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New Zealand Trade and Enterprise and the Ministry of Foreign Affairs recently hosted a successful seminar in Auckland on doing business in Southeast Asia, attended by over 180 business people.
Keynote speaker, Dr Ganeshan Wignaraja, Principal Economist with the Asia Development Bank, highlighted the importance of businesses seizing the opportunities provided by Free Trade Agreements in Southeast Asia, particularly the ASEAN-Australian-New Zealand FTA (AANZFTA).
Expected GDP growth across ASEAN (Association of South East Asian Nations) is significant, with the Asia Development Bank estimating GDP growth of 5.1 percent across the region in 2010.
Supporting this growth, many ASEAN markets provide incentives for inward foreign direct investment available to New Zealand companies.
For example, Malaysia allows 100 percent foreign equity holding for all FDIs in new, expansion and diversification projects. It also offers sector-specific incentives including for reinvestment in food processing activities.
New Zealand companies can benefit from these agreements by better understanding the opportunities that the FTAs provide.
Presentations by successful New Zealand companies in Southeast Asia such as Zespri, Airways Ltd, Academic Colleges Group, Vitaco Health and Elastomer Plastics Ltd highlighted common messages to achieve business success in the region.
These include the importance of choosing the right local partner, using NZTE’s expertise in New Zealand and on the ground and understanding the local business culture and customer needs.
Most importantly, networks and relationships are crucial to business success in Southeast Asia.
New Zealand companies should not expect to get in and get out, but be prepared to cultivate strong local networks and relationships which take time, but which provide more sustainable growth.
More information on the AANZFTA and reports from the seminar
Watch Dr Wignaraja's interview on NZI Business News.
For further information or to request a copy of keynote speakers' presentations, contact Delis Aston, International Market Manager – South east Asia, NZTE at delis.aston@nzte.govt.nz
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Lucrative opportunities for exporters are set to climb in the ASEAN region as the benefits of a broad-reaching free trade agreement take effect.
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New Zealand recently signed a free trade agreement with ASEAN countries. Access research and resources for these countries here.
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