Presentation material from Finpro Growth Market seminar in Turku October 22 2012.

1. Doing Business in Asia
Jari Hietala

2. Finpro’s Global Network – Asia and Russia
30/10/2012 © Finpro 2

3. Finpro’s Global Network – Australia, Malaysia,
Philippines and Singapore
30/10/2012 © Finpro 3

4. Finpro’s Network in China
Sep 2009 © Finpro ry

5. Key Facts 2011
Finpro Asia
• Aprox. 200 clients
• Aprox. 400 assignments
• China’s share 50%
• Focus Industries: ICT, Cleantech, Life Sciences, Forest- and
Maritime clusters, Engineering companies, Services
• Typical assingments:
– Sales channel development, Sales Accelerator
– Company establishments (the whole process)
– Selecting the right markets
30/10/2012 © Finpro 5

6. FINCHI – a platform of optimizing your
value in China entrance
 Plug & Play style of equipped office space
 State-of-art services assist your daily operation
 Full access to local contacts and bussiness networking
No Registration or Injection Capital needed, but all local activities could
be realized with FinChi turn-key solution. www.finchi.cn
10/30/2012 6 Copyright @ 2010 FinChi

7. FinChi Innovation Center - www.finchi.cn

8. The Importance of Asia For
Finnish Companies
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9. Why to Asia?

10. WORLD GDP 2050
• According to Goldman Sachs, this is the most likely scenario of
World GDP in 2050
– Note the position of Asian countries
2050

11. Asia looks set to return to its natural
“half share” of the world economy
Source: Angus Madison’s “Historical Statistics for the World Economy:1-2004AD”, Deutsch Bank Global Market Research
11

12. Asia and Finland in 2010
Asia and Middle East in 2010
1,6
1,4 The bubble size indicates GDP based on
China PPP in 2010. The bubble size indicates
also the country's share of the total GDP
1,2 India of all countries included in the graph.
Population (billions)
1
0,8
0,6
0,4
Indonesia
0,2 Japan
Philippines
Vietnam Thailand Korea Australia Singapore
0
-10 0 10 Malaysia 20 30 Finland 40 Hong 50 60 70 80
Kong
-0,2
GDP based on PPP per capita (thousands)
Source: IMF, World Economic Outlook, September 2011
Note: Amounts in current international dollar
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13. Asia 2016
Asia and Middle East in 2016E
1,6
1,4 The bubble size indicates GDP based on
China
PPP in 2010. The bubble size indicates
India
also the country's share of the total GDP
1,2
of all countries included in the graph.
Population (billions)
1,0
0,8
0,6
0,4
Indonesia
0,2 Japan
Saudi Hong
VietnamPhilippines South Kong
Thailand Arabia Singapore
0,0 Malaysia Korea Australia UAE
-10 0 10 20 30 40 50 60 70 80
-0,2
GDP based on PPP per capita (thousands)
Source: IMF, World Economic Outlook, Sept 2011
Note: Amounts in current international dollar
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14. Finland’s exports and imports with Asia in 2010
4000
Billions of Euros
3500
3000
2500
Imports
Exports
2000
1500
1000
500
0
China Hong Kong Indonesia India Japan South Korea Malaysia Philippines Singapore Thailand Taiwan

15. Finnish Exports to Asia 2011 (excl. India)
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16. Special Charasterics of Asian Markets
• There is no one homogenous Asian market – analyze and select the right
markets for your company and products
• There is one common feature in all Asian markets: the Chinese business
culture – it’s not what you know but who you know – invest to establish and
maintain your personal contact network, Guanxi
• There are a lot of so called “opportunistic” trading houses, which are eagerly
looking for principals and suppliers from all over the world for example at trade
fairs
– It is not a big challenge to find a sales channel representative for any
company – the real challenge is to get business going
• Often the channel partners would like to represent your products in several
markets in Asia. Watch out as this has very seldom proved to be successful
• Verify your partners’ Guanxi
• There are also several Finnish (and European) channel partners available –
easy and safe option perhaps, but how does your end customer value them
compared to truly local companies?
• Asia is full of trading houses whose main sales argument is the price – it is
challenging to find partners capable for value selling

17. Thank You!
30/10/2012 © Finpro 17