund domicile if starting over with their fund ranges.

Ireland placed far ahead of the next best jurisdiction for AsiaPacific managers, which was Germany, with top three preferences from 46pc of managers. The UK came third for Asia-Pacific managers with top three preferences from 42pc of managers.

Luxembourg came fourth, receiving top three preferences from 41pc of managers while France was fifth with 33pc.

I was especially pleased to see the global nature of the preference for Ireland. We have long been aware that Ireland is the domicile of choice for US and UK managers, but it is

particularly pleasing to see that Ireland is also now the clear favourite amongst managers in the Asia-Pacific region, as well as in other key growth growth areas such as Latin America.

The Asia-Pacific region is crucial in terms of future growth, and it is one which our firm – and the Irish funds industry as a whole – is paying particular attention to.

For the vast majority of managers to choose Ireland as a favoured jurisdiction to domicile funds is a clear vote of confidence in the maturity and competitiveness of the Irish funds industry. This helps explain Ireland’s performance as the fastest growing European UCITS domicile in recent years. It also helps explain why we are now seeing a clear trend of funds moving to Ireland from competing European domiciles such as Luxembourg.

The value of Irish domiciled funds is currently €1.3trn and the funds industry accounts for over 12,000 jobs in Ireland.

Remarkable growth rates are now widely predicted for the global funds industry – largely due to key growth regions such as Asia.

If the projected growth rates materialise, Ireland is well positioned to attract a substantial share of that growth, along with the jobs linked to servicing those funds. East and West, our economic fortunes are nowadays linked as never before – the growing wealth of Asia now has a direct impact on jobs and growth here in Dublin.

Ireland Asia Business Yearbook 2014

IAYB_page24-25.indd 25

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 companies. It is not a homogenous region and the different countries require different approaches.

Japan, for example, is a very mature, conservative and rapidly ageing market, so a lot of opportunity exists in relation to assisted living and making life easier for an ageing and relatively well-off population.

China, on the other hand, is going through an incredible growth period and is really hungry for new applications and technologies that can be deployed to their market.

In many cases Chinese companies aren’t going to be all that excited about coming to Ireland with their large domestic population of more than 1.3 billion. The opportunities in China will often dwarf those in the eurozone.

In some cases, however, Chinese companies want to test themselves internationally and there are a few key sectors they are trading in. In particular, we see international expansion in ICT, aircraft leasing and funds.

China has a large population and dairy is a critical natural resource. It looks to Ireland as a source of dairy as well as a

source of technology to add value to dairy products.

India is different again from China and Japan as there is a lot of interaction between it and Ireland but this is very much focused on business outsourcing coming to Ireland and Irish companies setting up development and shared services centres in India to reduce costs.

Then you have smaller Asian countries such as Taiwan, which is interesting because of its very sophisticated technology companies.

As a relatively small country it has to pursue export growth. In a lot of cases, companies target China, but they also are eager to export to other markets including the US and Europe.

Aside from cultural and economic differences, Irish companies need to be aware that tax can be a challenge to be overcome when entering new Asian markets and one which will often trip them up in the beginning.

Withholding tax is common in many Asian countries and there are sales taxes that Irish companies may assume are like VAT, but can actually be a cost to business.

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 emerging business ties. This is not driven by bullish sentiment or a passing trend. We are very aware of the significant challenges that China faces today, but as a major global economy it is here to stay, and whether it takes another 10, 20 or 50 years, China will be the world’s largest market.

At our recent ‘China in 2014’ event in Dublin, our speakers, including KPMG’s global chair for China matters Peter Fung, mirrored this when they outlined some of the pros and cons that Western companies face in China today.

Three points in particular are worth repeating here: 1) the impact of current reforms within China; 2) the genuine importance of ‘people and planet’ alongside profits; and 3) the party’s own role in business networking.

Firstly, with recent announcements on economic reform, several themes emerge. China’s leaders acknowledge that the growth rate and focus of recent decades is not sustainable. Pollution and corruption are genuine threats that are now being more openly addressed. Investment is being refocused from infrastructure to greater domestic consumption. The overcapacity, bubbles and

bad debt of certain sectors are being dealt with in a more market oriented fashion.

In general, the market is being given a more decisive role. For example, the rollout of fiscal and tax reforms, and continuing liberalisation of China’s financial sector (with Shanghai’s new Free Trade Zone being the pilot) represent both significant opportunities (and challenges) for Irish companies.

Secondly, the system’s stability relies on more than profits and GDP growth. Realisation of this is cascading down from the country’s senior leadership. Provisional and city officials are increasingly assessed against social and environmental key performance indicators – with Chinese business, state or private, also well aware of this shift in emphasis.

Thirdly, Westerners often misinterpret the role of the state and party within China, and consequently miscalculate when they are and are not a significant stakeholder. Much has been written about the need to ‘network’ in different Asian cultures, but in China’s case, the party itself can be seen as a huge and highly effective network.

Ireland Asia Business Yearbook 2014

IAYB_page26-27.indd 27

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, chairman and chief executive of Glen Dimplex Sean O’Driscoll says the difference in atmosphere between March and September 2013 was the “most incredible change” he’s ever seen over a sixmonth period in the country.

Glen Dimplex is the largest Irish company operating on the ground in Japan, with annual turnover of around €70m, seven offices, five distribution centres and 120 employees, having first established a presence there in 2006.

The Japanese company accounts for around 5pc of the Glen Dimplex Group and, according to O’Driscoll, is continuing to go from strength to strength.

It has evolved from being a provider of electrical thermal storage, radiant panel heaters and home appliances to positioning itself in addition as key player in leading strategic change in the market towards renewable energy.

For example, O’Driscoll spoke at a major green tech event in Tokyo organised by the Embassy of Ireland, Tokyo and Japan External Trade Organisation (JETRO) last December, which

was attended by 170 people, including influential leaders, policymakers, industry leaders and researchers.

“We have done a huge amount of work right across the renewable energy sector in Japan, aiming to bring about significant strategic change in the market and encouraging and promoting the use of green technologies,” says O’Driscoll.

In terms of the change he witnessed last year, he says the atmosphere in Japan last March was similar to what it has been for the past 15 years, while in September it was something completely different.

“There was a real sense that Japan and the Japanese people have their confidence back and can get on with life in a more constructive way now. This is not a short-term rush of adrenaline, but seen as something sustainable by everybody I spoke to, driven by the fact that Tokyo got the 2020 Olympics and that its 50-year-old infrastructure is being rebuilt,” he says.

“Post 2020 there is a sense of Japan looking outwards more.

The country is definitely in a positive, forward looking way again.”

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

Abenomics – the economic policies advocated by Prime Minister Shinzo Abe. Abenomics aim to revive the sluggish economy with ‘three arrows’: a massive fiscal stimulus; more aggressive monetary easing from the Bank of Japan; and structural reforms to boost Japan’s competitiveness.

Since Abe’s cabinet was formed in December 2012 the TOPIX stock market index has risen by 40pc and the yen had depreciated by 20pc against the US dollar. Economic recovery has been obvious month by month, with GDP growth estimated to reach 1.25pc this year, according to the IMF World Outlook 2013.

“The Japanese economy is clearly going to grow thanks to Abenomics. It is an extremely wealthy economy and there are lots of export opportunities for Irish businesses and these can only increase.

“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 back of that development.”

There are two other areas offering significant growth opportunities, he adds – renewable energy and Japan’s aging population.

“Japan has closed down all but two of its nuclear reactors, putting in place significant investment for renewable sources of electricity.

“It also has one of the most rapidly aging and most wealthy populations in the world. This means big opportunities for products and technologies that make life easier for older people.

“There are already Irish companies working in such areas and at the Global Irish Economic Forum in Dublin last October one of the recommendations the Irish Government accepted and is promoting is to build and encourage Irish businesses to look at that sector in 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

philosophy 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 Europe is that in Japan there is less focus on hard automation and more on the development of people, according to Dr Richard Keegan, fellow of the Institute of Engineers and manager of the competitiveness department at Enterprise Ireland.

Keegan was first exposed to the concept around 16 years ago in his capacity as the European advisor to the EU-Japan Centre for Industrial Co-operation when he went to a Toyota plant.

“Being an engineer and having the opportunity to see Lean best practice in real life was an eye opener. The first thing I noticed was all the flashing lights and incredible technologies but I began to realise that underpinning it all was beautiful simplicity.

“People were actually engaged in terms of improving themselves and their processes. Simply defined, Lean comes down to looking at what we’re trying to do, how are we doing it and what can we do to improve it.

“What’s interesting in Japan is that companies have constantly focused on developing their people and processes at the same time and don’t see Lean as a chequebook solution. However, more and more of Europe’s leading companies are beginning to realise that engaging the hearts and minds of people is more significant than simply utilising what are known as Lean tools.”

The origins of Lean go right back to the 1920s when inventor and founder of the Toyota Corporation Sakichi Toyoda developed

a loom and weaving machine that identified broken threads, motivated by trying to find ways to make it easier for his grandmother to produce cloth.

A production process centred on preserving value with less work, Lean as a management philosophy is mostly derived from the Toyota Production System (TPS) and Japan is regarded as the home of Lean. Originally called ‘just-in-time production’, TPS is an integrated socio-technical system developed by Toyota that comprises its management philosophy and practices.

“TPS came about because Toyota was battling against General Motors and Ford to service a very fragmented market with lots of variants in terms of sizes and applications of vehicles without the resources the Americans had,” Keegan explains.

Nowadays, Lean is focused on providing customers with the best possible products at the best possible prices, at the best possible quality levels and at the best possible delivery times.

Having started in the manufacturing area, Lean has spread right along the value chain from sales through logistics, manufacturing, purchasing, administration, product design and development, and back to sales.

Last December, An Taoiseach Enda Kenny TD went to Toyota’s Motomachi plant in Japan to meet senior executives from Toyota Motor Corporation as part of the trade mission to 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 the Toyota plant, including Julie Sinnamon, CEO of Enterprise Ireland, CEO of Glen Dimplex Sean O’Driscoll and the Irish Ambassador to Japan John Neary.

The objective of the meeting was to learn from Toyota’s Lean production processes, and glean insights as to how this could be applied to industry in Ireland to support the country’s economic recovery.

“The visit marked the support given by Toyota to Irish companies in the past and the relationship between them, as well as showing the importance of best practice, efficiency and effectiveness for Irish business going forward. It was a very professional and insightful visit,” says Keegan.

“The Toyota plant in Wales had to go right through to the highest levels of the organisation to arrange the visit, explain the background and reasoning behind hosting it. Positive contribution to society is one of Toyota’s core values and the tour of the Motomachi plant was viewed in that light.”

Over the past four years, 1,000 Irish owner-managers have been to Toyota’s engine production facility in Deeside, North Wales with the support of the Toyota Lean Management Centre as part of Enterprise Ireland’s Lean programme.

“These visits expose those taking part to what good is and what really challenging means. What has been clear over the past four years is the plant’s focused and relentless approach to always trying to be better – the team keeps pushing themselves by looking at the facts as opposed to opinions,” says Keegan.

“In Ireland, we’re trying to take on the Lean business perspective, rather than purely Lean manufacturing in the belief that administration, sales, design and all functions also need to be efficient. Since our pilot in 2009, we’ve supported a total of 565 projects across all sectors in three different levels – ‘Lean Start’, ‘Lean Plus’ and ‘Lean Transform’.

“Our effort is in trying to understand and engage with best practice globally so our client base can access this and be able to use it.”

Achieving a national step change in manufacturing capability is one of the three disruptive reforms outlined in the Irish Government’s Action Plan for Jobs 2014 and Lean is part of this.

“In 2014, we will continue to roll out our Lean offering to Enterprise Ireland clients as well as sharing knowledge with Local Enterprise Offices. Six visits to Toyota are planned this year, as well as visits to Audi and Bosch, which are also seen as leaders 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 number of years, Ireland has continued to attract significant high end foreign direct investment (FDI) throughout the period.

Ireland’s increased competitiveness in attracting FDI is highlighted

by IBM’s 2013 Global Location Trends Report, which ranked Ireland as the top destination in the world by quality and value of investments.

Over recent years, we have increasingly seen Ireland being used as a platform for both inbound and outbound Asian investments. This is due to a number of factors, including access to the EU market, Ireland’s beneficial double taxation agreement network and its favourable holding company regime. Many Asian companies also operate leasing/financing operations in Ireland.

With Forbes recently identifying Ireland as the best country in the world for business in 2013, the future for FDI in Ireland is brighter than ever.

A 12.5pc tax rate applies to all active trading profits and this contrasts with some other jurisdictions, which offer full or partial tax holidays to certain companies only.

While the domestic market remains small, Ireland’s proximity to continental Europe and membership of the EU means that it is in an ideal location for gaining access to the 28 countries of the EU and other countries in the EMEA region.

Ireland has signed 70 treaties to date with all major trading partners (including favourable treaties with China, Hong Kong, Japan, Singapore and South Korea) and the Government is currently negotiating with a number of other countries to continue to add new countries to Ireland’s treaty network.

Over the past number of years, there has been a significant realignment of the Irish cost base. Business costs including energy, private rents, office rents, services, construction and

labour have become more competitive with costs down to 2003 levels.

Ireland’s holding company regime encompasses a participation exemption for capital gains arising on the sale of shares, a foreign tax credit regime generally leading to no Irish tax on dividends, no controlled foreign corporation regime, no thin capitalisation regime and the ability to pay dividends free of withholding tax in listed or tax treaty/EU controlled groups.

If a company is seeking to overcome technological challenges to develop new products, processes, materials or certain services for its own use or its customers’ use, then it may qualify for generous Irish R&D tax credits, which broadly equate to a 300pc tax deduction. Also the onshore intellectual property (IP) regime provides for tax depreciation to be claimed on IP acquired by an Irish company for the purposes of its trade, to achieve a low effective tax rate. Many companies have successfully amalgamated their supply chain management and IP management in Ireland.

Ireland is also one of the world’s major centres for cross-border leasing. This is demonstrated by the number of international leasing companies from virtually every major trading nation - including many Asian companies - that have established operations in Ireland.

In addition to taxation incentives implemented by the Irish Government there are a range of services and a number of grants available to those considering FDI, which are afforded by IDA Ireland, Ireland’s inward investment promotion agency.

As Asian companies seek to expand and look to invest beyond their domestic markets, Ireland is well placed to attract further investment and is an ideal location for connecting Asia to the EU and the rest of the world.

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 of interest to Ireland and indeed Europe generally. Recent reports show some development trends, at speeds faster than might have been predicted.

Three of the top five biggest economies, adjusted for purchasing power parity (PPP) in the world are Asian. Results from the latest World Bank’s research suggest China is poised to overtake the US in terms of PPP adjusted GDP by the end of 2014. These figures and their impact on Ireland cannot be ignored.

Asia is an immense opportunity and challenge for Ireland – an opportunity insofar as new growth markets for Ireland to trade and develop links with, and a challenge for those who do not adapt to the global economic shift taking place.

At Arthur Cox we see the opportunities presented by the various Asian countries as being distinct and varied. A mature economy such as Japan presents very different opportunities to countries such as India or China, which are developing at a tremendous pace. This is reflected in the trade flow between Ireland and these countries.

Japanese pharmaceutical, ICT and financial services companies have had a presence in the Irish economic scenery for many years. Recently, they have been joined by newcomers from China in a number of fields, financial services and aviation financing especially.

Ireland’s reputation has recovered from its short dip and is growing once more, and its ability to pull itself out of crises gives some creditability to potential investors into Ireland. We see this

reflected in the sentiments of both Asian clients locating a presence in Ireland, and also Irish manufacturers entering the Asian markets.

Irish goods exude an aura of quality and can command a premium price in many of these countries. From alcoholic beverages to dairy products or even homeware, the connotation associated with ‘produced in Ireland’ is that of a first-class product. Irish manufacturers and producers are at a great advantage when relying on their Irish name and the reputation of the country when seeking to enter into an Asian market.

Trade, however, is not all in goods. The expertise and knowhow of the Irish is well respected and can command a fair price for the quality offered. We have seen first-hand how Ireland’s offering in the education and training sector has both immediate and long-term potential to benefit both sides.

Various educational institutions have set up joint programmes or foreign campuses. Of more obvious and immediate benefit, the training and education can benefit developing Asian countries.

Deeper and more long term, however, are the developing human connections arising from these initiatives. People buy people, and where there is a connection this will facilitate long-term trade.

Conversely, we are seeing cultural programmes springing up in Ireland and facilitating cross-border interaction and communication. This will be a key area for growth because to understand a country, its market and its industry, we must understand its people and culture.

Ireland Asia Business Yearbook 2014

IAYB_page32-33.indd 33

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 exports in 2013 was the exceptional performance of the industry in China, which is now Ireland’s second largest dairy and third largest pork market in the world.

Exports to China grew by over 40pc to sales of €415m in 2013. Now Ireland’s largest Asian market, China is the country’s sixth largest market overall in the world, driven in particular by strong dairy and pork exports.

Accounting for 6pc of Ireland’s total food and drink exports, sales to Asia climbed 30pc overall to reach €625m in 2013.

Director Asia at Bord Bia James O’Donnell says there are a number of reasons for China’s rising importance for Irish food and drink and why it will continue to be a growing market for years to come.

“Around 300 million of China’s 1.35 billion population are middle class and this is growing. When people move into the middle class they tend to consume more protein and are

prepared to pay a premium price for quality products – if you compare the price of infant formula for example, it retails at €12–€15 a can in Ireland while a premium imported infant formula would retail at €40–€45 a can in China. Ireland produces over 10pc of the world’s infant formula and this is an area of significant potential in the region.”

There has been a lack of confidence in domestically produced products in China over the past few years, largely due to food scares – such as exploding watermelons due to chemical use (in 2011) or over 12,000 dead pigs floating down the Huangpu river near Shanghai Huangpu river (in March 2013).

“The Chinese government places great importance on food safety and major efforts are being undertaken to address the issues,” says O’Donnell. “The fact that Irish food and drink is stringently controlled by Government in terms of traceability and other measures is very important.”

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

a

SECTORS – FOOD AND DRINK tastes are changing and this current generation of Chinese has been more exposed to products such as processed cheese through the likes of McDonald’s and Pizza Hut. There is an increased awareness of the health benefits of dairy driven by messages such as that from previous Prime Minister Wen Jiabao, who said in 2006 that he had a “dream” to provide every Chinese person with a glass of “nourishing milk”.

O’Donnell says that while it is starting from a low base, dairy consumption generally is going to grow in the market and China’s worries about food security will boost Ireland’s prospects of becoming a strategic partner in dairy into the future.

“China accounts for about 8pc of the farm land in the world, but 20pc of the population, so it will be looking for strategic partners in various food and drink sectors. Closer links are already forming between Irish and Chinese companies.”

He cites the examples of Kerry Group’s partnership agreement signed with Beingmate in October 2012 for the supply of Irish dairy ingredients for infant nutrition applications in China and Glanbia’s landmark agreement with Shanghai-based food manufacturer Bright Group last year.

Managing director of Glanbia Siobhan Talbot says the group’s primary markets today would be in the US and in Europe, but the group is “a significant ingredients supplier into the Asia market and has been for many years”.

“As a large scale dairy operation when you have the scale

Sweet success in Japan

Three years ago Irish confectionary company Broderick’s attracted a lot of interest from Japanese buyers at the International Sweets and Biscuits Fair, the world’s largest trade fair for sweets and snacks, held in Cologne, Germany.

However, none of the leads really amounted to anything until it started working with Japanese distributor Nishimoto Trading Co, which loved what it had to offer, both in terms of the quality of the product, but also its fun and quirky approach, according to co-founder and director Bernard Broderick.

“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.

“The fact that our bars are very quirky, and are made from

of growth for example in infant nutrition in Asia, that’s an area of importance to us and an area where we have a number of relationships with key global customers.”

While Glanbia’s performance nutrition business is quite small at the moment, Talbot says it is “clearly interested in that space” because there are a number of consumers who recognise the nutrition and the functionality of dairy and the role that even aspects of dairy can play.

“There are various proteins and minerals that can be harvested from dairy that can have particular properties that can be of interest in the Asian market,” she says.

“That can be products that boost immune health or that boost general health. And you have various regions of Asia that recognise the role of prevention, for example, and the interaction of exercise and diet in maintaining a healthy lifestyle. So we will be active in that space in Asia as indeed other regions,” she says.

Aside from dairy and dairy ingredients, O’Donnell says Ireland’s most important food and drink exports in Asia are beef, pork, seafood and alcoholic beverages.

Lifting of beef ban

A major breakthrough happened when Japan officially lifted its ban on Irish beef last December during the trade mission led by An Taoiseach Enda Kenny TD. good quality Irish ingredients like real Irish butter, hand-made caramel, Irish oats and Belgian chocolate gives us a point of difference in the market.”

Broderick’s is not selling into any other Asian markets at present, but it does have stockists in other parts of the world, including a strong presence in the Middle East and throughout Europe. Its UK sales have increased by 40pc over the past two years.

Set up in the 1990s, Broderick’s is family-owned and employs 50 people at its south Dublin-based bakery.

Barry and Bernard Broderick. Image courtesy of The Irish 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 over 514,000 tonnes in 2012. Before Japan placed a ban on EU beef in 2001 following a Europe-wide outbreak of BSE, Ireland exported 3,000 tonnes of beef and offal to the market, valued at just over €10m. An Taoiseach said the lifting of the ban could be worth around €15m a year to Ireland.

Cormac Healy of Ibec group Meat Industry Ireland says this represents “a further important step in the process of rebuilding strategic international market access for Irish meat exports”.

“Japan is already an important market for Irish pig meat and with the lifting of restrictions on beef, Irish companies, many of which were represented on the trade delegation, will be exploring new export opportunities in this market in the coming months.

“The positive decision by the Japanese authorities to reopen their market for Irish beef is important in its own right for this market and will hopefully be a significant step towards access for Irish beef and lamb to markets in this region of the world.”

The companies that took part in the trade mission last December included Irish Dairy Board, Glanbia, Kerry Group, Dawn Pork & Bacon, Rosderra and Liffey Meats.

“Japan imports 60pc of its food requirements and on a global scale, the market is a significant importer of meat and dairy products,” said Bord Bia chief executive Aidan Cotter during the trade mission.

“Food security represents one of the greatest challenges that the Japanese economy will face over the next decade.

Historically up to 50pc of Japan’s economic activity was dominated by agriculture while today this figure stands at just 1pc and the urban population exceeds 90pc of overall population. The Irish food and beverage industry is in a strong position to cater to this increasing import demand, in particular within the meat, dairy and seafood categories.”

Japan is the third largest destination for Irish food exports to Asia. In 2012, they were valued at €36m, dominated by pork (€14.4m), dairy (€8.1m) and seafood (€6.4m).

Current Irish exports also include a number of Irish artisan products such as Irish oysters, craft beers, farmhouse cheese, smoked mackerel, chocolates and confectionary (see panel).

Focusing on seafood in Asia generally, O’Donnell says Ireland is developing strong business in China and Korea.

“Shellfish, particularly live crab, is becoming popular in China, while mackerel is selling well in Korea.

“The online medium has become very important in terms of promoting Irish seafood. Bord Bia recently ran a banner ad on Chinese language website for business-to-consumer (B2C) online retail TMall promoting Irish seafood.

“Awareness levels of Irish seafood shot up as around 300 million people clicked on the ad and over €100,000 worth of seafood was sold in five days. Crab is the biggest selling item and we are also strongly pushing a new species boarfish.”

Bord Bia has established a food hub in Shanghai where a number of Irish companies have hot desks, including four Irish seafood companies – McBride Fishing, Carr Shellfish, Sofrimar and Shellfish de La Mer. These companies set up a joint venture company in 2012 called Jade Ireland Seafood, which has developed a new brand Ocean Jade to collectively target the Chinese market.

“China and Asia generally are not for everyone as the regulatory environment is very complex and currency and payment risks exist. There is also the language and time barrier to contend with. The food hub in Shanghai is one way around that, allowing small groups of people with limited experience to learn from each other. Sharing of information is very important for ‘Team Ireland’ in terms of driving export growth to the region,” says O’Donnell.

“In the context of the Irish Government strategy Harvest 2020, there is a tremendous opportunity for growth in Irish food and drink exports to Asia – exports to China have doubled in the past three years. I believe we can achieve the same growth in 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 ...Think Ireland!

GORDON LORD BYRON (IRE), Irish Bred & Trained, 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: info@itm.ie • www.itm.ie

MAK E TH E OR DI NARY 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.

E X TR AOR DI NARY EXPERIENCE MORE FOR LESS A S W E L L A S C L U B C A R L S O NSM P O I N T S F O R P L A N N E R S W I T H T H E R A D I S S O N B L U R OYA L H OT E L , D U B L I N

RADISSON BLU ROYAL HOTEL, DUBLIN Golden Lane, Dublin 8, Ireland T: +353 1 898 2900 meetings.royal.dublin@radissonblu.com 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 premier countries in which to invest in a thoroughbred enterprise for a number of reasons, according to Elaine Hatton, general manager, Irish Thoroughbred Marketing.

“There is a wealth of history and tradition attached to the land, racing yards and studs; most of the top European stallions stand here; the climate and land are very favourable to the raising and training of thoroughbred racehorses; there are world-class veterinarians, farriers, feed companies and a skilled workforce of passionate horse people,” she explains.

“All of this combines to make Ireland an ideal location in which to raise tough, sound and athletic thoroughbreds. It is no surprise then that Ireland is a base for many of the world’s leading bloodstock operations, including Coolmore Stud, Darley, Sheikh Hamdan Al Maktoum’s Derrinstown Stud, Prince Khalid Abdullah’s Juddmonte Farms, HH The Aga Khan’s Studs, The Haefner Family’s and Moyglare Farm.

“This has contributed to Ireland becoming a nation that breeds and trains world champion racehorses such as Sea The Stars, New Approach and Dawn Approach.”

This equine expertise means Ireland has much to give Asia, believes Hatton. “Ireland has a lot to offer Asia in the form of administration assistance, education and specialised skills – this all comes before and along with animals and blood lines that have proven their ability the world over.”

Having opened an office in Beijing in 2012, Irish Thoroughbred Marketing is committed to assisting in the development of a prolific racing industry in Asia.

“Horses that are bred in Ireland are already performing very well in numerous parts of Asia - indeed the current HK Horse of the Year is Irish bred Military Attack and the 2014 Hong Kong Derby was won by Irish bred Designs On Rome,” notes Hatton.

The office in Beijing is responsible for promoting the Irish bloodstock industry in China and works closely with the Irish one to ensure Ireland is the country of choice for Chinese bloodstock investors.

Ireland is now the largest producer of foals in Europe and the fourth largest in the world, continues Hatton. “Given the sheer number produced, Ireland is naturally an exporting country with a long history of exporting a top class equine product worldwide.

“The total value of Irish bred horses exported from Ireland, through sale at public auction worldwide amounted to €205.4m in 2013, up 17.8pc on the previous year. In 2013 alone, Irish horses were exported to 37 different countries.

“Ireland is recognised the world over as a producer of top class breeding and racing stock. This was well advertised throughout 2013 when Irish bred and trained horses once again enjoyed tremendous global success.”

Ireland’s role in Tianjin Equine Culture City A milestone development for the Irish equine industry in Asia last year was the announcement that Ireland was to help China establish its first billion dollar national equine facility in a deal that is expected to be worth US$50m to the Irish economy.

The project to develop a Tianjin-based horse racing and 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

e Food and the Marine, Simon Coveney TD, who was in China on a trade mission.

It represented the first Chinese government involvement with an overseas joint venture in horse racing and breeding.

The Tianjin Equine Culture City (TECC) facility includes: 4,000 horse stalls; a state-of-the-art horse clinic; 150 trainers’ offices; five training tracks; two international standard race tracks; grandstand; clubhouse; international equestrian college; and horse auction house.

The first stage of the TECC was completed last year, while the entire world-class facility will be completed in 2015 so it is fitting that in this, the Year of the Horse, that China’s start at the highest level in the industry is well underway. Tianjin already hosted China’s richest ever race day last autumn, which included the inaugural RMB1 million Tianjin National Cup. The joint venture partners involved in developing the operation are the Tianjin State Farms Agribusiness Group; the TAK Group, a Malaysian development organisation; and Coolmore Stud.

Tianjin State Farms Agribusiness Group and the TAK Group are the overall partners for the project.

Ireland’s involvement in the project includes the initial establishment of a stud farm, stocked with broodmares sourced in this country. The beginning of the breeding programme will involve importing over 100 mares in the next number of years, as well as the acquisition of stallions over the period.

Coolmore Stud was invited as the initial joint venture partner, but there will, according to the Department of Agriculture, be

opportunities for many other Irish companies and individuals to participate in the project as it develops.

Ireland will also host seven of China’s top agriculture graduates, who will spend two months at Coolmore learning about the industry and what is required to establish a top class equine operation.

“This initiative should facilitate the development of a major export market for horses from Ireland and has the potential to provide a range of business opportunities for companies and individuals in Ireland who can bring a wide range of expertise to the project,” Minister Coveney said at the announcement.

“Coolmore Stud is recognised as a world leader in thoroughbred breeding and is to be commended for their involvement in this major project.”

Chairman of the Chinese government-owned Tianjin State Farm Agribusiness Group Bai Zhisheng added: “Ireland is a world leader when it comes to best in class trainers and breeders and we are delighted to be partnering with Coolmore, as it helps ensure our new national TECC project is firmly established in Tianjin. We would like to accelerate the progress of the development of TECC to get it completed, and with high level partners this will help us achieve it.”

Speaking on behalf of Coolmore Stud, JP Magnier noted that the equine industry is something Ireland is good at and it is positive that one of the biggest markets in the world has recognised that and has chosen the country as its partner.

Ireland Asia Business Yearbook 2014 39

IAYB_page38-39.indd 39

01/05/2014 18:00

SECTORS – EDUCATION

Learning

curve

Despite stiff competition, Ireland’s strong tradition in the education arena means it is forging strong links with Asian markets IRELAND’S education links with Asia are on the increase and have evolved in recent years into multifaceted relationships that encompass a wide range of touch points, from attracting overseas students to faculty exchange and setting up joint programmes, according to Marina Donohoe, manager education, business and consumer services at Enterprise Ireland and head of Education in Ireland.

Due to their sheer size as source markets for students, China, India and Malaysia are the three priority markets within the Asia region as set out in the Government’s Building Global Partnerships strategy for 2010–15, which focuses on the internationalisation of Ireland’s higher education sector.

At least 400,000 students leave China each year to study overseas, while the respective figures for India and Malaysia are estimated at around 250,000 and 80,000.

The focus over the past three or four years has been on pitching the Ireland offer as a viable alternative to key competitors such as the UK, Australia and Canada. “The offer is around Ireland being an English speaking country and being a safe and secure place to study,” says Donohoe.

Another selling point, she says, is Ireland’s strong tradition in the education arena. “Many of our institutions are in the top 200 and top 500 institutions in the world. We’ve got quality standards and quality programmes. We have an infrastructure in education that is of interest to a lot of these countries.”

Enaam AlHashimi, DCU student from Saudi Arabia with Luiz Fernando Zago, IT Sligo from Brazil and Yating Tao, IT Carlow from China at the Education in Ireland International Student Ambassador Programme Awards Ceremony in Farmleigh in April 2014

While Ireland has a lot in its favour, it is up against serious competition. Being focused on engaging in the right way with the respective markets is vital, says Donohoe. “In Malaysia, it’s important to engage with the scholarships bodies and we would have good relationships with for example government agency Mara.

“In India, educational agents are important so we need to be able to influence them.” In China, meanwhile, the focus is on engaging with agents and directly with schools and colleges.

“We have an education pathfinder or consultant whose been working with us full time in India and also in Malaysia and we hope to have someone in China shortly. And we bring delegations out to those regions on a regular basis.”

Donohoe says the messaging will become increasingly targeted in individual markets going forward. “So rather pitching a general ‘Come to Ireland, we’re a great place to study’, it’s increasingly ‘Come to Ireland, we’re a great place to study technology or business’.

Overseas student figures for 2012/13 are still provisional but, according to Donohoe, there has been growth in numbers from Malaysia and India, while Ireland is holding its own in the Chinese market.

MORE THAN 150 RELATIONSHIPS “It is encouraging that the relationship with China is getting 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 Chinese counterparts and these are everything from student and faculty exchange to research collaboration and joint programmes,” says Donohoe.

Such collaboration is being boosted by Science Foundation Ireland’s International Strategic Co-operation Award initiative, which is this year supporting partnerships between Irish higher education institutions and organisations in Brazil, China, India and Japan with funding of €500,000 for each project.

“These projects are building on the educational links already in place in those markets, but making them meaningful in the context of supporting the collaborative research piece. The exchange of research students, scientists and PhDs strengthens the foundation of the links that exist between both countries,” Donohoe notes.

The Department of Education’s mid-term review of the 2010–15 plan, due to be launched shortly, will set out the strategy to 2016 and focus on six priority markets, namely India, China, Malaysia, the US, Brazil and the Gulf.

Engaging with alumni in Asian markets will become more important in the future. “The alumni are important spokespeople for Ireland. The example that is always given is the deputy prime minister in Vietnam [Hoang Trung Hai], who is a Trinity-educated graduate.”

One important step in this direction was the launch two years ago of the Ireland Student Ambassador programme by Education in Ireland. This year 50 international students from a range of countries, including India, China and Malaysia, are involved in the programme by using social media to talk about student life in Ireland.

History of engagement

Asia is seen as integral part of Dublin Business School’s (DBS) strategy for growth outside of Ireland. “We’ve had a considerable history of engagement in Asia in higher education and we’re currently re-initiating that through two projects,” says CEO Gerry Muldowney.

The first is a joint initiative in association with the Malaysian government through Mara to develop an accountancy programme incorporating degree and professional accountancy pathways.

DBS has a long relationship with Mara that started in the early 1990s and has so far seen more than 1,300 Malaysian students graduating with DBS qualifications.

“We’re now at the advanced stages of completing development of the project and will hopefully launch the programme in September 2014.”

DBS is also involved in a partnership with Xiamen University that has involved the institutions developing a joint curriculum that will see participating students spending their final year in Ireland. “We expect our first cohort of students to transfer to Dublin in September to complete their studies in accounting and finance and financial services,” says Muldowney.

“International education to Ireland is arguably worth in excess of €1bn a year in terms of the economic impact. We have achieved a lot and need to build on that,” says Donohoe.

A multifaceted strategy

Dublin Institute of Technology’s (DIT) Asia strategy is multifaceted, says its president Prof Brian Norton. “We have a lot of diverse links that are two-way and multifaceted.

“We currently accredit programmes in China and Oman.

We do joint delivery programmes for the pharmaceutical manufacturing sector in Singapore. And we have institutions in China accepting our students who spend a year there perfecting their skills in the Mandarin language. We also have strong research links with China.

“We’re in the early stages of developing a new institution in Hainan through which we will be providing hospitality programmes in the south of China.

“More generally, we need an international community within DIT to produce students who have some awareness, some empathy for and some experience of working with other cultures, because this economy in a connected world is always going to be working with other people.”

And educating overseas students who create communities that are aware of Ireland when they return to their own countries cannot be underestimated, he says. “Getting a presence is critically important from a whole and social dimensions. It’s far more than a ‘market’. It really comes down to issues of the nature of our education and of Ireland’s soft power globally.”

Four-year evolution

The Farmleigh Fellowship launched its 2014 master’s in business studies (MBS) in Asian business scholarship programme in April.

At the same time it has also announced its five-year strategy plan, which includes the development of a reciprocal programme to attract young Asian professionals to Ireland to study and work with an Irish or Irish-based company.

The Farmleigh Fellowship is an Irish scholarship programme that was launched by a small community of Irish business leaders in Singapore in 2010 to equip the next generation of emerging professionals with a worldclass ‘toolkit’ for business success in Asia.

Chairman of the board of directors Fred Combe said the economic backdrop had dramatically changed since then.

“Ireland’s recovery since then has been both dramatic and painful, but over the past three years we have seen incredible Irish opportunity and growth in this region, underpinned by our 65 fellows and our 50 Farmleigh sponsor companies.”

The overall Farmleigh Fellowship programme investment 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 decision for Chinese networking and telecommunications equipment and services company Huawei, according to Derek Ding, managing director of Huawei Ireland.

Founded by engineer and ex-military officer Ren Zhengfei in 1987, Huawei grew quickly in the domestic market by starting out in rural areas and moving upwards to small and medium-sized towns and gradually to major cities such as Beijing and Shanghai.

“Competition in 1988 in the technology sector globally was fierce, dominated by western European, Japanese or American companies and it was the very beginning of the open policy of government in China. No one believed at the time that Chinese companies could do hi-tech things, which was why Huawei started in rural areas. Technology giants preferred to stay in major cities, whereas we started in small villages,” Ding explains.

“We grew to be the No 1 among Chinese telecom providers very fast and around 1996 top management started to think we needed to go outside China to find business. Technicians and sales people were placed in Hong Kong, Southeast Asia and Africa, which was hugely successful because of a huge demand for telecoms infrastructure and in 2001/2002 Huawei started to

send personnel to developed countries.”

The company’s first official Europe headquarters outside of China was in the UK, established as a result of a partnership with British Telecom. Although it was difficult in the beginning, Ding says business started to boom in Europe from 2004, and especially in the period between 2007 and 2009 when Huawei built up a lot of market share in the radio/wireless equipment space.

Huawei has built its business internationally through partnerships. To date around 45 of the world’s top 50 telecoms companies have worked with the company, including Vodafone, France Telecom, T-Mobile and Bell Canada.

In Ireland, Huawai started out in 2004 with a sales office and but in more recent years recognised that Ireland was a good location to set up research and development (R&D) operations, according to Ding.

“Ireland is a good place to have R&D because of its education system, young talent, skilled workers, software development environment and support for foreign investment. We started with a facility in Athlone, Co Westmeath and last January opened R&D centres in Cork and Dublin and the plan is to employ 50 people in 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 has accumulatively invested more than €50m in its operations in Athlone, Cork and Dublin since beginning.

Initially the new R&D centres will focus on Huawei’s next generation customer experience management product SmartCare, supporting the company in providing customer services to telecoms operators both in Ireland and internationally.

It already has 16 R&D centres around the world, including in Bangalore, India, the US, Sweden and Milan and of its 150,000 employees worldwide, around 46pc are engaged in R&D. Ding says the company views Ireland as “a rising place” for it to invest as part of its global plan because information technology and communications technology are merging and software suppliers to the telecoms sector are becoming increasingly important.

“Ireland is the Silicon Valley of western Europe. If you look at the Docklands area of Dublin it is full of the greatest technology companies in the world such as Google, Facebook and Amazon.

There has to be a good reason behind these companies choosing to locate in Ireland. It is a very good story to share. Eight of the

top 10 ICT giants in the world have established their EMEA headquarters in Ireland.

“This puts Ireland in a unique position and creates a good environment as well as talent and knowledge of IT. Universities are fine-tuning their courses to match industry requirements.

“There are very good IT companies in China that are now big enough to build business outside the domestic market – in one year some of them could be in the top 10 in the world. Huawei established a big regional office in Germany and to move would be too much upheaval now, however it would be the right time to persuade other Chinese IT companies to locate their first headquarters in Ireland.

“Huawei was a pioneer in terms of going abroad from China.

There are a lot of Chinese companies that are already very big but have no global footprint. We would always encourage other Chinese companies to come to Ireland because it is English speaking, has a good innovation atmosphere and is a good hub from which to target Europe. There needs to be more promotion 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 consortium made up of Sumitomo Mitsui Banking Corporation (SMBC), Sumitomo Mitsui Finance and Leasing (SMFL) and Sumitomo Corporation of Dublin-headquartered RBS Aviation Capital from Royal Bank of Scotland for US$7.3bn was the largest ever sale of an aircraft lessor.

Renamed SMBC Aviation Capital in June 2012, the company is now the world’s fourth largest aircraft lessor by owned and managed fleet value, with 351 aircraft valued at over US$10bn and airline customers in over 40 countries around the world as of April 2014.

The deal was one in a series of high-profile investments by Asian entities in the Irish leasing market in recent years and reflects Ireland’s considerable reputation in the sector.

An estimated 50pc of the world’s commercial aircraft fleet is now managed from Ireland, representing over €83bn in assets, while nine of the top 10 global lessors have located here.

According to SMBC Aviation Capital chairman Shinichi Hayashida, it is not an exaggeration to describe Ireland as the global capital of the aircraft leasing business. “It is well known in our industry that Guinness Peat Aviation (GPA), an Irish aircraft leasing company established back in 1980s and later acquired

by General Electric, was the pioneer of the business model,” he explains.

On the back of this reputation and history Ireland has developed a number of advantages, including a large pool of highly skilled professionals specialising in the sector across a range of disciplines, including financing, accounting, legal and

engineering. It has also built up best-in-class support industries such as aircraft maintenance, retrofitting and painting.

Other factors include a wide double tax treaty network – agreements have been signed with 70 countries so far and many of these provide for zero withholding tax on inbound lease rentals – as well as a low corporate tax regime. The country has generally amicable transport regulations and easy access to global transport networks.

“As an added bonus, Ireland is a place where you can enjoy the quality of life: good food and drinks, green environment, fresh air and, on top of everything, very friendly people,” says Hayashida.

Most major Japanese lessors now have operations in Ireland, including MUFJ, Mitsubishi, ORIX and Mizuho/Fuyo. And, in the past two years, three Chinese aviation operations have located their European headquarters in Ireland. The most recent of these, announced in January 2014, is Bank of Communications Financial Leasing (JY Aviation), which has set up its European HQ in Dublin to manage 21 aircraft from Ireland. The company is the leasing arm of Bank of Communications, which was founded in 1908 and is one of the largest banks in China.

It joins ICBC and CDB, which both announced that they were setting up their European headquarters in Dublin 2012. ICBC Leasing is the leasing arm of ICBC Bank, the largest bank in the world by total assets and market capitalisation and one of China’s ‘Big Four’ state-owned commercial banks. The company currently manages over 360 aircraft from its Irish operation.

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 the direct jurisdiction of the State Council of People’s Republic of China. The company now manages a large fleet of aircraft from Ireland.

“Many Asian financiers have concluded that aircraft leasing is a highly promising sector and are expected to enter or expand in this sector,” says Hayashida.

Trends in the sector

Meanwhile, China is seen as a huge growth market for aviation leasing in the coming years. According to IDA Ireland, Chinese airlines will need nearly 6,000 new airplanes valued at US$780bn over the next 20 years.

“Even though China continues to roll out an impressive network of high speed trains, air transportation remains the practical means to move between these cities,” explains Hayashida.

“The Chinese government understands this and is committed to expand the air transportation sector. In this regard, we envisage that the market will continue to require large numbers of aircraft and this is a good opportunity for us. Of course, Chinese lessors, many of which are owned by large domestic banks, are rapidly expanding their fleets and the competition is and will be intense.”

Another trend that will impact on the market and Ireland’s aviation leasing sector over the next few years, according to Hayashida, includes the introduction of the new generation narrow body aircraft. There is a large order book for these

SMBC Aviation Capital in Ireland

SMBC Aviation Capital is the third entity established in Ireland by Sumitomo Mitsui Financial Group (SMFG), which set up a financing subsidiary in the 1980s, now called Sumitomo Mitsui Finance Dublin Ltd. In 2011, the group’s IT consulting affiliate JRI opened an operation in Tralee.

Since June 2012 SMBC Aviation Capital has consolidated the existing aircraft leasing business (headquartered in Amsterdam) of its parent companies.

SMBC has also established a branch office of SMBC Europe (SMBC’s London-based subsidiary bank) in Dublin to promote the business co-operation between SMBC’s debt financing and SMBC Aviation Capital’s operating lease business.

The company’s strategy over the next few years has four main strands, according to chairman Shinichi Hayashida.

“We will continue to expand our existing bread and butter business: namely sourcing and placing aircraft to airlines through leasing transactions,” he says. “As a source of aircraft acquisition, we have concluded several large purchase orders with manufacturers in the past and we continue to seek opportunities to replicate such orders.

“If there is an opportunity, we may consider corporate acquisition or purchase of aircraft in bulk. As the industry is in the middle of dynamic transition, we feel that it is important that we are ready to move if suitable opportunities arise.”

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 with Beijing in China in 2011 has been the setting up of the Beijing-Dublin International College, a joint venture by University College Dublin and the Beijing University of Technology, according to Lord Mayor of Dublin Oisín Quinn.

“The International College is based on the Beijing campus and the number of students is expected to grow to 3,000. I had the great honour of visiting the college and meeting the incredibly dynamic students there when I was on an official visit to Beijing in 2013,” he says.

The Lord Mayor also welcomed the Chinese students to the Mansion House in Dublin, his official residence, when they were in Dublin as part of their course.

One of Dublin City Council’s (DCC) key objectives is to make Dublin a destination of choice for international students.

“Students from other countries have so much to offer the city in terms of vitality for example, and we want to make it easy for 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

October I arranged for him to visit our Digital Hub, and he seemed very interested and impressed by the innovative ways it supports digital enterprises on its campus to thrive.”

From 3 to 6 June 2014, the Mansion House will host the first ever Asia Business Week Dublin, a joint initiative between Asia Matters and DCC focused on how Ireland can increase business with Asia.

The week will involve the launch of commissioned economic research outlining the best ways to drive Ireland’s strategic focus to unlock further employment growth from trade with Asia in sectors where Ireland has core expertise. It will promote Irish foreign direct investment into Asia as the best method to grow Asia markets for Ireland.

“Asia Business Week Dublin is a hugely important initiative for Dublin and I am delighted that it includes all the countries of Asia in its remit. It has the potential to grow and become as successful as the Web Summit,” says Quinn.

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.

Dublin Chamber regularly organises business briefings and matchmaking events for Chinese delegations travelling to Ireland. This typically sees the chamber bring in guest expert speakers and organise one-to-one meetings between delegates and Dublin Chamber member companies.

“Through these relationships, and also via our 27 Enterprise Europe Network (EEN) partners in China, Dublin Chamber is well placed to support Chinese companies interested in entering the Irish and European marketplaces. The trade in services between Ireland and China has been developing significantly in recent years and has great potential for the future,” Quin adds.

Dublin Chamber also cites India as another territory that offers great potential for collaboration between chamber

members and businesses in India. The Ireland-India Business Association (IIBA) concentrates on the niche but rapidly developing areas in which Ireland and India can co-operate on with great prospects for both. The IIBA fosters commercial links between Irish and Indian businesses, facilitating knowledgesharing and networking among Irish and Indian business communities.

“Clean-tech is an exciting area for Irish businesses to be involved with and we are looking forward to seeing and nurturing the development of this with our contacts in India.

With shared history, language, legal systems and values India holds an exciting host of opportunities for Irish companies and we look forward to assisting the realisation of this potential in 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 traditional Chinese dishes Voices from China promoting a series of lectures across multiple disciplines such as science, history, art and culture Sino-Irish Business Seminar sharing experiences and stories within Sino-Irish business both in Ireland and China

• • •

Almost all of these events are free to the public. Here outlines the number of DCNYF events between 2008 and 2014: Festival 1

Year of the Rat

3

Year of the Tiger

2 4

Year of the Ox

Year of the Rabbit

Dates 1–11 Feb 2008

23 Jan–1 Feb 2009 12–21 Feb 2010 1–14 Feb 2011

Number of Events 18 13 21

18

5

Year of the Dragon

20 Jan–3 Feb 2012

20

7

Year of the Horse

31 Jan–14 Feb 2014

18

6

Year of the Snake

8–22 Feb 2013

16

Despite its achievements, DCNYF constantly reviews itself and maintains a strategic view over all aspects such as diversity and quality in programmes, robust digital presence, efficient management and production, effective collaboration with stakeholders, sustainable development, and opportunities and challenges ahead.

As Dublin celebrates twinning with Beijing and relationships between China and Ireland grow and deepen, DCNYF will continue to seek out evidence of past Sino-Irish connections creating new expressions of intercultural exchange, and further develop and improve existing intricate rich connections between the two nations.

DCNYF would like to express sincere thanks to all partners and sponsors who have been an enormous help in bringing DCNYF into being.

This is your Festival. This is your City. Welcome to DCNYF. Please visit www.cny.ie for more details or email info@cny.ie.

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 and I have been to more than 20 countries in the past 10 years.

From my work experience, I found that there are two important elements in cultural exchanges – communication and co-operation.

The internship in Dublin City Council (DCC) offers me both opportunities to communicate and work with foreign colleagues directly instead of through emails and calls. Staying in a foreign country for a much longer period of time allows us to have plenty of time and appropriate access to experience the daily work and life of ordinary people, which I believe will give me a better understanding of the Western ways of thinking and manner of working.

I enjoyed the work and life here in Dublin very much. We’ve been to lots of tourist attractions such as the Phoenix Park, St 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

sort the waste. The amount of municipal waste has increased dramatically in recent years in Beijing and protecting the environment has become a big challenge for the city. Beijing is still in the initial stage of waste sorting and reduction.

The Irish Government and DCC are much more internationally-minded and open to receiving interns from different countries and providing job opportunities for non-Irish citizens than in China.

My colleagues in the Office of Economy and International Relations are working effectively as a team. People are working in a relaxed atmosphere and the flexible working hours are very good, allowing people to work with their own plans.

I would say that Irish people are the nicest and most friendly people I’ve ever met. There will be someone who will help direct the way every time we get lost!

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 celebrate and promote Japan and Japanese-Irish culture and heritage in Dublin and throughout Ireland. In doing this, it marks the longstanding warm relations and friendships that exist between the people of Ireland and Japan. This year the Experience Japan festival ran from 3–30 April, offering an increased number of events.

A highlight of Experience Japan each year is the celebration of the centuries old custom Japanese ‘Hanami’ or flowerviewing in Farmleigh House and Estate in the Phoenix Park. Up to 100,000 people have attended over the years – it is a perfect setting to celebrate and enjoy spring and ‘Sakura’ (cherry blossoms). Large numbers gather to enjoy events, including stage performances, martial arts, taiko drums, origami and craft workshops, and Cosplay fashion. Farmleigh is a special place for the Japanese community in Ireland as Emperor Akihito and Empress Michiko stayed there for a four-day official visit in May 2005.

Many other events were organised. The Japanese embassy in 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.

Our activities are family oriented and mostly free of charge.

Working together and volunteerism, especially with the support of the Japanese home and visiting students in our universities, are the hallmark of the success of the event. Our student performers and volunteers are one of the main reasons for the success of Experience Japan.

Adding up numbers for performers, supporters and volunteers, more than 250 people contributed to Experience Japan 2014. We also drew on the support of the Japanese Business Association, the Ireland Japan Association, the Japanese Culture Club, both of the Japanese Saturday Schools here in Ireland, and particularly the young adults from Dublin City University, University College Dublin and the Irish JET Alumni Association. We are deeply indebted to the Embassy of Japan for all its support in making this success possible.

Experience Japan is run with the support of Dublin City Council, the Office of Public Works in Farmleigh, the Japan Business Society in Ireland, University College Dublin, Ireland Japan Association and the Embassy of Japan in Ireland.

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.

THE Digital Hub is a flagship project of the Irish Government, based in Dublin’s inner city. Its aim is to develop a worldclass cluster of growing digital enterprises, competing with international success stories, such as London’s Tech City and Israel’s Silicon Wadi. The project was established in 2003 and is managed by State agency the Digital Hub Development Agency (DHDA).

Supporting domestic digital talent to scale Ireland has a vibrant start-up scene and numerous innovative programmes providing tailored supports for start-ups. However, in order to succeed and grow, companies need specific supports once they have ‘graduated’ from their start-up phase. The focus of The Digital Hub is on this next step of a company’s journey to success.

Fostering a combination of domestic and international digital talent – and ensuring digital enterprises are supported to develop beyond the start-up stage – is a priority area of work for The Digital Hub. Through links with the many start-up support programmes currently in operation, the project aims to attract the brightest and best fledgling digital enterprises to locate on its campus.

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 type of ecosystem digital companies looking to explore new

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 practice for international delegations looking for leadership in digital clustering. In recent months alone, it has welcomed high level delegations from China, Indonesia and South Korea, who were aiming to discover how the story of The Digital Hub could influence projects underway in their own countries.

Over the past decade, the DHDA has excelled at spotting new and emerging digital trends, and facilitating the growth of these trends. In the mid-2000s, for example, The Digital Hub became home to a number of companies from Ireland’s nascent computer games industry. These companies – the likes of Gala Networks Europe, Havok and Goa Games – have since gone on to achieve major global growth. As Ireland’s computer games sector has become more established, meanwhile, The Digital Hub has moved on to explore and support new trends such as e-learning and e-health.

Over the 11 years of its existence, the DHDA has opened eight world-class office buildings across the nine-acre Digital Hub campus. Most recently, the agency announced a major new property investment, worth over €40m. This will result in the creation of additional enterprise office space, as well as a housing development for almost 500 students. UK-based company Knightsbridge Student Housing is behind the development.

Further information about The Digital Hub is available at www.thedigitalhub.com.

Ireland Asia Business Yearbook 2014 51

IAYB_page46-51.indd 51

01/05/2014 18:03

INVESTMENT COLLABORATION

summit SCALING 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 Fund was launched in January 2014, marking a significant development in terms of the investment relationship between Ireland and China.

WestSummit Capital, a technology growth capital investor based in Beijing with an office in Silicon Valley, and Atlantic Bridge, a technology growth capital investor based in Dublin with offices in London and Silicon Valley, will co-manage the fund through the newly established Summit Bridge Capital.

Capitalised equally by the National Pensions Reserve Fund and China Investment Corporation (CIC), the fund will make minority equity investments in fast growing technology companies with a presence in Ireland that have an interest in China, and in Chinese fast growing technology companies that have a presence or an interest in establishing a presence in Ireland as a gateway into the European market.

It will target companies operating in core technology sectors such as internet, software, semiconductors and clean-tech, as well as in agriculture, food, medical and financial services.

“Ireland plays a critical role as a major hub of activity connecting Europe with international markets, and as a centre of technology innovation in the region,” said Raymond Yang, managing partner of WestSummit Capital.

“China represents one of the largest and fastest growing markets in the world for nearly every category of technology-related products and services. We believe that there is a highly attractive investment opportunity for the China Ireland Technology Growth Capital Fund to further link these two dynamic economies through a highly focused cross-border strategy.”

Co-founder and general partner at Atlantic Bridge Capital Elaine Coughlan noted: “We are already seeing strong interest from Irish technology companies in the Chinese market and believe this new fund is uniquely positioned to add value to these companies as they scale in China.”

Chairman of the Irish Exporters Association’s Asia Trade Forum Hugh Kelly described the announcement of this new fund as “a huge vote of confidence in Ireland’s future economic vitality”.

“Given that CIC only makes strategic investments which are good for China, the statement that Irish and Chinese companies in core technology sectors such as internet, software, semiconductors, and clean-tech will be targeted by the fund’s managers, as well as a number of other technology areas, means the fund’s strategy is uniquely positioned,” he says.

These other areas include agriculture, food, medical and financial services and this spectrum clearly offers the chance of a win-win solution for all, according to Kelly.

“Now that there is investment money on the table, China is set to become a major market for Irish companies in terms of joint collaboration and market access; while Ireland’s technological prowess and investment climate, backed by CIC’s vote of confidence, place us at the top table in terms of attracting Chinese outbound investment into Europe.

“Coming hot on the heels of the announcement of the establishment of an a new Irish-domiciled exchange-traded fund (ETF) offering European investors direct access to China’s bluechip stocks for the first time, the Year of the Horse could be a 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 economic growth. Although growth has eased from highs of more than 10pc, HSBC economists still predict a rise of around 7.5pc this year, with many other Asian economies also seeing growth in excess of 5pc.

There are many reasons to think that China’s success will continue, helping to underpin the global economy, notes Chris Davies, CEO of Europe International, HSBC. “China is now the single biggest trader of goods in the world; its middle class is growing; and last year the leadership set out ambitious reforms to nurture hi-tech industries, unlock private enterprise and encourage domestic consumption,” he says.

“Announcements early in 2014 – including new measures to support small domestic enterprises and to develop key pilot programmes in Qianhai and Shanghai to facilitate cross-border flows of the Chinese currency – show change is happening fast.”

As China continues to grow, trading partners can benefit from its success. In addition, China is broadening its overseas investment as well as being more open to those who want to do business on the mainland.

In 1980, just 20pc of Chinese people lived in cities. This has risen to more than 50pc and is still increasing. Creating new cities means building houses, telecommunication and transport networks, requiring raw materials, machinery and technology.

Despite rapid development, China has fewer kilometres of railway track than the US had in 1880. It has more than 80 cities with a population of more than five million that have no underground rail system.

“The average worker’s income in China is expected to increase seven-fold from close to $2,500 in 2012 to almost $18,000 by 2050,” notes Davies.

“But China is starting to cater for all tastes across its population of over one billion with luxury and everyday imports: from German cars, Scottish whisky or French couture for the super rich to baby goods, convenience foods and bicycles for second

and third-tier cities.

“In 2013 nearly 100 million Chinese tourists took holidays abroad, spending more money than any other nation. Though other Asian countries remain the most popular destinations for the Chinese, European locations are battling for a share by translating signs, hiring Mandarin-speaking staff and publicising attractions.”

BUSINESS SECTOR OPPORTUNITIES Being a fast developing country with a mindboggling population of 1.35 billion, admirable manufacturing capacity and a growing middle class who can afford to consume imported quality products, China is Ireland’s largest trading partner in Asia and the fastest growing market in the world for Irish food and beverages.

The Chinese economy and Irish economy are fairly complementary. China’s continued robust growth will create development opportunities for other members of the international community, including steadily recovering Ireland.

Great potential for mutually beneficial co-operation is to be tapped in a number of fields, including ICT, life sciences and pharmaceuticals, agriculture, food and beverages, tourism, and financial services.

With their competitive edge in innovation, entrepreneurship and adaptability, Irish companies are generally in a good position to grasp the business opportunities emerging from China’s continued development and its strategic partnership with Ireland.

Efforts should be made to make more Chinese consumers aware of the high quality of Irish products.

The Chinese population is rapidly ageing, due to a lower mortality rate and the one-child policy. China’s demographic shift to an older society will have a profound impact on the Chinese economy and investment opportunities in China.

China is also looking for investment channels and opportunities all over the world. Ireland has a good investment environment 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 openup 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 and Ireland is mainly based on mutual complementarity. In my view, ICT and other hi-tech industries, the pharmaceutical industry, agri-food and financial sectors can offer the most opportunities to Irish businesses.

China has built its competitive edge and gained considerable experience in machinery, telecommunications, financial services and clean energy.

With a growing middle class, China’s consumption demand for high quality agri-food products will continue to grow.

Chinese companies are ready to come to Ireland for business opportunities. I hope bilateral pragmatic co-operation can be advanced on a mutually beneficial basis.

Efforts should be made in publicity and brand building to make Irish products better known to the large Chinese population. Sophisticated campaigns should be conducted to polish the image of Ireland as a source of quality products. Once Chinese customers come to recognise the superior quality of Irish products, Irish companies will grow their market share.

Key facts...

■ ■

■ ■ ■ ■ ■ ■ ■

NATIONAL FLAG The flag of the People’s Republic of China is a red field charged in the canton (upper corner nearest the flagpole) with five golden stars. The design features one large star, with four smaller stars in a semicircle set off towards the fly. The red colour represents the Communist Revolution; the five stars and their relationship represent the unity of the Chinese people under the leadership of the Communist Party of China. Sometimes the flag is referred to as the ‘Five-star Red Flag’.

■ ■

NATIONAL DAY: 1 October 1949 DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN CHINA AND IRELAND: 22 June 1979

■ ■ ■

■ ■ ■ ■

National population: 1.35 billion List of top five cities and population of each: – Shanghai: 23 million – Beijing: 20 million – Tianjin: 14 million – Guangzhou: 13 million – Chongqing: 10 million Area: 9.6 million sq km Currency: renminbi, also referred to as RMB Religions: Confucianism, Buddhism, Taoism, Christianity, Islamism Language: Standard Chinese as well as minority languages Bilateral trade with Ireland: US$6.67bn in 2013 (13.2pc increase) Irish exports to China: US$ 4.2bn in 2013 (10.5pc increase) Amount of China exports to Ireland: US$2.47bn in 2013 (18.1pc increase) GDP: US$9.2trn in 2013 (7.7pc growth) GDP (purchasing power parity (PPP)): US$13,395.3 billion Real GDP growth: – 2011: 9.3pc – 2012: 7.7pc – 2013: 7.7pc – 2014: 7.5pc (prediction/target) GDP per capita (current prices): US$6,767 GDP per capita (PPP): US$9,869 GDP share of world total: 11.47pc (acccording to statistics of IMF in 2012Ð GDP sector breakdown: agriculture (10pc), 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 end of 2012 and following the introduction of its economic policy ‘Abenomics’, the Japanese economy entered a new phase of development.

Over the course of 2013, stock prices rose by about 50pc and the yen depreciated by about 20pc, resulting in a correction of the currency’s excessive appreciation.

The impact on the real economy was also positive, reflected for example by improved corporate earnings and an increase in personal consumption.

Abenomics is based on three pillars: aggressive monetary policy; flexible fiscal policy; and a growth strategy that promotes private investment.

Steady progress is already being made in the implementation of the Bank of Japan’s monetary easing programme and the government’s economic stimulus measures.

As regards the growth strategy (promoting investment, strengthening the utilisation of human resources, creating new markets and global economic integration), the required legislation is being passed and is now entering the early stages of implementation.

In addition, to cover the growing social security costs arising from Japan’s aging population, and to reduce the accumulated debt, the rate of consumption tax was increased from 5pc to 8pc in April 2014.

The government also formalised a 5.5trn yen economic stimulus package to minimise any negative impact on the economy resulting from the increase.

BUSINESS SECTOR OPPORTUNITIES As a major developed nation and the world’s third largest economy, Japan has played a central role in the global economy.

With its highly skilled workforce, Japan has focused efforts on investment in research and development (R&D) – it has the second highest R&D to GDP ratio.

With its population of 127 million, Japan’s large domestic market provides foreign companies with great opportunities. It intends to strengthen its collaboration with foreign companies in addressing the global challenge of issues such as population aging and energy.

As part of its growth strategy the Abe administration has determined to enhance foreign investment through such measures as regulatory reform driven by the establishment of National Strategic Special Zones, and the conclusion of economic partnership agreements with other countries. The strategy also aims to expand the market in new areas such as healthcare and the assisted living industry.

In recent years, Japan has become increasingly important as a gateway to the rapidly emerging Asian markets. Partnerships with Japanese companies offer foreign companies the potential to broaden the scope of their business not only in Japan but throughout Asia.

Talks are now underway between Japan and the EU on concluding an economic partnership agreement, which will greatly contribute to the further expansion of trade and investment.

Though the Japanese market is a mature and developed one, it 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

profile

JAPAN

Key facts...

■

AMBASSADOR INTERVIEW H.E. Chihiro Atsumi

In 2013, the leaders of Japan and Ireland exchanged reciprocal visits, making it a special year in the history of relations between the two countries.

When An Taoiseach Enda Kenny TD visited Japan in December, the two leaders resolved to further strengthen bilateral ties based on shared values, including democracy and the rule of law, and issued a joint statement entitled ‘Partnership for Innovation and Growth’.

The statement refers to: (1) the significant potential to increase trade and investment in sectors such as agri-food, financial services, ICT, life sciences and clean technologies and (2) the promotion of closer research and development collaboration in the sectors of medical devices and technologies, environmentally friendly technologies, and new ICT-based services to improve older people’s quality of life.

Memorandums of understanding were also signed between JETRO and IDA Ireland and Enterprise Ireland, with a view to strengthening bilateral economic cooperation.

There are over 60 Japanese companies currently operating in Ireland in industries such as pharmaceuticals, financial services and aircraft leasing, while in Japan about 50 Irish companies are active in areas including aviation services, food and financial services.

Japanese and Irish companies and research institutes are also working together on R&D in such areas as big data analysis and assisted independent living for older people.

■

■ ■ ■ ■ ■ ■ ■

■ ■

■

NATIONAL FLAG

The Japanese language name for Japan is ‘Nippon, which literally means ‘origin of the sun’. The national flag of Japan is called the ‘Hinomaru’(‘sun circle’) and it has been used as a symbol of Japan since the 16th century.

■

NATIONAL DAY: 23 December (Emperor’s birthday)

■

DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN JAPAN AND IRELAND: 5 March 1957

■ ■ ■

■

National population: 1127.18 million (source: Ministry of Internal Affairs and Communications, as of 20 February 2014 Top five cities and population of each: (source: Ministry of Internal Affairs and Communications, Statistical Handbook of Japan 2014): – Tokyo: 8.967 million – Yokohama: 3.708 million – Osaka: 2.663 million – Nagoya: 2.248 million – Sapporo: 1.92 million Area: 377,960 sq km (source: Statistical Handbook of Japan 2014) Currency: yen Religion/s: Shinto, Buddhism etc Language/s: Japanese Bilateral trade with Ireland: US$3,628m Irish exports to Japan: US$2,246m Irish imports from Japan: US$1,382m (source: CSO, 2013) Note: services excluded. Value of exports and imports based on the average exchange rate 2013 (€1 = US$1.328).

GDP (nominal): US$5,960bn GDP (purchasing power parity (PPP)): US$4,575bn (source: IMF World Economic Outlook, October 2013) Real GDP growth (source *1-*3: Cabinet Office, Government of Japan, *4: IMF World Economic Outlook, October 2013): – 2011: 0.5pc *1 – 2012: 1.4pc *2 – 2013 estimated: 1.5pc *3 – 2014 estimated:1.25pc *4 GDP per capita: US$46,706 GDP per capita (PPP): US$35,178 GDP share of world total (nominal): 5.5pc (source: IMF World Economic Outlook, October 2013) GDP sector breakdown: services (74.9pc), industry (23.9), agriculture, forestry and fisheries (1.2pc) (source: Cabinet Office, 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 US$1trn, Indonesia has recorded strong growth over the past few decades.

The national economy expanded from 5.63pc in the third quarter of 2013 to 5.72pc in the fourth quarter as a result of stronger exports in line with growing demand from leading trade partners, particularly advanced countries.

Economic growth in Indonesia as a whole for 2013 was 5.78pc.

In 2014, strong domestic demand is expected to persist and exports are expected to perform more favourably in line with global economic recovery – growth in 2014 is projected to hit the lower end of the 5.8–6.2pc range.

This strong domestic demand is supported by two structural strengths – the advantageous demographic structure, as the middle income class is currently expanding and growing consumption and investment.

Indonesia’s macroeconomic stability is also reflected in the low inflation rate, which showed a declining trend and stayed within a target range of 4.5 ± 1pc.

Meanwhile, stability in the financial system has been well maintained as the banking sector is becoming better at absorbing risk and continues to effectively perform its intermediary role.

In general, this stability in the macro economy and the financial system is inseparable from the support of monetary, fiscal and financial sector policies, which have been carried out consistently and prudently through increasingly solid co-ordination.

Coupled with political stability, youthful and vibrant society and reform minded, democratic government, the economic outlook of Indonesia as an emerging market, global powerhouse and investment destination has never been better.

BUSINESS SECTOR OPPORTUNITIES Important business opportunities in Indonesia exist in several key sectors. The major economic sector in Indonesia is manufacturing and processing that contributes around 24.3pc of GDP and includes the sub-sectors of food and drink, machinery and transportation, and textiles.

The manufacturing sector is followed by the agricultural sector, which includes forestry, plantation, farming and fishery, and the trading and hospitality sector.

These together contribute around 14.3pc of the country’s GDP while mining accounts for 11.9pc. More than half of this comes from oil and gas mining.

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 welcoming 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 people rather than businesses. However, it will set the basis for a good business relationship with partners in Indonesia.

As a developing country and a premier emerging market in Asia, Indonesia offers a multitude of opportunities for Irish businesses. For the years to come, Indonesia expects that Irish business will be interested in expanding in value added sectors such as in mining and agriculture; the high growth domestic demand industry and infrastructure projects.

As an important global mining hub, Indonesia produces key commodities such as coal, copper, tin, gold and nickel.

In terms of agri-industry, it has become the world’s largest producer of palm oil and a leading global producer of high value agriculture commodities such as cocoa, rubber and coffee. Irish businesses can also invest in export oriented industries such as textile, electrical, machinery and paper. The tourism sector is growing and promising, with around 8.8 million international visitors having come last year and 10 million projected for this year.

Ireland is at the forefront of the digital economy, driven by hi-tech industries, while having comparative advantage on manufacturing industries such as pharmaceuticals, metals and machinery, as well as transport infrastructure.

Knowledge, expertise and technology in these sectors would be necessary to advance a strong manufacturing base in Indonesia.

Ireland being part of the EU will also continue to provide Indonesian businesses and their products with a gateway to enter European markets.

I am pleased to learn that the Irish Government plans to open an embassy in Jakarta in the near future.

NATIONAL FLAG

The design of the Merah Putih, or red-and-white, national flag of Indonesia is two equal horizontal bands, red on top and white at the bottom. The red stands for courage and represents the human body, while the white stands for purity and represents the human soul. Together it stands for a complete human being, one that is pure and courageous.

■ ■

NATIONAL DAY: 17 August (Independence Day) DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN INDONESIA AND IRELAND: 4 September 1984

Key facts...

■ ■

■ ■ ■ ■ ■ ■ ■ ■ ■ ■

■ ■ ■

National population: 237.641,326 million (2010 census) List of top five cities and population of each (2010): - Jakarta (capital): 9.6 million people - Surabaya: 2.76 million people - Bandung: 2.39 million people - Bekasi: 2.33 million people - Medan: 2.09 million people Area: 1,904,569 sq km Currency: rupiah Religion/s: Islam, Christian, Roman Catholic, Hindu, Buddha, Confucianism Language/s: Bahasa Indonesia (national language) Bilateral trade with Ireland: US$174.8m (2012); US$171.8m (2013) Irish exports to Indonesia: US$109.8m (2012); US$115.8m (2013) Indonesian exports to Ireland: US$64.9m (2012); US$56m (2013) GDP: US$867.5bn (2013) GDP (purchasing power parity (PPP)): US$1.28bn (2013) Real GDP growth: - 2011: 6.46pc - 2012: 6.23pc - 2013: 5.78pc - 2014: 5.8-6.2pc GDP per capita (current prices): US$3.499 (2013) GDP per capita (PPP): US$5.182 (2013) GDP sector breakdown: agriculture (14.3pc), industry (46.9pc), services (38.8pc)

Ireland Asia Business Yearbook 2014 59

IAYB_page58-59.indd 59

01/05/2014 16:56

profile

INDIA

grow Power to

ECONOMIC OVERVIEW WITH a population of over 1.2 billion, the Indian economy is the third largest in terms of power purchase parity and 11th largest in terms of nominal GDP in the world.

The economic policy in the 12th Five Year Plan 2012–17 aims at sustainable and inclusive growth to ensure that the benefits of development percolate to all regions and sections of the society.

The Indian economy is characterised by strong macroeconomic fundamentals, recording 7.8pc growth during the period 2003 and 2012, reaching a peak of 9.7pc in 2007.

The economy was not as adversely affected by the global recession of 2008 as other markets because of strong domestic demand, the high rate of domestic savings, good performance of the service sector and a high investment rate.

Foreign direct investment (FDI) policy has been liberalised to make India more investor friendly. Sectoral caps on key areas have been amended to stimulate FDI inflows. In 2013, India was rated the most favoured investment destination globally despite the downturn.

The economic slowdown bottomed out last year. A spell of global financial turbulence caused capital outflows and pressure on the exchange rate but strong policy decisions stabilised the currency, rebuilt reserves and narrowed the current account deficit.

After a slow growth rate of 4.8pc, the economy is projected to recover in the coming year. The export growth rate is also expected to pick up to 10.5pc as economies in US and Europe regain momentum.

BUSINESS SECTOR OPPORTUNITIES Opportunities for business and investment in India are self-

evident and tangible with no sector left untouched.

India’s attractiveness as an investment destination is apparent from the average net inflow that more than trebled during 2006– 2011 to US$13.6bn from an average net inflow of US$ 3.8bn between 2001 and 2005.

Steady growth, rising demands, low labour costs, a sound regulatory environment and regional development of second and third tier cities provide fresh business opportunities.

Improvement in infrastructure is one of the focus areas for the government, including roads, airports, seaports, power plants and communications networks. In the 12th Five Year Plan the government has committed an investment of over US$1trn in infrastructure.

On a sectoral basis, ICT, telecommunications and the automobile sectors have shown impressive growth. Recognising the importance of a more dynamic, diversified and export oriented manufacturing sector, the government unveiled the National Manufacturing Policy, which calls for boosting the share of manufacturing to 25pc of GDP. New manufacturing clusters and the transformation of the major transport corridors into economic corridors to promote industrial activity provide immense opportunities for businesses.

India is also fast emerging as partner of choice in drug development and manufacturing for global pharma giants and a hub for generics with exports reaching over US$11bn.

The need to build infrastructure also brings new opportunities for businesses in clean technologies, renewal energy, energy efficiency and environmental services.

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 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 Consultancy Services, HCL, Wipro, Ranbaxy, Workhardt, Reliance and engineering firm Crompton Greaves.

It is estimated that Indian companies employ more than 3,000 Irish people.

It is evident that for Indian businesses, Ireland is an attractive and strategic gateway to expand into continental Europe. As an investment and trade destination, Ireland offers opportunities in ICT, healthcare and life sciences, pharmaceuticals, financial and business services, textiles, garments, and leather goods.

Last year was a record year for the bilateral relationship with greater investment flows and trade than ever before and growing tourism and educational links. But there are several areas where the potential remains untapped. Increased interaction is most important to take the relationship to a higher level. This will entail more frequent high level visits and exchanges of business delegations from both sides, greater connectivity and a more liberalised bilateral visa regime.

NATIONAL FLAG The National flag of India (affectionately called ‘Tiranga’ meaning ‘tricolour’) has three equal horizontal bands – the top panel is India saffron (Kesari), the bottom panel is India green and the white middle band bears at its centre the Wheel of Law or Dharma Chakra in navy blue colour with 24 equally spaced spokes. It was adopted by the Constituent Assembly on 22 July 1947. Saffron stands for courage and sacrifice, white symbolises truth, peace and purity and green represents prosperity, vibrancy and life. The Wheel of Law or Dharma Chakra appears on the abascus of the Sarnath Lion, Capital of Emperor of Ashoka.

■

NATIONAL DAY: 26 January (Republic Day)/15 August (Independence Day)

■

DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN INDIA AND IRELAND: formal diplomatic links were established in 1947, India opened its embassy in Dublin in 1951 and the Irish embassy in New Delhi was set up in 1964

Key facts...

■ ■

■ ■ ■

■

■ ■ ■ ■ ■ ■

■ ■ ■ ■ ■

National population: 1.21 billion (2011) List of top five cities and population of each: – Mumbai: 18.41 million – Delhi: 16.31 million – Kolkata: 14.11 million – Chennai: 8.7 million – Bangalore: 8.5 million Area: 3,287,590 sq km Currency: Indian rupee Religion/s: Hinduism, Islam, Buddhism, Christianity, Jainism, Sikhism, Zoroastrianism, Judaism etc Language/s: 22 languages listed in eighth Schedule of the Constitution, Hindi and English are the official languages Bilateral trade with Ireland: €667m (2013) Irish exports to India: €36m (2013) Indian exports to Ireland: €235m (2012) GDP: US$ 1.842trn (2012) GDP (purchasing power parity (PPP)): US$3818bn (2012) Real GDP growth: – 2010–2011: 9.3pc – 2011–2012: 6.2pc – 2012–2013: 5pc 2013–2014 (predicted): 5.5pc GDP per capita (current prices): US$1.489 (2012) GDP per capita (PPP): US $ 3,813 GDP share of world total (at PPP): 5.67pc GDP sector breakdown: agriculture (17.5pc – 2012), industry (26.2pc – 2012), services (56.3pc – 2012)

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, Korea is the 15th largest economy in the world and ranks ninth worldwide in trading volume.

A member of the G20 and the OECD, Korea also belongs to the exclusive ‘20-50’ club, a term referring to just a handful of countries (the US, Japan, France, Germany, Italy and the UK) that have a population of over 50 million and yet maintain a per capita income of over US$20,000.

Korea is looking to the future by making the transition into a creative economy, built on innovation and openness.

The Korean government has vowed to push forward further deregulation, to facilitate mergers and acquisitions and support creative venture start-ups by injecting up to nearly US$4bn dollars by 2017.

Investment in research and development (R&D) is also strong.

Korea is ranked first among OECD countries in terms of R&D intensity (R&D expenditure as a percentage of GDP). It came out on top again on Bloomberg innovation rankings that surveyed 215 countries and in the Innovation Union 2014 report, published by the European Commission early this year.

The only Asian country to have established free trade agreements (FTAs) with both the EU and the US, Korea has a global FTA network encompassing 45 countries, or 61pc of the total world economy. In particular, the Korea-EU FTA took effect in 2011, offering greater two-way access for both Korean and European (Irish) firms.

BUSINESS SECTOR OPPORTUNITIES A superb talent pool, a 50 million-strong domestic market with high purchasing power and a transparent regulatory environment make Korea both a safe harbour from which Irish businesses can anchor their Asian activities and a potent market in its own right.

In particular, its location at the heart of transportation networks in East Asia makes for an ideal foothold to launch into the rest of Asia.

In the Ease of Doing Business Index generated by the World Bank that surveyed 183 economies, Korea ranked seventh in the world.

Automobile, ICT, semiconductor and shipping are just some of the industries where Korea has established global presence. With the launch of the creative economy initiative by President Park Geun-hye in 2013, Korea is looking to forge partnerships with innovative businesses around the world. In that aspect, Ireland’s comparative advantage in nanotechnology, ICT and life sciences place the co-operation between the businesses of two countries on a strong platform.

In addition to Hyundai, Samsung, LG, POSCO and other Korean conglomerates, there are a number of small and medium-sized companies, accounting for 88pc of the employment in Korea, with key technology or niche know-how, which can be invaluable partners for Irish businesses.

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 warmhearted 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 than Koreans. Yet, there is an emphasis on camaraderie and human relationships that underpins both cultures, which makes one approachable to the other as testified by the increasing number of visitors on both sides.

Both countries have cutting-edge technology in sectors such as healthcare services, software development and cloud computing services and there are ample opportunities for joint ventures, co-operative R&D projects and partnerships.

I have come to know Irish companies that have created successful business by combining their knowledge of the European market with hi-tech products manufactured by a small and medium-sized company in Korea. I have also come to know Korean companies that have started to import Irish food and beverage products into Korea with great consumer response. These different cases suggest that opportunity will only present itself to those who invest the time and resources to develop partnerships and understand the market.

Korea and Ireland celebrated the 30th anniversary of the establishment of diplomatic relations in 2013. During the three decades, the two countries have seen an exponential growth in all aspects: number of visitors, cultural exchanges, investment and trade. In particular, since the establishment of the Korea-EU FTA in 2011, bilateral trade has been on a non-stop upward growth path.

NATIONAL FLAG Called Taegeukgi, the Korean flag has its roots in traditional Korean philosophy on the origin of the universe. In the centre, blue and red halfcircles, symbolising the cosmic forces of ‘yin’ and ‘yang’ respectively, are joined together to form a whole circle, a reference to the principle that the universe evolves from the fluid interaction and harmony between two contrasting forces. The four trigrams surrounding the circle embody the four universal elements: heaven, earth, fire and water.

Key facts...

■ ■

■ ■ ■

■

■ ■ ■ ■ ■

■ ■ ■

NATIONAL DAY: 3 October DIPLOMATIC RELATIONS ESTABLISHED BETWEEN KOREA AND IRELAND: 4 October 1983

National population: 50 million (2012 est) Top five cities – Seoul (10.4 million) – Busan (3.6 million) – Incheon (2.8 million) – Daegu (2.5 million) – Daejeon (1.5 million) Area: 100,460 sq km Curency: won Religions (2005 census): Buddhism (24pc), Protestantism (23pc), Catholicism (8pc), other (0.8pc), no religion (44.2pc) Amount of bilateral trade with Ireland in 2013 in US dollars (sources: Korean International Trade Association): – Korean exports to Ireland: US$369m – Irish exports to Korea: US$833m – Total volume of trade: US$1,201m – GDP (nominal): US$1.19trn (2013) GDP (PPP): US$1.66trn Real GDP growth (Bank of Korea): – 2013: 3.0pc GNI per capita (2013): US$26,205 GDP share of world total (IMF, 2012): 1.6pc GDP sector breakdown (CIA Factbook, 2012 est): agriculture (2.7pc), industry (39.8pc), services (57.5pc) Trading volume: US$1.075trn

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 inclusive growth and has a highly open economy, with external trade amounting to three times the country’s GDP. Coupled with a diversified economic structure and strong macroeconomic fundamentals such as low unemployment and consistent budget surpluses, Singapore’s economy is robust and resilient.

Recording a healthy 4.1pc growth in its economy in 2013, Singapore has an advantageous geographical location, excellent global connectivity and pro-business policies.

It has been consistently ranked by the World Economic Forum (WEF) as one of the easiest places to conduct business. Singapore’s extensive free trade agreements also provide companies with market connectivity.

Collectively, these factors mean that Singapore is well placed to be

a strategic gateway for international companies to ride on the Asian growth story.

BUSINESS SECTOR OPPORTUNITIES While its financial, logistics, and manufacturing sectors are globally competitive, Singapore is also broadening its core industrial clusters to include industries such as biomedical sciences and consumer business.

Economic co-operation between the EU and Singapore can be expected to receive a boost following the conclusion of the EU-Singapore Free Trade Agreement (EUSFTA) in 2013.

Both EU and Singapore companies will benefit from improved market access and greater commercial opportunities once the 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 and attract investments from around the world.

Historically, Singapore and Ireland have long standing links that go back about 200 years.

Many Irishmen contributed greatly to Singapore, developing our towns, education, police force and other public facilities.

This has generated a great reservoir of goodwill between Ireland and Singapore. Coupled with similar pro-business policies and infrastructure as well as sharing a common language, both Irish and Singaporean companies have found it easy to do business with each other.

Irish companies are strong in sectors such as pharmaceuticals, information technology services, consumer business and biomedical science, and we welcome them to use Singapore as a launchpad to access the greater Asian market.

I am pleased to note that our bilateral trade totalled US$1.43bn in 2013, a 14pc increase over the year before. This marks the third straight year of bilateral trade growth.

We should build on this positive development for greater economic collaboration. For 2014, we hope to see a speedy ratification of the EUSFTA, so that both Irish and Singapore companies can start enjoying the substantial economic benefits of the agreement.

Key facts...

■ ■ ■ ■

■

■ ■ ■ ■ ■

NATIONAL FLAG

It consists of two equal horizontal sections of red above white.

The upper left section contains a white crescent moon and five white stars, which form a circle. Red symbolises universal brotherhood and the equality of man, while white signifies pervading and everlasting purity and virtue. The crescent moon represents a rising young nation. The five stars stand for the nation’s ideals of democracy, peace, progress, justice and equality.

■ ■

NATIONAL DAY: 9 August DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN SINGAPORE AND IRELAND: 2 December 1974

■ ■ ■

National population: 5.39 million (as of June 2013) Area: 716.1 sq km Currency: Singapore dollar Religion/s: Buddhism (33.9pc), Islam (14.3pc), Taoism (11.3pc), Christianity (11pc), Catholicism (7.1pc), Hinduism (5.2pc), other religions (0.7pc), none (16.4pc) Language/s: Malay, Mandarin, Tamil and English are the four official languages in Singapore Bilateral trade with Ireland: US$1.43bn (S$1.81bn) Irish exports to Singapore: US$855.33m (S$1.08bn) Singapore exports to Ireland: US$573.77m (S$724.48m) GDP (at current market prices): US$281.8bn Real GDP growth (2011, 2012, 2013 and prediction for 2014): 6pc (2011), 1.9pc (2012), 4.1pc (2013), 2–4pc (2014 estimate) GDP per capita (current prices): US$52,900 GDP share of world total: 0.388pc (2013 estimate) GDP sector breakdown: manufacturing (18.6pc), wholesale and retail trade (18.2pc), business services (15.6pc), finance and insurance (12.2pc), transportation and storage (7pc), construction (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 market economy characterised by strong dynamism and rapidly growing entrepreneurship.

It has recorded average annual GDP growth of 7pc over the past two decades (5pc in 2012 and 5.42pc in 2013). It is a highly open economy, with international trade exceeding 160pc of GDP, and is the world’s No 1 exporter of rice, coffee and black pepper, and a major exporter of textiles, seafood, electronics, software, crude oil and furniture.

Vietnam is regarded as one of the top emerging economies investment destinations, one of the ‘Next 11’ emerging economic powers, and one of the next BRICS, attracting an estimated US$6.5bn in FDI in each of the past five years.

The Ernst & Young report on rapid growth markets (published in October 2012) calls Vietnam a rising star with GDP growth of 6pc a year for the next 25 years, a GDP per capita increase of six times over the next 25 years; and the number of households earning over US$30,000 rising from less than 6,000 in 2011 to more than 60,000 in 10 years’ time.

BUSINESS SECTOR OPPORTUNITIES Infrastructure, agriculture, energy, information technology and human resource development, including education and training, continue to be the sectors that would offer the best opportunities for Irish businesses both in the short and long terms.

The ongoing state-owned enterprises equitisation (privatisation) process gives foreign investors good opportunities to participate in the restructuring of the national economy.

The 150th member of the World Trade Organisation, Vietnam is being integrated ever deeper into the regional and world economy as it continues to implement a number of existing multilateral and bilateral free trade agreements (FTAs) and conclude new FTAs with major trading partners.

These include a bilateral FTA with the EU scheduled to be signed in late 2014, and the wide ranging and comprehensive Trans-Pacific Partnership Agreement (TPP) expected to be concluded in 2014 also.

66 Ireland Asia Business Yearbook 2014

IAYB_page66-67.indd 66

01/05/2014 18:06

profile

AMBASSADOR INTERVIEW

Key facts...

H.E. Vu Quang Minh

Vietnam and Ireland share a lot of common values. We both are nations that have had to fight hard and made great sacrifices for national independence. Our peoples are at the same time peace loving, kind hearted and hard working.

We both have creative ideas in business. We both highly value education as key to trade development.

The sectors offering the most opportunity to Irish businesses are IT, including software development; agriculture and food processing; dairy products; chemicals; plastics; oil and gas; pharmaceutical; textiles; education, including vocational training; infrastructure development; services; environment technology; energy; tourism; engineering; machinery; and equipment.

Trade includes exports of agricultural and seafood products, textiles, foot ware, telecom and IT products, furniture, education, and tourism.

This year I would like to see a historic visit to Vietnam in 2014 by An Taoiseach Enda Kenny TD with an accompanying large trade mission followed by the establishment of Ireland-Vietnam Business Council.

NATIONAL FLAG

The national flag of the Socialist Republic of Vietnam is rectangular in shape. Its width is equal to two-thirds of its length, and in the middle of the red background is a bright five-pointed yellow star. It was first used in the ‘Southern Uprising’ of 23 November 1940 against French rule. The red background represents blood and also the revolution spirit, while the yellow foreground represents ‘the colour of our race’s skin’. The five points of the star represent the unity of intellectuals, peasants, workers, traders and soldiers.

■ ■

NATIONAL DAY: 2 September DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN VIETNAM AND IRELAND: 5 April 1996

VIETNAM

■ ■

■ ■ ■

■ ■ ■ ■ ■ ■ ■

■ ■ ■ ■

National population: 92 million Top five cities and population of each: – Ho Chi Minh city: 7.921 million – Hanoi: 7.189 million – Hai Phong: 1.978 million – Da Nang: 1.051 million – Can Tho: 1.298 million Area: 331,210 sq km Currency: Vietnam Dong (VND) Religion/s: Buddhist 9.3pc, Catholic 6.7pc, Hoa Hao 1.5pc; Cao Dai 1.1pc; Protestant 0.5px, Muslim 0.1pc Language/s: Vietnamese, English, French, Chinese, Khmer Bilateral trade with Ireland: €182.96m (US$254.75m) Irish exports to Vietnam: €94.47m (US$131.5m) Vietnam exports to Ireland: €88.49m (US$123.21m) GDP: US$170bn GDP (purchasing power parity (PPP)): US$358.8bn Real GDP growth: 5.89pc (2011), 5.03pc (2012), 5.42pc (2013), forecast 5.7pc (2014) GDP per capita (current prices): US$1,895 GDP per capita (PPP): US$4,001 GDP share of world total: 0.414pc GDP sector breakdown: 19.3pc, 38.5pc, 42.2pc Sources: IMF, CIA, General Statistics Office 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, Myanmar is now in the midst of historic change, which is occurring at a pace that was almost unimaginable previously.

In the 1960s, it faced a bright future as a major rice exporter and one of Southeast Asia’s leading economies. Since then it fell far behind as the rest of the region transformed itself through market oriented reforms and trade integration.

Continued economic reforms in Myanmar were set by a series of unprecedented milestones last year, including the announcement of two international telecommunications firms as winners of a tender to develop Myanmar’s mobile infrastructure, and the implementation of guidelines for the Foreign Investment Law. Economic and social reforms have been implemented with a people centred approach. For economic development, there are three prerequisites – financial capital, technology and human resource development. Myanmar is now inviting more foreign investment to fulfil those requirements.

The government has achieved good results with a 7.3pc GDP

growth rate in 2012–2013, which exceeded the projected growth rate of 6.7pc. Foreign direct investment, meanwhile, is on pace for a record year, after reaching US$1.8bn in just five months of the 2013–14 fiscal year.

There are ongoing discussions on a number of bills, including the establishment of a special economic zone law, mining regulations and the revamping of the foreign investment law.

The government is looking for potential investors. There are numerous opportunities in the tourism industry, agricultural sector, garment industry, fisheries and livestock breeding sectors, gems industry, banking, financial sector, energy sector, and oil and gas sectors.

Many promising business and investment opportunities are now emerging. The government put in place solid foundations for a market economy to thrive, along with an investor friendly environment.

The economic transition faces momentous challenges, but holds 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 FLAG The Republic of the Union of Myanmar adopted a new state flag on 21 October 2010. It was introduced along with implementing changes to the country’s name, which were laid out in the 2008 constitution. The design of the flag has three horizontal stripes of yellow, green and red with a five-pointed white star in the middle. The yellow colour symbolises solidarity, the green colour symbolises peace and tranquility, and the red colour symbolises courage and decisiveness. The white star represents the union of the country. The proportions of the flag are 6:9 feet.

■

NATIONAL DAY: Independence Day is the official national day annually celebrated in Myanmar on 4 January commemorating the country’s Declaration of Independence from Britain on 4 January 1948

■

DATE OF ESTABLISHMENT OF DIPLOMATIC RELATIONS BETWEEN MYANMAR AND IRELAND: 10 February 2004

■ ■ ■ ■

■

■ ■ ■ ■ ■ ■

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 – Bago: 244,376 Area: 676,552 sq km Timezone: UTC/GMT +6:30 hours Currency: kyat (MMK) Religion/s: Theravada Buddhism (89pc), Christians (4pc), Muslim (4pc), Hindu (1pc), other (1pc) Language/s: Burmese (official language) and over 100 ethnic languages GDP:US$ 55.9bn (2012) Real GDP growth: 7.3pc (2012/13) GDP per capita: US$1,096 (2012/13) GDP per capita (purchasing power parity): US$1,700 (2013 est) GDP share of world total: 0.09pc GDP sector breakdown: agriculture (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 resilience. Despite the damage caused by Typhoon Haiyan, the Philippines grew by 7.2pc in 2013, the highest growth rate in Southeast Asia and second highest in Asia.

Prior to the typhoon, the Philippines was growing by 7pc or higher for five consecutive quarters and expanding for 60 straight quarters – an uninterrupted run of growth for over 14 years.

Many factors have been cited for the Philippine economy’s robust performance: dynamic business and private sector activity, sound fiscal management, solid economic fundamentals, and a stable political environment.

The sustained growth figures and economic performance are likewise attributed to improved governance under the administration of President Benigno Aquino III, whose economic policies have set forth a programme of institutional reforms, passage of landmark laws, promotion of transparency and accountability, and support for broad-based growth.

Reflecting such improved governance and dynamism, the Philippines jumped eight places in The Wall Street Journal’s Index of Economic Freedom last year, over 25 places in the

World Economic Forum’s Global Competitive Index and over 30 places in the IFC Doing Business survey.

The Philippines is better positioned and has avoided the pitfalls of other emerging economies, or even developed economies in the eurozone. It has made itself structurally stronger, better prepared and more resilient against market volatility and external shocks, not to mention natural disasters such as Typhoon Haiyan.

BUSINESS SECTOR OPPORTUNITIES Irish firms should consider establishing operations in Philippine Economic Zones as a springboard for the massive export market in Asia, most particularly the ASEAN, which will be a single economic community by 2015.

The Philippines is an ideal location to establish offshore operations, as well as manufacturing operations for export into the ASEAN community due to its many comparative advantages, including the young, dynamic, productive labour force with high level of education, its use of the English language as 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...

■

AMBASSADOR INTERVIEW H.E. Enrique A Manalo

The Philippines and Ireland share values in many aspects of life such as work, family and community, as well as sharing a common dominant faith.

The sectors that offer the most opportunity to Irish businesses in the Philippines are information technology/ business process management (IT/BPM), particularly in the field of financial and accounting services, software and mobile application development; knowledge process outsourcing, particularly in the areas of engineering, architectural design and other creative services; renewable energy; manufacturing in agribusiness and food processing; aerospace including maintenance, repair and overhaul (MRO); publicprivate partnerships and infrastructure projects; wearables; and apparel sourcing.

In Ireland, the sectors that offer the most opportunity to Philippine businesses are electronics, food and agriculture products, information technology, tourism, renewable energy, garments, and wearables.

■

■ ■ ■

■

■ ■

NATIONAL FLAG The sun represents independence, and its eight rays represent the first eight provinces that revolted against Spanish colonial rule. The three stars represent the country’s three main geographic regions: Luzon, Visayas and Mindanao. The white triangle represents equality. The blue field represents patriotism and the red field valour..

■

NATIONAL DAY: 12 June (Independence Day)

■

DIPLOMATIC RELATIONS ESTABLISHED WITH IRELAND: 9 July 1946

■ ■ ■ ■

■ ■ ■

National population: 97.35 million (2013 projection) Top five cities by population: – Quezon City: 2.76 million – City of Manila: 1.65 million – Caloocan City: 1.49 million – Davao City: 1.45 million – Cebu City: 866,000 Area: approximately 300,000 sq km Currency: Philippine peso Religions: Roman Catholic (82.9pc), Protestant (5.4pc), Islam (4.6pc), Philippine Independent Church (2.6pc), Iglesia ni Cristo (2.3pc) Languages: two official languages – Filipino and English. Filipino is the national language. English is also widely used and is the medium of instruction in education.

Eight major dialects spoken by majority of the Filipinos – Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinense Bilateral trade with Ireland: US$375,880,000 (2012) Irish exports to the Philippines: US$347,280,000 (2012) Philippine exports to Ireland: US$28,600,000 (2012) GDP: US$272.2bn (2013 estimate) GDP (purchasing power parity (PPP)): US$454.3 billion (2013 estimate) Real GDP growth: 7.6pc (2010), 3.9pc (2011), 6.8pc (2012), 7.2pc (2013), 6.5pc–7.5pc (2014 projection) GDP per capita (current prices): US$2,587 (2012) GDP per capita (PPP): US$4,700 (2013) GDP share of world total: 0.5pc (2012) GDP sector breakdown: services (57pc), 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 largest economy in Southeast Asia.

A free market, the country has a strong domestic market and a growing middle class, with the private sector as the main driver and exports accounting for over 70pc of GDP. During the past five years, GDP grew on average by 3pc. In 2014, GDP should continue to grow by 2.1–3.1pc and exports, as a major engine of growth, by 3.4–5.4pc, according to estimates.

Thailand has been a leader in the region in terms of trade liberalisation and facilitation with the rest of the world, starting with its Asian neighbours. As a key player in ASEAN, Thailand offers access to China and India, as well as to other East Asian countries such as Japan and the Republic of Korea.

In addition, Thailand’s expanding network of free trade agreements (FTAs) with other countries has further opened up access to markets both within and outside the region. These, coupled with its strategic positioning, have made the country a regional centre for international travel and trade, as well as a hub for various industries.

Thailand has been ranked highly by the World Bank for ‘Ease of Doing Business’ over the past nine years – currently it is 18th in the world and fifth in Asia.

The Thai economy is resilient to external and internal shocks thanks to its robust economic fundamentals with strong purchasing power, low and stable inflation (currently around 2pc) and low unemployment rate of 0.9pc, while foreign reserves remain high at around US$170bn.

Thailand’s fiscal policy continues to support the economy.

Budgetary balance for fiscal year 2014 is currently set at 250bn baht deficit, or -1.9pc of GDP. Moreover, the government

is committed to maintain fiscal discipline under the Fiscal Sustainability Framework. Public debt to GDP is currently at 46.1pc of GDP (February 2014), well below the level specified in the Fiscal Sustainability Framework at 60pc of GDP. In terms of competitiveness, Thailand was ranked 37th among 148 economies by the World Economic Forum (WEF) in the 2013– 2014 edition of the Global Competitiveness Report.

According to the 2013 HSBC Expat Explorer Survey, Thailand is ranked first on economic and experience dimensions. Expats have found Thailand to offer attractive income, spacious-sized properties with friendly service and world-class healthcare, all at affordable prices.

BUSINESS SECTOR OPPORTUNITIES The government actively promotes foreign investments, especially those that contribute to the development of skills, technology and innovation.

Thailand is consistently ranked among the most attractive investment locations in international surveys.

Opportunities for cross-border trade are ample and businesses can benefit from various privileges offered by the Board of Investment (BOI). In addition, Thailand has recently reduced its corporate income tax to the competitive level at 20pc of net profit.

The government has emphasised attracting investment in six sectors that have been determined to be key to the country’s developmental objectives – agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services, including entertainment, healthcare and tourism.

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. 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 investment ties.

I am glad to learn of the successful stories of Irish business and investment in Thailand, especially in the sectors of food and agro-industry, medical, pharmaceutical and IT logistics.

Apart from business achievement, Thailand aims to promote cooperation on education and research. Indeed, the memorandum of understanding on education cooperation due to be concluded and signed within this year will provide a framework to promote closer cooperation in this field.

Last year, we welcomed 66,000 Irish tourists and hope more will continue to visit our country. We appreciate Ireland’s inclusion of Thailand as one of the countries that are eligible for the visa waiver scheme, which will promote more people-to-people contact between the two nations.

Last but not least, Ireland’s decision to open an embassy in Bangkok will mark an important milestone.

Key facts...

■ ■

■ ■ ■ ■ ■ ■ ■

NATIONAL FLAG The flag of Thailand is called Thong Trairong, meaning ‘tricolour flag’. The colours are said to stand for nation-religion-king, an unofficial motto of Thailand. Red is for the land and people; white is for Buddhism; and blue is for the monarchy.

■ ■

NATIONAL DAY: 5 December (HM King Bhumibol Adulyadej’s Birthday) DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED: 27 January 1985

■ ■

■

■ ■

National population: 67.6 million Top five cities: – Bangkok (capital) – Chiang Mai (north) – Nakorn Ratchasima (north-east), – Khon Kaen (north-east) – Phuket (south) Area: 514,000 sq km Currency: baht Religion/s: Buddhism, Islam, Christianity Language/s: Thai (English is also widely spoken and understood) Bilateral trade: US$705.3m (+13.3pc) (2013) Irish exports to Thailand: US$280.4m (+0.5pc) (2013) Thai exports to Ireland: US$424.9m (+23.7pc) (2013) GDP: US$387.49m (2013), US$417bn (forecast 2014) Real GDP growth: 7.8pc (2010), 0.1 pc (2011), 6.5pc (2012), 2.9pc (2013), 2.1–3.1pc (forecast 2014) GDP per capita (current price): US$5,879/year, US$6,166/year (forecast 2014) GDP share of world total: 0.4pc GDP sector breakdown: agricultural (8.3pc), industry (40.2pc), services (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 industrialised market economy. During the late 20th century, it underwent rapid development during a period of economic prosperity. In recent years, Malaysia has continued to experience growth with manufacturing playing a significant role in the state of the economy.

In addition, Malaysia is seeking to diversify its economy and move towards an innovative knowledge-based system with science and technology at its heart, while it has become the world’s largest Islamic finance centre.

The promotion of tourism is another area where Malaysia is making considerable gains in promoting itself to the world.

Under current Prime Minister Datuk Seri Najib Tun Razak, Malaysia is attempting to achieve high income status by 2020 and to move further up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology and services.

BUSINESS SECTOR OPPORTUNITIES Education remains the bedrock of bilateral co-operation between Malaysia and Ireland. Ireland has always been an attractive destination country for Malaysian students, remaining within the top ten destinations.

Malaysia is one of the tier one priority target countries for Education in Ireland, the first centre as part of the programme having been opened there in 2012.

With growth of 10pc, Malaysia showed the greatest increase in student numbers into Ireland in 2012 of all target countries. It is interesting to note that 75pc of Malaysian students in Ireland are studying medicine, a possible reason why Malaysian student tuition accounts for the largest of any international education imports into Ireland (€34m).

Islamic finance possibilities are increasingly important, as An Taoiseach Enda Kenny TD continues his initiative to make Dublin’s IFSC the home of Islamic finance in Europe.

In general, Malaysia provides a good proposition as an entry

point for investments into the growing Southeast Asian region and offers a competitive business environment, world-class infrastructure and highly skilled labour force.

The Malaysian government has introduced special taxation and financial incentives to encourage foreign investment and in particular investments into research and development, and promoted activities such as manufacturing, information and communications, biotechnology, healthcare, education and industrial-related technology.

Through its ministries and agencies such as Ministry of International Trade and Industry (MITI), Malaysia External Trade Development Corporation (MATRADE) and Malaysian Investment Development Authority (MIDA), the government also organises trade exhibitions, conventions and trade missions to promote trade and investment.

Malaysia offers vast business opportunities in the manufacturing and services sector, which include: oil, gas and energy; palm oil; financial services; tourism; business services; electronics and electrical; wholesale and retail; education; healthcare; communications content and infrastructure; and agriculture.

Exports – particularly of electronics, oil and gas, palm oil, and rubber – remain a significant driver of the economy.

The services sector is a major contributor to the growth of the Malaysian economy. Areas offering opportunities for investors include IT services, shared services and business process outsourcing, regional headquarters, research and development (R&D), education and environmental management.

Being a progressive Islamic country, Malaysia is recognised as a global leader in the areas of halal products and Islamic finance.

Malaysia’s halal certification has gained international recognition, which also meets stringent international health and safety standards.

Business opportunities in Ireland for Malaysia are mostly focused on manufacturing; agricultural; mining; and services sectors.

Advanced science and technology is also another area that could 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 FLAG The flag of Malaysia, also known as the Jalur Gemilang (stripes of glory), comprises a field of 14 alternating red and white stripes along the fly and a blue canton bearing a crescent and a 14-point star known as the Bintang Persekutuan (Federal Star).

The 14 stripes, of equal width, represent the equal status in the federation of the 13 member states and the federal government, while the 14 points of the star represent the unity between these entities.

The crescent represents Islam, the country’s official religion; the blue canton symbolises the unity of the Malaysian people; the yellow of the star and crescent is the royal colour of the Malay rulers.

■ ■

NATIONAL DAY: 31 August DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN MALAYSIA AND IRELAND: 10 January 1974

■

■

■ ■

■ ■ ■ ■ ■

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) Irish exports to Malaysia: – 2011: US$0.576bn – 2012: US$0.332 – 2013: US$2.566 Malaysian exports to Ireland: – 2011: US$0.198bn – 2012: US$0.18bn – 2013: US$0.133bn GDP: US$312.5bn (2012) Real GDP growth: – 2011: 5.1pc – 2012: 5.6pc – 2013: 4.7pc – 2014: 4.5pc–5.5pc (expected) GDP (purchasing power parity (PPP)): US$525bn (2013) GDP per capita (current prices): US$10,500 (2013) GDP per capita (PPP): US$10,942 (2012) GDP share of world total: 0.6pc (2012) 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 until the establishment of a new democratically elected government in 1990. Since then it has transitioned into a market oriented economy, with the private sector constituting over 75pc of the nation’s GDP. Over the past two decades, Mongolia has become a vibrant multiparty democracy with one of the world’s fastest growing economies.

The economy is expected to show double-digit growth again in 2014 despite the unfavorable external environment. The medium-term prospects are promising.

Located between Russia (to its north) and China (to its south), Mongolia possesses vast, untapped mineral assets, which have begun to be developed.

The country is at the threshold of a major transformation driven by the exploitation of its vast mineral resources. The share of mining in GDP today stands at 20pc, twice the ratio of a decade ago.

BUSINESS SECTOR OPPORTUNITIES Mongolia is a very strategic location for foreign investors. Bordering the resource-rich, vast Siberian region of Russia to the north and

rapidly emerging China to the south, it provides easy access to the large international markets of these two neighbours and important global players.

It is close to large commodity consumers in China, Siberia, Korea and Japan, the industrial hub in Northwest China. Freight costs to most North Asian markets from Mongolia are US$15–20 a mile lower than competitors.

Mongolia’s mineral resources are world-class, including copper, coal, iron, zinc and fluorspar. It has over 6,000 occurrences of 80 plus minerals, some of the world’s largest deposits and the potential to become a major global commodities player.

The business environment has improved in recent years with Mongolia now ranked 21st in leading nations with investment protection regulation.

It has the lowest tax environment in the region and an attractive environment for foreign direct investment and trade through an open policy.

76 Ireland Asia Business Yearbook 2014

IAYB_page76-77.indd 76

01/05/2014 18:09

profile

AMBASSADOR PROFILE

Key facts...

H.E. Tulga Narkhuu

His Excellency Mr Tulga Narkhuu was appointed ambassador of Mongolia to Ireland in 2013.

Prior to this, he held several positions with the Ministry of Foreign Affairs of Mongolia, including director of the Department of International Organisations and director of the Department for Americas, Africa and Middle East as well as other diplomatic posts in New York, Washington, Beijing and Singapore.

Ambassador Narkhuu has a degree in international relations from the Moscow State Institute of International Relations in Russia and holds a graduate diploma from Monash University in Australia.

■ ■ ■ ■ ■ ■ ■ ■ ■ ■

NATIONAL FLAG ■ ■

NATIONAL DAY: 11 June – Naadam DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN MONGOLIA AND IRELAND: 22 December 1998

MONGOLIA

■ ■

National population: 2.9 million Area: 1,564,116 sq km Currency: Tugrik Religion/s: Buddhism, Islam, Shamanism, Christianity Language/s: Mongolian Irish exports to Mongolia: US$3,529,6000 (2013) Mongolia exports to Ireland: US$72,000 (2013) GDP: US$11.8bn (2013) GDP (purchasing power parity): US$15.44bn (2012) Real GDP growth (2011, 2012, 2013 and prediction for 2014): 2011 – 17.5pc; 2012 – 12.4pc; 2013 – 12.5pc; 2014 – 10.3pc GDP per capita (current prices): US$3,673 (2012) 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 est) ■ GDP share of world total: 0.04pc (2010) ■ GDP sector breakdown: agriculture (34.8pc), industry (24.5pc), service (40.7pc) (2011 est) ■

Encouraging investment 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 Cambodia’s territorial waters. Discovered in 2005, the oil deposits represent a potential revenue stream for the government.

Mining is another sector attracting some investor interest and the government has touted opportunities for mining bauxite, gold, iron and gems. Other important foreign exports include timber, rubber, rice, fish, tobacco and footwear. This is a reflection of the competitive cost of operations in Cambodia, the importance of the agricultural sector and the abundance of both oil and gas, and timber resources across the country.

The tourism industry has continued to grow rapidly with foreign arrivals exceeding two million per year since 2007 and reaching over four million visitors in 2013.

NATIONAL FLAG

The flag of Cambodia symbolises the country’s slogan: ‘Nation, Religion, King’. The two large blue stripes represent royalty and the centre red stripe represents the nation. The white temple stands for the nation’s religion.

■ ■

BUSINESS SECTOR OPPORTUNITIES A major advantage of doing business in Cambodia emanates from the fact that the government treats both local and foreign investors equally, whereby foreign investors can retain high percentage returns on investment in the country.

NATIONAL DAY: 9 November DATE WHEN DIPLOMATIC RELATIONS WERE ESTABLISHED BETWEEN CAMBODIA AND IRELAND: 30 October 2009

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 and political stability, high security, liberal trade and attractive investment policies and laws, and low investment costs, in terms of land, labour and utilities.

It is also rich in natural resources such as mining, energy and agriculture. The economy is integrated regionally and internationally, having become a member of international organisations such as Unesco, the International Monetary Fund 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 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.

BUSINESS SECTOR OPPORTUNITIES Laos’ economy is heavily dependent on capital intensive natural resource exports. The labour force, however, still relies on subsistence agriculture, dominated by rice cultivation in lowland areas, which accounts for about 25pc of GDP and 80pc of total employment. The economy also has benefited from high-profile foreign direct investment in hydropower, copper and gold mining, logging, and construction.

Laos is rich in natural resources with hydroelectric power and

agribusiness both being huge growth industries.

Ireland has plenty of potential in terms of its fast growing and advanced economy, so there is ample opportunity for matching the businesses of the two countries in various sectors such as agriculture, manufacturing, tourism and other related services.

There is scope to strengthen the two countries’ linkages by exchanging information in various areas, together promoting tourist and business activities.

Key facts...

■ ■

■ ■ ■ ■

NATIONAL FLAG

The current flag of Laos was officially adopted on 2 December 1975. The red represents the blood of the people who struggled for national independence; the blue stands for prosperity; and the white circle symbolises justice and unity of the people towards the country’s bright future.

■ ■

NATIONAL SYMBOL: Elephant NATIONAL DAY: 2 December, the establishment of the Lao People’s Democratic Republic in 1975

■ ■ ■ ■

■ ■ ■

Population: 6,803,699 (July 2014 est) Top five cities and population of each province: – Vientiane: 799,000 – Luang Prabang: 47,378 – Savannakhet: 66,553 – Pakse: 88,332, – Xam Nua: 38,992 Area: 236,800 sq km Currency: Kip (LAK) Religions: Buddhist (67pc), Christian (1.5pc), other and unspecified (31.5pc) Ethnic groups: Lao (55pc), Khmou (11pc), Hmong (8pc), other (over 100 minor ethnic groups) 26pc (source: 2005 census) Languages: Lao (official), French, English, various ethnic languages GDP: US$10.1bn (2013 est) GDP (purchasing pwer parity (PPP)): US$20.78bn (2013 est) Real GDP growth: – 8.3pc (2013) – 7.9pc (2012 est) – 8pc (2011 est.)

GDP per capita (current prices): US$3,100 (2013 est) GDP per capita (PPP): US$3,100 (2013 est) GDP sector breakdown: agriculture (24.8pc), industry (32pc), services (37.5pc)

Ireland Asia Business Yearbook 2014 79

IAYB_page78-79.indd 79

01/05/2014 16:52

profile

BRUNEI DARUSSALAM

Key facts...

On the up ECONOMIC OVERVIEW BRUNEI’S economy, buoyed by hydrocarbon revenues, has continued to grow, enabling a new push to greater diversification and increased hiring of locals.

The economy has been dominated by the oil and gas industry for more than 80 years. Hydrocarbon resources account for over 90pc of its exports and more than 50pc of GDP. Brunei is the fourth largest oil producer in Southeast Asia and the ninth 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 value added activities to Brunei and create spin-off opportunities.

One of these sectors is manufacturing, which includes pharmaceuticals, food and food ingredients, petrochemicals, integrated petrochemical refinery, downstreaming industries, and renewable energy.

The other is services such as ICT and supporting industries, for example logistics and oil filed support services.

■ ■ ■ ■ ■ ■

■

■ ■ ■

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 Language/s: Malay (Official). English is widely spoken. Some Chinese dialects as well as indigenous languages are also used GDP: US$17.7bn (approx) GDP per capita (current prices): US$39,473 US (approx) GDP sector breakdown: oil and gas mining (56.51pc), manufacture of LNG (11.15pc), government (11.72pc), private sector (20.62pc)

NATIONAL FLAG ■ ■

NATIONAL DAY: 23 February DATE WHEN DIPLOMATIC RELATIONS ESTABLISHED BETWEEN BRUNEI DARUSSALAM 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 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 €1.24m in funding to collaborate with Japanese counterparts through Science Foundation Ireland’s (SFI) International Strategic Cooperation Award (ISCA) recently.

The group of Irish research bodies, led by NUI Galway, will partner with 21 Japanese universities and a number of companies and research institutes, with the aim of building strategic partnerships to perform cutting-edge scientific research, encourage more industry-informed research, and foster academicindustry interactions between Ireland and Japan.

“This new initiative, supported by the Irish Government through SFI, will build on the extensive linkages that already exist between the Irish and Japanese research communities,” said Taoiseach Enda Kenny, who announced the award on his trip to Tokyo last December.

“It will encourage a higher level of research engagement at both an academic and industrial level with the ultimate aim of creating innovative products, services and jobs to benefit both Ireland and Japan, as well as tackling important social challenges such as caring for an ageing population and climate change. Importantly, it will also help increase awareness of Ireland’s growing international standing in the area of research among potential new partner organisations in Japan.”

“Our focus on funding excellent scientific research with impact is important for the economy and country,” said Prof Mark Ferguson, director general of SFI and chief scientific adviser to the Government. “Ireland continues to develop strategic international partnerships. Through SFI’s ISCA programme we

are fostering new important research collaborations between Irish based researchers and both academic and industry partners in Japan.”

The partnerships developed by the consortium will address six key areas that align with Irish and Japanese research priorities: environmental and climate sciences and technologies; ICT and big data analytics; advanced manufacturing and materials; imaging and optics; future healthcare including connected health; and medical devices and regenerative medicine.

“Many Irish researchers already have significant interactions with Japanese colleagues but until now there has not been a framework to support those interactions and to convert them into more tangible collaborations,” said project leader Prof Ciaran Morrison of NUI Galway.

“The key goal of this initiative is to promote Irish science to Japanese research institutions, in order to forge new collaborative links between researchers in the two countries. Japanese research is very strong and Irish researchers can really benefit from closer association with their Japanese counterparts.”

Japan was included for the first time as a partner country under SFI’s ISCA initiative (which also includes China, India and Brazil) in 2013.

Under the consortium’s activities a number of research-led seminar programmes, industry workshops, academic workshops, student and researcher mobility activities, and specific technical training events will be conducted in Japan and Ireland over a twoyear period.

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 past decade a lot has changed. The Asian County Board (ACB), which governs the different codes played, has placed a greater emphasis in using the games to connect with the local population and to utilise the GAA as a business springboard.

The games are played in 13 countries and there are over 25 different teams in Asia. From men’s and women’s football to hurling and camogie, the games are an attraction to many Irish and nonIrish.

Whether it is in Japan, Korea, China or Singapore the games draw the attention of people because of their fast-paced and exciting movement and skills.

Gaelic games are certainly a positive to promoting Irish culture to the local population. Another prominent aspect of the GAA in Asia is its strong business connection and network.

The ACB places a lot of emphasis on helping to promote Irish businesses throughout all of its annual tournaments. In particular, the annual Asian Gaelic Games (AGG), the main event of the year, helps to promote Irish business and allow superb networking opportunities.

The AGG has attracted high-profile visits from players such as Bernard Brogan, presidents of the GAA, Ladies Gaelic Football Association (LGFA) and Camogie associations, as well as legends such as Brian Mullins and Mícheál Ó Muircheartaigh.

With a long history of being at the forefront of promoting Irish businesses overseas, the AGG was one of the first tournaments internationally to have a named sponsor with the most recent being

‘The 2013 Fexco Asian Gaelic Games’.

Other companies such as First Derivatives, ESB International, PCH International, Kerry Group and Diageo have all been involved with the ACB and the AGG. The second component of the AGG is the Asia Pacific Ireland Business Forum, which provides Irish businesses with an excellent opportunity to potentially meet new partners or get introduced to local businesses.

The forum is one of the largest of its kind in Asia and other international GAA bodies have copied its concept because of its success in Asia.

A further opportunity for business promotion is the attraction of All stars tours to Asia. Within the past three years, the ACB has brought the men’s football and hurling All Stars to Malaysia and China respectively, and most recently the LGFA All Stars visited Hong Kong and showcased some amazing football. All of these events gave local Irish and non-Irish businesses an opportunity to become associated with the best of the GAA. A further positive of the games in Asia is the job creation from both the ACB and its members. For example, coaches have been brought out from Ireland to work throughout Asia and players who have come out for only a few years have been placed in jobs that have seen them stay for much longer and go on to achieve further success.

The ACB and Gaelic games in Asia will continue to grow and without doubt the potential for business growth will be just as 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

Process of protocol BUSINESS CARDS AND GIFTS In Japan it is important to hold your cards in a business card holder, preferably leather and not metal. Cards are the ‘face’ of a person and should be treated with respect.

Perhaps you could put your details on the back of an existing card with your name in Japanese – it is fine only to change your name into katakana, the one of three Japanese character sets, which is used for foreign words. It is easy for any translation agency to do this quickly.

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 a moment – it is fine too to say the name, title and organisation to confirm that you note with whom you are talking. Again this is all in context – if four people hand you cards simultaneously at a meeting or reception, it’s best just to acknowledge the names, for example Tanaka san, Yamada san etc.

Sometimes, for a scheduled private meeting, gifts will be exchanged. It is best for you to have some small, quality item with your company or Dublin crest nicely presented in a box and wrapped properly. Equally, if a Japanese visitor has an interest in golf or whiskey, something specifically Irish will be appreciated.

Alternatively anything with Dublin branding relating to Lafcadio Hearn (Irish father, Greek mother – spent some of his formative years in Dublin) would be good. He is famous in the West for his broader understanding of traditional Japanese culture, having written ‘Japan, An Attempt at Interpretation’ in 1904. Note that his Japanese name is Koizumi Yakumo and known in Japan for writing historical ghost stories etc.

Note of caution – normally gift exchange is CEO to CEO or equivalent leaders. Be careful if giving gifts to group members with different hierarchical status as this could cause unintended offence and awkwardness.

Taoiseach Enda Kenny TD; Japanese Prime Minister Shinzo Abe; and Martin Murray, executive director, Asia Matters

FOOD AND DRINK Food and drink combine a big part of developing good working relationships in Japan. You should be adventurous, open to new tastes and learning. Like the French, Japanese people really know their food so it is polite to ask about a particular dish that you enjoy. It’s good if you can use chopsticks, if not learn.

Regarding conversation, it is polite to focus on seeking to understand more about Japan and sharing insights into Irish culture.

LANGUAGE AND BODY LANGUAGE No one expects you to speak Japanese but any sincere effort to speak a few key words at the right time will be deeply respected.

Regarding body language, you will note lots of bowing (normally at 45-degree angle), but also nodding of heads during conversations to show that you are listening. Japanese often say ‘Hai’ in this context, which only means that ‘I hear what you are saying’. This is not to be confused with ‘Yes’ nor ‘I agree with you’.

Japanese like silence and will regularly take a moment to pause and reflect on what has been said (known as ‘ma’ in Japanese).

This is different to Western sense where silence can be seen as awkward so it’s important not to simply jump in and talk, just take a moment silently and nod reflectively, then continue.

Normally in Japan, the most senior person will sit down or eat first at a meal (not necessarily the person with the best English).

Hierarchy and respect for same is important and occasionally you may have to explain the importance/role of a person, if it’s not clear from the title on their business card. This is why Japanese love as much detail as possible in advance of any meeting, to allow an understanding of who are the hierarchical peers along with sharing this with the group to carefully agree who says what 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

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

An Taoiseach Enda Kenny TD meeting teenagers from the Japanese charity Support our Kids

AT the request of the H.E. John Neary, Ambassador of Ireland to Japan, Asia Matters hosted a group of Tohoku teenagers from the Japanese charity Support our Kids, set up by Yukiatsu Akizawa in 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.

To create a special experience for the Japanese children from Support our Kids, Asia Matters created a Dublin home stay programme with language training, excursions and cultural activities.

Through the collective help of many people from both the Irish and Japanese communities, the Tohoku children had a special time in Ireland, sharing their personal experiences of the disaster with Irish people and enhancing their own sense of self-esteem and future life possibilities.

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 OisĂ­n Quinn, who gave the group a personal 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 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 the CoderDojo led by Lindsay MacVean; and lastly our Japanese volunteers, programme coordinator/interpreter Yui Shimazu, guide Mieko Conway, and drivers Yasuko Shikano and Yoshio Miyachi.

Finally, we would like to express our admiration and respect for the children from Tohoku who visited Ireland: Masaki Konno, Ayaka Endo, Norie Kawai, Yu Uematsu, Misuzu Sato, Akane Mori, Yuri Wakui, Saeka Fujisawa and Kaori Suda, who inspired us with their strength of character and resilience.

H.E. Ambassador Chihiro Atsumi and Asia Matters executive director Martin Murray with the teenagers and volunteers who 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

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 ACCREDITED/PENDING ACCREDITATION TO IRELAND EMBASSY OF BRUNEI DARUSSALAM 19/20 Belgrave Square, London SW1X 8PG Tel: 004420 7581 0521.

Email: info@bdhcl.co.uk Awaiting appointment of new Ambassador Mr Mohd Aziyan Abdullah Deputy Head of Mission THE ROYAL EMBASSY OF CAMBODIA 64 Brondesbury Park, Willesden Green, London NW6 7AT Tel: 004420 8451 7850.

Email: cambodianembassy@btconnect.com Web page: www.cambodianembassy.org.uk Awaiting appointment of new Ambassador Ms Ban Borom Counsellor, Charges D’Affaires a.i.

EMBASSY OF THE PEOPLE’S REPUBLIC OF CHINA 40 Ailesbury Road, Dublin 4 Tel: 01 269 1707 / 01 260 1119. Email: chinaemb_ie@mfa.gov.cn Web page: http://ie.chineseembassy.org H.E. Mr. Xu Jianguo Ambassador Extraordinary and Plenipotentiary EMBASSY OF INDIA 6 Leeson Park, Dublin 6 Tel: 01 497 0806/ 01 497 0987 / 01 496 6770. Email: indembassy@eircom.net / Web page: www.indianembassy.ie H.E. Mrs. Radhika Lal Lokesh Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE REPUBLIC OF INDONESIA 38 Grosvenor Square, London W1K 2HW Tel: 004420 7499 7661. Email: kbri@ btconnect.com Web page: www.indonesianembassy.org.uk H.E. Mr Teuku Muhammad Hamzah Thayeb Ambassador Extraordinary and Plenipotentiary EMBASSY OF JAPAN Nutley Building, Merrion Centre, Nutley Lane, Dublin 4 Tel: 01 202 8300 Email: protocol@ir.mofa.go.jp Web page: www.ie.emb-japan.go.jp H.E. Mr Chihiro Atsumi Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE REPUBLIC OF KOREA 15 Clyde Road, Ballsbridge, Dublin 4 Tel: 01 660 8800. Email: irekoremb@ mofat.go.kr Web page: http://irl.mofat.go.kr H.E. Mr Hae-yun Park Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE LAO PEOPLE’S DEMOCRATIC REPUBLIC 74 Ave Raymond-Poincaré, 75 116 Paris Tel: 0033 145 530 298. Email: ambalaoparis@wanadoo.fr Ambassador Extraordinary and Plenipotentiary Mr. Boungnalith Southichak

Counsellor, Charges D’Affaires a.i.

EMBASSY OF MALAYSIA Level 3A - 5A, Shelbourne House, Shelbourne Road, Ballsbridge, Dublin 4 Tel: 01 667 7280.

Email: maldublin@kln.gov.my Web page: http://www.kln.gov.my/web/ irl_dublin/homeAwaiting appointment of new Ambassador Mr. Mohamed Yasin Counsellor, Charges D’Affaires a.i.

EMBASSY OF MONGOLIA 7 Kensington Court, London W8 5DL Tel: 004420 7937 0150.

Email: office@embassyofmongolia.co.uk Web page: www.embassyofmongolia.co.uk Mr Tulga Narkhuu Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE REPUBLIC OF THE UNION OF MYANMAR 19A Charles Street W1J 5DX Tel: 004420 7499 4340 Email : melondon@btconnect.com Web page: www.myanmarembassyuk.co.uk H.E. Mr Kyaw Zwar Minn Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE REPUBLIC OF THE PHILIPPINES 6-8 Suffolk Street SW1Y 4HG Tel: 004420 7451 1780 Email: embassy@philemb.co.uk Website:philembassy-uk.org H.E. Mr Enrique A. Manalo Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE REPUBLIC OF SINGAPORE 9 Wilton Crescent, Belgravia, London SW1X 8SP Tel: 004420 7235 8315.

Email: Singhc_lon@sgmfa.gov.sg Web page: www.mfa.gov.sg/london H.E. Mr T Jasudasen Ambassador Extraordinary and Plenipotentiary THE ROYAL THAI EMBASSY 29-30 Queen’s Gate, London SW7 5JB Tel: 004420 7589 2944.

Email: Thaiduto@btinternet.com Web site: www.thaiembassyuk.org.uk H.E. Mr. Pasan Teparak Ambassador Extraordinary and Plenipotentiary EMBASSY OF THE SOCIALIST REPUBLIC OF VIETNAM 12-14 Victoria Road, London W8 5RD Tel: 004420 7937 1912.

Email: vanphong@vietnamembassy.org.uk Web page: www.vietnamembassy.org.uk H.E. Mr Vu Quang Minh Ambassador Extraordinary and Plenipotentiary DIPLOMATIC REPRESENTATION FOR BRUNEI is handled by the embassy in Singapore

IRELAND’S DIPLOMATIC REPRESENTATION IN ASIA DIPLOMATIC REPRESENTATION FOR CAMBODIA is handled by the embassy in Vietnam (Hanoi)

DIPLOMATIC REPRESENTATION FOR LAOS is handled by the embassy in Vietnam (Hanoi)

DIPLOMATIC AND CONSULAR INFORMATION FOR CHINA Embassy of Ireland 3 Ri Tan Dong lu Chaoyang District Beijing 100600 Tel: + 86 - 10 - 6532 - 2691/2914 Email: beijing@dfa.ie Website: www.embassyofireland.cn Ambassador: H.E.Paul Kavanagh

DIPLOMATIC AND CONSULAR INFORMATION FOR MALAYSIA Embassy of Ireland The Amp Walk 218 Jalan Ampang 50450 Kuala Lumpur Tel: +60-3-2161-2963 Website: www.embassyofireland.my Ambassador: H.E. Declan Kelly

CONSULATE GENERAL OF IRELAND Consulate General of Ireland Shanghai Suite 700A, Shanghai Centre 1376 Nanjing Road West 200040 Shanghai China Tel: 00 86 21 6279 8729 Website: www.irishconsulateshanghai.cn Consul General: Austin Gormley HONORARY CONSUL Honorary Consul of Ireland Suite 1408 Two Pacific Place 88 Queensway Hong Kong Tel: +852 2527 4897 Email: info@consulateofireland.hk Website: www.consulateofireland.hk Honorary Consul: Mr Harry O’Neill DIPLOMATIC AND CONSULAR INFORMATION FOR INDIA Embassy of Ireland C17 Malcha Marg Chanyakapuri New Delhi 110021 Tel: +91-11-49403200 Website: www.embassyofireland.in Ambassador: H.E.Feilim McLaughlin DIPLOMATIC AND CONSULAR INFORMATION FOR INDONESIA Honorary Consulate of Ireland, Jakarta Stock Exchange Building, Tower I, 12th Floor, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190, Indonesia Tel: + 6221 515 1977 Email: irelandhonconsul.indonesia@gmail. com Honorary Consul: Mr Anangga W. Roosdiono DIPLOMATIC AND CONSULAR INFORMATION FOR JAPAN Embassy of Ireland Ireland House 5F 2-10-7 Kojimachi Chiyoda-Ku Tokyo 102-0083 Tel: +81-3-32-63-06-95 Website: www.embassyofireland.jp Ambassador: H.E. John Neary DIPLOMATIC AND CONSULAR INFORMATION FOR REPUBLIC OF KOREA Embassy of Ireland 13F. Leema Building, 146-1 Soosong-dong, Chongro-gu Seoul, Korea 110-140 Tel: +82-2-774-6455 Website: www.embassyofireland.or.kr Ambassador: H.E. Eamonn McKee

DIPLOMATIC REPRESENTATION FOR MONGOLIA is handled by the embassy in China (Beijing) DIPLOMATIC REPRESENTATION FOR PHILIPPINES is handled by the embassy in Singapore Honorary Consul General 3/F Max’x building 70 Jupiter St Bel Air 1 Makati City 1209 Metro Manila Tel: 00 63 2 896 4668 Email: irishcon@pldtdsl.net Honorary Consul General: Noreen Trota DIPLOMATIC AND CONSULAR INFORMATION FOR SINGAPORE Embassy of Ireland Ireland House, 541 Orchard Road Liat Towers, 8th Floor Singapore 238881 Tel: +65 6238 7616 Website: www.embassyofireland.sg Ambassador: H.E Joseph Hayes DIPLOMATIC REPRESENTATION FOR THAILAND is handled by the embassy in Malaysia (Kuala Lumpur) Thai Honorary Consuls: Honorary Consul of Ireland Thaniya Building, 4th Floor, Room 407 62, Silom Road, Bangrak, Bangkok 10500 Thailand Tel: +66 2 632 6720 Email: info@irelandinthailand.com Website:www.irelandinthailand.com Honorary Consul: Gary Biesty Phuket: Ms. Hélène Fallon-Wood Honorary Con0sul of Ireland Tamarind Valley, 79/6 Moo.4, Soi Suksan Viset Road, Rawai, Phuket 83130 Thailand Tel: +66 76 281 273 Fax: +66 76 281 084 Email: irelandconsulate.phuket@gmail.com DIPLOMATIC AND CONSULAR INFORMATION FOR VIETNAM Embassy of Ireland 2nd Floor, Sentinel Place, 41A Ly To, Hoan Kiem District, Hanoi, Vietnam Tel: + 84 4 3974 3291 Website: www.embassyofireland.vn Ambassador: H.E. Damien Cole

86 Ireland Asia Business Yearbook 2014

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 The top-ranking funds advisory practice in Ireland

Led by 10 partners, the practice comprises over 50 asset management and investment fund lawyers and professionals in total, and incorporates a dedicated Asia practice group headed by partner Shay Lydon.

Financial Times 2012-2013 Matheson is the only Irish law firm commended by the Financial Times for innovation in corporate law, finance law and corporate strategy.

Partners pictured from left: Shay Lydon, Joe Beashel, Michael Jackson, Elizabeth Grace, Tara Doyle, Liam Collins, Dualta Counihan, Aiden Kelly, Anne-Marie Bohan and Philip Lovegrove.

Irish Tax Firm of the Year 2013 International Tax Review

Contact Shay Lydon at shay.lydon@matheson.com or + 353 1 232 2735.

Client Choice 2013 International Law Office

Matheson. The law firm of choice for international companies and financial institutions doing business in and through Ireland.

Dublin

IAYB_page86-87.indd 87

London

New York

Palo Alto

www.matheson.com 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 offer 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.