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曾育发 ( Chen Yoke Fatt) 杨志强 ( Yeo Zhiqiang) 陈家伟 (Robin Tan Kah Wee) 黄培炜 (Edwin, Ng Puay Wei) 陈昌财 (Alex, Chen Changcai). SMEs in SuNan region: Good experience to be learnt 苏南地区的中小型企业:发展的路程与经验. Theme Rationale Report Structure Preliminary Findings
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曾育发 ( Chen Yoke Fatt) 杨志强 (Yeo Zhiqiang) 陈家伟 (Robin Tan Kah Wee) 黄培炜 (Edwin, Ng Puay Wei) 陈昌财 (Alex, Chen Changcai) SMEs in SuNan region: Good experience to be learnt苏南地区的中小型企业:发展的路程与经验
Theme Rationale • Report Structure • Preliminary Findings • Introduction and Background of Jiangsu Province, Sunan • The Sunan Model • Traits of TVEs in Sunan • Definition of SME • Case Studies of Companies • Key Lessons to be learnt • What local SMEs can learn from SMEs in Sunan • Questionaire Content
Investigate how enterprises in Sunan region have contributed to the affluence of the southern Jiangsu province Opportunity to visit places in Sunan region to further improve on research Sunan model Scope is amply defined Theme rationale - “SMEs in Sunan Region: Good Experience to be learnt”
Introduction and Background of Jiangsu Province, Sunan • The Sunan Model • Traits of TVEs in Sunan • Definition of SME • Case Studies of TVE and other companies • Key Lessons to be learnt • What local SMEs can learn from SMEs in Sunan • Conclusion Report structure
Case study focus on Wuxi and Suzhou No clear cut definition of SME in China Research constraints
Geographical Description • Generally flat and low-lying • Plains covering 68 percent • Well-developed irrigation system [水乡]
Weather Humid and subtropical/humid climate zones -2 to 4°C in January and 26 to 30°C in July Frequent rain between spring and summer Average rainfall 800 to 1200 mm, mostly in summer
Main Cities in SuNan Map of Jiangsu Province
Nanjing • Key Industries: • Automobile industries • Electronic • Petro Chemical • - Textile
Changzhou Key Industries: - Engineering - Food Processing - Steel processing - Textile industry (1920)
Suzhou • Key Industries: • - Chemicals • Computer • Light machine • - Metal • - Silk
Wuxi Key Industries: - Electronics - Machinery - Petrol Chemical - Textile
Zhenjiang Key Industries - Domestic commerce. - Food Processing - Paper making
GDP 1593.10 RMB Bil (2007) 6.19% of China’s GDP (2007) CAGR of 14.72%
Collective ownership of Township and Village Enterprise (TVEs) Dominant role of local government and party cadres in rural industrialization Priority assets of local economy and main revenue generator Sunan Model
Sunan Model • Township and Village Enterprise (TVEs) • formerly named as “Commune and Brigade Enterprise” • surged during economic reforms in late 1970s • collectively owned by local residents in the rural areas • rights of ownership exercised by the town and village governments (TVG)
Government Support — Favorable policies that support TVEs Management — Separation of ownership and management Resource — high population density Industry — developed industry tradition Development strategy — pioneers for adopting the market economy Common features/traits of TVEs
Began to outdo state-owned players in early 1990s. In 1994, rural enterprises accounted for 44% of China’s industrial gross output, while the contribution of state-owned firms dropped to a record low of 34% (calculated from ZTN 1995). Leading driver of growth Success of Sunan Model
Economic growth tapered off Rural firm output and profit dwindled Declining growth rate Pressure to privatization of TVEs Sunan Model ended in 2003 Downfall of Su Nan Model
Total Industrial Output (billions) of TVEs (Suzhou) Annual Growth Rate : -31% Annual Growth Rate : 49%
Private Limited (Non state-owned) No regional head office Definition of SME
2 non-Chinese firms 1 Township-Village-Enterprise CASE Studies
opened in July 1995, • facility of 58,000 square meters and workforce of 9,000 • underwent a major expansion in 2002 • earned the distinction of top foreign company by export value in the Jiangsu Province • enjoys strong support from the local government Seagate Technology International (Wuxi) Co. Ltd (希捷国际科技(无锡)有限公司)
formerly known as Amtek Engineering Pte Ltd • company was founded in 1970 • designs, manufactures, and assembles metal, plastics, and rubber components • serves various industries: • automotive, • computer and computer peripherals, • consumer electronics, electrical, • mass storage, • telecommunications Amtek (Suzhou) Precision Engineering Ltd (安特(苏州)精密机械有限公司
Richest township-village enterprise in China • Also known as Jiangsu Huaxi Group Corp (江苏华西集团公司) • Listed in 1999 at Shenzhen Stock Market • Now employs 25000 persons, over 2000 of whom are middle and senior engineering technicians. • Most subsidiary companies of the Group have imported advanced production facilities from abroad • Companies are mostly in steel, metal and textile industries An example of a tve - Huaxi village
To be consolidated after the BSM trip Key lessons to be learnt
Innovation from the smallest unit Seize the opportunity Play to your strength Take advantage of local government’s support which Singapore’s government have What Singapore SMEs can learn from Sunan
请问您觉得苏洲会在哪方面能超越上海? • 贵公司为什么会选择在中国发展? • 请问贵公司在进军国际市场上有什么策略? • 如今中国的市场已近越来越蓬勃了,贵公司要怎么样打算在这市场上竟争? • 在您的看法,贵公司能够运用中小型企业所得来的经验来面对将来大公司的挑战? Questionaire