Strengthening BKPM’s FDI Attraction Strategy › wp-content › uploads › 2018-05-09... · 2018-07-20 · 3 Over 75 FDI consultants with lead generation teams in Austria, Canada,

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TPSA program is executed by

Data ¦ Technology ¦ Consulting

Strengthening BKPM’s FDI Attraction Strategy

Results of BKPM Workshop and Key Discussions Points

Workshop facilitated by:

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http://www.incentivesmonitor.com

http://www.fdiprofessionals.com

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W A V T E Q

OPENING REMARKS

“About WAVTEQ”

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Over 75 FDI consultants with lead generation teams in Austria, Canada, China, Germany, Hong Kong, India, Ireland, Japan, Korea, Spain, UK & USA

o WAVTEQ was founded in 2010 and has built the largest FDI consulting team worldwide with the most extensive global presence

o WAVTEQ has established operations in the major source countries and is co-owner of International Investment Services GmbH (Europe) and Research Consultants International Inc. (North America).

We have helped over 1,000 companies establish over $50 billion of greenfield investments covering all industries and types of project, including manufacturing, logistics, HQs, and R&D

WAVTEQ develops the world’s leading corporate expansion intelligence and corporate location

benchmarking databases and CRM systems 100% designed for EDOs/IPAs

WAVTEQ is the technology and consulting partner of fDi Intelligence, Financial Times, with the USA, Canada, UK,

Asia, and Middle East Franchises

ABOUT US

WAVTEQ company overview

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ABOUT US

WAVTEQ – the leading developer of FDI products & tools

Unique database tracking cost & quality competitiveness of nearly 1,000 countries, states & cities

in 65+ sectors with nearly 1,000 data points on each location. Includes operating cost and SWOT

models. Excellent for quickly understanding a location’s competitive position and for developing

value propositions. Developed by WAVTEQ for the Financial Times www.fdibenchmark.com

Unique global database which has tracked over $1.4 trillion / 6 million+ jobs of incentivised

greenfield projects since 2010. Includes advanced analysis tools to compare incentives worldwide,

an Incentives Calculator, incentives policy information, company database, and decision maker

contacts in investing companies. Includes investment and incentives Mapping tool. www.incentivesmonitor.com

www.fdi365.comfdi365 is a customized global online business intelligence platform. Has tracked since 2017, 2,700 business expansion leads. A Research Consultants International FDI Inc.

World’s leading business expansion database, developed by WAVTEQ for the Financial Times. Tracks real

time companies announcing, opening & considering greenfield FDI worldwide – an indispensable tool for

attracting investment. Tracked over $12 trillion of greenfield projectswww.fdimarkets.com

www.fdiprofessionals.com

Unique global database of 25,000+ location advisors and influencers to get your location on the

Investor’s Map and build business networks globally. Use the Client Access feature to provides

investors with access to FDI Professionals to make their project happen in your location. Includes an

interactive GIS Advisors Map which can plug-in to your EDO/IPA website. CRM compatible

Unique software & data tool to track & measure inward investment successes, qualify projects,

measure the involvement of your EDO/IPA and the quality of FDI attracted. Measures organizational

performance and return on investment of IPAs/EDOs. Includes an Interactive GIS Investment Map.

Can be provided as an online location promotion tool through an API to a dedicated website to present

FDI Accounting data to the world (e.g. see www.dubaifdimonitor.com ). Licensed by Select USA, Dubai

FDI and other EDOs and IPAs .

www.fdiaccounting.com

World’s first CRM systems designed and created specifically for IPAs and EDOs. Very easy-to-use, cloud-based and with a very flexible structure designed to minimize customization costs. Ready to use for lead generation, investment facilitation and aftercare/BRE

http://www.fdibenchmark.com/

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http://www.dubaifdimonitor.com/

http://www.fdiaccounting.com/

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ABOUT US

Thought leadership in how to attract FDI

₊ WAVTEQ's team is at the forefront of knowledge on FDI, with over 100 FDI publications and training guides. WAVTEQ provides a free publication portal for FDI studies subscribed to by over 1,000 EDOs and IPAs. Our most recent publications are shown below

₊ These studies used extensively by IPAs and international organizations to inform their investment promotion strategies and training needs

Download our training guidelines and latest studieswww.wavteq.com/publications

http://www.wavteq.com/publications

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ABOUT US

Guidelines for Investor Enquiry Handling

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ABOUT US - Recent FDI consulting clients (2013 - 2018)

National and international organizations

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SESSION 1: WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)?

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1. Vision and mission statement

2. Strategic objectives

3. Benchmarking and image building

4. Sector and market strategies

5. Marketing and promotion

6. Product development: activities to improve the local investment climate

7. Budgets and resource allocation

8. Organization of resources: organizational diagram showing each department with functions and staff members and their responsibilities

9. Key performance indicators (KPI’s) for monitoring and evaluation

10.Action plan: short-term, medium-term and long-term actions required for each target and goal, outlining investment promotion tools and budgets

WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)?

Investment promotion strategy – 10 key components

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1. Why attract FDI / objectives in attracting FDI?

oCapital inflows, job creation, tax income, technology transfer

oBigger picture: how to maximize the benefits?

oGDP growth, exports

oRegional development

2. What type of FDI is BPKM is trying to attract?

oGreenfield, Brownfield, M&A (increasing mode so we need strategy)

3. How much FDI does BKPM want to attract?

o765 trillion – FDI and DDI- 60% FDI realization –commitment figures approx. 3x higher

o(2017 $30 billion)


Group brainstorm – BKPM’s FDI strategy

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The type of FDI to target depends on the desired benefits

o The type of FDI to target also depends on:+ The sectors in the economy (e.g. R&D and tech sectors are driven more M&A and

NFI/NEM types of FDI)+ The existence of local firms both suitable for, and which have a clear desire for,

engaging in M&A and/or NFI/NEM transactions with foreign investors + The capability of the IPA to promote and facilitate non-Greenfield types of FDI


Economic development benefits by type of FDI

Type of FDI

Job creation

Fixedcapital

formationTechnology

Access to export

markets

FX earnings

Long term finance

Greenfield FDI

High High High High High High

M&A Low Low Low High High Medium

NFI/NEM Medium Medium High High Low Low

Source: WAVTEQ

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KEY PERFORMANCE INDICATORS

IPA performance – example targets to monitor

Source: ESCAP (2017)

Example key performance indicators for an IPA

It is expected that IPAs will increasingly target FDI to achieve the UN Sustainable Development Goals (SDGs) relevant for their location

“The quality of inward FDI is more important than its quantity. FDI quality cannot be assessed simply by looking at aggregate FDI statistics”

Columbia FDI Perspectives, Perspectives on topical foreign direct investment issues, No. 184 (October 10, 2016)

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SESSION 2: WHAT SECTORS SHOULD BKPM TARGET FOR FDI?

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WHAT SECTORS SHOULD BKPM TARGET FOR FDI?

Framework for identifying target sectors

TARGET SECTORS

1. Economic development

objectives

2. Competitive position

3. Market demand

WAVTEQ Three Force Model of target sector identification www.wavteq.com/publications

http://www.wavteq.com/publications

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Sectors where Indonesia has a RCA>1 for FDI projects (2014-March 2018)

Beverages 2.71

Coal, Oil and Natural Gas 2.29

Hotels & Tourism 2.24

Ceramics & Glass 2.12

Metals 1.82

Warehousing & Storage 1.72

Wood Products 1.56

Building & Construction Materials1.52

Food & Tobacco 1.40

Consumer Products 1.38

Consumer Electronics 1.31

Chemicals 1.30

Automotive Components 1.29

Renewable energy 1.28

Healthcare 1.23

Non-Auto Transport OEM 1.21

Automotive OEM 1.21

Minerals 1.13

Real Estate 1.04

Space & Defence 1.02

Business Machines & Equipment 1.00

Communications 1.00

Transportation 0.94

Plastics 0.91

Indust. Mach, Equip & Tools 0.88

Pharmaceuticals 0.87

Electronic Components 0.83

Rubber 0.82

Software & IT services 0.81

Leisure & Entertainment 0.81

Aerospace 0.70

Business Services 0.64

Financial Services 0.58

Textiles 0.55

Medical Devices 0.43

Biotechnology 0.41

Semiconductors 0.25

Paper, Printing & Packaging 0.23

Engines & Turbines 0.00

Source: WAVTEQ based on fDi Markets data

Indonesia has a RCA mainly in low-technology and a few medium tech sectors – not in high tech sectors

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What should be the key sectors (and subsectors) to target for FDI into Indonesia?1. Infrastructure – energy, mining, transportation, electricity – conventional

and renewables especially solar (all priority ED objectives)

2. Manufacturing – food (exports), industrial machinery, heavy industry (value added), textiles (jobs), pharma and chemicals (import substitution, lower costs for other sectors, high tech), electronics, automotive (capital investment, jobs, exports, local linkage)

3. Maritime – cold storage, fish processing, harbor, ship and boat building

4. Agriculture – cattle, livestock (food security)

5. Tourism – hotels, restaurants, travel agents, SEZs (priority ED objectives)

6. Lifestyle/Digital – e-commerce, software development, retail, film, creative industries

7. Services – financial, professional (increases competitiveness of all sectors, knowledge-transfer, high income – but min. FDI threshold too high perhaps!), and education


Group brainstorm – what sectors to target for FDI?

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Indonesia’s competitive sectors for FDI – Chemicals

Source: Developed by WAVTEQ for TPSA project

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Indonesia’s competitive sectors for FDI – Machinery


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Indonesia’s competitive sectors for FDI – IT


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Indonesia’s competitive sectors for FDI – Technical services


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SESSION 3: WHAT COUNTRIES SHOULD BKPM TARGET FOR FDI?

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WHICH COUNTRIES SHOULD BKPM TARGET FOR FDI?

Framework for identifying target countries for FDI

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1. Is the country a major investor in your target

sectors?

2. Does the country have a track record of FDI in your

country/region?

3. What are the “distance” costs – geographic & cultural

proximity?

4. What is the size, growth and type of FDI from the

country?

Target countries

Source: WAVTEQ

Framework for identifying target countries for FDI

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WHAT COUNTRIES SHOULD BKPM TARGET FOR FDI?

$m greenfield FDI by source country globally (2014-March 2018)

Source Countries Un

ited

Stat

es

Ch

ina

Jap

an

Ger

man

y Fran

ce

UK

Sou

th

Ko

rea

Sin

gap

o

re Spai

n

Ital

y

UA

E

Can

ada

Swit

zerl

and

Ho

ng

Ko

ng

Taiw

an

Ru

ssia

Net

her

la

nd

s

Ind

ia

Mal

aysi

a

Thai

lan

d

Luxe

mb

ou

rg

Au

stra

li

a Den

mar

k Sau

di

Ara

bia

Real Estate 41980 82258 40281 5711 4846 12511 4098 48198 743 625 41460 8885 217 18156 4530 1 3644 8446 15215 13322 25576 22055 226 7859

Coal, Oil and Natural Gas 65919 42268 29705 5538 30751 16213 11213 7638 7739 17948 9488 3295 3710 4607 50 47833 8286 9157 9962 8620 1056 4896 13568

Alternative/Renewable energy26038 27242 8731 17733 18228 11446 11197 4976 19510 24385 2168 16912 1716 1580 2787 449 2550 6099 4033 8046 1628 689 7999 2942

Communications 72119 15420 6402 2403 6791 14279 4542 5605 13111 2075 1013 1887 719 2295 3052 1158 4369 1175 987 53 3900 1900 173 482

Automotive OEM 22688 16241 22570 37998 10548 4759 10396 127 542 2570 180 667 7 2157 1982 1504 66 4782 2634 7 95 3 1 13

Chemicals 21033 11562 8616 12097 8661 1811 8056 1636 445 401 1382 3061 9015 1844 1835 646 6051 2178 2000 603 567 590 3285 11129

Metals 9177 28812 11815 4357 1303 16418 7456 830 2962 2939 437 12989 2073 1046 1650 391 1683 2913 250 11 4905 1299 124 48

Food & Tobacco 20251 7268 5227 18827 9515 3649 1625 1200 1636 1595 2815 1810 7552 1653 816 520 2842 508 1721 2988 154 450 2055 754

Textiles 16236 5775 5019 6517 16209 7691 3667 2014 8698 16314 422 3305 1756 2512 2832 115 1321 1586 45 99 311 1641 1555 108

Financial Services 19514 4528 5828 4238 5225 12612 3592 2727 3469 1996 7157 3820 5852 3163 3614 2049 1684 1430 1134 839 867 2499 486 436

Consumer Products 25318 1952 4089 5117 15177 5137 4660 590 4919 4413 1156 856 8525 1804 706 140 4437 1419 829 411 1422 1842 5897 182

Transportation 17143 8398 5387 21591 5353 8237 856 1121 1721 1120 2259 3537 3846 1394 864 3993 3634 922 767 629 586 297 3706 212

Software & IT services 52415 2275 2694 6524 6632 8445 446 1231 997 622 533 3687 1788 669 479 1154 2202 4860 82 24 157 1671 713 22

Automotive Components 12285 4515 18085 22918 4638 2776 3897 56 1526 1273 47 3592 778 763 684 263 1979 69 112 701 232 1 15

Electronic Components 10974 6638 6183 5444 1429 4826 14439 485 490 517 36 1414 2276 2560 22709 17 1102 75 19 44 3 144 120

Hotels & Tourism 15088 2778 1998 1016 4208 4000 423 3301 9832 61 1713 1648 1354 5345 75 5 201 598 1205 2832 5 913 2 179

Business Services 15727 2029 2094 1955 3876 11729 914 988 3599 449 441 1010 1413 407 138 129 1505 2437 2553 133 456 1453 489 52

Warehousing & Storage 2858 5800 4138 4439 3085 1153 1019 1652 1199 31 5909 272 1653 3494 208 4354 423 743 173 221 147 4615 174

Industrial Machinery, Equipment & Tools8540 5234 7021 7598 1413 1783 796 174 711 1672 93 850 3978 342 1483 30 973 398 46 28 58 189 606 18

Semiconductors 13985 289 1566 4455 69 589 9239 48 3 8 65 690 2563 8513 512 6

Pharmaceuticals 8245 816 2058 3440 2610 3729 1817 33 509 239 495 991 2747 60 97 232 133 1777 16 62 581 1796 237

Plastics 4281 1556 6765 4087 609 662 2007 188 702 470 1399 393 971 1961 1178 87 523 1483 72 174 466 162 404 291

Building & Construction Materials2452 6720 354 1784 2930 597 345 350 1290 737 22 138 2691 28 608 3 123 120 1470 227 84 1038

Leisure & Entertainment 7437 1011 1354 40 2509 4087 627 663 609 376 323 3337 257 3 132 89 489 166 659 3 38

Rubber 2028 4553 4226 3224 1852 246 2355 588 163 1068 88 385 82 1010 107 119 1062 406 161 123 81 146

Aerospace 9553 638 518 1195 2959 2505 107 361 54 368 51 713 459 375 195 466 3371 408 20 106 200 54 5

Paper, Printing & Packaging 2252 5847 944 1368 112 787 4 9 637 1007 1 840 492 213 12 90 101 158 172 28 99 216

Beverages 6716 1127 88 388 1351 96 74 263 147 96 130 1089 114 4175 1914 8 67 125 134

Biotechnology 7413 611 746 2562 939 825 454 440 425 101 135 297 1267 94 96 83 199 11 1 701 293

Non-Automotive Transport OEM1278 1280 2241 2593 917 383 3876 39 103 185 700 453 3 746 24 153 377 172 10 15 64

Consumer Electronics 1645 1624 695 1617 79 748 4521 53 63 371 174 46 109 152 303 0 146 61 16 1 63

Ceramics & Glass 2198 1862 2680 1120 1052 109 329 228 891 68 85 67 504 469 18 26 16 3 7

Medical Devices 4819 308 1034 2701 112 491 62 127 66 68 73 276 12 218 7 840 116 127 85

Business Machines & Equipment4159 389 2008 192 100 293 78 1 124 15 5 60 995 1419 52 6 1 14 112

Wood Products 324 286 217 289 185 164 166 149 62 47 656 516 233 65 6 76 40 29 15 1

Minerals 748 149 83 221 377 593 3150 366 514 52 152 29 140 119 24 129 324

Healthcare 1852 125 577 254 209 309 90 1351 413 122 559 164 8 19 50 0 248 350 109 50 78 20 128

Engines & Turbines 1939 444 228 1357 134 288 70 22 180 20 26 20 5 127 46 822

Space & Defence 627 82 3 222 362 695 17 8 0 109 94 30 31 54 184 0

Total 559252 309581 225306 224826 176391 168926 119553 91536 90038 87086 82330 79889 70933 66478 65061 62130 61978 57665 46163 43183 42827 42326 42131 39025

Source: fDi Markets, FT

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Identifying key source countries in target sectors

Source Countries

Construction

Creative Industries

EnergyRenewable

Energy

Food, Beverages & Tobacco

ICT & Electronics

Life sciences

Physical Sciences

Professional &

Financial Services

TourismTransport Equipment

ALL SECTORS

United States 5 1 1 2 1 1 1 2 1 1 3 1

Germany 9 7 8 4 2 6 2 4 10 11 1 2

Japan 3 5 6 9 5 4 4 5 7 10 2 3

China 1 4 2 1 4 5 6 1 14 7 4 4

France 6 3 5 5 7 8 5 9 3 4 5 5

UK 7 2 4 7 3 7 3 3 2 3 7 6

Korea 11 11 14 12 10 3 13 7 12 14 6 7

Taiwan 13 14 16 11 16 2 15 16 16 15 10 8

Singapore 2 6 9 15 12 12 8 10 13 6 15 9

Switzerland 12 13 13 13 6 13 7 8 6 12 12 10

Spain 16 9 11 3 11 15 12 14 5 2 13 11

Italy 15 16 7 6 13 14 14 15 15 16 11 12

Hong Kong 8 15 15 10 14 10 16 11 11 8 14 13

Canada 10 8 3 8 8 11 11 6 8 9 9 14

India 14 10 12 14 15 9 9 12 4 13 8 15

UAE 4 12 10 16 9 16 10 13 9 5 16 16

Source: WAVTEQ based on fDi Markets data

Global rank of countries for outward FDI in different sectors (top 5 countries highlighted)

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What should be the key countries to target for FDI into Indonesia?

1. Japan (no. 1 votes by participants)

2. China and HK (no. 2)

3. US (no. 3)

4. South Korea

5. Singapore (a lot maybe by other foreign companies in Singapore)

6. Australia, UK, Germany, France, Canada in specific sectors


Group brainstorm – what countries to target for FDI?

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SESSION 4: WHAT’S NEW IN INVESTMENT PROMOTION?

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What activities does BKPM conduct to attract FDI?

1. Investment seminars with social media

2. Trade shows / exhibitions

3. 1:1 meetings

4. Networking events

5. Site visit programs

6. High level events

7. Regional investment forum

8. Advertising in international media

9. Social media accounts

10. Film about investing in Indonesia

11. Representative offices overseas

12. Video conference with potential investors

WHAT’S NEW IN INVESTMENT PROMOTION

Group brainstorm – BKPM FDI attraction activities?

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The changing IPA model

Traditional IPA model

▪ Remit for greenfield/expansion ▪ Property portfolio▪ Grants and incentives expertise▪ Project facilitation▪ Planning/permitting▪ Enquiry handling▪ Mass marketing at events and

advertising▪ Geographical focus of sales▪ Public sector/administrative skills▪ Tourism feel to marketing materials

New IPA model

▪ Remit for all forms of investment▪ Access to inventory of skills and

technologies in region▪ Relationships with clusters (science

parks, academics, companies)▪ Project and account management▪ Involvement of private sector experts

in sales process▪ Highly focused proactive marketing to

specific sub-sectors▪ Outsourced lead

generation/qualification▪ Key accounts/strategic companies▪ Business advisory skills▪ Customized business propositions for

investors

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Evolution of IPAs to broader functions & private sector practice

Cluster development

Government ‘proactive’

4th generation

SingaporeIreland

Czech Republic

Time

Private sector practices

Source: WAVTEQ

Investment Facilitation

1st generation

Indonesia?

Haiti

Vietnam

Proactive Targeting

3rd generation

Malaysia

Costa Rica Hong Kong

Thailand

US IPAs

Image building

Government ‘reactive’

2nd generation

Dubai

Chile

Turkey

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Best IPAs in the world

Best IPAs in the world

Source: DCI (2017a) survey based on 331 US –based corporate executives

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The challenge: How to promote and facilitate FDI at the local level?

o It is at the local level that land, property, skills, infrastructure, clusters and often incentives will be assessed by investors

o The local level is the level that supply-chain linkages, cluster development, and skills development takes place, as demonstrated by Michael Porter

o Most countries, except the smallest countries, have diverse economic regions with strengths in different sectors, with specific investment opportunities for investors, and often with different economic development objectives reflecting the economic and social situation of each region

o It is challenging, if not impossible in large countries, for a national IPA to have comprehensive and constantly updated information on every region and investment opportunity across the country


Global Affairs Canada – national-local coordination

The solution: The Invest Canada-Community Initiatives (ICCI) program

o Provides support to Canadian communities seeking to improve their capacity to attract, retain and expand FDI

o The key objectives are job creation, innovation, and exports.

o The program supports non-profit and public-private partnerships at the local community level

o The initiatives supported by the program must focus on supporting the attraction, retention, and expansion of FDI through specific types of activities

o Non-repayable contributions range from $3,000 to $300,000

o ICCI provides reimbursement of up to 50 percent of eligible expenses (the local IPA needs to co-fund the project)

o Since 2006, the program has supported over 416 municipalities and community organizations through 1253 projects valued at $42.2 million. In 2016, 87 organizations across Canada are receiving more than $3.7 million in funding from the Government of Canada

o The program prioritizes initiatives that focus on seven key target sectors and 23 target countries, to coordinate national and local investment promotion strategy

http://tradecommissioner.gc.ca/funding-financement/icci-icic/index.aspx?lang=eng

Source: WAVTEQ

http://tradecommissioner.gc.ca/funding-financement/icci-icic/index.aspx?lang=eng

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Case study – Czech Invest

o The IPA has won many awards including having the best IPA website in the world (World Bank) and winning multiple times best European IPA of the year.

o In total, Czech Invest has secured over 1,500 approved FDI projects creating nearly 250,000 new jobs and $34.5 billion of FDI from 1993-2015

o Czech Invest launched a pilot ‘Supplier Development Program’ in 1999 and merged with the SME agency in 2003, which created stronger capacity to improve the capability of SMEs to work with MNEs investing into the Czech Republic

o The Czech Invest Supplier Development Program used the North East of England as a best practice example of how to develop the program, and investment officers from the North East of England IPA were seconded into Czech Invest to help develop the program

o Czech Invest has an annual target for value of sourcing (supply chain) contracts facilitated

o Since 2001, Czech Invest has mediated supplier contracts worth $250 million

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Czech Invest – supplier development program

Supplier Development Program

o The Czech Republic has implemented a National Supplier Development Program

o The Government investment promotion agency, Czech Invest, has 13 staff reviewing the capability of local companies, raising their capability and then supporting their integration into the supply chains of multinational companies

o The program is modeled on the UK and Irish experience in the electronics and automotive sectors, and is supported by the European Union

o Focus on components & services in highest demand that can be supplied to a range of sectors (e.g. machined parts, packaging)

Implementation

o Aims to establish a “fast track” for selected Czech companies to gain approved supplier status and new business from the multi-national companies. Online database for multinational companies to find suppliers

o The supplier development program includes detailed consultancy, training and funding support in the utilization of technology, general management operations, certification, strategy and organizational change based on the European Foundation for Quality Excellence Model, and other methodologies including benchmarking suppliers against world-class performance standards to achieve continuous improvement

o The aim is to improve suppliers’ financial management, human resources management, production management, materials management & purchasing, and the impact of value engineering and quality engineering & control

Source: WAVTEQ

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The “FastStart” program

o Louisiana Economic Development (LED) developed a dedicated workforce training initiative called “FastStart” to support inward investors in Louisiana

o FastStart has been ranked as the best training program in the United States for seven years running by both The Economist and Business Facilities Magazine

o To date, FastStart has worked on 147 different projects in every region of the state. The services are offered at no cost to the company, and are part of the incentives package negotiated by LED

o To qualify for FastStart’s services, a company must first commit to creating a net of at least 15 new, permanent manufacturing jobs, or a net of at least 50 new, permanent service-related jobs

FastStart services for investorso Understand an inward investor’s skills and training needs: Training experts, with experience in the key

sectors being targeted, analyze the company’s current processes to understand the company’s operations and needs before they invest in Louisiana. A document is prepared outlining the analysis which would be signed-off by the investor

o Assist with recruitment: Following the company analysis, the skills & training team determines the employee competencies and behaviors that match the cultural and technical abilities needed by the company and provides comprehensive employee recruitment services

o Assist with pre-hiring: The skills & training team can assist with evaluation of candidates to help ensure the investor recruits the right staff

o Assist with training: The skills & training team can assist in delivering technical, team-based and soft-skills training programs custom designed, sequenced and delivered to engage new employees


Louisiana Economic Development (LED) – skills & training

34Source: WAVTEQ

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SESSION 5: DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN

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Overview of key business development

techniques

W A V T E Q

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Meetings with qualified investors

You will be meeting companies pre-qualified as having investment opportunities.

Note that the actual size and timing may only be revealed during the meeting

90%

Industry knowledge

By speaking with investors you can get good knowledge of the opportunities and

challenges facing the industries of companies you are meeting50%

Raising brand / location awareness & imageThis will only be for investors you meet face to face. But companies speak to

other companies so if you make a great impression it can be good promotion25%

PROS AND CONS OF OVERSEAS MISSIONS

Why conduct Road Shows?

Networking with a high number of investorsYou typically can meet 8-15 companies on a 1 week road show depending on

number of cities you are visiting, locations of investors, congestion & logistics etc.

Always focus on quality not quantity and always arrive to meetings early!

40%

Meeting decision makers for location expansion

You will be meeting senior decision makers at their HQ. Note that the level of

seniority may depend of the seniority of people you send to meet the company

95%

Source: WAVTEQ experience

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Developing a Road Show strategic plan

Source: WAVTEQ

Companies highly time

conscious with barriers to

entry. If you can get

meeting with decision

makers very good but often

they prefer to meet at

major trade shows instead

Middle East

Business is almost

always done face-to-

face and only after

many meetings and

lunches typically

China

Essential to meet

the full team at

the companies

office with

consensual

decision making

culture

USA

Always appreciated

by investors but

many decision

makers also happy

to do virtual

meetings

Japan

Japanese business

proverb: “you need

to sell your face

before your

product” . Virtual

meetings rarely take

place or work well

Germany

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Networking with a high number of investors

Attending major trade shows allows the EDO/IPA to meet with a high number of

investors – “walking the floor” can result in typically 20-50 investor conversations

90%


Typically 10-15 meeting should be setup in advance with pre-qualified investors.

The pool of investors is limited by which companies attend the show.

Furthermore, meetings are often very short – a bit like speed dating!

50%

Meeting decision makers for location expansionC-Level and President/SVP level executives generally do not attend trade shows.

In most trades shows the objective is to get a referral to the decision-maker25%


Why attend Trade Shows?

Raising brand / location awareness & imageHaving a booth at the show and related marketing and PR activities can raise the

profile of the location subject to: (1) high impact booth; (2) high profile participants

from the EDO/IPA; (3) excellent marketing. Typically big budget needed to stand out.

40%

Industry knowledge

Attending leading industry specific trade shows is a great way to keep up-to-date

with the latest industry trends

95%

Source: WAVTEQ experience

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Developing a Trade Show strategic plan

Source: WAVTEQ

Very effective as

Germany is leading hub

for trade shows and the

Germany economy is

decentralized with no

central business hub

Middle East

Major hubs attract

high number of

companies – good

for targeting FDI

from this diverse

region

China

C-level

executives often

attend. Generally

hard to setup

meetings pre-

show

USA

Vast number of

shows &

companies

attending.

Typically not

decision makers

Japan

Decision-makers

for FDI rarely

attend. Japanese

firms prefer 1:1

meetings/seminars

Germany

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Networking with a high number of investors

Great way to network with investors – and investors you have specifically

targeted to attend the seminar/event so should be the right companies

90%


You can often arrange meetings with investors around a seminar or event – either

during or after a big event on in the days after a smaller seminar but it is not as

effective as conducting direct visits to the company HQ

50%

Industry knowledge The seminar is more about your presenting the industry-specific opportunities in

your location but you should always invite your existing investors to speak at the

seminar and this can impart good industry knowledge

25%


Why organize Special Events?

Meeting decision makers for location expansionYou will invite senior decision makers to attend but who actually attends is not

guaranteed. Normally a mix of senior and middle management 40%

Raising brand / location awareness & image

Great way to raise the brand of your location in a specific market especially if

combined with PR and media interviews and you have high level speakers. Can be

an effective way to first enter a market as part of an FDI promotion strategy

95%

Source: WAVTEQ

Effectiveness

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Which countries are best for doing Events in?

Source: WAVTEQ

Highly effective for lead

generation and general

promotion of your

location. After work

events are generally best.

G2B meeting best at

company offices

China

Very effective.

Given volume of

companies, large

scale events

possible. G2B

meetings can be

done at events

UK

Can be effective,

especially

Roundtables and

Seminars but

note that drop-

out rates are

often high

USA

Can work well

especially in key

clusters (e.g. San

Fran). Typically

straight after work.

Logistics very

important so easy to

get to the venue

Germany

Generally not very

effective and hard

to get decision

makers to attend

Japan

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CASE STUDY – Three major FDI Events and B2B Meeting Program in China

Global Affairs Canada

Project SummaryWAVTEQ was awarded the contract to conduct the investor recruitment and meeting set-up for three events in China taking place in March 2017 in Beijing, Tianjin, and Qingdao.

Activities 1. WAVTEQ identified and targeted over 1,000 companies

including through social media 2. WAVTEQ organized in the full the meeting itinerary for

Chinese companies to meet with Canadian cities attending the conference (all the major cities in Canada) and Global Affairs Canada

3. WAVTEQ’s China team attended each event to facilitate on-the-ground meetings between city economic development organizations and Chinese investors

Results1. WAVTEQ secured 380 delegates (150 Beijing, 130 Tianjin,

and 120 Qingdao) – exceeding targets by 150%2. WAVTEQ also exceeded the target of 75 meetings to be setup

- in total 229 1:1 meetings were conducted3. Over one-quarter of all delegates, meetings and leads came

through social media channels4. Global Affairs Canada reported that 77 FDI prospects were

generated from the three events and B2B meetings5. This contract followed another successful contract WAVTEQ

delivered for Invest in Canada to recruit investors and set-up meetings for an FDI event in Beijing in 2013

“The seminars in all 3 stops were at or over capacity, hence far outreaching our targets. We were very pleased with the turnout and number

of companies represented at the events…We want to thank you and the team in China for all of your support and assistance in delivering a challenging task. We greatly appreciated the

level of service and efforts put in by the team in implementing the project”

(Global Affairs Canada)

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CASE STUDY – Abu Dhabi India Week

Abu Dhabi Department of Economic Development – India Week

Project SummaryWAVTEQ was awarded a contract in a competitive tender to organize in full “Abu Dhabi India Week” taking place in February 2018, which includes organizing two major FDI events in Mumbai and New Delhi and organizing a B2B and G2B meeting program.

Activities and Results1. Events Investor Recruitment – recruit 160 delegates to

attend the two events2. B2B Program – Setup of 60 meetings with Indian firms for

ten Abu Dhabi companies3. G2B Program –Set up of 100 meetings with Indian firms for

25 Abu Dhabi public sector organizations attending India Week

4. Media, PR and Marketing - Provide Audio visual, interactive and technical set-up & support; roll-up for the registration, events brochure, badges/name cards and other related printing costs; Photography; and Marketing materials and other content development for the events

5. Event & project management - Provide event management services including the organization and operational management of the two Events and the B2B and G2B meeting program

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SOCIAL MEDIA FDI STRATEGY – CASE STUDIES

Abu Dhabi Department of Economic Development – India Week

Activities and Results

Social Media Marketing: WAVTEQ’s Marketing team launched a social media campaign in the build up and throughout India Week. This consisted of relevant, relatable content which created a ‘buzz’ around the event and boosted engagement with the Abu Dhabi brand. Abu Dhabi India Week took place in January 2018

WAVTEQ’S social media marketing campaign provided positive results (results based across all channels)o The events Twitter hashtag (#) ‘trended’ on each day of India

Week – 6th highest in India!!!o 2M+ Tweet impressionso 10,000+ profile visits o 100+ new followerso 500 + website visits

Social Media supporting the following results:1. Events Investor Recruitment – 160 delegates attended 2 FDI

events promoting Abu Dhabi2. B2B Program –60 meetings with Indian firms for 10 Abu

Dhabi companies3. G2B Program – 100 meetings with Indian firms for 25 Abu

Dhabi public sector organizations attending India Week

Social Media and PR

India Week Trending

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CASE STUDY – Global Lead Generation, Investor Recruitment, and B2B Meeting Program

Shurooq / Invest in Sharjah

Project SummaryWAVTEQ was contracted to run a global lead generation programme in 2016 to:1. Help Identify companies planning to invest in the GCC region

within the next 2 years2. Recruit qualified prospects to attend the Sharjah FDI Forum in

Sept 2016 3. Setup face-to-face meetings between Shurooq and high

potential investors around the FDI Forum

Activities4. WAVTEQ organized 10 country teams to identify and engage

with over 1,000 companies in 30 countries over 6 monts We supported companies with Q&A on investing in Sharjah

5. WAVTEQ attended the FDI Forum to facilitate meetings between investors and the client

6. WAVTEQ’s CEO was an expert on a panel discussing FDI

Results7. WAVTEQ identified 51 client approved qualified leads, with a

profile on each company provided8. WAVTEQ secured 25 B2B meeings with Shurooq staff9. Investment successes from the campaign include one

company planning a manufacturing facility, two major retails brands opening multiple stores in the Emirate and at least 5 further concrete project opportunities

10. Fresh Foods, a company who visited the event has announced a manufacturing facility with an investment of $7.5 million.

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BKPM’S BUSINESS DEVELOPMENT PLAN

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Key sectors to be targeted o Top 5 priority target sectors

+ Tourism+ Infrastructure – energy and

transportation+ Digital economy+ Import substitution manufacturing+ Automotive+ Electronics

o Secondary target sectors+ Xx+ Xx+ Xx+ Xx+ xx

DEVELOPING BKPM’S ANNUAL BUSINESS DEVELOPMENT PLAN

Group exercise - BKPM’s business development plan

Key countries to be targeted o Top 5 priority target countries

+ China+ Japan+ US+ Singapore+ Korea

o Secondary target countries+ Germany + UK+ France+ Australia + India?

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Annual plan for proactive investment promotion activities (lead generation and marketing. Typical structure includes:

1. Key sectors to be targeted 2. Key markets (countries) to be targeted 3. Strategic target investors4. Conferences/trade shows that will be attended 5. Road shows that will be conducted overseas6. FDI promotion seminars that will be held overseas 7. FDI conferences that will be held in Indonesia8. Marketing & communication activities9. Clear schedule of when activities and events will take place10. Key Performance Indicators (FDI and activity targets)


Template for a one-year business development plan

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Conferences/trade shows that will be attended o Sector A

+ Xx+ Xxx+ Xx

o Sector B+ Xx+ Xx+ Xx

o Sector C+ Xx+ Xx+ Xx

o Sector D+ Xx+ Xx+ Xx



• Select very carefully which trade shows to attend to ensure there is a large pool of the right companies and decision makers to meet

• Setup meetings in advanced with pre-qualified investors

• Decide if a booth is really needed and if it will give an ROI – you don’t need a booth to meet investors

• Be results driven and have clear targets

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Road Shows and Seminars that will be conducted overseasoRoad Shows (Countries)

+ 5-6 road shows to key target markets meeting leading investors in the sector – ideally as part of a strategic company targeting program

oSeminars(Countries)+ China + Japan+ Korea+ Singapore (can also promote to intermediaries)+ ASEAN organized seminars (but low numbers of investors)



• Seminars should be part of an investor targeting / lead generation program • Government partners (e.g. Embassies, host country governments, business associations) can help but

they will just send invites to their list of contacts – it is not strategic • Seminars should always include a 1:1 meeting program at or after the seminar – partners cannot

generally set these up – either BKPM does or you work with in-market LG consulting firm• There should be PR and social media around the seminar • Social media is now a powerful recruitment tool

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Schedule of activities o Januaryo February o Marcho Aprilo May o Juneo Julyo August o Septembero October o November o December



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Key performance indicatorso Number of investors meetings (e.g. 350)

+ E.g. 10 road shows = 100 meetings+ E.g. 10 trade shows = 200 meetings+ E.g. 5 seminars = 350 attendees + 50 meetings

o Number of high quality FDI prospects (e.g. 100 prospects)+ E.g. 10 road shows = 30 prospects+ E.g. 10 trade shows = 20 prospects + E.g. 5 seminars = 50 prospects

o Number of announced FDI successes within 12-24 months (e.g. 30 successes)+ E.g. 10 road shows = 6 successes+ E.g. 10 trade shows = 4 successes+ E.g. 5 seminars = 10 successes

o Jobs and capital investment in Indonesia within 12-24 months + E.g. $1 billion FDI+ E,g. 10,000 direct jobs + E.g. $1 billion multiplier impact on domestic investment+ E.g. 20,000 indirect jobs + Compare above to budget needed to deliver the Business Development Strategy + Every year the pipeline will grow and the no. successes will increase – exponential



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To our client

location &

our team

representatives

Telephone or

face to face

meeting with

decision

makers

Establish level

of interest and

key barriers/

triggers to FDI

Nurture

companies

through

regular contact

& updates

Contact

Introduce

Qualify

Nurture

Meet

Reaching the

right decision

makers

Close

Work as “one

team” with our

client to close

investment

projects

Business development plan

Key to success - sustained investor follow-up

“Foreign investment is not a transaction; it is a relationship” (World Bank)

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Closing comments

Q&A

W A V T E Q

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+44 7557 [email protected]@wavteq/company/wavteq

Keep in touch

Contact WAVTEQ

London

Cork

Ottawa

Vienna

Tokyo

Seoul

Beijing

Shanghai

Hong KongPhoenix

Montreal

San Francisco

Madrid

Bangalore

Mumbai

Berlin

+44 7557 965393

mailto:[email protected]

https://twitter.com/Wavteq

https://www.linkedin.com/company/wavteq

Documents

Strengthening BKPM’s FDI Attraction Strategy › wp-content › uploads › 2018-05-09... · 2018-07-20 · 3 Over 75 FDI consultants with lead generation teams in Austria, Canada,