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Opportunities in 2 nd and 3 rd tier Cities Netherland Business Support Offices Bas Ovetooom Chief Representative of th

Opportunities in 2 nd and 3 rd tier Cities Netherland Business Support Offices Bas Ovetooom Chief Representative of the NBSO in Dalian. May, 2014. Living in the city . The Economist 26 April 2014. Upcomings regions. WHY – 2 nd TIER Focus of Urbanization - Lower costs

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Opportunities in 2 nd and 3 rd tier Cities Netherland Business Support Offices Bas Ovetooom Chief Representative of th

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  1. Opportunities in 2nd and 3rd tier Cities Netherland Business Support Offices Bas Ovetooom Chief Representative of the NBSO in Dalian May, 2014

  2. Living in the city The Economist 26 April 2014

  3. Upcomings regions • WHY – 2nd TIER • Focus of Urbanization - Lower costs • Less competition • Different needs • Fastest growth Source: Economist Intelligent Unit

  4. China’s new ‘hubs’ *Logistic hubs* Knowledge hubs* Retail hubs (middle-class) * Different timing / stages of development* Overall challenges: Transportation, Education,Pollution & Healthcare

  5. Pro’s and Con’s – 2nd tier vs 1st tier

  6. Pro’s and Con’s – 2nd tier vs 1st tier WHERE IS YOUR MARKET

  7. China – Netherlands Business Support Offices • NBSOs • Hands-on support in new areas • Part of Embassy network • Local government contacts • Local business network • Market knowledge • Language & culture expertise • Location NBSOs in China • Chengdu, Sichuan (8th pos GDP) • Dalian, Liaoning (7th pos GDP) • Jinan, Shandong (3rd pos GDP) • Nanjing, Jiangsu (2nd pos GDP) • Qingdao, Shandong (3rd pos GDP) • Wuhan, Hubei (9th pos GDP)

  8. Heilongjiang Population: 38 mGDP : Eur 158b Harbin Jilin 250km Population: 27 mGDP : Eur 138b Changchun 300km Liaoning Population: 44 mGDP : Eur 287b Shenyang 400km Dalian Liaoning – the North East • The old industrial base • Revitalization of the North-East program (2003) • Sectors • Equipment manufacturing / heavy industry • Shipping building • Mining • IT Outsourcing • Agri-food • Luxury market (Shenyang & Dalian) • Automotive • Petro-chemical • Current developments • High-speed train • Airport developments • 5 points-one-line program • Shenyang bigger metropolitan area

  9. Manufacturing – new trends in this sector • Focus on development High tech • Up the value chain • Environmental issues start to play a stronger role • Strong increase labor costs- Growing automation in manufacturing processes - More focus on the domestic market • More international collaborations- Collaboration/ownership European R&D • ‘Branding’ is becoming more important (slowly) China PMI 2012-2014 Source: Markit Economics Source: Economist Intelligent Unit

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