1. Chamber Visits Kazakhstan & Russia
Members explore new opportunities in two rapidly developing economies, writes Faith Fung
ussia and Kazakhstan are two
rapidly developing economies
that have, despite the global
financial crisis, managed to maintain
healthy growth. To find out what busi-
ness opportunities are available in these
new markets, the Chamber organized
a mission to Almaty, the business dis-
trict of Kazakhstan, and Russia's capital,
Moscow, from May 19-25.
The pace of growth in the Russian
economy, part of the once fast-moving
BRICS bloc of developing countries, hit
4.9o/o in first three months of 2012. Chi-
na's Ambassador to Russia Li Hui (pr,oto r)
said during a meeting with the Cham-
ber delegation, led by Europe Commit-
tee Chairman Neville Shrofl in Moscow
that Hong Kong's total exports to Rus-
sia soared 30o/o to US$778 million in the
first five months of 2012, on the back of
a healthy growth of 180/o in 2011.
Although, trade between China and
Russia is strong, Li said there is still a lot
of room for improvement, as both coun-
tries understand each other's markets
very well. He believes that internation-
alization and liberalization of Russian
industries will improve the economy,
and cited Russia's accession to the WTO
as its l56th member in August last year
as a good example.
Special Economic Zone
During members' meeting with Mos-
cow City Government, Mikhail An lptoto s;,
First Deputy Director Department of Sci-
ence, Industrial Policy and Entrepreneur-
ship, highlighted incentives offered to for-
eign companies setting up a business in
Moscow. He said the Russian government
is very business focused and sees huge
potential in the high-tech, biotech and
pharmaceutical sectors. With a popula-
tion of over 140 million people in Russia
it has a large consumer market. He said i:
is also easy to set up a company in Mos-
cow, and a SME Centre and Ombudsman
provide support to businesses.
To encourage investment, the gor-
ernment has created Special Economic
Zones including the Kaluga Region.
located in the heart ofthe European part
of Russia and famous for its attractive
investment climate. To date, the Kaluga
Region has received US$6.2 billion
in foreign direct investment. Its main
investment focuses are on agro-indus-
trial, automotive, transport and logis-
tics, pharmaceutical, IT and tourism and
recreation.
The delegation also visited Volkswa-
gen's factory (photo 3), where 24o/o of the
production process is automated.
Mission leader Shroff said the devel-
opment of the special economic zones
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around Moscow, supported by invest-
ment incentives, have created a busi-
ness-friendly environment that offers
great potential.
Asia Business Forum
While in Moscow, delegates had the
opportunity to attend the Asia Business
Forum 2013 lprroto z). Neville Shroff and
Sergio Men spoke on business opportu-
nities in Hong Kong for Russian compa-
nies to around 200 Russian businesspeo-
ple, including representatives from major
companies, who attended the forum.
During delegates meeting with Sber-
bank, the largest bank in Russia and The
Commonwealth of Independent States
(CIS), Elena Kudryashova, International
Communications Director, explained
that Sberbank has changed tremen-
dously with the merger with Tioika
Dialog, CIS' oldest and largest private
investment bank. The rebranded bank
has a more international outlook.
4adimir Padalko (photo +), Director
International Cooperation Department of
the Chamber of Commerce and Indus-
try of the Russian Federation (CCI RF),
said Russia-Hong Kong trade relations
are very strong. He said Cathay pacific
is one of CCI RF's largest members, and
recently held an exhibition of Faberge
eggs - 'Legacy of Imperial Russia in
Hong Kong.'
Ivan V Polyakov, Chairman of the
Russia-Hong Kong Business Association,
joined the meeting as well and suggested
signing a Memorandum of Understand-
ing with HKGCC during their next visit
in Hong Kong to expand cooperation.
Kazakhstan
Prior to arriving in Moscow, the del-
egation explored Almaty (photo o), the
business district of Kazakhstan, as part
of a joint mission with the Hong Kong
Tiade Development Council. Mem-
bers learned about business oppor-
tunities in Kazakhstan at the Almaty
Networking Seminar, at which Grigori
Marchenko (photo 7), Governor of the
National Bank of Kazakhstan, spoke
on the advantages of doing business in
Almaty.
Mission deputy leader ]ennifer Chan
said it was a very productive mission,
as members made useful contacts with
organizations and businesses, as well as
business matching sessions and at the
Chamber's networking cocktail. (photo s)
Shroff added that missions are
extremely beneficial in giving mem-
bers a unique, firsthand insight into
opportunities in emerging markets
which they would not normally
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