KAZNEX INVEST introduction presentation for MATRADE, 10 Oct 2011

1. KAZNEX INVEST
Trade Promotion Organization of
Trade Promotion Organization of
Kazakhstan
October 10, 2011 MEIRZHAN MAIKENOV
MATRADE, Kuala Lumpur Deputy Chairman
NATIONAL EXPORT & INVESTMENT AGENCY
«KAZNEX INVEST» JSC
Ministry of Industry and New Technologies
of the Republic of Kazakhstan
www.kaznexinvest.kz www.invest.gov.kz

2. KHAN SHATYR
Content the biggest tent in the World
Kazakhstan Insight
Kazakhstan Globally
Kazakhstan’s Competitive Positions
p
Challenge for Kazakhstan’s Economy
Foreign Trade of Kazakhstan
Processed Export
National Export Development &
Promotion System
KAZNEX INVEST as a National TPO
Activity of KAZNEX INVEST
Export Team
Analytical Tools
Export Development Tools
Export Promotion Tools
How do we assess our efficiency?
International Cooperation
KAZNEX INVEST & MATRADE P t Partnership
hi Designed by Lord Norman Foster
2 National Export & Investment Agency

3. Kazakhstan Insight, 2010
Population: 16.5 mln (62nd in the World, 4th in the CIS)
Muslims ≈ 70%, age of 15-64 ≈ 70%, urban ≈ 55%
Area: 2.7 mln km2 (9th in the World, 2nd in the CIS)
h d
87 cities (capital – Astana, largest – Almaty)
Key economic figures:
1) GDP total (PPP): $197 bln (53rd in the World, 3rd in the CIS)
per capita (PPP): $12 000 (73rd in the World, 3rd in the CIS)
annual growth: 7.3% (2010/09), 8.3% (ave. in 2001-2010)
g ( ), ( )
2) Unemployment rate: 5.8%
3) Inflation: 7.8%
4) Foreign trade turnover: $90 6 bln (61 2% in GDP current prices)
$90.6 (61.2% GDP,
export: $59.8 bln (40.4%), import: $30.8 bln (20.8%)
5) FDI inflow: $17.4 bln; $114.1 bln & 20% ave. annual growth in 2001-2010
Source: KazStat, National Bank of Kazakhstan (FDI), IMF (GDP)
3 National Export & Investment Agency

4. Kazakhstan Globally
Ease of Doing Business World Competitiveness Global Competitiveness
rank rank rank
Singapore 1 Hong Kong 1 Switzerland 1
Hong Kong 2 USA 2 Singapore 2
New Zealand 3 Singapore 3 Sweden 3
Malaysia 21 Malaysia 16 Malaysia 21
Kazakhstan 59 Kazakhstan 36 China 26
Turkey 65 Turkey 39 Turkey 59
Belarus 68 Italy 42 Russia 66
China
Chi 79 Brazil
B il 44 Kazakhstan
K kh t 72
Russia 123 Russia 49 Ukraine 82
Brazil 127 Ukraine 57 Argentina 85
Source: Doing Business 2011, WB
g , Source: IMD World Competitiveness Yearbook ‘11
p Source: Global Competitiveness Report 2011-12, WEF
p p ,
rank 1 Hong Kong Index of Economic Freedom 2011
According to DB’11 2 Singapore (among the Asia-Pacific region)
Kazakhstan leads 6 Japan Source: Heritage Foundation
TOP 10 reformer countries 9 a ays a
Malaysia KZ scores increased by 20%
11 Kazakhstan in 2001-2011
4 National Export & Investment Agency

5. Kazakhstan’s Competitive Positions
Political Stability Macroeconomic Environment Social Capital
score (0-100) rank rank
Finland 96 Brunei 1 Norway 1
Switzerland 93 Kuwait 2 Denmark 2
Norway 92 Hong Kong 8 New Zealand 3
Singapore 90 China 10 Saudi Arabia 18
Kazakhstan
K kh t 70 Kazakhstan 18 Kazakhstan 33
France 66 Malaysia 29 Spain 35
Italy 65 Russia 44 Russia 53
Belarus 57 Turkey
T k 69 Singapore
Si 54
Malaysia 47 France 83 Malaysia 90
Russia 22 Ukraine 112 Turkey 108
Source: Worldwide Governance Indicators ‘09, WB Source: Global Competitiveness Report ‘11-12, WEF
p p Source: Legatum Prosperity Index Report 2010
g p y p
Kazakhstan 82,1 %
Population with at least
OECD 73,8
secondary education
(% ages 25 and older) Europe and Central Asia 65,1
Source: Human Development Malaysia 50,5
Report 2010, UNDP Turkey 22,3
5 National Export & Investment Agency

6. There is no alternative except
economic diversification
H.E. Nursultan N
HE N lt Nazarbayev
b
6 National Export & Investment Agency

7. Challenge for Kazakhstan’s Economy
Strategic goals: 7% average annual growth of GDP in 2011-15
12.5% share of processing industry in GDP till 2015
115 18
113,5 %
%
109,8 109,3 109,7 110,7
16,4 109,6 108,9
110
107,3 16
105 14,5
14,2 103,3
14
13,3 101,2
100
12,0 11,8
11,6 11,5 12
95 11,3
10,9
90 10
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Share of processing industry in GDP GDP annual growth
Source: KazStat
7 National Export & Investment Agency

8. Foreign Trade of Kazakhstan
Strategic goal: in 2014 – 40% share of processed export in total volume
100 Foreign trade 2010, $ bln
bln $ %
30,7
30 7 Export Import
29,3 30
28,0 28,2 27,8 27,7 30,8
80
71,2 27 59,8
59,8 24
60
47,8
43,2
43 2 21 Primary export 43,3
43 3
40 38,2
Processed export 16,6
18
27,8
20 15 Focus group of KAZNEX INVEST ($2.3 bln)
food industry, chemistry, machinery, metallurgy,
2005 2006 2007 2008 2009 2010
tanning, pulp-and-paper industry, textiles,
Export, bln USD Share of processed export in total volume, % construction materials, mineral products, shoes
Source: KazCustoms, KAZNEX INVEST estimate
8 National Export & Investment Agency

9. Processed Export, 2010
TOP10 processed export products Focus group’s TOP10 processed export products
mln USD mln USD
Uranium 2 123 537 Wheat flour
Copper cathode 1 850 151 Copper wire
Ferrochrome with >
1 392 108 Yellow phosphorus
4% carbon
Processed export’s destination
Zinc 553 mln $
l $ % in total
l 80 Fish filet
Propane liquefied 553 China 3 293 19,9 58 Roller bearing
Russia* 2 486 15,0
Wheat flour 537 47 Tanned cattle leather
Switzerland 1 149 6,9
Aluminum unalloyed 410 40 Sodium triphosphate
UK 899 5,4
Aluminum oxide 403 Turkey 790 4,8 34 Cigarettes
Half-finished products
352
Iran 732 4,4 32 Chromium trioxide
form iron and steel
Germany
German 724 4,4
44
Butane liquefied 282 21 Sodium dichromate
USA 688 4,2
Uzbekistan 645 3,9
Belarus* 246 1,5
*In Customs Union with Kazakhstan since the middle of 2010 Source: KazCustoms, KAZNEX INVEST estimate
9 National Export & Investment Agency

10. We have to stake on th
W h t t k the
manufacture oriented to
f
final p
production export
p
10 National Export & Investment Agency Nazarbayev
H.E. Nursultan

11. National Export Development & Promotion System
MINISTRY OF INDUSTRY AND NEW TECHNOLOGIES
(Minister is also Vice PM)
KAZNEX INVEST Exporters’ Council
National TPO since 2008 (troubleshooting)
KazExportGarant (i
K E tG t (insurance of export and export credits)
f t d t dit )
& National development institutions (DBK, IFK, NIF)
Representation Network International
I t ti l Private
Pi t Chamber of Commerce
of KAZNEX INVEST Network sector and Industry (special law)
Diplomatic and trade representatives “Atameken” National Economic Chamber
abroad and other business associations
Export promotion oriented amendments (2011) to the Export 2020 - Governmental program with
Law on Trade Regulation (status, goals and tasks main measures on processed export
of national TPO economic i t
f ti l TPO, i instruments)
t ) development and promotion
d l t d ti
11 National Export & Investment Agency

12. KAZNEX INVEST as a National TPO
State mandate
- Ministry of Industry and New technologies is a sole shareholder
- Main governmental institute on processed export development
and promotion since 2008
- Totally financing from the state budget
y g g
- Services are free of charge
Strategic role
- Participant of the State Program for Accelerated Industrial-
Innovative Development of Kazakhstan till 2015
(including Export 2020)
Export-2020)
- The main goal is not to gain profit, but to implement strategic
tasks of the State Program
-OOperator of the NEDPS
t f th
12 National Export & Investment Agency

13. Activity of KAZNEX INVEST
EXPORT TEAM INVESTMENT TEAM
SEARCH FOR
SERVICE SUPPORT
FOREIGN INVESTORS
FOR EXPORTERS
(greenfield FDI)
FINANCIAL SUPPORT SERVICE SUPPORT
FOR EXPORTERS FOR INVESTORS
(Export Grants) (total accompanying)
13 National Export & Investment Agency

14. Export Team
Analytical Platform
- Identification of ready to export p
y p products
- Investigation of global trade
- Assessment of perspective global export niches for national products
Export Development
- Improvement of exporters’ competence on global trade
- Assessment of export readiness of Kazakh companies
- Encouragement of processed export via the Export Grants
- Troubleshooting through the Exporters’ Council under the MINT
Export Promotion
p
- Search for perspective foreign buyers of Kazakh products
- Collecting the “Buyers List”
- Matchmaking: trade missions “Buyers & Sellers” meetings exhibitions
missions, Buyers Sellers meetings,
14 National Export & Investment Agency

15. Analytical Tools
Macro level
Trade Performance Index
Optimal directions for export extension
analysis of K
l i f Kazakhstan’s
kh t ’ Perspective export niches by products
foreign trade and world trade Basis for export promotion tools
Country Overviews Exporting Guide
information about trade partner annual publications with whole
countries (34) country information (14)
Brief Analysis Micro level
Indicators for exporters
micro marketing research Improvement of individual export strategies
1 product – 3 countries (36) Methodological assistance for companies
15 National Export & Investment Agency

16. Export Development Tools
Main task is to extend a coverage of state support for Kazakh companies producing
processed goods and to stimulate further export activity of current exporters
Exporters Database Training programs Instructive materials
more than 1500 companies more than 170 specialists more than 20 publications:
regularly receiving our
g y g from around 80 companies
p marketing, standards, risks,
g
services completed the courses tariffs, packaging, etc.
1 2 3
Inquiry processing Troubleshooting Packaging issues
collect and process different assistance in problem solving assistance in creation of
inquiries from Kazakh and by means of Exporters’ packaging infrastructure via
foreign companies Council or independently Packagers Association
4 5 6
Ideology of export 8 Stimulation of export activity NEW
orientation Since 2010 new tool of financial support has been applied.
new export oriented mentality Reimbursement of a part of exporters’ expenditures spent for foreign
via mass media markets penetration ( g
p (registration, certification, branding, etc.)
, , g, )
7
16 National Export & Investment Agency

17. Export Promotion Tools
Main task is to assist Kazakh exporters in foreign markets penetration and to
demonstrate the reality of processed goods exporting
Trade missions abroad “Buyers & Sellers” Exhibitions abroad
12 TM in 10 countries: meetings more than 80 Kazakh
Korea, China, India, Romania, 6 B&S meetings in 4 cities of companies p
p participated in exh.
p
Iran, Russia, Central Asia Kazakhstan mainly in CIS countries
1 2 3
NEW NEW
Trade marks promotion Humanitarian E-commerce
presentations & promo- procurements (HP) assistance in exporting
actions of Kazakh production promotion of Kazakh products through the international
& sectoral brands abroad into the HP market e-trade platforms
4 5 6
Buyers List Logistic routes ! Export contracts
disseminating info on Kazakh estimation of optimal logistic concluded with assistance of
production & collecting routes for export from KAZNEX INVEST in 2009-10
p p
perspective buyers list
y Kazakhstan $340 mln
7 8
17 National Export & Investment Agency

18. How do we assess our efficiency?
Strategy of KAZNEX INVEST for 2011-15
- integrated with all state strategic documents: Strategy 2030,
Strategic Plan 2020, Industrialization Program 2010 14 Export 2020
2020 2010-14,
- identifies mission, vision, strategic activity directions, goals, tasks,
performance indicators, risks of the Agency, etc.
Measurable performance indicators (productivity & costs)
- 111 indicators of direct result
- 10 target indicators of final result
Export contracts
$1 from state budget
with KAZNEX INVEST
ensured export contracts for
assistance in 2009-10
$50
$
$340 mln
Export volume
$1 from state budget
costs of which were refunded
covered with state support export for
by KAZNEX INVEST in 2010
$300
$293 mln
l
18 National Export & Investment Agency

19. International Cooperation
as a factor of efficiency improvement
as a factor of efficiency improvement
The aim is to:
scrutinize and apply TPO’s best practice through technical assistance projects, study
TPO s
courses, internship programs and information exchange;
improve positive image of the Agency, build up well-known “Made in Kazakhstan” brand;
extend Agency’s opportunities on interaction with foreign buyers of Kazakh production;
Agency s
expand Agency’s activity in the region of Customs Union, Central Asia, as well as
China, Iran, Iraq and Afghanistan: trade facilitation, representation of regional interests,
common projects within the region.
p j g
Our partners are:
ITC ApexBrasil Kazakhstan-Malaysia
Chamber of Commerce
ICDT JEDCO
Federation of Korean
IGEME KOTRA
Industries
DEIK JETRO and others…
Austrade
A t d ROTOBO
19 National Export & Investment Agency

20. KAZNEX INVEST & MATRADE Partnership
Foreign trade with Malaysia
mln USD
Possible ways 2009 2010
of collaboration between:
& Export to Malaysia 0.4 0.5
Import from Malaysia 69.0 77.1
exchange information on potential trade partners (from
Source: KazCustoms
Kazakhstan and Malaysia) analytical reviews results of
Malaysia), reviews,
market research, state regulatory measures, news; Perspective export products from
Kazakhstan to Malaysia
share experience on trade promotion and development Rise
issues through presentations, seminars, training, study Maize
courses, internships, sharing methodological materials;
Wheat flour
support trade promotional activities in Kazakhstan and Aluminum unalloyed
Malaysia, such as trade missions, training tours for Rolled iron and steel
entrepreneurs,
entrepreneurs business forums exhibitions and fairs;
forums, Copper alloys
cooperate within the international trade organizations. Parts of taps & valves for pipelines
Overhead type cranes
Transportation with ICE
p
Source: ITC, Trade Map
20 National Export & Investment Agency

21. TERIMA KASIH
ATAS PERHATIAN ANDA!
ATAS PERHATIAN ANDA!
ATAS PERHATIAN ANDA!
ANDA
www.kaznexinvest.kz
25 Syganak Str., Astana, Kazakhstan | +7 (7172) 79 93 93
25 Syganak St A t
25 S k Str., Astana, Kazakhstan | +7 (7172) 79 93 93
K kh t | 7 (7172) 79 93
www.welcometokazakhstan.com
NATIONAL EXPORT & INVESTMENT AGENCY
«KAZNEX INVEST» JSC
Ministry of Industry and New Technologies
of the Republic of Kazakhstan