In This Issue:
Upcoming Events:
Victoria
New South Wales
Queensland
South Australia
From the Trade Desk
Last week Ai Group and Asialink released a report which found that 74% of businesses surveyed indicated interest in expanding into Asia. However, at the same time it found that many companies doing business with Asia fall short in their level of "Asian know-how" and that we needed to seriously ramp-up our efforts to better develop an "Asia ready workforce". As part of our contribution to addressing this skills gap we are running a series of low cost seminars for members on doing business in China as well as a trade mission introducing the building and construction industry to Vietnam; details below.
Ai Group's Trade and Export team are very experienced in doing business with North and South Asia. Three team members have spent many years living and working in Asia, two of whom come from non-Asian backgrounds. This experience ranges from introducing companies to new opportunities to actually running manufacturing sites in China. If you ever feel out of your depth when doing business in Asia, don't hesitate to contact us.
Louise McGrath
National Business Development Manager - Trade and Industry Sectors
trade@aigroup.asn.au
Engaging Asia: Getting it right for business - Ai Group-Asialink Report
Despite the increasing importance to business of the rapidly developing Asian economies at our doorstep a new survey by Ai Group and Asialink suggests we are falling short of the skills required to maximise opportunities in the region.
The new report Engaging Asia: Getting it right for Australian business was launched in Canberra today by the Minister for Trade, Dr Craig Emerson. The report is based on a joint survey by Asialink and Ai Group designed to get a better understanding of attitudes towards and knowledge about Asia among Australian businesses. The aim was to explore the extent to which Australian business is expanding into Asia and whether we have the skills and capacity to support this growth.
Ai Group Chief Executive, Heather Ridout said, "Respondents were upbeat about the strength of their prospects in Asia but at the same time identified large gaps in their experience and skills.
"More than half of those currently operating in Asia reported little board and/or senior executive experience of the region. There is a higher level of experience among senior executives - about 54% of companies reported that at least some senior executives have experience - but 65% of responding companies have no board members that have worked in Asia. "This perceived skills gap presents some real challenges for both companies and public policy. To address this challenge the report recommends an Asia Ready Workforce strategy which includes getting more Asia skills, including languages, into school curriculums and support for existing programs aimed at encouraging and developing capabilities related to international business engagement. This includes enhanced funding for what we see as the critically important Export Market Development Grants (EMDG) Scheme."For more information click here.
Enhanced Project By-law Scheme (EPBS)
Program Evaluation: In June 2010, the Department of Innovation, Industry, Science and Research (DIISR) engaged Access Economics to evaluate the EPBS. The evaluation was completed in December 2010. The evaluation executive summary is now available on the Department's website.
The Department is considering the recommendations of the evaluation, noting that the report suggests significant changes to the scheme should not occur during the next 12 months. The Department plans to conduct further stakeholder consultation over the course of 2011 to obtain feedback on reform options proposed by the evaluation.
Members have expressed concerns to us regarding the operation of the program which aims to provides an opportunity for Australian industry to access tariff duty concessions on eligible goods for significant projects in the mining, resource processing, agriculture, food processing, food packaging, manufacturing, gas supply, power supply, and water supply industries where certain conditions apply.
Fundamental to EPBS are Australian Industry Participation plans which encourage the use of Australian industry in projects and global supply chains through the provision of full, fair and reasonable opportunity to Australian industry.
Your feedback on the program will be helpful to us in ensuring that the Government understands industry priorities and concerns. If you want to discuss this further please contact Ai Group's Nicole Forrester on (02) 9466 5566 or nicole.forrester@aigroup.asn.au. The AusIndustry Hotline can also provide more information on 13 28 46 or email hotline@ausindustry.gov.au.
What Are Your Export Barriers to ASEAN?
By reducing tariffs and allowing regional rules of origin, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) has created new business opportunities in our region.
However, there are still some non-tariff barriers which are affecting trade between the AANZFTA parties. These barriers include, among others, import licensing, quantitative restrictions, customs and other administrative procedures, fees and formalities, as well as internal taxation and regulation.
It's these behind-the-border and non-tariff barriers that can often make exporting far more difficult than it really should be.
Ai Group members now have an opportunity to discuss the issues that they are facing when exporting into the AANZFTA market. These experiences will inform our submission to the Government as they undertake a review with the other AANZFTA parties into improving transparency around non-tariff barriers.
To have your say, contact Nicole Forrester at nicole.forrester@aigroup.asn.au or call 0410 488 012.
e-link
More ways for business to learn about AusIndustry programs - www.ausindustry.insitec.com.au
This month sees the launch of two new ways to interact with AusIndustry. You can now find AusIndustry on Facebook and Twitter.
Subscribing to AusIndustry Twitter feed is an opportunity to get short, timely updates as they happen - find out when funding becomes available, be alerted when new programs are announced and receive updates on other Government programs for your business. AusIndustry Facebook page is another way to stay updated as things happen. With the addition of these two new channels you can find out about AusIndustry programs in the manner that suits you - face to face with a regional office, on the phone with the AusIndustry Hotline, or on your computer using our Website, Facebook and Twitter channels.
Twitter and Facebook are tools that you can use to also share your thoughts with the AusIndustry team. AusIndustry are keen to find out what you think of how they deliver their programs and will be actively monitoring Twitter and Facebook, listening and responding to what you have to say.
Outgoing Missions
Mining Mission to Chile
June 13 - 17, 2011
This Mission is designed to provide a cost-effective entry to the Chilean market, expose mission members to one of the world's fastest growing economies and provide a comprehensive business-matching program for mission participants to identify real project opportunities and long term business partners.
Chile ranks among the world's leading mining nations, producing over a third of the global copper output and a large number of other minerals. Progressive legislation and a healthy investment environment have made Chile the mining capital of Latin America. Today, the domestic mining industry is a key contributor to the nation's GDP. Apart from copper, Chile's mineral products include: gold, silver, molybdenum, zinc, iron ore, lithium, nitrates and coal, among others.
The costs to maintain large mining operations in Chile are estimated at US$ 5.5 billion per year, with US$ 1.2 billion designated for the purchase of goods and supplies (parts and pieces, supplies for plant and mine, reagents, equipment, etc).
According to the studies executed by the Chilean Copper Commission (COCHILCO), the goods and supplies expenditures are composed of:
- Direct imports: US$ 512 million
- Sales by interval of foreign suppliers.
For more information and details of government funding support, please contact Louise McGrath on 0410 488 012 or louise.mcgrath@aigroup.asn.au.
Business Mission to Vietnam
May 30 - June 3, 2011
This Mission is designed to provide a cost-effective entry to the Vietnamese market, expose mission members to one of the world's fastest growing economies and provide a comprehensive business-matching program for mission participants to identify real project opportunities and local partners as required for market access.
The annual average construction sector real growth between 2010 and 2014 is forecast to be 8.1%. Opportunities include "New Towns" as satellites of major metropolitan or industrial areas. These master-planned developments often call for investments in industrial parks, commercial areas, residential housing, hospitals, schools, retail, etc. Major new town developments in the South are centred around Ho Chi Minh. Developments in the North include Linh Nam Eco City in Hanoi and projects in the surrounding areas of Bac Ninh, Vinh Phuc.
Sector with significant opportunities are:
- Building products and service providers, sustainable building products and services (Architects, Consultants, Developers, Building Solution Providers and System providers, Project Managers, Institutions, Equipment and Building Product Manufacturers)
- Government
For more information and to register your interest, please click here.
Why China?
China remained Australia's largest trading partner (goods and services) in 2009, with total trade valued at A$85.1 billion, an increase of 15.1 per cent over the previous year. China is also Australia's largest merchandise trading partner (valued at A$78.2 billion in 2009), with total merchandise exports valued at A$42.4 billion, an increase of 31.2 per cent over the previous financial year. Total merchandise imports were valued at A$35.8 billion, an increase of 1.5 per cent in 2009.
Australia-China two-way investment has lagged behind the trade relationship, but is growing. At the end of 2008 (most recent data available), total Australian investment in China reached $6.9 billion, making China our 14th largest investment destination. Australian financial institutions have a number of investments in Chinese banks and there is interest in the mining sector. More opportunities for Australian investment will open up as China's services sector expands.
Chinese investment interest in Australia, particularly in the resources sector, continues to increase rapidly. Since November 2007, the Government has approved over 160 proposals for Chinese investment in Australian business and total investment of around A$60 billion (at 25 May 2010). Only five involved conditions, undertakings or amendments.
The Australian Government also remains committed to negotiating a high quality Free Trade Agreement with China to reduce barriers to business across the board. The next round of formal negotiations will take place in late June 2010 in Beijing.
Recent trends
Australian exports to China continue to perform strongly despite the global economic downturn. In 2009, exports to China accounted for over one-fifth of total Australian exports, up from approximately five per cent in 2000.
Strong resources exports continue to underpin the positive trade data. Australia exported 266.2 million tonnes of iron ore to China in 2009 (A$21.7 billion in value terms), an increase of 45.2 per cent over the same period in 2008. Australia's coal exports to China grew by 1000 per cent last year to become our second largest export commodity, behind iron ore. Over the last 12 months, two further LNG contracts have been signed for the supply of Australian gas to Chinese terminals. The future prospects for continued growth in our resources exports to China are good.
Over the long-term, the fundamental drivers of urbanisation, industrialisation and population growth should continue to underpin Chinese demand for Australian resources. The Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts that Chinese steel production will grow at an average annual rate of 7 per cent over the next five years.
Exports by sector
The composition of Australia's merchandise exports to China is: minerals 59.7 per cent; agricultural 8.1 per cent; manufacturing 8.5 per cent; and fuels (coal, oil and natural gas) 15.6 per cent and other 8.1 per cent. Between 2004 and 2009, mineral exports to China grew at an average annual rate of almost 47 per cent. Over the same period agricultural exports grew at a more modest pace of 6.3 per cent. Manufacturing exports grew by an average of 13.2 per cent annually.
Australia exported A$3.4 billion in agricultural goods to China in 2009 representing a fall of 2.2 per cent over 2008. Wool was our largest agricultural export to China (266,141 tonnes worth A$1.38 billion in 2009 - 66 per cent of China's total wool imports). However, wool exports to China fell 3.9 per cent in 2009, reflecting partly China's deteriorating export performance. Strong export growth in agricultural goods was recorded in canola, live animals, fish, edible products, wine and meat.
In the past ten years, China has risen from our 10th-largest export market for elaborately transformed manufactures (valued at A$642 million in 2000) to our third-largest (valued at A$1.8 billion in 2009). In the medium to long-term, Chinese government stimulus efforts are likely to impact positively on Australian exports of simply transformed manufactures (for use in the construction/infrastructure sectors) and elaborately transformed manufactures.
Australia's services exports to China, valued at A$5.5 billion in 2009, are dominated by educational and recreational travel and have averaged annual growth of 18 per cent over the past five years (the value of Australia's service imported from China was A$1.47 billion in 2009, a decrease of 8.7 per cent). China remains Australia's largest source of overseas students, with around 155,000 enrolments in Australian educational institutions in 2009. The official estimate of "actual students" in 2009 was 118,000.
Chinese imports
China is Australia's largest source of merchandise imports (A$35.8 billion in 2009). The import mix is dominated by clothing, communications equipment, computers, prams, toys, games and sporting goods, furniture and televisions. Australian imports from China increased 1.5 per cent in 2009, while Australian total imports fell 11.2 per cent in 2009.
Export opportunities
Business success in the Chinese market requires awareness of the opportunities available and an understanding of the Chinese culture and legal system. In addition, a well placed and sourced personal introduction is helpful. For more information on doing business in China and about specific export opportunities, go to the AiGroup's China webpage. In addition, we are holding a national program of seminars on the China market, information here.
Ai Group Events:
Australian Industry Group
Ballarat Industry Network - Excellence in Industry Workshop and Site Tours
The Ballarat Industry Network is an initiative of the State Government in partnership with the Australian Industry Group to develop a consortium of local manufacturing businesses. Consortia and clusters are a proven, low cost way of developing a robust industry sector and manufacturing industry located in the Ballarat region are invited to engage in this program.
Date: Tuesday 22 March
Venue: Lady Hotham Room, Mercure Hotel and Convention Centre
Time: 8.30am registration; 9:30am - 4:30pm workshop
Cost: There is no cost to attend the workshop or industry tours
Contact: For more information click here.
Other Events incl. Austrade/TradeStart:
Growing Your Business Online
A free seminar for small businesses, start-ups and anyone who wants a successful website and online presence that will generate leads, increase sales and convert visitors into clients.
Date: 30 March
Venue: Level 15, Davies Collison Cave, 1 Nicholson Street, Melbourne
Cost: Free
Contact: For more information and to register, please click here.
Australian Industry Group
The Basics of Lean
Lean Manufacturing and Just-in-Time concepts have become widely used in the last two decades in manufacturing and service industries leading to improved competitiveness. Leading organisations around the globe have embraced many of the concepts of the Lean approach as part of their day to day operations. This Seminar explains the main concepts of: waste elimination, flow control, operational stability and continuous improvement.
Date: 29 March
Venue: 20 Queens Rd, Melbourne
Cost: $275 (Ai Group Members); $341 (Non Members)
Contact: For more information and to register, please click here.
Australian Industry Group
Managing Commercial Contract Risks
Major topics to be covered include ways to consider relationships; ways to best negotiate contracts and variations; the legal issues relating to statements made by sales and operations staff in the negotiations; how to monitor contracts and what to do if the other party is not delivering as promised. Administration matters will also be discussed in detail including filing and retention of records for quick retrieval, what documents to create during the life of the contract and which ones to keep, email filing, handling of contracts, signing and witnessing of contracts and dispute resolution. Participants need not have previous contract law experience.
Date: 6 April
Venue: 20 Queens Rd, Melbourne
Cost: $495 (Ai Group Members); $594 (Non members)
Contact: For more information and to register, please click here.
Australian Industry Group
Successful Quoting & Tendering Techniques
This interactive and practical workshop will focus on increasing your tendering/quoting success rate through an increased understanding of the overall task that must address eligibility and assessment criteria, present a current and convincing case statement, apply project development skills to ensure conformance as well as innovation, adopt appropriate marketing and sales approaches, and submit a powerful, positive and persuasive document.
Date: 13 April
Venue: 20 Queens Rd, Melbourne
Cost: $847 (Ai Group Members); $1,023 (Non members)
Contact: For more information and to register, please click here.
NEW SOUTH WALES - Upcoming Events
Ai Group Events:
Australian Industry Group
Environmental solutions forum - Energy certainty and reliability - managing your risks
This FREE forum aims to provide companies with practical information on the issues and opportunities that need to be considered when looking at securing alternative energy supplies and reducing peak demand. In addition the Forum will also discuss options to reduce your energy use and reduce operating costs.
Date: Thursday 31 March
Venue: The Holroyd Centre, 17 Miller Street, Merrylands NSW 2160
Time: 9:00am - 11:30am
Cost: Free
Contact: For more information and to register, please click here.
Other Events incl. Austrade/TradeStart:
Australian Industry Group
Letters of Credit and Export Documentation
Ai Group can help you demystify letters of credit. This one day comprehensive and practical program is designed to provide you with a straightforward guide to export documentation. Find out how to comply with your Letter of Credit requirements to improve security of payment, and learn more about the purpose and application of trade terms in order to become a more successful exporter.
Date: Friday 25 March
Venue: 51 Walker St, North Sydney
Cost: $374 (Ai Group Member); $451 (Non Member)
Contact: For more information and to register, please email courtney.girdwood@aigroup.asn.au.
Australian Industry Group
The Basics of Lean
Lean Manufacturing and Just-in-Time concepts have become widely used in the last two decades in manufacturing and service industries leading to improved competitiveness. Leading organisations around the globe have embraced many of the concepts of the Lean approach as part of their day to day operations. This Seminar explains the main concepts of: waste elimination, flow control, operational stability and continuous improvement.
Date: 22 March
Venue: 51 Walker St, North Sydney
Cost: $275 (Ai Group Members) & $341 (Non Members)
Contact: For more information and to register, please click here.
Australian Industry Group
Successful Quoting & Tendering Techniques
This interactive and practical workshop will focus on increasing your tendering/quoting success rate through an increased understanding of the overall task that must address eligibility and assessment criteria, present a current and convincing case statement, apply project development skills to ensure conformance as well as innovation, adopt appropriate marketing and sales approaches, and submit a powerful, positive and persuasive document.
Date: 28 April
Venue: 51 Walker St, North Sydney
Cost: $847 (Ai Group Members); $1,023 (Non members)
Contact: For more information and to register, please click here.
Ai Group Events:
Australian Industry Group
Workshop: Develop and Implement your Strategic Plan
Is your current business strategy delivering the results you desire? Is your current business strategy still appropriate for the changing environment of increasing global competition, economic uncertainty and new technologies? What would the optimum strategy be to ensure the future growth of your business?
This workshop is ideal for business executives and managers who either lead or participate in the formulation and implementation of business strategy.
Date: Friday 1 April
Venue: Australian Industry Group, 202 Boundary Street, Spring Hill
Time: 9:00am - 4:30pm
Cost: Ai Group member $495 incl GST; Non member $594 incl GST
Contact: For more information and to register, please e-mail rachel.walshaw@aigroup.asn.au.
Other Events incl. Austrade/TradeStart:
Austrade
EMDG Coaching Session
These small-group, personalised sessions will help you get EMDG ready and maximise your grant entitlement. Sessions will be run by senior grants staff and will cover a range of topics including introduction to EMDG, how to plan for EMDG, how to apply for EMDG and how to get the best out of the EMDG scheme. Coaching sessions will be held in most capital cities and regional areas Australia-wide.
Date: Thursday 31 March
Venue: Austrade Brisbane,
Level 16, 307 Queen Street
Time: 3:00pm - 4:30pm
Cost: FREE
Contact: For more information and to register, please click here.
Australian Industry Group
The Basics of Lean
Lean Manufacturing and Just-in-Time concepts have become widely used in the last two decades in manufacturing and service industries leading to improved competitiveness. Leading organisations around the globe have embraced many of the concepts of the Lean approach as part of their day to day operations. This Seminar explains the main concepts of: waste elimination, flow control, operational stability and continuous improvement.
Date: 21 March
Venue: 202 Boundary St, Spring Hill
Cost: $275 (Ai Group Members); $341 (Non Members)
Contact: For more information and to register, please click here.
Australian Industry Group
Managing Commercial Contract Risks
Major topics to be covered include ways to consider relationships; ways to best negotiate contracts and variations; the legal issues relating to statements made by sales and operations staff in the negotiations; how to monitor contracts and what to do if the other party is not delivering as promised. Administration matters will also be discussed in detail including filing and retention of records for quick retrieval, what documents to create during the life of the contract and which ones to keep, email filing, handling of contracts, signing and witnessing of contracts and dispute resolution. Participants need not have previous contract law experience.
Date: 8 April
Venue: 202 Boundary St, Spring Hill
Cost: $495 (Ai Group Members); $594 (Non members)
Contact: For more information and to register, please click here.
SOUTH AUSTRALIA - Upcoming Events
Ai Group Events:
Australian Industry Group
Investing in Experience - Managing Ageing Workforce
This seminar will equip managers to identify and implement effective strategies for the recruitment, retention and management of an ageing workforce.
Why you should attend this seminar:
Australia's population is ageing and population growth is expected to slow. This has direct consequences for businesses in terms of the composition of the Australian workforce and the source of skills and labour. In 1953, three quarters of Australians were under 45 years. Now it is two-thirds and by 2052 it will be just over half. In the next decade, workers aged 15 - 44 years will account for only 15 percent of labour market growth.
Date: Wednesday 30 March
Venue: Enterprise House, 136 Greenhill Road, Unley SA 5061
Time: 8:30am - 1:15pm
Cost: $198
Contact: For more information and to register, click here.
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