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The Greater Pearl River Delta

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					                         December 2010 / January 2011

                                   Volume 148

        The Greater Pearl River Delta
Interview with a Chief: Wiebo Vaartjes            4

   The Future of the Pearl River Delta
                    Lies within China           13
            Green Week in Hong Kong             23
   Colofon                                                                     Contents
   The magazine for members of the Dutch Chamber
   of Commerce in Hong Kong
                                                                               3        Chairman’s Note

                                                                               4        News and Views

                                                                               10       Press Release
   Suite 5702, 57th Floor, Cheung Kong Center,
   2 Queen’s Road, Central, Hong Kong
   Tel.: (852) 2815 2801                                                       13       Investment Focus
   E-mail: info@dutchchamber.hk                                                         The Future of the Pearl River Delta Lies
   Website: www.dutchchamber.hk                                                         within China
   Skype: Dutchchamberhk

                                                                               14       Tax Focus
   Editorial Committee
   Lodewijk Lamaison van den Berg (Chairman)
                                                                                        Can Engaging in Electronic Commerce Create
   Faith Fung                                                                           Tax Liabilities?

   Editor                                                                      16       Leadstory
   Brandi Goode
                                                                                        The PRD is Moving up the Value Chain, but
   Desktop publisher
                                                                                        not out
   Jean Michel Caille
                                                                               20       China Focus
   General Manager                                                                      Legislative Framework Ties Hong Kong More
   Jacqueline Baud                                                                      Closely to the PRD Region
   Cover photo
   iStock                                                                      22       Go Green

   Advertisers                                                                 24       Talking Point
   ABN AMRO
   Consulate General of the Kingdom of the Netherlands
                                                                               25       Lifestyle
   HEINEKEN
   HONG KONG DELIVERY COMPANY
   ING Asia Pacific                                                            28       Members Corner
   KLM
   MARTINAIR                                                                   29       Events
   PHILIPS
   PROMOCLIP ASIA LTD.
   RABOBANK
                                                                               34       Enquiries and Information
   SINOVA, a member of ANT
   RANDSTAD                                                                    36       Dutchcham Information


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                                                                              Magazine Hong Kong, China. Kindly submit the
• The contents of this magazine are for a large part based on information     relevant articles to the Dutch Chamber of Commerce before the
  received from third parties. The editors do not necessarily agree with      14th of the month preceding the next issue.
  the views expressed therein. All rights are reserved by the Dutch
  Chamber of Commerce. However upon request, permission may be
  granted for reprints in any format.


                                                                                                                                                   1
                                                                                                              Chairman’s Note

DutchCham Board of Directors                                             Pearl of the South

                                                                         T
                                                                                  he first time I went to Guangzhou,
           Mr Alexander de Nerée tot Babberich
                                                                                  it was a trip which combined busi-
           Chairman; Lawyer, De Nerée Advocates
                                                                                  ness and pleasure. In Hong Kong,
                                                                         I noticed, the ‘pleasure’ part was met with
           Mr Tom Voûte                                                  a certain degree of skepticism. Well, maybe
           Chairman of the Membership Committee;                         a little more than that: I would go to the
           Chief Executive Officer of Algorithmic Trading Group Ltd.     gates of hell and be lucky to return at all,
                                                                         summarizes the general comments on my idea of spending a few
           Mr Vincent Homrighausen                                       days in Guangzhou.
           Chairman of the China Committee;
           Commercial Director Asia of TenCate Grass Asia                Probably the majority of foreigners ever going to China will at
                                                                         one point or another come through the Guangzhou station on
           Mr René Theil                                                 their way to the Canton Fair. Why, of all the places in China,
           Chairman of the SME Committee;                                the Guangzhou station looks so dilapidated, remains a mystery
           Managing Director, Promoclip Asia Ltd.                        to me. It resembles everything bad that you could like to think
                                                                         of about China.
           Mr Lodewijk Lamaison van den Berg
           Public Relations & Publications Committee;                    I liked Guangzhou because it is a real city, unlike the ‘over
           Senior Vice President, EFG Bank
                                                                         night’ city Shenzhen – named the ‘over night’ city for its quick
                                                                         appearance out of nowhere, summarizing nicely all that is
           Mrs Marita Rouhof
           Chairman of the Business Activities Committee;                wrong with it in my eyes. The people I met were nice and quite
           Regional Head, Internal Communications                        courageous for living in such an enormous city that is so typi-
           AXA Asia Pacific Holdings Limited
                                                                         cally Chinese.

           Mr Richard Stoffelen
                                                                         However, when people speak about the Pearl River Delta, obvi-
           Treasurer; Partner KPMG
                                                                         ously they are not referring to this ‘pearl of the south’ nor
                                                                         about the Canton Fair for that matter. The PRD I’ve witnessed
DutchCham Advisory Board                                                 on trips with clients and this Chamber consists of the factories
                                                                         in the area. These are places where Hong Kong entrepreneurs
Mr Robert Schuddeboom
Chairman, Consul-General of the Kingdom of the Netherlands
                                                                         setup factories under Deng Xiaoping’s rule, when he first
                                                                         allowed the PRD to open trading borders to the world.
Mr K. K. Yeung Chairman, KK Yeung Management Consultants Ltd.
Mr Bart-Jan Kimman Director, Asia Yacht Services Limited
                                                                         It may be a cliché, but the PRD is truly where the phenomenon
Mr Wiebo Vaartjes Chairman, Philips Electronics Hong Kong Limited
                                                                         of what we now refer to as the “miraculous rising of China as
Mr Paul Zimmerman Founding member of Designing Hong Kong
                                                                         an economic power” took off. Nevertheless, recently we have
Mr Hans Diederen Country Executive Hong Kong,
CEO Private Banking Asia at ABN AMRO                                     come to think of the PRD as something of a spoiled, expensive
Mr Dennis Ziengs CEO of Fortis Asia                                      part of China that had its day in the sun and is now receding
Mr Fer Amkreutz Director of APG Asset Management                         in importance. A recent visit of Hu Jintao to Shenzhen, howev-
Mr Frank Koster CEO ING Insurance Asia Pacific                           er, gives me reason to believe that the next, more politically ori-
Mr Marius van Huijstee President at Sonepar SA                           ented reform, may also start from the PRD.

DutchCham Office                                                         The pearl of the South may be a little rough around the edges,
                                                                         but it has not lost its shine just yet. •
           Mrs Jacqueline Baud
           General Manager



           Ms Faith Fung                                Mrs Helen Yong
           Marketing & Communication                                           Alexander de Nerée tot Babberich
                                                        Office Manager
           Manager                                                                        DutchCham Chairman


                                                                                                                                            3
News and Views                                                                                                                                                                                                                                      News and Views



                                 Interview                                                                                                   Guangzhou Shines
                                 with a Chief                                                                                                during 2010 Asian
                                 I
                                     n this month’s section dedi-
                                     cated to Hong Kong lead-
                                     ers, we interviewed Philips
                                 Electronics Hong Kong’s
                                 Chairman Wiebo Vaartjes.
                                                                      Chairman responsible for the
                                                                      Philips country organization at
                                                                      the same time.

                                                                      What is your leadership
                                                                                                          overall becomes a more interest-
                                                                                                          ing place.

                                                                                                          How and why should a mem-
                                                                                                          ber increase his involvement?
                                                                                                                                             Games
                                                                                                                                             T
                                 Wiebo is also the Senior Vice        philosophy?                         Initiative is essential. Mem-             he largest ever Asian Games, held this
                                 President and General Man-           I believe that everyone likes to    bers should be asking what                year in Guangzhou, lowered the curtain
                                 ager of Global Business Group        contribute to a worthwhile          they can do and trying to take            in a festive Closing Ceremony on 27 No-
                                 Audio, Video and Multi-media.        cause. Therefore it is important    part in events as much as pos-     vember as host China swept 199 gold medals.
                                 Philips is a major player in elec-   for the leader to create such vi-   sible. This applies to not just    Sheikh Ahmad Al-Fahad Al-Sabah, President of
                                 tronics business across the          sion to ensure everyone knows       the single corporate represen-     the Olympic Council of Asia, hailed the
                                 world and has been a steadfast       that they have a critical role to   tative at the Chamber, but         Guangzhou games “a huge success” and “the
                                 Dutch Chamber member since           play and then go! Achieving and     also to the other people that      best ever” in history.
                                 the Chamber’s initiation.            celebrating success is a great      are on the membership ros-
                                 Wiebo became the leader of           moment for everyone, and it         ters. Often a company’s mem-       After Beijing hosted the Olympics and Shanghai
                                 Philips in Hong Kong in 2004         creates the drive to do it again!   bers consist of a group of peo-    the World Expo, Guangzhou seized the Asian
                                 and since 2006 he has been                                               ple with very different areas      Games as an opportunity to showcase its tradi-
                                 serving on the Advisory Board.       After years of membership in        of expertise, perhaps one          tion and modernity to the world. The 16th
    Mr Wiebo Vaartjes,           Here is what he had to say           the Dutch Chamber, what do          from accounting, and another       Asian Games is not just the biggest international
                                 about himself and about what         you think is the role of a          in marketing, another in sen-      sports event that Guangzhou has ever hosted in
    wiebo.vaartjes@philips.com
                                 it means to be a member of the       member, new or existing?            ior management. It is an op-       its history, but also a huge platform of itself
                                 Dutch Chamber.                       Involvement with the Chamber        portunity to tap into the          where Guangzhou has presented its unique cul-
                                                                      of Commerce is quite impor-         unique knowledge that these        ture and charm to Asia in its entirety.
                                 What is the most rewarding           tant. However, people are al-       individuals possess.
                                 part of your job?                    ways asking, “What can I GET                                           Different from the water-themed Opening Cere-
                                 What I like most is that I can       out of the membership?” This,       As a key industry leader in        mony which paid tribute to the city’s seafaring
                                 initiate and support teams to        to me, is the wrong question.       Asia, it’s clear you recognize     heritage, the finale was more like a singing and
                                 take up difficult challenges, go     Membership in a Chamber of          the value of Hong Kong and         dancing gala. Famous Asian artists such as
                                 after them with all their know-      Commerce should be viewed           the Pearl River Delta (PRD).       China’s Tang Can, India’s Gupta Tanya and Rave
                                 ledge and passion and then           from a more 360 degree ap-          What advice might you offer        Tripthi, Japan’s Ryoko Nakano, Kazakhstan’s
                                 achieve something spectacular.       proach; it must be a question of    for doing business in the          Mayra Kerei performed folk songs of their origin.   is happy for just being there. “We are very
                                 These achievements give pride                                            PRD?                                                                                   proud to be here, we don’t have to win any
                                 to the team and show that we                                             Time horizon counts here.          Three world records were set in Weightlifting       medals, just to participate is a big thing for a
                                 can create meaningful innova-
                                 tions, in a sensible and simple
                                                                        My plea to                        Also over the long term, we, at
                                                                                                          Philips, continue to view
                                                                                                                                             and Archery, together with 12 new Asian
                                                                                                                                             records in Swimming and Cycling. Chinese
                                                                                                                                                                                                 country like Bhutan,” said Tshewang Nidup,
                                                                                                                                                                                                 Bhutan’s Chef de Mission.
                                 way, for our customers and             members is to                     Hong Kong as a crucial part of     lifter Li Ping broke the snatch and total world
                                 consumers, for Philips, and ul-                                          expansion into the Greater         records in the Women’s 53kg Weightlifting,          The Guangzhou Games had the most sports
                                 timately for ourselves.                ask the ques-                     PRD region and we are carry-       while Korea’s Kim Woo-Jin garnered 1,387            ever contested in the Games’ 59-year history, as
                                                                                                          ing out activities to sustain      points to beat the 144 arrows qualification         it included 28 Olympic sports and 14 non-
                                 Do you face any unique chal-           tion: “What                       this. To us it is clear that if    round world mark in the Men’s Archery.              Olympic which featured 476 events. The Games
                                 lenges or opportunities being                                            companies cannot extend be-                                                            witnessed the debuts of Cricket, DanceSport,
                                 stationed in Hong Kong?                can I do for                      yond Hong Kong’s borders,          Korean super star Park Tae-hwan, MVP in last        Dragon Boat, Roller Sports, Weiqi and Xiangqi.
                                 The unique challenge is that we                                          they run the risk will become      Games, completed a golden triple in the pool by     By tapping into the opportunities generated by
                                 are operating in a truly global        the Chamber?”                     marginalized.                      winning the 100m, 200m and 400m Freestyle.          the Games, Guangzhou’s tourism industry has
                                 and rapidly changing, exciting                                                                              He also set a new Asian record over 200m.           scaled a new height. Statistics from Guangzhou
                                 business. Hong Kong is an ex-        giving as well as receiving. The    At Philips we have a strategy      Hong Kong, China’s cyclist Wong Wan Yiu             Tourism Bureau show that between Nov. 12th
                                 cellent location with its dynamic    more you give, the more you         for the Greater China region:      claimed the silver despite a rib injury sustained   and Nov. 27th, Guangzhou received a total of
                                 business environment and drive       get: it’s that simple. Most im-     China as our second home.          in an early crash. Equestrian Kim Kyun-Sub          8.66 million tourists, up by 42.10 % over the
                                 for success. Another major           portantly, it is the message that   For Hong Kong the challenge        from Korea realised his dream of winning gold       same period of last year. Of those tourists,
                                 challenge is thereby to keep in      you, as a member, get more out      for the future is to embrace       to honour his uncle Kim Hyung Chil, who was         3.8619 million stayed in hotels, up by 32.22%.
                                 close contact with stake holders     of your involvement with the        the PRD concept and ensure         killed at last Asian Games when his horse threw     As a result, seven billion Yuan of tourism rev-
                                 around the world. I really travel    Chamber when you are active.        Hong Kong embraces and ex-         and crushed him.                                    enues have been generated during the Asian
                                 a lot. For me personally it is       Furthermore, when more indi-        pands its role especially as the                                                       Games. •
                                 very interesting to be a global      viduals participate in events,      main connection into (South)       Bangladesh and Macao were thrilled about
                                 business leader and also the         discussions, etc. the Chamber       China. •                           their first ever Asian Games gold while Bhutan      Sources: www.gz2010.cn, www.newsgd.com

4                                                                                                                                                                                                                                                                5
News and Views                                                                                                                                                                                                                                  News and Views

                 2011 World Table Tennis Championships                                                                             Worldwide Football Fans
                 Rotterdam: Join the Table!
                                                                                                                                   would have been better off
                 F
                        rom 8 to 15 May 2011 Rotterdam and
                        The Netherlands will be the proud hosts
                        of the 2011 World Table Tennis Champi-
                 onships (WTCC) and open their doors to peo-
                                                                                                                                   if FIFA Selected Belgium and
                 ple all over the world. Over an 8 day span, 700
                 athletes will compete for medals and world ti-
                 tles in the following events:
                                                                                                                                   the Netherlands to Host World
                 • Mens singles;
                 • Mens doubles;
                 • Mixed doubles.
                                           • Ladies singles;
                                           • Ladies doubles;                                                                       Cup 2018
                 “Table Tennis is one of the most practiced


                                                                                                                                   F
                 sports in the world. Everyone has played this                                                                            ootball fans worldwide
                 spectacular game at least once in their life, and                                                                        would have been better off
                 hundreds of millions of people around the                                                                                if FIFA, football’s world
                 world saw the last World Championships in                                                                         governing body, had decided to
                                                                      Bettine Vriesekoop, Ambassador 2011 WTTC Rotterdam and Ton
                 Yokohama (2009, Japan). We are proud that            van Happen, Championships Director of the 2011 WTTC.
                                                                                                                                   host the World Cup 2018 in
                 such an event will be organized in the Nether-                                                                    Belgium and The Netherlands.
                 lands next year,” - Ton van Happen, Champi-                                                                       This is the conclusion from a
                 onships Director of the 2011 WTTC.                   our Championships. With its combination of an                study conducted by Investment
                                                                      Arena, Exhibition and Event halls, and a Con-                Consulting Associates, special-
                 It won’t surprise you that, in Asia in particular,   gress and Meeting Centre, Ahoy Rotterdam is a                ists in location and site selection
                 this sport brings people together. It is for this    unique (sports) venue in The Netherlands.”                   services, in cooperation with In-
                 reason that Chinese Television Broadcaster                                                                        novata llc, a leading source of
                 CCTV has already signed a contract with the          The Arena is mainly used for concerts, confer-               airline flight schedules data, and
                 International Table Tennis Federation to broad-      ences, presentations, congresses, tournaments                the University of St. Gallen, a
                 cast the 2011 WTTC in China. The expectation         and trade fairs. The Exhibition and Event halls              leading European business uni-
                 is that more than 300 million Chinese people         range in size from 3,000 to 10,000 m2. In 2009               versity.
                 will see one or more games during the WTTC.          and 2010 the Ahoy Arena is being expanded
                 These World Championships are even more              and modernized. Ahoy Rotterdam is ideally                    England, Russia, and joint bids
                 special to the athletes, because the Champi-         suitable for accommodating the largest, most                 by Belgium/the Netherlands
                 onships in Rotterdam are the final moment to         important table tennis event in the world, offer-            and Spain/Portugal, remained
                 qualify directly for the Olympic Games in Lon-       ing all the necessary facilities for both partici-           as      candidates to host the
                 don 2012.                                            pants and the organization under one roof.                   World Cup 2018 as of Decem-
                                                                                                                                   ber 2010. One of the key deci-        journalists, sponsors, and sup-    The Accessibility Index ac-
                 Within the context of the invitation of the Or-      “All ingredients are present to have an outstand-            sive criterions in the vote was       porting staff will travel to the   counts for the ease of travelling
                 ganization Committee to all top players to par-      ing tournament. I’m confident that these Champi-             accessibility and ease of travel      World Cup 2018. Adding up          by air to the bidding host coun-
                 ticipate, the fans to meet their champions in        onships will contribute to the sport of table tennis         for football fans arriving from       all the estimated numbers,         tries and arriving in the pro-
                 Rotterdam and the goal to acquaint as many           and the experience of those who will participate or          around the globe. The Accessi-        about four million World Cup       posed host cities. To make the
                 people as possible with this sport, the World        visit in May,” concludes Ton van Happen. •                   bility Index showed that travel-      visitors would stand to benefit    Accessibility Index as accurate
                 Championships will enact the theme: Join the                                                                      ling fans would have the Bel-         if football’s world governing      as possible, the study incorpo-
                 Table. In co-operation with the Dutch Table                                                                       gian-Dutch bid (32.3) down as         body FIFA had selected the Bel-    rates air transport frequencies
                 Tennis Association, many side events will be or-       Facts and figures                                          favourites to win the right to        gian-Dutch bid to host the         to international airports in the
                 ganized before, during and after the 2011                                                                         host the 2018 World Cup tour-         World Cup 2018 tournament.         bidding countries and travel
                 WTTC (tournaments, challenges, exhibitions,            • 8 days of matches (8 - 15 May 2011)                      nament, followed closely by                                              distances between international
                 clinics, meetings etc.). These present great op-       • 2 match halls                                            the England bid (30.5). In            Following recent coverage of       airports and the proposed host
                 portunities to reach people and companies                                                                         terms of transportation and           FIFA’s vote deciding the World     cities. The volume of incoming
                 through the sport, and all embrace the “Join the       • 4 TV (show) courts                                       ease of travel, the Spanish-Por-      Cup 2018 hosts, calls have         flights to the bidding countries
                 Table” theme. From a commercial perspective,           • A further 32 match tables                                tuguese (11.5) and Russian            been made to move away from        has been weighted by the likeli-
                 the World Table Tennis Championships are               • 700 players                                              bids (1.1) were lagging well be-      subjective opinions, tactical      hood of countries participating
                 quite interesting for companies wishing to ex-                                                                    hind the two frontrunners.            voting, and political alliances    in the 2018 World Cup tourna-
                 pand their markets and reach hundreds of mil-          • 140 countries                                            Ironically, in the end, Russia        influencing the decision-mak-      ment, employing two independ-
                 lions of people in both Asia and The Nether-           • 150 umpires                                              won the bid as the 2018 World         ing process. This study aims to    ent estimation procedures to
                 lands. From title sponsorships to hospitality          • 350 journalists                                          Cup host, leaving many fans to        inspire this debate and con-       determine the likely participat-
                 arrangements, and panel boarding to side                                                                          wonder about travel logistics         tribute to the development of      ing countries. •
                 events, everyone can join the table!                   • More than 300 million television viewers                 within the region.                    an increasingly transparent and
                                                                                                                                                                         fact based location decision for
                 Van Happen: “The Organization Committee is                                                                        Millions of football fans, as         future World Cup champi-
                 very proud to have an outstanding venue for          Source: www.2011wttc.com.                                    well as tens of thousands of          onships.                           Source: www.ic-associates.com

6                                                                                                                                                                                                                                                            7
News and Views




                             Pearl River Delta
                             Many River Deltas around the world have
                             flourished for centuries and the high speed
                             rail linkages might just bring part of such
                             advantages to other places as well
By Richard F.M. Stoffelen,   Isn’t it fascinating to see how River Deltas       in the PRD are increasing very quickly, due to
richard.stoffelen@kpmg.com   around the world have been places for vi-          demographic circumstances, i.e. less younger
                             brant communities, due to flourishing              people today than 5 years ago and even less
                             economies for many centuries already? The          going forward due to the one-child policy. In-
                             Pearl River Delta (‘PRD’) is no exception to       land development has even accelerated in the
                             that. On average River Deltas have been in         past two years when, due to the financial crisis,
                             such an advantageous position                                     people stayed in their home-
                             due to two main reasons: one,                                     towns to work on infrastruc-
                             they have always been a perfect      “The expansion of            ture projects, rather than going
                             outlet for their goods from a                                     back to the factories in the
                             logistical perspective and, two,     China’s high speed           coastal regions (like the PRD).
                             they have on average had more
                             fertile soil (for agriculture that   rail network creates       Going forward, this will all
                             is).                                                            contribute to widespread de-
                                                                                             velopment for the people in
                             The PRD these days appears           new opportunities          China. Both the people in the
                             not to be such a flourishing en-                                more rural regions and those
                             vironment for the latter reason,     for those more in-         in the central regions will now
                             but surely the first is very rele-                              be able to get such (relatively
                             vant. Furthermore, other cities      land provinces to          lower value added) work, as
                             close to such natural beauties                                  after the crisis the labour rates
                             (i.e. rivers) often benefit from     become part of the         in the coastal regions seem to
                             similar logistical advantages as                                have gone up. This affects the
                             well. Just think about the old
                             “Hanseatic towns” (Hanze-ste-
                                                                  fastest growing            coastal regions as well, where
                                                                                             they can now upscale, like the
                             den), for example, in the                                       central and provincial govern-
                             Netherlands and Germany.
                                                                  economic engine in         ments have aspired to for a
                                                                                             long time, to higher value
                             In the old economies, like Eu-       the world.”                added manufacturing and re-
                             rope, such logistical advan-                                    search work (using the experi-
                             tages were extrapolated by man by building         ence gained before when doing the lower
                             canals. In the new economies, and China in         value added work).
                             particular, such advantages appear to be cre-
                             ated by the rapidly expanding High Speed           All in all, this will be very helpful in realizing
                             Rail networks. Just yesterday I read that even     the Government’s new five year plan to dou-
                             Wuhan, formerly a more provincial town             ble the average income in China. It will also
                             (even though it has close to 10 million citi-      help the rest of the world to source many
                             zens) in central China, appears to be more         products from China to keep their costs (rel-
                             and more an international city due to a high-      atively) low and thus maybe even keep infla-
                             speed railway. It was even announced recently      tion at a ‘reasonable’ pace as the economies
                             that the third tallest building on earth would     around the world emerge from the crisis.
                             be built in Wuhan shortly, to prove its ‘status’
                             to the rest of the world.                          Like a wise man has said before, ‘If you want
                                                                                to rule the future, you should learn from your
                             As China is rapidly expanding its high-speed       past’, or a more popular version of the ‘A-
                             railway network, it is thus also rapidly open-     Team’ saying would be: ‘I love it when a plan
                             ing up the rest of the country. It creates new     comes together…’ We at KPMG often help
                             opportunities for those more inland provinces      our clients to prepare and execute such plans
                             to become part of the fastest growing eco-         subsequently, so if you see it fit, we would ap-
                             nomic engine of this world. The labour rates       preciate doing that for you as well. •


8
Press Release                                                                                                                                                                                                                               Press Release


                KLM to Launch Scheduled Service                                                                             Philips’ Innovative New Hong Kong
                to Xiamen                                                                                                   Workplace Epitomises Employee
                BEIJING, 20 December 2010 – KLM Royal Dutch                                                                 Collaboration and Energy Saving
                Airlines will begin operating scheduled service to                                                                                                                                  Wiebo Vaartjes, Chairman of
                Xiamen International Airport in China on 27 March                                                                                                                                   Philips Electronics Hong Kong
                                                                                                                                                                                                    explained: “This new Hong
                2011. KLM is the first airline to offer direct flights                                                                                                                              Kong office is one of the
                                                                                                                                                                                                    largest deployments of our
                between Xiamen and Europe.                                                                                                                                                          Workplace Innovation strategy
                                                                                                                                                                                                    in Asia Pacific. It mirrors our
                                                                                                                                                                                                    focus on delivering “sense and


                T
                       his 7th destination in       flight, KL884, will depart from    For more information, please con-                                                                            simplicity” in healthcare, light-


                                                                                                                            H
                       China strengthens the        Xiamen International Airport       tact Mrs. Zhou yinghui:                      ong Kong – Philips un-      and to help our company and         ing and lifestyle solutions by
                       KLM position in this         on Mondays, Wednesdays and         Kuntai International Mansion,                veiled an innovative        our region succeed on the           creating a people-focused
                fast growing market. From Eu-       Fridays, arriving in Amsterdam     Room 1606-1611, No 12B,                      and energy-saving new       global stage,” said Patrick         working environment that im-
                rope KLM has the largest desti-     on the same day. Flights will be   Chao Wai Dajie, Chao yang            office at Hong Kong Science         Kung, Chairman and Execu-           proves employees’ wellbeing
                nation portfolio on Greater         operated with Boeing 777-          District, 100020 Beijing :           Park on November 17, 2010,          tive Vice President, Philips        through simple, sustainable in-
                China (China, Hongkong and          200ER equipment, which can         010) 59220809, : 010) 58797626,      giving employees a productive       Greater China.                      novations. Offering advanced
                Taiwan). With this new route        seat up to 318 passengers: 35      Email: zhyinghui@airfrance.fr        and inspiring working environ-                                          facilities on an integrated, col-
                KLM offers 43 weekly frequen-       in World Business Class and                                             ment based on the concept of        Simple solution with Work-          laborative park-like campus,
                cies to Greater China,” says        283 in Economy Class.              For flight details, please contact   Workplace Innovation.               place Innovation design,            Hong Kong Science Park is an
                KLM President & CEO Peter                                              Air France KLM Group’s                                                   advanced lighting and IT            ideal location for a company
                Hartman.                            KLM’s SkyTeam partner China        customer center in Guangzhou:        Designed in accordance with                                             with our lofty aims and ambi-
                                                    Southern Airlines offers con-      4008 808 808 (Air France),           the Philips Workplace Innova-       Philips Workplace Innovation        tions.”
                This was announced today at a       necting flights to and from Xi-    4008 808 222 (KLM) or visit          tion Programme, the new             is a global initiative that gives
                press conference in Xiamen,         amen from a host of destina-       www.airfrance.com.cn,                Philips office supports new         people a choice of efficient        Hong Kong Science Park has
                where Vice-Mayor Pan Shijian        tions in China. •                  www.klm.com.cn                       ways of working, with an em-        workspaces with cutting-edge        created a vibrant community of
                of Xiamen and Peter Hartman                                                                                 phasis on collaboration, mobil-     infrastructure and promotes         science and technology compa-
                signed a cooperation agree-                                                                                 ity and resource sharing. The       mobility to allow them to work      nies on the waterfront in
                ment.                                                                                                       new office is expected to create    anytime, anywhere. The pro-         Shatin, with strong links to
                                                                                                                            more cross-business and inter-      gramme extends Philips’ “sense      local universities. It provides
                “China Southern Airlines is                                                                                 team synergies and to drive in-     and simplicity” brand promise       Philips and other technology
                very pleased with this new                                                                                  novation and growth as a            by creating offices that are easy   leaders with the necessary in-
                flight of KLM and another                                                                                   showcase of the organisation’s      to experience, technically ad-      frastructure for innovative de-
                milestone in the airlines’ coop-                                                                            One Philips culture. With this      vanced and designed around          velopment, embracing environ-
                eration”, says Zhao Xiaosong,                                                                               relocation, the majority of         those who will use them. An         mental and renewable energy
                Senior Vice President Interna-                                                                              Philips teams in Hong Kong          important aspect of the Work-       technologies in every aspect of
                tional Affairs and Alliances of                                                                             based in one location for the       place Innovation programme is       its design.
                China Southern Airlines.                                                                                    first time. Hong Kong Science       its contribution to staff health
                                                                                                                            Park is now home to more than       and wellbeing by empowering         Strategic location at the
                Xiamen is the second-largest                                                                                1,100 employees and 19 re-          people to develop better work-      hub of the high-growth
                city in the province of Fujian                                                                              gional and global organiza-         life balance.                       Pearl River Delta
                and has a population of 3 mil-                                                                              tions.
                lion inhabitants. Owing partly                                                                                                                  The value of the new office de-     “As Pearl River Delta evolves
                to its favourable geographical                                                                              “On the cusp of dramatic            signed for Hong Kong also de-       as Greater China’s logistics
                location, Xiamen is undergoing                                                                              growth in China, Philips is         pends to a great extent on the      and financial hub and a center
                rapid economic growth, at-                                                                                  now reinforcing our commit-         use of sophisticated lighting       of entrepreneurial innovation,
                tracting large international cor-                                                                           ment to Hong Kong. To accel-        and information technology          Philips in Hong Kong is well
                porations. The city is also a                                                                               erate our ability to serve our      solutions that encourage em-        placed to benefit from the ex-
                tourist destination with inter-                                                                             important Greater China mar-        ployee mobility and reduce the      cellent business environment
                esting cultural and historical                                                                              kets, we need to continue to        organisation’s carbon footprint     and strong local talent pool we
                highlights.                                                                                                 create innovative solutions         and operating costs.                have here,” Kung continued.
                                                                                                                            worthy of our global leader-                                            “The opening of our new
                The new service will be oper-                                                                               ship in healthcare, lifestyle and   Advanced Philips lighting solu-     Hong Kong office lays the
                ated three times a week. Flight                                                                             lighting. This new office builds    tions achieve significant energy    groundwork for us to play a
                KL883 will depart from Ams-                                                                                 upon on our six decades of his-     savings for the new office, re-     more critical role in the devel-
                terdam Airport Schiphol on                                                                                  tory in Hong Kong and gives         ducing electricity consumption      opment of Pearl River Delta         For more information about
                Tuesdays, Thursdays and Sun-                                                                                our talented people here the        by more than 60%, and create        and fuel our growth across          Philips in Hong Kong, please
                days, returning from Xiamen                                                                                 framework and tools they need       an ambience of productive co-       Greater China.” •
                the following day. The return                                                                               to achieve personal success         operation.                                                              visit: www.philips.com.hk

10                                                                                                                                                                                                                                                                   11
Press Release                                                                                                                                                                                                                               Investment Focus


                                                          Philips’ Connect                                                 The Future of the Pearl River
                                                          Meeting Solution –                                               Delta Lies within China
                                                                                                                           T
                                                                                                                                   he last 15 years have         turn kept salaries low. A tighten-   out to other lower cost coun-
                                                          A Paradigm Shift that                                                    been of historic impor-
                                                                                                                                   tance for China and to a
                                                                                                                                                                 ing labor market means that fast
                                                                                                                                                                 economic growth will translate
                                                                                                                                                                                                      tries. Companies will have to
                                                                                                                                                                                                      reinvent themselves to produce
                                                                                                                           certain extent to the world.          into much larger wage increases.     more for the domestic market,

                                                          Embraces Company                                                 China’s change to a guided
                                                                                                                           capitalist economy has had a
                                                                                                                           significant impact on the global
                                                                                                                                                                 This will boost household in-
                                                                                                                                                                 comes and will help the domestic
                                                                                                                                                                 economy grow.
                                                                                                                                                                                                      as it will be more profitable to
                                                                                                                                                                                                      produce much higher quality
                                                                                                                                                                                                      goods for the domestic market.
                                                                                                                           economy. But many of the fac-                                              As Guangdong province is the
                                                          Communications                                                   tors that spurred China’s
                                                                                                                           growth in the past 15 years are
                                                                                                                                                                 2.   Excess
                                                                                                                                                                 capacity:
                                                                                                                                                                                  manufacturing       heart of China’s manufacturing
                                                                                                                                                                                                      industry, several things will             By Harmen Overdijk,
                                                                                                                           about to change.                                                           change in the Pearl River Delta                 CFA, EFG Bank AG


                P
                       art of the Connect Suite      ity and stability during meetings.   ipants can simply walk into                                            The second factor concerning         in the next 5 to 7 years. Com-         harmen.overdijk@efgbank.com
                       of services rolled out by     The Connect Meeting system           the Connect Meeting room         China’s growth story over the         China’s structural inflation out-    panies will need to adjust to the
                       Philips, Connect Meeting      is another proof of simplicity       like they are attending a nor-   past decade can be character-         look is manufacturing capacity.      new reality and refocus on the
                is one of the smart IT solutions     in Philips operations. The sys-      mal meeting at their own of-     ized as a falling price boom.         Excess capacity, which led to        domestic market rather than on
                that Philips deploys globally to     tem is very easy to operate.         fice premise.                    Economic output has been ex-          intense price competition, has       the export sector. Guangdong
                facilitate      communications       The booking system is seated                                          panding rapidly, but core con-        been another key factor behind       province will remain an impor-
                among different countries of-        at a main server. Employees          As this is a fully outsourced    sumer prices have stayed low          China’s deflationary boom. The       tant economic region, but its
                fices. The system, which uti-        across the world have access         system, Philips pays a fixed     and stable. Especially the man-       excesses in manufacturing ca-        economy will change. Compa-
                lizes the Cisco TelePresence So-     to the system. The booking is        fee. And apart from the obvi-    ufacturing sector experienced         pacity have been reduced in re-      nies will focus on higher quality
                lution, has the potential to re-     made not only for the initiat-       ous financial savings for        constant downward price pres-         cent years, which is good for        production and services.
                place 40 to 50 percent of the        ing country, but for all partic-     Philips, changing our travel     sure despite strong volume ex-        corporate pricing power and
                travel requirements of Philips       ipating countries as well. And       culture and embracing the        pansion. In comparison, India,        therefore price competition will     In summary, Hong Kong export-
                employees, resulting in sub-         at the scheduled time, the sys-      communications possibilities     which has had a similar eco-          decline. This is positive for cor-   ing companies should be pre-
                stantial savings in costs, time      tem will automatically connect       created by modern technology     nomic growth rate, has experi-        porate profitability and equity      pared for the future. They will
                and environmental impact.            itself to those countries being      means a reduction in our envi-   enced much higher inflation.          price. On top of that, higher in-    have to adapt to the new envi-
                                                     called for the meeting. Partic-      ronmental footprint. •                                                 flation and better corporate         ronment that China is no longer
                The deployment of the Con-                                                                                 Because of the very low produc-       pricing power will encourage         going to be a low cost producer.
                nect Meeting system changes                                                                                tion cost and the high productiv-     the Chinese authorities to let       They will need to shift their pro-
                the way of working in Philips                                                                              ity growth, China has become          the Renminbi appreciate.             duction to other lower cost
                teams. People begin to look at                                                                             the manufacturer for the world.                                            countries or change focus to
                communications differently.                                                                                The cheap exports from China          Another important develop-           higher quality products. There
                People sitting in different parts                                                                          have had a big deflationary ef-       ment is that Chinese producers       will be great opportunities to sell
                of the world will not have to                                                                              fect on the world in the last 15      are rapidly climbing up the pro-     products and services in China’s
                book a flight or car and be on                                                                             years. This in turn has helped        duction value chain. In this         domestic market.
                the road for hours for meet-                                                                               the U.S. and to a certain extent      process, Chinese producers are
                ings. While Connect Meeting                                                                                Europe to enjoy a decade long         increasingly competing with the      How can investors profit from
                will not completely replace                                                                                economic boom with very low           more advanced economies, and         this?
                travel, it offers a great opportu-                                                                         inflation. Why did China have         thereby putting pressure on
                nity to speed-up and improve                                                                               this effect on the world?             prices of higher-end products.       For equity investors the focus
                communication in a global                                                                                                                                                             will be on the consumer theme.
                company like Philips. Now                                                                                  1. Labor:                             The future of the Pearl River        Consumer related sectors and
                Philips employees can commu-                                                                                                                     Delta lies in China rather than      companies such as consumer
                nicate easily and able to fully                                                                            The main reason is the labor          in exports to Europe and the         goods, services, pharmaceuti-
                realize the efficiency and                                                                                 market. China’s export success is     US.                                  cals, medical services, insur-
                achieve all the benefits offered                                                                           largely due to strong productiv-                                           ances companies and banks
                by Connect Meeting system                                                                                  ity gains and a sharp fall in unit    All these developments will have     will likely do well.
                and the Connect Suite.                                                                                     labor costs. After the Asian crisis   an immense impact on Guang-
                                                                                                                           the Chinese government aggres-        dong province, as many manu-         The other opportunity lies in
                Connect Meeting is one of the                                                                              sively reformed the so-called         facturers who are based there are    investing in undervalued Euro-
                most innovative breakthroughs                                                                              state-owned enterprises (SOEs).       producing for export. The short-     pean and American multina-
                in video conferencing. It comes                                                                            Many SOEs were privatized or          age of labor and rising wages        tionals focusing on selling high
                with superb-quality audio and                                                                              went bankrupt, leading to signif-     will make manufacturing for ex-      quality products in China.
                video so that people truly feel                                                                            icant job losses. The sudden in-      port increasingly costly. The po-    These companies will probably
                that no matter which part of the                                                                           crease of unemployed urban            tential appreciation of the RMB      also become important take-
                world that they are sitting in,                                                                            workers, together with a con-         makes it even more difficult for     over targets for Chinese com-
                they are meeting under the same                                                                            stant flow of rural migrant           exporters to be competitive.         panies looking to increase their
                roof. The Connect Meeting                                                                                  workers coming into the cities,                                            technological know-how. •
                room is coming with dedicated                                                                              significantly increased China’s       All low cost, labor intensive in-
                networks which bring interactiv-                                                                           excess labor supply, which in         dustries will slowly be pushed

12                                                                                                                                                                                                                                                                   13
Tax Focus                                                                                                                                                                                                                                             Tax Focus

                                                                                                                                            ices does not typically result       Tax treaties, in brief,          the place where the server is
                                                                                                                                            in the server and its location                                        located may constitute a PE.
                                                                                                                                            being at the disposal of the
                                                                                                                                                                                 regulate the taxing
                                   Can Engaging in                                                                                          enterprise carrying on a busi-
                                                                                                                                            ness through the web site.
                                                                                                                                            In such a case, the enterprise
                                                                                                                                            does not have any physical
                                                                                                                                                                                 rights between two
                                                                                                                                                                                                                  It is important to note that the
                                                                                                                                                                                                                  rules discussed above apply
                                                                                                                                                                                                                  only in the treaty context, i.e.,
                                                                                                                                                                                                                  where the enterprise operating
                                                                                                                                            presence at the location where       countries if there is            the website and the ISP are lo-


                                   Electronic Commerce
                                                                                                                                            the server is located since the                                       cated in countries that have
                                                                                                                                            web site is not tangible and                                          concluded an income tax treaty
                                                                                                                                            the server is not at the dis-        a cross border                   based on the OECD Model
                                                                                                                                            posal of the enterprise. The                                          Treaty, such as the tax treaties
                                                                                                                                            OECD Commentary also                 transaction between              concluded by the Netherlands
                                                                                                                                            notes that it would be very                                           and most of those concluded


                                   Create Tax Liabilities?
                                                                                                                                            unusual for the ISP to be                                             by Singapore. Entirely differ-
                                                                                                                                            deemed to constitute a PE of         those two countries.             ent rules can apply if there is
By Pieter de Ridder and                                                                                                                     the enterprise carrying on a                                          no treaty to rely upon (for in-
Eliënne de Vries,                                                                                                                           business through a web site        independent agent acting in        stance between Singapore and
                                                                                                                                            hosted on the ISP’s servers.       the ordinary course of its         Hong Kong or between coun-
Loyens & Loeff, Singapore:
Pieter.de.ridder@loyensloeff.com
                                                                                                                                            Generally, the ISP will lack       business. The result may be        tries such as e.g. the Nether-
                                                                                                                                            authority to conclude con-         different if the enterprise car-   lands and Singapore on the one


                                   T
                                          he Organization for Eco-   a concept used to determine       tary exerts great authority on       tracts in the name of the en-      rying on business through a        hand, and typical tax haven ju-
                                          nomic Co-Operation and     the right of one country to tax   most countries in the world in       terprise conducting the web        web site has the server at its     risdictions such as e.g. the Cay-
                                          Development         (the   the profits of a resident of an   the interpretation of tax            site business (and will not reg-   disposal because, for example,     man Islands, British Virgin Is-
                                   “OECD”), of which the Nether-     enterprise of the other treaty    treaties concluded by those          ularly conclude such con-          it owns (or leases) and oper-      lands, Bermuda or the Ba-
                                   lands is a member, has recently   country.                          countries with other countries.      tracts) and will constitute an     ates the server. In such a case,   hamas on the other). •
                                   produced its most recent ver-                                       Tax treaties, in brief, regulate
                                   sion of its Model Tax Conven-     To assist persons in under-       the taxing rights between two
                                   tion on Income and Capital (the   standing and applying the         countries if there is a cross
                                   “OECD Model Treaty”).             OECD Model Treaty, the            border transaction between
                                                                     OECD also publishes com-          those two countries. Singapore
                                   Article 5 of the OECD Model       mentary (the “OECD Com-           is known to generally attach
                                   Treaty defines a permanent es-    mentary”) on the model            considerable weight to the
                                   tablishment (a “PE”). A PE is     treaty. The OECD Commen-          OECD Commentary, as does
                                                                                                       the Netherlands. One issue
                                                                                                       specifically addressed in the
                                                                                                       OECD Commentary is the ex-
                                                                                                       tent to which engaging in elec-
                                                                                                       tronic commerce may result in
                                                                                                       a PE.

                                                                                                       In general, the OECD Com-
                                                                                                       mentary states that a web site
                                                                                                       does not itself involve any tan-
                                                                                                       gible property, and thus cannot
                                                                                                       constitute a PE. In contrast,
                                                                                                       the server on which a web site
                                                                                                       is stored and through which it
                                                                                                       is accessible is a piece of equip-
                                                                                                       ment having a physical loca-
                                                                                                       tion, which may be fixed and
                                                                                                       thus constitute a PE.

                                                                                                       This distinction between a web
                                                                                                       site and the server on which
                                                                                                       the web site is stored and used
                                                                                                       is important since the enter-
                                                                                                       prise that operates the server
                                                                                                       may be different from the en-
                                                                                                       terprise that carries on busi-
                                                                                                       ness through the web site. In
                                                                                                       fact, an enterprise carrying on
                                                                                                       a business through a web site
                                                                                                       will often do so on a server
                                                                                                       owned by an unrelated Inter-
                                                                                                       net service provider (“ISP”). A
                                                                                                       contract for such hosting serv-

14                                                                                                                                                                                                                                                           15
Leadstory                                                                                                                                                                                                                                                                    Leadstory

                                                                                                                                                         ment environment for busi-
By Brandi Goode
                                       The PRD is Moving up the                                                                                          nesses operating in Hong Kong
                                                                                                                                                         desiring entry into the main-
                                                                                                                                                         land Chinese market. Typically

                                       Value Chain, but not out                                                                                          this entails lower capital re-
                                                                                                                                                         quirements for establishing a
                                                                                                                                                         business or entry into the main-
                                                                                                                                                         land Chinese market without a
                                                                                                                                                         joint venture arrangement, but


                                       W
                                                  ith a population in        Old China hands are no                rates, excellent infrastructure,      the specifics vary by sector. The
                                                  excess of 50 million,      strangers to the Pearl River          intellectual property protec-         arrangement is regularly re-
                                                  the Pearl River Delta      Delta phenomenon. In 1979             tion, double taxation provi-          viewed and there are now pro-
                                       is on its way to becoming one         China began a reform process          sions, and a cosmopolitan liv-        visions for 42 service sectors,
                                       of the world’s leading ‘megaci-       in this region, opening up            ing environment. Traditionally,       such as accounting, insurance,
                                       ties.’ Traditional views of the       Guangdong province and the            businesses set up manufactur-         telecommunications, and many
                                       Pearl River Delta (PRD) may           doors of China to the world.          ing facilities within the main-       more. This is certainly worth
                                       present the region as a polluted      This included the establish-          land portion of the PRD and           noting since Hong Kong’s econ-
                                       and low end manufacturing             ment of two Special Economic          run their top tier managerial         omy is 92 percent service-
                                       hub - factory of the world. A         Zones in the region, Shenzhen         and value-added activities from       based.
                                       new day is dawning, however,          and Zhuhai, where preferential        Hong Kong. A majority of the
                                       where the PRD, Hong Kong’s            tax rates and other regulations       investment in the PRD comes           At InvestHK, the majority of
Simon Galpin,                          longstanding primary link to          were established to attract for-      from Hong Kong, in fact.              companies seeking advice and        the implementation of tighter        ment policy and the market
Director General of Invest Hong Kong   mainland China, is set to take        eign investment. In addition to       Growth in Hong Kong’s GDP             services are SMEs. Particularly     labour and environmental reg-        work hand in hand.
sgalpin@investhk.gov.hk                on a new role. With the rising        these cities, the PRD includes        since the inception of the PRD        in Europe, a growing propor-        ulations. Years of production
                                       of the economic dragon that is        the cities of Dongguan, Fos-          reforms in 1979 has paralleled        tion of new investors looking       have changed regional dynam-         So how does a company with
                                       the Chinese economy, busi-            han, Zhongshan, Jiangmen,             that of the PRD region; in per        at the Hong Kong/PRD region         ics, and costs are rising to the     traditionally labour intensive
                                       nesses that may have in the           Huizhou, and Zhaoqing. The            capita terms Hong Kong’s GDP          come from small business envi-      degree that businesses cannot        operations move up the value
                                       past overlooked the area as a         Greater Pearl River Delta also        in 2008 was five times its 1980       ronments. Simon Galpin em-          stay as profitable as they once      chain? KK cites one example in
                                       sales market would be wise to         includes Macao and Hong               level (3). Current national devel-    phasizes that it is not practical   were, and workers face sub-          the toy industry. Go to Shen-
                                       re-examine the PRD’s possibili-       Kong, and is about the size of        opment plans also reflect             for small companies to tackle       stantial cost of living increases.   zhen and you will no longer see
                                       ties.                                 Austria.                              China’s commitment to pro-            the whole of mainland China         Land and labour are principal        the usual teddy bears and
                                                                                                                   moting       the    simultaneous      at once. It makes sense to start    cost factors for businesses, as      stuffed toys. Instead these have
                                       To gain a better perspective we       These early economic reforms          growth of the PRD and Hong            out in Hong Kong, which has         well as a currency that seems        been replaced by electronic and
                                       spoke to Simon Galpin, Direc-         in the PRD led to the subse-          Kong.                                 an international business envi-     to rise in value almost daily.       handheld games. The printing
                                       tor-General of Investment Pro-        quent internationalization of                                               ronment, and then expand into       KK also mentions the ongoing         industry is another prime ex-
                                       motion at Invest Hong Kong            the Chinese economy. The re-          The Framework                         the Greater PRD, which is a         difficulty of maintaining a          ample. High end printing is
                                       (InvestHK), and KK Yeung,             gion’s GDP then grew from just        In 2008 the National Develop-         concentrated market and one         steady workforce, as seasonal        now done in Shenzhen, while
                                       Chairman of KK Yeung Man-             over US$8 billion in 1980 to          ment and Reform Commission            of the richest regions in China.    labour supply varies consider-       smaller, less technical jobs are
KK Yeung, Chairman of KK Yeung         agement Consultants. In-              more than US$89 billion in            (NRDC) issued “The Outline                                                ably when workers decide to          performed in Dongguan and
Management Consultants                 vestHK is the department for          2000 and US$428 billion in            Plan for the Reform and Devel-        Changing Dynamics in the            stay in their hometowns in-          other outlying areas.
kkyeung@kkyeung.com                    foreign direct investment             2008 (1). KK Yeung highlights         opment of the Pearl River Delta       Region                              stead of returning to their jobs
                                       under the Hong Kong SAR               that the PRD has continually          (2008-2020).” More informa-                                               in the industrial center follow-     Every Challenge Presents
                                       government. In 2010 the de-           grown faster than any other re-       tion on this plan can be found in     Numerous articles in trade          ing holiday periods. He high-        an Opportunity
                                       partment surpassed its goal of        gion in China, particularly the       the China Focus article by Jen-       magazines and newspapers            lights that what we’re seeing is
                                       assisting 270 companies to set        Yangtze and Yellow River              nifer Chan, but a key compo-          have appeared in recent             actually a normal cycle for          For companies facing cost pres-
                                       up or expand their business           Deltas. While the PRD only ac-        nent of this Framework is the es-     months pointing to the shift in     businesses, however, as market       sures in the PRD, present cir-
                                       presence in the city. InvestHK        counts for roughly 3.5 percent        tablishment of city pairs to lead     the value chain occurring in the    forces are driving the change        cumstances dictate they seek a
                                       also recently published the 6th       of the total population of            the development of the PRD re-        PRD. Simon Galpin explains,         and government policy is rein-       new business model that moves
                                       edition of the popular book           China, it provides 10 percent         gion. A perfect example of this       “The Greater PRD will go            forcing it.                          away from the low cost export
                                       entitled The Greater Pearl            of the country’s total GDP.           structure is a recent DuPont          from strength to strength, but I                                         orientation of the past. The so-
                                       River Delta. KK Yeung has             The region is also one of the         project implemented with the          think its traditional role as a     You Can’t Stop the Wheel             lution for many companies lies
                                       been doing business in Hong           most affluent in the country (2).     help of InvestHK. DuPont set up       low-end manufacturing centre                                             just beyond the factory doors.     What we’re seeing
                                       Kong and mainland China for                                                 its R&D centre in Hong Kong           will shift.” In accordance with     As KK insists, the wheel of the      As one of the wealthiest areas
                                       over three decades. Providing         The Hong Kong-PRD Con-                Science Park with manufactur-         China’s 11th Five Year Pro-         market keeps on turning. The         in China, the spending power       is actually a normal
                                       consulting services to compa-         nection                               ing facilities just over the border   gramme, Guangdong Province          shift occurring in the PRD re-       of the PRD’s population is a
                                       nies investing in China forms a                                             in Shenzhen.                          has implemented policies to         gion is not an event, but rather     force to be reckoned with. Just    cycle for businesses;
                                       key pillar of his business, with      Hong Kong continues to be the         CEPA                                  move the traditional labour in-     an ongoing process. Take the         this year China has overtaken
                                       a client roster including major
                                       multinationals such as Phillips.
                                                                             preferred site for managing op-
                                                                             erations in the delta due to its
                                                                                                                   CEPA, or the Mainland China
                                                                                                                   and Hong Kong Closer Eco-
                                                                                                                                                         tensive, low value-added indus-
                                                                                                                                                         tries out of the developed areas
                                                                                                                                                                                             environmental aspect of busi-
                                                                                                                                                                                             ness as an example. On the
                                                                                                                                                                                                                                  the US as the largest global car
                                                                                                                                                                                                                                  market, demonstrating the ef-
                                                                                                                                                                                                                                                                     market forces are
                                       Around 40 percent of the work         enduring advantages, includ-          nomic Partnership Arrange-            of the region and into midwest,     government side, the Chinese         fect of this newfound dispos-      driving the change
                                       he does in China involves the         ing: rule of law, free flow of in-    ment, was designed to provide         inland provinces to stimulate       government offers incentives to      able income among Chinese
                                       PRD region.                           formation, simple and low tax         a more liberal trade and invest-      more balanced development           encourage a reduction in car-        residents.
                                                                                                                                                         across the country.                 bon footprint. When a business
                                                                                                                                                                                                                                                                     and government
                                                                                                                                                                                             switches to more mechanized,         Furthermore, as border restric-
                                       1. Michael J.Enright, Edith E.Scott, Richard Petty, Enright, Scott & Associates, The Greater Pearl River Delta,
                                          Rev. ed (Hong Kong: Invest Hong Kong of the HKSAR Government, 2010), 8.                                        In effect, companies in the         higher value activities, there is    tions have been eased, travel      policy is reinforcing
                                                                                                                                                         PRD are finding the cost of         naturally a reduction in emis-       has increased exponentially be-
                                       2. Ibid.
                                       3. Ibid.                                                                                                          doing business going up with        sions, and therefore govern-         tween PRD residents and Hong       it.
16                                                                                                                                                                                                                                                                                      17
Leadstory                                                                                                                                                                                                                                                                        Leadstory

                        Kong, which has in turn pro-
                        vided tremendous exposure for
                        international brands and com-
                        panies using Hong Kong as a
                        gateway into China. This year
                        alone there were over 20 mil-
                        lion visitors entering Hong
                        Kong from the mainland with
                        many based in the PRD.
                        Just as both market and gov-
                        ernment forces are at work to
                        move low value-added activi-
                        ties out of the metropolitan
                        areas of the PRD, so too is
                        there a push to promote con-
                        sumer spending in the region.
                        Of course increased wealth has
                        led to an increase in spending,
                        yet KK Yeung reinforces how
                        the Chinese government has
                        also done its part to reverse the
                        long standing saving trend so
                        commonly associated with
                        Chinese culture. The govern-
                        ment has reduced the work                                                                                                         Source: Information Services Department, HKSAR Government
                        week from six to five days and      Source: Information Services Department, HKSAR Government
                        increased the number of public
                        holidays to encourage people                                                                                                      nized industries in line with                organization wholly devoted to      it’s not formidable. Furthermore,
                        to go out, spend money, and         The Importance of the Pearl River Delta Region                                                the vision the PRC govern-                   increasing Dutch design pres-       competition is a good thing, and
                        boost the economy. All of these                                                                                                   ment holds for the Guang-                    ence abroad. The group has          mainland China is still learning
                                                            in Guangdong and China*
                        factors make the PRD an inter-                                                                                                    dong/PRD region.                             ambitious plans for the next        about business from Hong Kong
                        esting and lucrative choice for                                                                                                                                                three years and strong contacts     professionals, for example in the
                        inward domestic investment                                                                   PRD % of             PRD % of        In addition to these more tradi-             in the PRD region. December’s       area of distribution and retail. He
                        into mainland China.                                                                       Guangdong               Chinese        tional sectors, opportunities lie            Design Week in Hong Kong (2-        also feels that the skill sets and
                                                                                                                                                          in some fresh areas such as cre-             4 December) and Guangzhou           specialties of the regions’ profes-
                        Enter the Dragon                                                                              Province             Mainland       ative industries (marketing, ad-             (9-11 December) was a further       sionals are complementary rather
                                                                                                                                                          vertising, design, etc.). The                showcase for all international      than competitive. This is why
                        The single most important fac-        Land area                                                  30.5                   0.6       NDRC’s Framework plan indi-                  firms with plans underway in        Hong Kong and mainland China
                        tor for a business entering the                                                                                                   cates that by 2020 the PRD                   the Greater PRD.                    will prosper together.
                        China market for the first time,      Permanent population (2008)                                50.0                   3.6       should boast a service sector
                        according to KK, is to forget                                                                                                     comprising 60 percent of the                 The Chinese government has          Simon believes Hong Kong,
                        the old formula of compensa-          Interim Census Population (2005)                           49.5                   3.5       region’s GDP (Enright, Scott,                also shown increased interest in    however, can't be complacent.
                        tion/processing trade. The for-       Census population (2000)                                   49.6                   3.4       and Petty, 22). Creative firms               sustainability of investment, and   We must constantly review our
                        mer reality of sending materials                                                                                                  should play a significant role in            green businesses stand to do        business environment to ensure
                        in, processing, and exporting         GDP (2008)                                                 80.8                   9.9       this development.                            well in the PRD of the future.      we’re operating at peak effi-
                        finished goods is obsolete. In-       Total trade (2008)                                         96.1                 25.6                                                     Mounting concern for the envi-      ciency. As China’s global finan-
                        stead many Hong Kong busi-                                                                                                        At InvestHK, a new creative in-              ronment has meant the region is     cial centre, Hong Kong’s role as
                        nesses are starting to do busi-       Export (2008)                                              95.8                 27.1        dustries sector team has been                becoming an interesting market      the home of business support
                        ness within the PRD itself. This                                                                                                  set up and it will be a key focus            for environmental, pollution-       services will remain invaluable.
                        new strategy is prevalent in the      Import (2008)                                              96.5                 23.8        for the next few years. Already              control, and clean technologies.    The business friendly environ-
                        retail sector where supermar-         Foreign direct investment (2008)                           88.3                 18.3        the department has seen a size-              Waste management will also          ment plus the tenacity and
                        kets and other similar branding                                                                                                   able increase in the number of               have a substantial role among       work ethic of Hong Kong busi-
 While the PRD only     chains are spreading their busi-    * Note: Data for 2008 are preliminary. Interim Census Population 2005 is a year-end figure.   creative companies setting up                environmental industries.           ness culture are bastions of
                        ness models to surrounding          Source: The Greater Pearl River Delta Report 6th edition, commissioned by Invest Hong Kong    in Hong Kong, particularly ar-                                                   Hong Kong’s success to date.
 accounts for roughly   PRD cities. Light industry is an-
                        other area that’s stable and
                                                                                                                                                          chitectural and design firms.
                                                                                                                                                          Simon highlights some innova-
                                                                                                                                                                                                       Imminent Threat or Mutual
                                                                                                                                                                                                       Prosperity?
                                                                                                                                                                                                                                           After all, the city is ranked sec-
                                                                                                                                                                                                                                           ond in the world for ease of
                        shows promising growth. KK          strongest players in the new                       will bring an incredible level             tive Dutch companies operat-                                                     doing business (4). Thanks to its
 3.5% of the total      also feels this is a sector where   PRD market economy. Simon                          of urbanization in the PRD.                ing in this sphere, many of                  With such rapid expansion in the    enduring business advantages,
                        SMEs typically prosper. Within      Galpin indicates that this has                     Projects are being planned                 whom will be instrumental in                 PRD region, some people have        Hong Kong remains an excel-
 population of China,   this sector, which includes for     also been reflected in the new                     around this highway already,               helping companies in the PRD                 come to wonder if Hong Kong         lent location from which to
                        example, production and distri-     business projects seen by In-                      such as the Zhuhai Aviation                develop their brands and start               will be overshadowed by the         seize the fast-growing opportu-
 it provides 10% of     bution of items such as house-      vestHK this year. The con-                         Park. Science and technology               operating as global players. To              more prominent cities in the PRD    nities in the Greater Pearl River
                        hold appliances, businesses can     struction of the Hong Kong –                       parks are also springing up in             this effect, Dutch Design Fash-              region. While KK Yeung recog-       Delta. Or, as InvestHK’s slogan
                        respond quickly to change and       Macao – Zhuhai Bridge,                             regions along the proposed                 ion Architecture (DutchDFA,                  nizes that there is in fact more    suggests, “Hong Kong. Right
 the country’s total    demand fluctuations.                which will be the longest                          highway route. In general                  http://www.dutchdfa.nl) is an                competition than before, he feels   Place. Right Time.” •
                        Transportation and infra-           bridge in the world, is slated                     businesses are wise to invest
 GDP.                   structure are some of the           for completion in 2016 and                         in more technical and mecha-               4. http://www.doingbusiness.org/rankings


18                                                                                                                                                                                                                                                                                      19
China Focus                                                                                                                                                                                                                                               China Focus

                                                                                                                                     of Hong Kong-made goods               Hong Kong must                   resources, cooperate on clean

                           Legislative Framework                                                                                     which enter the Mainland mar-
                                                                                                                                     ket enjoy the zero-tariff prefer-
                                                                                                                                     ential treatment granted under
                                                                                                                                                                           leverage its unique
                                                                                                                                                                                                            production and construct prof-
                                                                                                                                                                                                            itable networks of energy sup-
                                                                                                                                                                                                            ply and marketing.


                           Ties Hong Kong More
                                                                                                                                     CEPA, of which the majority is
                                                                                                                                     exported to Guangdong.                advantages in order              Hong Kong will be working
                                                                                                                                                                                                            closely with the PRD Region to
                                                                                                                                     Financial Industry                    to intensify its                 ensure a clear division of work,

                           Closely to the PRD Region                                                                                 China has become a key player
                                                                                                                                     on the international stage, yet
                                                                                                                                     the RMB is still far from play-
                                                                                                                                                                           position as the lead-
                                                                                                                                                                                                            reasonable layout and comple-
                                                                                                                                                                                                            mentary developments of ports
                                                                                                                                                                                                            and airports. On the other
                                                                                                                                                                                                            hand, the PRD Region will fol-
                                                                                                                                     ing any role internationally. Its     ing city of China.               low a high-end development


                           S
                                ince the onset of China’s    Framework also supports the         trade, shipping, logistics and      lack of full convertibility                                            strategy in building the manu-
                                reform and opening-up        closer cooperation between          services with high added value,     means that it cannot be used as     movement between Guang-            facturing centre, which will
                                policy in the late 1970s,    Hong Kong, Guangdong and            strengthening its closer cooper-    a unit of account, means of ex-     dong Province and Hong Kong        lead to a number of globally
By Jennifer Chan,          the PRD Region, being one of      Macao under the guidance of         ation and coordination with         change and store of value in in-    will be facilitated with more      competitive manufacturers and
CEO – Sinova Management    most economically dynamic         the relevant central authorities.   the PRD Region at different         ternational transactions.           convenience and customs clear-     brands.
Consultancy Ltd.           and fastest growing regions of    Hong Kong undoubtedly is an         levels to deliver mutual bene-                                          ance operations will be re-
                           China, has been chosen as the     excellent gateway for doing         fits. It mainly focuses on the      As an international financial       formed for more effective and      In a nutshell, we believe that
Jennifer.Chan@sinova.com
                           pioneer to open up to the out-    business with China. Its            cooperation of three priority       centre, Hong Kong is equipped       efficient monitoring.              Hong Kong has several strategic
                           side world. With the publica-     strengths include simple and        areas, including: service and       to meet the challenges arising                                         advantages, including: simple
                           tion and launch of the “Frame-    low taxes, free exchange of in-     manufacturing industries, fi-       from offshore RMB business          Hong Kong and the PRD Re-          and low taxes, free exchange of
                           work for Development and Re-      formation and capital, a wide       nancial industry, and infra-        and has various advantages          gion are encouraged to cooper-     information and capital, a wide
                           form Planning for Pearl River     range of financial products, an     structural facilities and town      over its rivals for becoming an     ate on other aspects related to    range of financial products, an
                           Delta Region (2008-2020)”         international language atmos-       planning.                           RMB offshore center at the          the well being of people. These    international language atmos-
                           (the Framework), the National     phere as well as its professional                                       present stage. The Framework        aspects cover education, med-      phere, expertise in professional
                           Development and Reform            service standard. Besides,          Service and Manufacturing           reaffirms the state’s support of    ical services, social insurance,   services, and a prime location.
                           Commission (NDRC) sets out        Hong Kong has been estab-           Industries                          the healthy development of          culture, emergency manage-         Hong Kong must leverage these
                           the strategic positioning and     lished as an efficient and com-                                         RMB business in Hong Kong’s         ment, and protection of intel-     advantages in order to intensify
                           development goals for the PRD     petitive logistics hub.             Cooperation between Hong            banks.                              lectual property. Moreover, the    its position as the leading city of
                           Region to eventually transform                                        Kong and the PRD Region in                                              state will support Guangdong       China. Besides, greater syner-
                           into a huge service economy       The Framework reaffirms             the modern service industries       Hong Kong is therefore the          and Hong Kong to conduct           gies with the PRD Region can
                           and further play the leading      Hong Kong’s status as an inter-     and advanced manufacturing          preferred testing ground for        joint research and development     be generated resulting in win-
                           role for the whole country. The   national center of finance,         industries is encouraged. Pro-      building an efficient and liquid    of clean energy and renewable      win situations. •
  The Framework                                                                                  viding services with high added     offshore market for RMB-de-
                                                                                                 value to the PRD Region,            nominated assets. It is a way of
  reaffirms Hong                                                                                 Hong Kong could help to en-         overcoming restricted convert-
                                                                                                 hance the professional stan-        ibility, thereby promoting the
                                                                                                 dard of the enterprises in the      use of the RMB outside the
  Kong’s status as an                                                                            PRD Region. In addition, it         mainland China and providing
                                                                                                 will further solidify Hong          a mechanism for free flow of
  international center                                                                           Kong’s status as an interna-        capital resources to support the
                                                                                                 tional service and high-tech        financial development of the
  of finance, trade,                                                                             centre. To create favourable        PRD Region. This makes the
                                                                                                 conditions for developing the       RMB attractive enough for for-
  shipping, logistics                                                                            service industries, mutual          eign investors to hold it as well
                                                                                                 recognition of professional         as to circulate it back.
  and services with                                                                              qualifications will be increased.
                                                                                                 Apart from supporting Hong          Infrastructural Facilities
                                                                                                 Kong’s processing trade enter-      and Town Planning
  high added value,                                                                              prises to extend the industrial
                                                                                                 chains to the PRD Region, the       The infrastructural facilities
  strengthening its                                                                              Region will also assist Hong        linkage between Hong Kong
                                                                                                 Kong firms to penetrate the do-     and the PRD Region will be
  closer cooperation                                                                             mestic market.                      strengthened in various as-
                                                                                                                                     pects, including urban plan-
  and coordination                                                                               Hong Kong and the PRD Re-           ning, rail transit networks, in-                                                                             For an outline review of the full
                                                                                                 gion will collaborate in full im-   formation networks, energy
                                                                                                 plementation of the Closer          base networks and urban water                                                                                Framework for Development
  with the PRD                                                                                   Economic Partnership Arran-         supply. Not only will the con-
                                                                                                 gement (CEPA) and liberalisa-       struction of certain infrastruc-                                                                             and Reform Planning for Pearl
  Region at different                                                                            tion measures begun in Guang-       tures start at an earlier date,
                                                                                                 dong on a pilot basis. Hong         cooperative projects related to
                                                                                                                                                                                                                                                  River Delta Region (2008-
  levels to deliver                                                                              Kong has long been the largest      the transportation network                                                                                   2020), visit the NDRC website
                                                                                                 trade partner of the Guang-         will also be planned and imple-
  mutual benefits.                                                                               dong Province. Vast amounts         mented actively. Personnel                                                                                   at: http://en.ndrc.gov.cn/

20                                                                                                                                                                                                                                                                              21
Go Green                                                                                                                                                                                                                                                  Go Green

 2011!
                                                                                                                                              Green Week in Hong Kong
 I
    t is good to be in Asia, and it is good to be in Hong Kong. The economic outlook of the Netherlands is better than many other EU-
    countries who face robust austerity measures. This presents a stark contrast with Asia's contagious optimism. China, and its inter-
    national gateway Hong Kong, are engines of this economic growth. Global centres of economic gravity are shifting, mostly


                                                                                                                                              F
 favourably towards Asia. Nobody realises this more than you, our members here in Hong Kong.                                                        rom 5-6 November, the        • Buildings - with a special          policy stakeholders from Hong
                                                                                                                                                    C40 Hong Kong Work-            focus on retrofitting existing      Kong, mainland China and
 Prime-Minister Rutte has chosen an optimistic and pro-active approach toward these changing dynamics. Economic Diplomacy will be                   shop on ‘Low Carbon            buildings and new build best        overseas in a close dialogue
 at the heart of the new Dutch foreign policy. Although this is not entirely new, economic diplomacy has never been so prominent in
 government policy. The network of Embassies and Consulates General will, even more than before, serve the interests of the Dutch busi-       Cities for High Quality              practices                           about climate change. In paral-
 ness community. Perhaps the most daunting challenge is to persuade people back home of the enormous speed with which things are              Living’ took place in Hong                                               lel, the 5th annual Eco Expo
 changing in Asia.                                                                                                                            Kong. The aim of the C40 is to     • Transport - with a special          Asia was also held in the same
                                                                                                                                              bring cities together to discuss     focus on electric vehicles (EVs).   week in November, along with
 Practically speaking this means that the diplomatic network in China will seek more ways in which to assist companies to connect to          the challenges and opportuni-                                            a number of additional
 growth markets in China. More and more Chinese (State Owned) Enterprises are active in Hong Kong, as exemplified by the growing
 number of IPO's in Hong Kong of Chinese multinationals. These companies are increasingly important partners of Dutch businesses.             ties for creating modern, low      The C40 Workshop formed               “green” events, including the
 This is equally vital for the Dutch government as we try to be on as many shortlists as possible for Chinese companies wanting to in-        carbon, high quality, and live-    part of a larger five-day series      following seminars. •
 vest in Europe.                                                                                                                              able metropolitan centres.         of events in Hong Kong to en-
                                                                                                                                                                                 gage community, business and
 We, the staff of the Consulate General, are very eager to put these new policies into practice, of course in close collaboration and har-    The C40 Hong Kong Work-
 mony with our economic partners such as the Dutch Chamber of Commerce. I hope the year of the Rabbit will be even better than the            shop is organised by the Envi-
 year of the Tiger!
                                                                                                                                              ronmental Campaign Commit-
 With warmest regards,                                                                                                                        tee of the Hong Kong Special
 Robert Schuddeboom, Consul General                                                                                                           Administrative Region (HK
                                                                                                                                              SAR) Government, Civic Ex-
                                                                                                                                              change, and the C40, and it is
                                                                                                                                              sponsored by the HK SAR
                                                                                                                                              Government’s Environment &
Building a Green Future @ Eco Expo Asia 2010                                                                                                  Conservation Fund.

                                                                                                                                              The programme had two main
                                                                                                                                              themes:


T
       he Netherlands has long     This is the first offi-
       been a frontrunner in       cial Expo participa-
       environmental policy        tion     from      the
and regulation. High invest-       Netherlands Con-
ment in new technologies has       sulate-General, as                                                                                          Going Green - A profitable business
stimulated the development of      last year there was
the environmental sector in the    just a display kiosk                                                                                        Organized by the European         placed above this place it will       cording to the Global Tribune.
Netherlands as a leading inno-     on show with the Eu-                                                                                        Chamber of Commerce -             charge automatically.                 China Investment Corporation
vator in Europe. Thus the          ropean Chamber of                                                                                           Date: 4th of November                                                   has many alliances: DEC,
Netherlands Consulate decided      Commerce in Hong                                                                                            at the Hong Kong Banker’s Club    2. “Green Buildings/ Green            Goldiwind, Sinovel, all leaders
to join the Eco Expo Asia to       Kong. This year, sev-                                                                                                                         Projects” by Mr Stefan Beck,          in the wind power industry.
showcase the Dutch expertise       eral European pavil-                                                                                        Topics                            Baumschlager Eberle                   The Korean and Chinese are
in this area.                      ions were formed by                                                                                                                           Baumschlager Eberle is a com-         working hard, while Japan is
                                   Germany, France,                                                                                            1. “Green Transportation –        pany which designs sustainable        burning everything as they
The Info booth of the Nether-      United Kingdom and Spain.           The Netherlands on the map.                                             No Carbon City” by Mr Jo-         buildings by adjusting temper-        have another way of thinking.
lands was staged at Eco Expo       Other than European pavilions,      The Green Transportation                                                hannes Verwijs, Drive4Electric    ature to a comfort zone. They
Asia 2010 in early November        countries such as USA, Canada,      Conference occurred on 5 No-                                            Drive4Electric is a company       renovated the ABN AMRO of-            4. “Heavy Vehicle Fuels for the
together with two Dutch            China and Taiwan also hosted        vember, and The Netherlands                                             based in the Netherlands,         fice in Amsterdam. Further-           Future, Profiting with low-car-
companies, Green Gran BN           their own national pavilions        Consulate in Hong Kong nom-                                             province Friesland. Together      more, they are working on a           bon emission” by Mr. Nick
(natural green plastic pro-        with a notable presence of do-      inated Mr Johannes Verwijs,                                             with Friesland’s community,       lot of projects in China: Moma        Leach, Scania Hong Kong ltd.
ducer) and Sempergreen             mestic companies.                   Project Manager of Drive4-          Mr. Verwijs delivered a presen-     electric cars have been           and Pop Moma in Beijing (pic-         Scania is a transport com-
(green roof specialists). Buy-                                         Electric, as a speaker. Hong        tation on fast charging & user      launched. There are about         tured here), Qingdao Darron           pany; they mainly have trucks
ers from various countries         Several representatives from        Kong is actively promoting the      acceptance of electric vehicles.    10,000 charger points in the      Complex and the Lidian Jao            and do road transportation.
such as Romania, New Delhi,        local NGOs and the general          use of electric vehicles (EV) to    During his speech, the audience     Netherlands and you can park      Housing Projects in Shanghai.         Methane is 20-30 times worse
USA, New Zealand, and              public visited the Netherlands’     make the city a green example       showed great interest in how        for free in Amsterdam. The                                              than CO2. There are 3 ways
China visited the Nether-          booth to learn about the expe-      in Great Pearl River Delta.         the Netherlands set an example      Amsterdam’s community sub-        3. “Future Business Models,           to reduce CO2: (1) less trans-
lands’ booth and were espe-        riences or innovative ap-           One key barrier, however, has       as an early adapter of E-vehi-      sidized 50% of this initiative.   Today Investment on a Global          port, (2) increased energy effi-
cially interested in products      proaches achieved by the            been building a recharging net-     cles, particularly in a movie       Furthermore, electric busses      Scale” by Mr Jari Vepsalainen,        ciency and (3) bio fuels. For
displayed by the two Dutch         Netherlands in building a green     work with enough coverage to        clip about the Frisian Solar        are launched in the province      Switch Holdings                       example, tea candles used to
companies.       Participating     future.                             give drivers confidence to buy      Challenge that showed the cre-      Brabant and there are ‘induc-     China’s GDP will double from          be in bags instead of in pack-
Dutch companies were posi-                                             these vehicles. Mr Verwijs was      ativity of college students.        tion charging’ launched in the    2010-2014 with heavy price            ages. In the bags, 252 bags
tive about the results of the      Eco Asia Conference                 then sponsored by the Euro-         Also, an interview with a           province Utrecht. This new        competition. 8% of the 5 tril-        could be fit in a truck,
Expo, which generated many         Promotes Alternative                pean Chamber of Commerce in         Dutch taxi driver regarding the     way of charging your car is       lion RMB (total investments)          whereas in the new packing,
relevant contacts not just in      Energy                              Hong Kong to give a speech on       first European commercial fast      not via an outlet but via a       will be invested in indirect in-      360 candles can be fit in a
Hong Kong or China but also                                            this subject at the Green Trans-    charger installed in Leeuwar-       plate in the ground (on the       vestment for Emerging Indus-          truck and longer trucks reduce
in other Asian countries and       Within the Eco Expo, another        portation Conference.               den was a good reference to         street). Once your car is         tries from 2011-2020, this ac-        carbon emission as well. •
Eastern Europe.                    event was taking place to put                                           local audiences. •
                                                                                                                                                                                                                                                                23
22
Talking Point                                                                                                                                                                                                                                                    Lifestyle

                                                                                                                                         Book review
                                Passing the Pen                                                                                          Experiences of a Serial Entrepreneur
                                                                                                                                         Author: Michiel Muller

                                T
                                       hanks a lot Pieter for passing the pen to     In January 1999 Permanento HKG Ltd was es-


                                                                                                                                         D
                                       me; I thought you were my friend. I have      tablished and the first products for Philips were           utch entrepreneur Michiel Muller re-          place created for the growing number of home-
                                       read your story with pleasure, and it is      produced here.                                              cently published a book (in Dutch only)       owners and seekers who want to buy and sell
                                always nice to read how other people got stuck                                                                   and has now become a successful and           using a transparent process. Again we are try-
                                in HKG. We (my wife Marina, our two kids and         In September 1999 we arranged a grand open-         famous writer in the Netherlands as well as a         ing to build a company by bringing to the mar-
                                I) arrived in HKG in January 1999. I volun-          ing of our production facility and the Consul       serial entrepreneur. Business readers in Holland      ket an innovation that creates value for con-
                                teered to set up our company locally with no         General at that time, Jochum Haakma, did the        recently picked his book as “Ondernemersboek          sumers. It’s vital when starting a new initiative
                                expectations. Plus, I liked the adventure though     official part. Jochum was a very active CG and      van het jaar 2010/2011” (Entrepreneurs book           that you think about your target group, be-
                                and thought our family was ready for another         also very interested in smaller companies. He       of the year 2010/2011), a competition organ-          cause the real challenge is entering a saturated
                                challenge                                            liked Permanento and was impressed with the         ised by SPROUT magazine.                              market with important, big players. You have
                                                                                     speed with which we had set up our company.                                                               to be innovative and think about new things to
                                Until then our family had lived in a small village   Jochum was also part of a committee recom-          Michiel Muller, together with his business part-      have a chance to survive in the market, because
By Tom Ros,                     in The Netherlands called Enkhuizen, where the       mending companies for a nomination for the          ner Marc Schröder, was the driving force be-          this will make you distinctive and give you a
Managing Director, Permanento   old centre is surrounded with a wall, a fortified    “Cathay Pacific China Trader Award” and with        hind the following well-known companies:              lead.
                                city. Many people stay within that city centre       his help we got nominated and won in Novem-
t.ros@permanento.com.hk
                                and seldom get out. When we told our friends         ber 2000. Another award we won was the              Tango (www.tango.nl) - This is an unmanned            Which markets might not be suitable for
                                we were moving we got reactions such as,             “DBA SME of the year” in 2005. These awards         petrol station concept that was launched in           this approach; breaking in existing mar-
                                “Why are you moving to Japan?” and “Can              were a nice recognition of our efforts in           2000. This innovation brought considerable            kets and providing the consumers with
                                you eat soup with chopsticks?”                       HKG/China. In 2003 we decided to move our           turbulence on the Dutch market with major             an alternative?
                                                                                     production to China and established our fac-        players like Shell, Texaco and BP. The company
                                                                                     tory in Zhuhai. The experience we gained in         also opened sites in Belgium and was launching        We are interested in consumer markets. When
                                                                                     HKG coupled with the fact that we had built up      in Spain when Kuwait Petroleum acquired the           you want to change something in those situa-
                                        The experience we                            an organization with trustworthy local people
                                                                                     made the move to China rather easy. We still
                                                                                                                                         company in 2005.The name comes from: Tank
                                                                                                                                         & Go. Key positioning for the consumers was a
                                                                                                                                                                                               tions is a prerequisite that you generate some
                                                                                                                                                                                               energy amongst consumers. They have to
                                         gained in HKG cou-                          have an office in HKG which is handling the fi-
                                                                                     nances, purchasing, sales, marketing and logis-
                                                                                                                                         speedy service at a low price.                        change their behaviour and that’s by far the
                                                                                                                                                                                               most difficult point in growing a consumer
                                                                                     tics. Now our “Self Adhesive Components” are        Route Mobiel (www.routemobiel.nl) - With this         business. With Route Mobiel the consumers
                                pled with the fact that we                           being sold globally. Our factory in Zhuhai pro-     new venture Muller and Schröder again chal-           supported us because the industry was con-
                                                                                     duces mainly for the Asian/Pacific region and       lenged a considerable market force by introduc-       trolled by a monopolistic player, ANWB, and
                                had built up an organization                         the USA but in case the products are labor in-      ing a competitor to the Dutch Automobile Asso-        they wanted an alternative. Markets which are
                                                                                     tensive we produce for Europe as well.              ciation ANWB. Route Mobiel was the first com-         of less interest are the ones which provide
                                with trustworthy local people                                                                            pany offering road assistance to end-consumers        products/ services which are of less value for
                                                                                     After almost 12 years HKG we have no com-           on a national and European scale, and it meant        the consumers; they are not a priority for the
                                made the move to                                     plaints. My wife works as a teacher at an inter-
                                                                                     national school on Discovery Bay where we live
                                                                                                                                         the end of the monopoly by ANWB which they
                                                                                                                                         had held for decades. Route Mobiel was launched
                                                                                                                                                                                               consumer, so the chance that they will consider
                                                                                                                                                                                               an alternative and change their behaviour is
                                China rather easy.                                   and we enjoy our very own domestic helper.
                                                                                     Our Jocelyn can cook very well (which my wife
                                                                                                                                         in 2004 as the “prize fighter” and added speed of
                                                                                                                                         service and a no-claim rebate to its key marketing
                                                                                                                                                                                               lower.

                                                                                     can not), she cleans the house (which we hate),     claims. Since then there has been a great deal of     What is your next book? Does this book
                                                                                     does the shopping (what I hate) and takes care      commotion comparing the case to a monopolistic        and price encourage you to write more?
                                The reason for our company’s move to set up a        of lots of other things, thereby giving us the      leader fighting the small “Robin Hood.”
                                production plant in HKG was customer driven.         freedom to fill the weekends as we like (sailing,                                                         I would say the Internet, in particular Social
                                One of our principal customers in that period        hiking, dining, sports). Our kids, three now, are   What are the highlights of your book?                 Media, is a very interesting subject. At this mo-
                                was Philips. They requested we set up a factory      very happy here as well and they consider HKG                                                             ment, there are a lot of speculations; some even
                                in HKG because all the components we pro-            their home. The youngest one was born here in       The idea of the book is to give readers a view be-    think that this phenomenon of social media will
                                duced for them were used in HKG and China so         2003 and knows HKG better then Holland and          hind the scenes and how we see launching new          fade eventually. What we have to consider is
                                they wanted us to be “on the spot”. This made        the other two (15 and 16) were 3 and 4 years        consumer initiatives in mature markets. The book      that the students nowadays at high schools/ uni-
                                sense, but for a small family company this was       old when we arrived so also not much of a           provides the real war stories of our businesses,      versities have a totally different view of the
                                a very difficult request. The fact I like Chinese    Dutch background. We go back to Holland             and how they were fought against major market         world and communication. It is fascinating how
                                food was definitely the decisive factor but also     every year during the summer for a couple of        players. The aim of the book is not to teach how      social media has developed in only one or two
                                the threat of losing the Philips business.           weeks, but the whole family is glad when we are     to write a business plan, but it explains the vari-   years.
                                                                                     on our way back “home.” I think the day I pro-      ous business models and hopefully generates in-
                                Our first trip to HKG was in 1998, and to our        pose to go back to Holland I will need to go        spiration to carry out entrepreneurial dreams!        Have you ever travelled to Hong Kong
                                surprise, we did not land in Tokyo. We also          back alone.                                                                                               and/or China? If so, what were your ini-
                                found out that soup spoons were available,                                                               What are you working on at this                       tial impressions of the business environ-
                                what a revelation! I needed only a couple of         Next I would like to pass the pen to Huib van       moment?                                               ment?
                                days to fall in love with this crazy city and it     Delft. Huib is an old China hand and I’m sure
                                seemed clear that besides Philips there were         he can tell us some entertaining stories about      After Route Mobiel we launched the online             Yes I have been travelling both to Hong Kong        Source: Challengerday Radio
                                more valid reasons to make this move to HKG.         his time in HKG and China. •                        auction platform Bieden en Wonen: a market-           and China, and you can really feel the business

24                                                                                                                                                                                                                                                                           25
Lifestyle                                                                                                                                                                                                                                                         Lifestyle

                        buzz. I haven’t been involved in too many com-       What was your background before start-
                        mercial activities yet, but I understand doing
                        business is for a large part related to trust and
                                                                             ing Tango and Route Mobiel? How has
                                                                             this helped you in these and your forth-                The Sovereign Art Foundation
                        good relationships with your business partners.      coming projects still in planning?
                        This seams to me a very healthy way to do busi-
                        ness and decreases transaction costs consider-       I was employed by ExxonMobil for over 10                Using Art to Make Positive Differences
                        ably.                                                years before I decided to go the entrepreneurial
                                                                             route. Working for a professional company like
                        At least half of our Chamber members                 ExxonMobil creates a solid basis. You get to


                                                                                                                                     T
                        are owners/employees in SMEs. As your                learn an industry’s best practices and understand              he Sovereign Art Foun-        in Pondicherry, India, by fund-
                        success stories are quite inspirational to           how decisions in large corporations are made.                  dation (SAF) is a non         ing art therapy training courses
                        entrepreneurs, can you share what you                On the other hand it also gives you insight into               profit charity registered     for the social workers and art
                        feel is the most important factor to suc-            the opportunities that lie ahead when you can           in both Hong Kong and the            resources for the centre. By
                        cess in a small or start up company? Do              start a new business with a clean sheet of paper.       UK. SAF is dedicated to two          2011 the centre should be op-
                        you have a leadership philosophy?                                                                            primary goals:                       erating and SAF will continue
                                                                             You mention an interest in social media.                • Raising money to help disad-       to fund the ongoing arts pro-
                        The most important factor for success in my          How do you leverage social media in                       vantaged children through          gramme.
                        case was building strategic partnerships with        your own businesses or what is your                       using visual arts for rehabili-
                        the best people possible and building relation-      vision for incorporating this into busi-                  tation, education and therapy      One of the foundation’s key
                        ships on trust.                                      nesses today?                                           • Promoting mid career re-           programmes is M’lop Tapang
                                                                                                                                       gional artists.                    in Cambodia, where the pri-
                        My leadership philosophy is simple: I am very        The interesting thing about social media is that it                                          mary focus is the support of
                        clear about the expected outcome of a project        returns power to the individual. Companies can          Established in 2003, SAF laun-       street children returning to
                        and give employees freedom to find their own         no longer ignore dissatisfaction amongst cus-           ched the annual Sovereign Asian      school and a safe family envi-
                        ways for achieving those goals. My way is not        tomers or poor service. Through new social              Art Prize, raising initially HKD     ronment. More than 400 street
                        the only way, and I realize that the potential of    media channels the power of referral is starting        $500,000, and growing to a           children have benefitted from
                        young employees is a crucial resource for any        to become so strong that only the best and most         total of approximately HK$10         the foundation’s support of
                        company to stay innovative. They often have          transparent companies will survive on the long          million by the close of 2009.        M’lop Tapang.
                        fresh new ideas. I want them to use their poten-     run. This movement goes beyond the technology
                        tial. I dislike, however, when they try and copy     of the internet and its capabilities. It enhances the   The foundation was estab-            The true success of the founda-
                        me.                                                  power of word of mouth on a global scale. •             lished     by   philanthropist       tion’s support of these programs
                                                                                                                                     Howard Bilton in 2003 and            and the extended reach they
                                                                                                                                     now has a board of trustees,         have seen is one 12 year old boy
                         Restaurant review Opus Grill                                                                                sponsors, and patrons who
                                                                                                                                     support the goals and princi-
                                                                                                                                                                          named Samang, who lived in a
                                                                                                                                                                          local slum area, collecting waste
                                                                                                                                     ples of the foundation.              and living ‘hand to mouth’.
                                                                                                                                                                          With the support of M’lop
                                                                                                                                     All operating costs of the foun-     Tapang, Samang returned to his
                                                                                                                                     dation are underwritten by The       school through the school
                                                                                                                                     Sovereign Group of companies,        bridging program and was re-
                                                                                                                                     allowing for 100% of the pro-        united with family members.
                                                                                                                                     ceeds gathered at the auction to
                                                                                                                                     be directed to charities and         The foundation also supports
                                                                                                                                     artists.                             other local art institutions in-
                                                                                                                                                                          cluding Asian Art Archives
                                                                                                                                     The principle activity of the        (HK), and the Asian Cultural        The finalists’ works are pre-
                                                                                                                                     foundation is the fundraising        Counsel.                            sented at an awards gala,
                                                                                                                                     for the nominated charities                                              drawing a sophisticated body
                                                                                                                                     through an artistic award,           Artists throughout the region       of collectors who recognize
                                                                                                                                     which is the largest award of        are encouraged to submit            and respect the awards process.


                        A
                                t Opus Grill the philosophy is simple:       fine wines by the half bottle. Opus Grill also          its kind in Asia-Pacific. The        works for the foundation’s an-      The judges select the winning
                                The Best of Everything. Following a          features many rare older bottles from the Old           award invites emerging and           nual award. These works are         work and the remaining final-
                                global search for the world’s best steaks,                                                           mid career artists whose works       viewed by an internationally        ists are auctioned at the gala,
 Location               they are now the exclusive source in Hong                                                                    are assessed by a panel of inter-    renowned panel of expert            establishing new market prices
 7/F LKF Tower          Kong for boutique producer- Bryan Flannery           World but also have Hong Kong’s largest selec-          nationally renowned judges.          judges from which finalists are     for the artists and the proceeds    For more information on how
 33 Wyndham Street      and also limited premium waygu producer-             tion of Australian wines, with a focus on small                                              selected. These finalists are       being shared between the artist
                                                                                                                                                                                                                                                  you can help, or if you would
 Central, Hong Kong     David Blackmore. Their menu focuses on these         wineries that are usually hard to find outside          All proceeds are donated to          then recognised by the arts         and charities.
                        premium steaks, signature appetizers such as         Australia.                                              charities that utilize visual arts   community for their achieve-                                            like to book your tickets to the
                        their steamed Crab Cake, and artisanal flour-                                                                with the purpose of education        ment and ability. The finalists’    In an effort to engage public in-
 Opening hours          ishes such as homemade pickles and slabs of          The distinctive decor is replete with warm earth        and rehabilitation of disadvan-      works are toured publicly           teraction with the foundation       gala auction in February,
 Mon-Sat noon-2:30pm,   house-cured bacon.                                   tones, with cork, leather, and copper highlights        taged or disabled children.          throughout the region for           and the finalists’ body of work,
 6-10:30pm                                                                   melding modern elegance with the inviting               Currently the foundation’s           greater community awareness,        the People’s Choice Award was       please contact The Sovereign
                        Their 650 bin wine cellar offers a wide and          warmth of a classic grill room. The artwork             charities are located in India,      reach and appreciation. The fi-     established to encourage the        Art Foundation at art@Sover-
                        thought-provoking range of Old and New               takes its inspiration from food, drink and the          Cambodia and Vietnam.                nalists also draw significant       public to vote at the touring
 Reservations
                        World wines. At Opus, they believe in drinking       nostalgic glamour of the dolce vita; original                                                media coverage through both         exhibitions or online. This         eignArtFoundation.com or call
 Tel: (852) 2526 2366   well but pride themselves on offering their          pieces from Picasso, Ida & Javelle, Patrick Lich-       SAF is also in the process of es-    news and arts channels, region-     award is announced at the
 Fax: (852) 2526 3626   wines at very reasonable prices. They also have      field, et.al. set the scene for an evening of re-       tablishing a community centre        ally and internationally.           gala. •                             +852 2542 1177.
                        one of Hong Kong’s most extensive selections of      fined indulgence. •
26                                                                                                                                                                                                                                                                             27
Members Corner                                                                                                                                                                                                                                                               Events

New Corporate Member Melvin Tang – Asia Inspection Ltd.                                                                                       INTERCHAM: Luncheon with the Chief Executive HKSAR Donald Tsang
                                                                                                                                              Speaker: Mr. Donald Tsang, Chief Executive of the Hong Kong SAR
                                                                                                                                              The HKSAR Chief Executive, the Honourable Donald Tsang, delivered his policy address to the Legislative Council on 13 October 2010.


                        M
                                   elvin Tang, born and raised in        spection for $288 USD per day, all-inclusive anywhere in China,      InterCham was deeply honoured that Mr. Tsang accepted the invitation to talk to the Hong Kong business community at a joint luncheon.
                                   Tilburg, Netherlands, arrived in      India, Bangladesh and Vietnam and $388 USD per day anywhere          During this luncheon, the business community heard Mr. Tsang discussing further elaboration on his policy address and learned more about
                                   Hong Kong in 2005, where he           in Greater Asia.                                                     the initiatives put forth by the HKSAR Government for the year ahead.
                        has worked for AsiaInspection, Ltd. for the
                        past 4 years. As a Senior Account Man-           AsiaInspection performs factory audits and social audits adhering
                        ager, he assists foreign firms to eliminate      to the internationally recognized ISO 9000 and SA 8000 for $588
                        defective products from their supply chain.      USD anywhere in Asia.
                        His fluency in Dutch, English, Cantonese
                        and Mandarin Chinese means he can build          With each of over 350 trained and qualified inspectors, a mini-
                        better cooperation between clients and sup-      mum of five years experience in quality control is required of
                        pliers through clear communication.              each inspector, who is native to the area in which they work and
                                                                         has expertise in local business practices.
AsiaInspection is a young, flexible and dynamic quality control
company, performing product inspections, factory audits and labo-        With AsiaInspection’s On-line Lab Testing Center, clients simply
ratory testing in Asia on behalf of importers worldwide. AsiaInspec-     select their product category and destination country, and receive
tion customers benefit from the convenience of booking and man-          all relevant tests to keep them compliant with REACH, RoHS,
aging all their quality control services online at AsiaInspection.com,   EN71, CPSIA, etc. RoHS testing at $10 per component material.
experiencing a level of reactivity unmatched in the industry.                                                                                   Wednesday 3 November, 12:15-14:00PM, Hong Kong Exhibition and Convention Centre, Wanchai
                                                                  Melvin sees joining the Dutch Chamber of Commerce in Hong
AsiaInspection serves clients from over 100 countries, and is de- Kong as a great way to extend his reach. Dividing his time be-
fined in the industry by the unparalleled ease-of-use of AsiaIn- tween Hong Kong and Shenzhen, he seeks to increase awareness                 International Financial Centre – “Hong Kong or Shanghai?”
spection.com, coupled with expert oversight by western manage- of quality control throughout the community.
ment and trained and qualified local inspectors with expertise in                                                                             Speaker: Mr. Peter Wong Tung Shun, JP Group Managing Director, HSBC Holdings plc and Chief Executive, The Hong Kong and Shanghai
local business practices.                                                                                                                     Banking Corporation Limited
                                                                  Asia Inspection Ltd                                                         This was a joint chamber event with the Norwegian Chamber. The title, “International Financial Centre - Hong Kong or Shanghai?” is a ques-
Via AsiaInspection.com, send an inspector to any factory in Asia Melvin.Tang@AsiaInspection.com                                               tion that continues to come up in the context of China's economic development. Mr. Peter Wong provided a banker's perspective on
within 48 hours and receive a detailed report the same day as in- (86) 755 8214 9006                                                          Shanghai's desire to be an International Financial Centre and the short and long-term implications for Hong Kong.




                                                                                                                                                Thursday 18 November, 12:30-14:00PM, The Foreign Correspondents’ Club, 2 Lower Albert Road, Central


                                                                                                                                              Going Green – A Profitable Business
                                                                                                                                              Speakers: Mr. Johannes Verwijs, Drive4Electric, Mr. Stefan Beck, BaumschlagerEberle, Mr. Nick Leach, Scania Hong Kong,
                                                                                                                                              Mr. Jari Vepsalainen, The Switch Holdings and Mr. Kristian Odebjer, Chairman of Swedish Environmental Committee as the moderator.
                                                                                                                                              This was a joint chamber event with the European Chamber. The seminar focused on the following topics:
                                                                                                                                              • Green Transportation – NO Carbon City, an overview of the electric mobility project in Friesland, The Netherlands • Green Buildings/Green
                                                                                                                                              Projects: Sustainable and economically efficient buildings • Heavy Vehicle Fuels for the Future/ Profiting with low-carbon emission
                                                                                                                                              • Supporting Chinese Wind power Investment on a Global Scale. This breakfast seminar showcased environmentally-friendly solutions and
                                                                                                                                              showed the real positive impact in business, such as cost and energy saving.




                                                                                                                                                Thursday 4 November, 8:00-11:15AM, The Hong Kong Banker’s Club, 43/F, The Landmark, Central



                                                                                                                                                                                                                                                                                      29
Events                                                                                                                                                                                                                                                                 Events

MUNCH on the move to Eurobag Ltd.                                                                                                        ABN AMRO Golf Tournament 2010
Speaker: Mr. Alexander Kraima, General Manager Eurobag                                                                                   The ABN AMRO Golf Tournament was attended by a group of 25 members. This was the first time with new management that the Dutch
The MUNCH is a monthly gathering for members/ potential members who want to Mingle and Lunch. In 2009, we decided to take the            Chamber organized an ABN AMRO Golf Tournament and we decided to organize it as an annual occurrence due to its success. The tourna-
MUNCH to the next level called: MUNCH on the move! This means that each MUNCH will be hosted by a company member, we believe             ment resulted in a lot of positive feedback. Thankfully, the weather was nice and even the wind was calm. With a Chinese cruiser including
in telling is selling, so by hosting the MUNCH, the company member has the chance to create a buzz around the company. The MUNCH is      drinks and canapés, the group sailed back to Central. Prizes were awarded to the winners: Mr Togi Gouw, nearest to the pin. Mr Diederik
for: All Dutch Chamber members who want to take this opportunity in broadening your network and meet new people. In addition, poten-     Werdmölder, longest drive. 3rd prize to Mr Andy Tam. 2nd prize to Mrs Jacqueline Baud and 1st prize to Mr Andrew Wood
tial members are mostly welcome. About our host: EUROBAG has the capabilities to act as an Original Design Manufacturer as well as an
Original Equipment Manufacturer. These have been the key ingredients for becoming a successful manufacturer of bags in a wide range of   The Dutch Chamber would like to thank ABN AMRO for their kind sponsoring!
purposes, designs and materials. The General Manager, Mr. Alexander Kraima, shared with us his story about how he started at EUROBAG
and his experience when doing business in Asia.




  Thursday 11 November, 12:30-14:00PM, Unit 1-8, 27/F, Tower 1, Millennium City 1, 388 Kwun Tong Road, Kwun Tong Kowloon


44th InterCham Young Professionals Cocktails
The 44TH InterCham Young Professionals Cocktail at W Hong Kong was enjoyed by over 400 Young Professionals. The aim of the cocktail
is to meet and mingle with hundreds of like-minded professionals from 27 international business organizations in Hong Kong. Lucky draw
prizes were won and all proceeds of this event were donated to the Children’s Cancer Foundation.




  Tuesday, 30 November, 18:30-21:30PM, W Hong Kong, The Great Room, 7/F, 1 Austin Road, Kowloon Station


HKTDC World SME Expo
The HKTDC World SME Expo has grown into a powerful marketplace that connects small and medium-sized enterprises (SMEs) globally.
The Expo enabled SMEs to enhance their company image and reach out to potential clients form all around the world. The HKTDC offered
the InterSME working group, (chaired by the Dutch Chamber) 4 panels where members could exhibit their services and products.




  Thursday 2-4 December 2010, Hong Kong Convention and Exhibition Centre                                                                   Thursday, 2 December, 11:00AM-19:30PM, Kau Sai Chau, Sai Kung, New Territories



30                                                                                                                                                                                                                                                                              31
Events                                                                                                                                                                                                                                                                      Events

Christmas Cocktail 2010
The Dutch Chamber of Commerce in Hong Kong and de Nederlandse Vereniging Hong Kong hosted our Christmas Cocktail 2010. The party                  w Munch at LC International on 17.2.2011
at Grappa’s cellar was enjoyed by around 100 people. Mr. Rene Theil, Board member of the Dutch Chamber, held a speech and spoke about               Thursday 17 February 2011, 12:30-14:00
the highlights of 2010, followed by loud applause. Moreover, everyone enjoyed the free flow of drinks for 3 hours and the ‘oliebollen’ by Mr.       Suite 5702, 57/F, Cheung Kong Center,
Pieter Onderwater, Orange Tree. The party was attended by Mr. Robert Schuddeboom Consul-General and Mr. Andre Verkade, Deputy                       2 Queen’s Road Central
Consul-General of the Kingdom of the Netherlands as well.
                                                                                                                                                  Hosted by Mr. Marco van Leersum

                                                                                                                                                  In order to get prepared for February’s MUNCH, DutchCham caught up with Mr. van Leersum to get his perspective on the event.

                                                                                                                                                  1. How long have you been a member of the Chamber and what do you plan to showcase during the MUNCH and how will this
                                                                                                                                                     be of interest to the attendees?
                                                                                                                                                  I have been member of the chamber for 5 years. I will promote our products and service during the MUNCH, and inform every-
                                                                                                                                                  one about the development of sourcing and manufacturing of our products. We are working together with many chain stores in
                                                                                                                                                  Europe.

                                                                                                                                                  2. Have you attended the MUNCH events through the Chamber previously? Why do you think they are successful?
  Wednesday, 8 December, 19:00-22:00PM, Grappa’s Cellar, Jardine House, 1 Connaught Place, Central                                                Though I have not attended a MUNCH until now, I am convinced the event will be successful, and I am always in for a new chal-
                                                                                                                                                  lenge.

                                                                                                                                                  3. What are your expectations for the event?
Randstad on the MUNCH move                                                                                                                        I expect to make contact with more people in Hong Kong, and share both of our experiences gained from working with Chinese
Today, more than ever, organizations want to recruit the right person, first time. Not just the right candidate on paper, but the right fit for   factories.
their organization. In Randstad’s philosophy, this true talent - and everything they do- is dedicated to delivering it. The MUNCH included 20
participants. Mr. Bas Fransen of the SME committee opened the MUNCH, followed by a presentation of Mrs. Roop Kaistha and an interac-              4. Finally, do you have any operations in the Pearl River Delta or thoughts on the future of the region?
tive session. The lunch was provided courtesy of Randstad.                                                                                        If I need to think for the Pearl River Delta with our own products, than I expect that most factories will move away, as the labour
                                                                                                                                                  market is getting tougher and tougher. Also the operations costs are getting too high, especially compared to other areas in China.
                                                                                                                                                  We work together with many small factories in the Pearl River delta, mostly in Dongguan and Huizhou.




                                                                                                                                                  Upcoming events in March / April
                                                                                                                                                  w Business Awards Gala Dinner 2011
                                                                                                                                                    Friday 18 March 2011, evening at Shek O Country Club
  Thursday 18 November, 12:30-14:00PM, The Foreign Correspondents’ Club, 2 Lower Albert Road, Central                                               Awards can be won in the following categories:
                                                                                                                                                    - DutchCham Pioneer Award (MNC) 2011
                                                                                                                                                    - DutchCham Pioneer Award (SME) 2011
                                                                                                                                                    - DutchCham Outstanding Executive 2011
                                                                                                                                                    - DutchCham Pioneer Exporter 2011

  Mark these Chamber events in your diary                                                                                                         w Queen's Day Reception by the Consul-General
                                                                                                                                                    Saturday 30 April 2011, details to be confirmed
  w MUNCH at Intivation
     Thursday 13 January 2011, 12:30-14:00PM
     12/F, BLINK, 111 Bonham Strand, Sheung Wan, Hong Kong                                                                                        w National Memorial Day by the Consul-General
                                                                                                                                                    Wednesday, 4 May 2011, detail to be confirmed
  Mr. Frans Biegstraaten, VP Asia Pacific Region will host the first MUNCH of the year. Mobilizing the sun, Intivation helps handset
  manufacturers and network operators bring mobile communications to 1.6 billion power challenged and environmentally aware
  users. Intivation is the leader in the development of solar powered mobile phones, chargers and battery packs. Registration for the
  MUNCH is free of charge, the lunch is sponsored by Intivation.

  w New Year's reception by the Consul-General
     Thursday 13 January 2011, 18:00-21:00PM
     Residence of the Consul General,
     24 Mount Cameron Road, The Peak

  w 45th InterCham Young Professional Valentine's Cocktail
     Tuesday 15 February 2011, 18:30-21:30PM,
     venue to be confirmed

32                                                                                                                                                                                                                                                                                      33
Enquiries & Information                                                                                                                                                        Enquiries & Information

                                                                                    Trade Show Calendar                                                                              Trade enquiries
                                                                                    IN THE NETHERLANDS                                 IN HONG KONG / CHINA                         These trade enquiries were
                                                                                                                                                                                    received by the Economic
                                                                                    Huishoudbeurs 2011                                 Hong Kong Education & Careers Expo           Section of the Consulate-General
                                                                                                                                                                                    of the Netherlands in Hong Kong.
                                                                                    Location: Amsterdam RAI                            Location: HKCEC
                                                                                                                                                                                    Interested parties may approach
                                                                                    Date: 12-20 February 2011                          Date: 17-20 February 2011                    the companies directly or
                                                                                    Exhibit: Trade fair for ladies                     Organiser: HKTDC                             contact Betty Liu, the Consulate’s
                                                                                    Organier: Amsterdam RAI                            Email: exhibitions@hktdc.org                 trade officer,
                                                                                                                                                                                    on (852) 2868 0690, by fax to
                                                                                    Email: exhibitorservices@rai.nl                    Website: www.hktdc.com.hk/hkeducationexpo    (852) 2868 5388 or via email
                                                                                    Website: www.huishoudbeurs.nl                                                                   economic.section@netherlands-
                                                                                                                                                                                    cg.org.hk
                                                                                                                                       Hong Kong International Jewellery Show
                                                                                    Fiets en Wandelbeurs                               Location: HKCEC                              Dutch Exporters wanted
                                                                                    Location: Hall 9, 10 & 11, Amsterdam Rai           Date: 4-8 March 2011
                   On Friday 18 March 2011, the Dutch Chamber of Commerce in                                                                                                        Chrome, titanium and
                                                                                    Date: 26-27 February 2011                          Organiser: HKTDC                             molybdenum ore
                   Hong Kong will celebrate their 20th anniversary by hosting the                                                                                                   • Silk Road International
                                                                                    Exhibits: Cycling and rambling fair for holiday    Email: exhibitions@hktdc.org
                   Business Awards Gala Dinner                                                                                                                                        (HK) Ltd.
                                                                                    and recreation                                     Website: www.hktdc.com/hkjewelleryshow       • 21st floor Tern Centre,
                                                                                    Organiser: Holcus Buiten bv                                                                       Tower One, 237 -251
                   Awards can be won in the following categories:                                                                                                                     Queen’s Road Central
                                                                                    Email: info@fietsenwandelbeurs.nl
                   ★ DutchCham Pioneer Award (MNC) 2011                                                                                Hong Kong International Film & TV market       Hong Kong
                                                                                    Website: www.fietsenwandelbeurs.nl                                                                Phone: 852 2541 1289
                   ★ DutchCham Pioneer Award (SME) 2011                                                                                (Filmart)
                                                                                                                                                                                      trading@silkrd.net
                   ★ DutchCham Outstanding Executive 2011                                                                              Location: HKCEC                              • Contact: Mr Nixon M Juan
                   ★ DutchCham Pioneer Exporter 2011                                Amsterdam Boat Show 2011                           Date: 21-24 March 2011
                                                                                    Location: Hall 1 to 7, Amsterdam Rai               Organiser: HKTDC
                                                                                                                                                                                    Dutch Importers wanted
                                                                                    Date: 1-6 March 2011                               Email: filmart@hktdc.org
                                                                                                                                                                                    Knitted garments
                                                                                    Organiser: Amsterdam Rai                           website: www.hkfilmart.com                   and accessories
                                                                                    Email: l.jansen@hiswa.nl                                                                        • Entry Company Ltd.
                                                                                                                                                                                    • Phone: 852 2485 5777
                                                                                    Website: www.hiswa.nl                                                                             estellaleung@entryhk.com
                                                                                                                                       Hong Kong Electronics Fair
                                                                                                                                                                                    • Contact: Ms Estella Leung
                                                                                                                                       Location: HKCEC
                                                                                    Safety Security Amsterdam 2011                     Date: 13-16 April 2011
                                                                                    Location: Hall 10-11, Amsterdam Rai                Organiser: HKTDC                             Hong Kong
                                                                                                                                                                                    Exporters wanted
                                                                                    Date: 15-17 March 2011                             Email: exhibitions@hktdc.org
                                                                                                                                                                                    Party clothes
                                                                                    Exhibit: Latest innovations on security and fire   Website: www.hktdc.com/hkelectronicsfairse
                                                                                                                                                                                    • J.G. Import & Trading
                                                                                    safety                                                                                          • mail@machielpost.nl
                                                                                    Organiser: Amsterdam Rai                                                                        • Contact: Ms Jojanneke
                                                                                                                                       Hong Kong International Home Textiles Fair     Gnodde
                                                                                    Email: ssa@rai.nl
                                                                                                                                       Location: HKCEC
                                                                                    Website: www.safetusecurityamsterdam.nl                                                         Gemstone or Pearls
                                                                                                                                       Date: 20-23 April 2011                       • Mary Edelsteenstrengen
                                                                                                                                       Organiser: HKTDC                               Kralen
                                                                                                                                                                                    • info@maryedelsteensierade-
                                                                                    Gastech 2011 Conference & Exhibition               Email: exhibitions@hktdc.org
                                                                                                                                                                                      nenkralen.nl
                                                                                    Location: Hall 1 till 7, Amsterdam Rai             Website: www.hktdc.com/hkhometextilesfair    • Contact: Ms Mary
                                                                                    Date: 21-24 March 2011                                                                            Edelsteensieraden
                                                                                    Exhibit: Gas industry
                                                                                                                                       Hong Kong Gifts and Premium Fair
                                                                                    Organiser: Amsterdam Rai
                                                                                                                                       Location: HKCEC
                                                                                    Email: info@gastech.co.uk
                                                                                                                                       Date: 20-23 April 2011
                                                                                    Website: www.gastech.co.uk
                                                                                                                                       Organiser: HKTDC
                                                                                                                                       Email: exhibitions@hktdc.org
                                                                                                                                       Website: www.hktdc.com/hkgiftspremiumfair



34                                                                                                                                                                                                                 35
DutchCham Information

                     Our Services                                               DutchCham Committees
                     The Dutch Chamber of
                     Commerce in Hong Kong offers        PR AND PUBLICATION COMMITTEE
                     advice and assistance to its        • Lodewijk Lamaison van den Berg (Chairman)
                     members. Areas where we can         • Brandi Goode (Editor)
                     help include:                       • Faith Fung


                     • Providing organising and          BUSINESS ACTIVITIES COMMITTEE
                       networking facilities;            •   Marita Rouhof (Chairman)
                                                         •   Rudolf Hollander
                     • Planning programmes               •   Erik Leenders
                       for student groups                •   Peter de Vries
                       and overseas delegations;         •   Eelco Modderman
       To promote                                        •   Faith Fung

      a networking   • Providing updated information
                       on legal systems;
                                                         MEMBERSHIP COMMITTEE
and information
                     • Preparing specific promotions     •   Tom Voûte (Chairman)
platform for           or organising tailor-made
                                                         •   Eduard Wehry
                                                         •   Job van der Noord
business relations     seminars;
                                                         •   Matthew Hoyle
                                                         •   Christiaan Kaptein
between the          • Providing updated information     •   Jacqueline Baud
                       about financial systems;
Netherlands,                                             CHINA COMMITTEE
Hong Kong,           • Using our members' know how;      •   Vincent Homrighausen (Chairman)
                                                         •   Theo Bosma
China and the        • Invitations to annual functions   •   Connie Leung
                       such as the Dutch Business        •   Harold van Kooten
Asia-Pacific           Awards Gala Dinner and the
                                                         •   Jorg van den Hoven
                                                         •   Togi Gouw
                       China Seminar; and
region.                                                  •   Jacqueline Baud
                                                         •   Faith Fung
                     • Providing useful information
                       on our website.                   SME COMMITTEE

                                                         •   René Theil (Chairman)
                     Membership                          •   Bas Fransen
                                                         •   Hans Pompen
                     and annual fees                     •   Mechteld van Koeverden Brouwer
                                                         •   Tom Uiterwaal
                     • Gold Member                       •   Jacqueline Baud
                       HK$ 17,050
                     • Corporate Member                  TAX COMMITTEE
                       HK$ 7,150                         •   Sytske Kimman (Chairman)
                     • SME Member                        •   Jennifer Chan
                                                         •   Eric Kampman
                       HK$ 2,500                         •   Pieter de Ridder
                     • Associate Member                  •   Willem Hoogland
                                                         •   Alexander de Nerée tot Babberich
                       HK$ 2,500
                                                         •   Jacqueline Baud
                     • Young Professional                •   Diederik Werdmolder
                       HK$ 1,375
                     • Overseas Member
                                                         BUSINESS AWARD OF THE YEAR COMMITTEE
                       HK$ 2,200                         • Diederik Werdmölder (Chairman)
                                                         • Erik Leenders
                     NO JOINING FEE                      • Jennifer Chan
                                                         • Hidde Baars
                                                         • Jacqueline Baud
                     GOLD, SME & CORPORATE               • Faith Fung
                     MEMBERS ENJOY VOTING                • Bram Eijsbouts
                                                         • Frank Teegelaar
                     RIGHTS

36

				
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