ASEAN Emerging Growth, Opportunities & Challenges Carl Lukach President DuPont East Asia Taiwan Innovation Centre Opening June 29, 2011 Inclusive Innovation in Action
The Vision of DuPont WE ARE A MARKET-DRIVEN SCIENCE COMPANY Our vision is to be the world s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere.
DuPont -- 40 years in ASEAN History and Presence In 7 countries Entered ASEAN countries (except Vietnam and Cambodia) in the early 1970s Established presence in Vietnam in 1990s; Cambodia in 2008 Major businesses Titanium Technologies Performance Polymers Crop Protection Packaging & Industrial Polymers Electronics & Communication ~ 2,700 employees 12 manufacturing and packaging plants
DuPont in ASEAN 12 manufacturing facilities Country offices in Cambodia, Malaysia, Indonesia, Philippines, Singapore, Thailand and Vietnam
ASEAN Linked to Global Megatrends Global Megatrends Food Energy Safety & Environment ASEAN Relevance* * AEC Report Population growth ~2%p.a. Leading food producer by 2020 15% from renewable sources by 2015 Reduce Carbon footprint Clean Water Green environment DuPont Domain Food Productivity and Yield Food Security & Handling PV Manufacturing Green Building Safety,CleanTech
Rising Single Market in ASEAN FROM Cross-Border Barriers: ASEAN 10 Countries vary in Economic Social Cultural Political Legal TO Committed to a SINGLE market and production base by 2015 Key Initiatives - Free flow of goods, capital & labor Strengthen IP Rights Harmonized System of World Class Standards eg. Food Safety Promote growth of SMEs Prioritized integration: Agrobased, Automotive, Logistics, Electronics, Healthcare, Environment Regional energy cooperation
ASEAN: Growth Potential 3 rd largest population after China and India Market Size & Growth potential is comparable to India Dynamic inter- and intra- regional trade 40 % GDP Share 30 20 Global Share of GDP 3.8% 3.5% 15.6% Asean-6* India China 10 IMA Sept 2010 *Asean10 > 4% 0 5.4% Japan 1990 2000 2010 2015
Global Focus on ASEAN FDI has steadily increased Comparable to BRIC (Brazil, Russia, India, China) Interwoven Asia-Pacific Value Chains Asean $ 40B Brazil $ 23B $126B China $ 41B Russia $ 34B India 2009 Total FDI Inflow in US$ UNCTAD report
ASEAN -- Staying Competitive Low Labor Rates New Free Trade Agreements Rising Currencies Legal Standards Rising US$/hour 15 10 5 Hourly Wages in US$, 2010 0 China HK --- China Taiwan Korea Indonesia Malaysia Philippines Singapore Thailand Vietnam India IMA Asia, Asia s Wage Outlook Oct 2010
ASEAN Domestic Market: Rising Consumerism ASEAN rapidly approaching $5000 per capita GDP, signaling rise of Consumer economy (evident by China s trend) ASEAN Countries: 2008 Per Capita GDP in US$ China India ASEAN Avg Vietnam Thailand Philippines Emerging markets <$5000 per capita Malaysia Indonesia - $5000 10,000 US$ per capita In 20 years Emerging Markets GDP per capita growth rate will be 4X that of Developed Markets - Sep 2010 Goldman Sachs Global Economics Report
The DuPont Knowledge Center (DKC) ASEAN and Global Innovation Hub Critical sciences and engineering under one roof Customized application development 400 scientists and engineers and growing!
DuPont Approach Identify Trends and Needs Find Partners and Collaborators Design new business models DuPont