************************************************************************* Issue 16 [September 2007] OCCI e-Magazine http://www.osaka.cci.or.jp/e/index.html ************************************************************************* [CONTENTS, September 2007] 1. Mr. Katsuhiko MACHIDA (Chairman, SHARP Corporation) as OCCI Vice Chairman "SHARP Corp. to Build a New Manufacturing Complex in Sakai City, Osaka Pref." 2. "OCCI Economic Mission to Vietnam" Visits 4 Cities of Vietnam 3. Chinese Business Support Office (at OCCI International Division) 4. OCCI International Division report on VIP visitors ========================================================================= 1. Mr. Katsuhiko MACHIDA (Chairman, SHARP Corporation) as OCCI Vice Chairman At the 5th OCCI Ordinary General Meeting held on July 27th 2007, Mr. Katsuhiko MACHIDA (Chairman, SHARP Corp.) was appointed Vice Chairman of OCCI. In that capacity, Mr. Machida is in charge mainly of new manufacturing industry with high added values and environment related industry. "SHARP Corp. to Build a New Manufacturing Complex in Sakai City, Osaka Pref." On a 1.27 million square meter site in Sakai City, SHARP Corp. will develop a "Manufacturing Complex for the 21st Century". With the aim of being an "environmentally advanced company", SHARP Corp. has been focusing on the manufacture of energy-saving LCDs (liquid crystal display) and energy-creating solar cells. As well as building on this site both a state-of-the-art LCD panel plant and solar cell plant for mass production of thin-film solar cells, they will incorporate relevant infrastructure facilities and also invite material and production equipment manufacturers into the same site, to develop a manufacturing complex for the 21st century. Production operations are scheduled to start by March 2010. Those of Osaka Prefecture and Sakai City are looking forward to cooperating for the project as well as to its contribution to the regional economy and creation of opportunities for employment. * Contact: (Sharp Corporation) http://sharp-world.com/corporate/news/070731.html ======================================================================== 2. "OCCI Economic Mission to Vietnam" Visits 4 Cities of Vietnam "OCCI Economic Mission to Vietnam" (organized and dispatched by OCCI International Business Committee --- Chairman: Mr. Satoshi ADACHI, Corporate Vice President, Marubeni Corporation) visited the 4 cities of Ho Chi Minh, Da Nang, Hanoi and Hai Phong from July 3 to July 11, 2007, with 30 members from 25 companies headed by the Mission Leader Mr. S. ADACHI. For a mission sent by OCCI, it was our first travel to the city of Da Nang in central Vietnam, visiting Acecook Vietnam Co., Ltd. (parent company in Suita City, Osaka) and Da Nang Port as the basic point of the East-West passage as well as Hai Van Pass, for a great opportunity to learn of the new bases of business operations in the Indo-China Peninsular. In Hanoi, the Mission members paid courtesy to Vice Minister Bien of the Ministry of Trade that supervises the Commercial Office of the Consulate General of Vietnam in Osaka, as well as Colonel Tin, Deputy Director General, Department of Economics, Ministry of Defense. They also had a meaningful exchange of views with those of the Vietnam Chamber of Commerce and Industry with whom OCCI maintains a special cooperation relationship. In view of the expanding business exchanges between Northern Vietnam and South China Economic Bloc, they took an overland route from Hanoi to Youyiguan for inspection. In Hai Phong, they visited Nomura Hai Phong Industrial Park (Japanese affiliated) as well as Hai Phong Port and received briefings by Japanese executives on the current status of materials/ goods distribution. Compared with other Asian countries, Vietnam still keeps lower labor cost with a greater, young labor force, and therefore, there are rapidly increasing Japanese companies, now more than 600, advancing into Vietnam. Such companies are expected to further increase, with some focusing on Vietnam but many others also seeking production bases in other regions of Asia as well. ======================================================================== 3. Chinese Business Support Office (at OCCI International Division) ---Trends of Consultations Since its opening in April 2003, based in OCCI International Div., the Chinese Business Support Office has been making its best efforts to support mainly Osaka-based companies for development of business with China. Trends of consultations, related breakdowns in percentages and recent change in environment etc. are: 1. In the 4 years (2003-2006), consultations amounted to total 1,091 cases, with 310 cases in 2005 as the peak. 2. Majority (83%) of the companies seeking consultations are located in Osaka Prefecture, but not only those in Tokyo or elsewhere in Japan but also even some from China have come to consult with us, showing more widespread trends. 3. Lines of business of those seeking consultations are; manufacture 37.6%, wholesale and retail 27.0%, service 19.3%, as the main ones. 4. Purposes of consultations seem to show that far more companies now regard China as a market, rather than only as site of production bases: 24.0%---concerning sales to Chinese markets 21.5%---concerning production in China 8.7% --- concerning procurement in China 5. Change in the environment involving business with China is mainly in; the rise of labor cost (personnel expenses), abolition of some corporate tax exemptions, stricter labor laws etc., meaning increase in overall cost to companies abroad including Japanese ones. It is advisable for companies to reexamine their strategy or policy for business with China particularly concerning the need of securing higher added values in conducting any project or transaction. * Contact: (Chinese Business Support Office) http://www.osaka.cci.or.jp/e/support/china.html ========================================================================= 4. OCCI International Division report on VIP visitors * July 25 (Wed) Mrs. Jutta Stefan-Bastl, Ambassador Austrian Embassy ======================================================================