Regional insights

Japan was set to welcome the nations of the world in July 2020 to the Tokyo Olympic Games. In March, due to the spread of coronavirus (COVID-19), the decision was taken to postpone the games to July 2021.

Beyond the postponement of the Olympics, coronavirus has had far-reaching impacts on public health and economies globally. It has changed the way we live, work and interact and Japan is no exception.

We have seen shifts in business operations that have challenged the traditional Japanese business culture and consumer behaviour, driving technology uptake and accelerating new trends in distribution channels.

While Japan, like most nations continues to manage the health crises, there is still an appetite by business to engage with Victorian companies to introduce or expand current product and service offerings.

The Victorian Government Trade and Investment team in Tokyo has identified changes in demand and emerging opportunities for engagement by Victorian businesses in a range of industries, including:

• a heightened awareness and demand for fresh produce, frozen vegetables and beef
• a spike in online shopping, particularly in fashion, cosmetics and personal care items
• a focus on preventative health, dietary supplements
• interest in collaborations in medical research and development
• digital platforms and products that enhance the B2C shopping experience.

Further change is also occurring in the leadership of Japan with the resignation at the end of August of Japan’s longest-serving leader, Prime Minister Shinzo Abe. The new Prime Minister, to be announced mid-September will serve until the next national election, which is due by October 2021.

As Japan, along with global partners works towards an economic recovery amidst the continuing health concerns, Victorian business can be confident in the durability of the long and mutually beneficial relationship the State shares with Japan. As Victoria’s third-largest trading partner at December 2019 and with over 190 Japanese companies located in Victoria, the resilience of the relationship will serve us well as we explore new opportunities together into 2021 and beyond.

Korea

On 3 September, the Australian Government released a Request for Tender to preferred supplier Hanwha Defence Australia, part of the large Korean business conglomerate Hanwha Corporation to build and maintain 30 self-propelled howitzers and 15 armoured ammunition resupply vehicles and their supporting systems.

The howitzers would be built and maintained in the Geelong area, creating up to 350 jobs in the region and would also provide significant opportunities in other areas such as transport and warehousing, as well as component manufacture and repair.

In early February, Global Victoria supported a delegation of South Korean horticulture buyers, food service and wholesale companies to visit Victoria and meet with growers in the Sunraysia and Loddon Mallee regions to potentially source table grapes and citrus produce. The delegation included representatives from Korea’s largest hypermart chain and one of the largest food service companies in Korea.

The delegation was an initiative to build on the growing trade between Victoria and Korea, particularly in the food sector. Victoria’s food and fibre exports to Korea registered 31 per cent growth on the previous year to a value of $479 million in 2018-19.

Victoria was the largest food and fibre exporter from Australia with 27 per cent of the value of exports from just 3 per cent of Australia’s land mass. Total food and fibre exports from Victoria were $7,257 million

South Korea is the fourth largest economy in Asia with a population of over 50 million. Increasing demand for high quality goods and services, together with a reduction in trade barriers, has provided key export opportunities for Victorian businesses. Export opportunities for Victorian agribusinesses continue to emerge for high-quality beef, dairy, horticulture and healthy functional foods.

Global Victoria Women (GVw) 2020

Global Victoria was privileged to host a business roundtable on 27 February featuring a panel of Victorian women in the life sciences and medical technology sector who are undertaking business in Japan and/or South Korea.  This event was part of a wider, inaugural program that focussed on celebrating women in international business called, Global Victorian Women (GVw).

Guest speakers at the roundtable included prominent and highly successful business women:

• Dr Jackie Fairley, CEO, Starpharma Holdings Limited
• Angela Luttick, Executive Vice President Business Development, 360biolabs
• Dr Anne- Laure Puaux, Head Biotechnology and Commercialisation, The Walter and Eliza Hall Institute of Medical Research (WEHI).

Each speaker shared their experiences and valuable insights about developing business in Japan and Korea.  Some of the key messages and advice shared included: the benefit of government led trade missions to ease barriers for access to Japanese and Korean government and research facilities; the requirement for translators and interpreters for both the business/social aspects but also for specialist technical translations, and; the need for patience in business negotiations.

Our thanks to all the delegates that participated and to our guest speakers for the generosity of their time and insights.

Major South Korean airline, Asiana is launching direct flights between Melbourne and Seoul in a move that will strengthen ties with one of Victoria’s key trading partners and attract more tourists and more investment.

The Victorian Government is partnering with Visit Victoria, Melbourne Airport, the City of Melbourne, and the Consul-General of the Republic of Korea to support Asiana as it launches a seasonal service from 26 December to 21 February 2020, with weekly flights.

If this season is successful, there is the potential for Asiana to establish ongoing flights, opening up new connections with South Korea for tourists, investors and international students.

South Korea is a key trading partner with Victoria, with two-way trade worth more than $3.1 billion in 2018/19. Direct flights will help more major Korean businesses join those already in Victoria, which include dietary supplement manufacturer Nutribiotech, Kumho Tyres and major conglomerate Hanwha.

South Korea is a major source of tourists to Victoria, with more than 55,800 Korean visitors spending $134 million in Victoria in the year ending 2018. It is also one of our fastest growing markets for international students, with numbers up 25 per cent in the last five years.

Annual Australia Japan Joint Business Conference – Osaka, Japan

The 57th Annual Australia Japan Joint Business Conference (AAJJBC) was held in Osaka in early October. The conference attended by more than 350 leaders from industry and government from Japan and Australia was themed ‘New Partnership for the Future’.

The conference afforded delegates an invaluable platform to discuss critical issues in the global political and economic environment and opportunities for collaboration in areas including trade, infrastructure, energy and innovation.

Minister for Jobs, Innovation and Trade, Martin Pakula attended the conference and met with senior leaders from Japanese industry to further promote and enhance the already robust Japan-Victoria business relationship.

Victoria is one of the world’s leading life sciences hubs, including medical technology, biotechnology and pharmaceutical industries, supported by 16 major medical research institutes, 11 teaching hospitals and nine universities.

The commercial sector employs more than 31,000 people in 1,600 firms, generates over $21.4 billion in revenue and contributes over $1.7 billion in exports to the Victorian economy.

The Victorian Government, in partnership with the sector continues to promote the State as a world-leading location to develop products, engage world leading clinicians and researchers, conduct clinical trials and manufacture high value products.

Northeast Asia is a region which is emerging as offering strategic opportunities for the Victorian biotech industry and the Victorian Government is supporting a number of initiatives over the next several months to assist Victorian companies and organisations develop connections and investigate opportunities.

In October the Victorian Government will support a delegation to Yokohama to participate in BioJapan 2019, which is Asia’s premier partnering event for the biotechnology industry. In late October, the AusBiotech Conference and Australia Biotech Invest 2019 will be held in Melbourne, where we are expecting delegates from Japan and South Korea.

With the Korean government announcing in May 2019, a Bio-Health Industry Innovation Strategy, it is timely for Victorian companies to seek partnership and collaboration opportunities with South Korean industry in areas such as clinical trials, digital health and regenerative medicine.

Participation in the AusBiotech Conference and also a proposed Victorian Government supported delegation to BioKorea in April 2020 will provide the platform for Victorian organisations to further investigate trade and partnership opportunities.

Want to know more?

For further information and to enquire about Victorian participation in BioJapan, AusBiotech or BioKorea, contact our Senior Trade Manager, Health Medical Technologies and Pharmaceuticals, Libby O’Connor by sending her an email.