Asian Engagement, Trade and Investment Strategic Plan o

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1 Asian Engagement, Trade and Investment Strategic Plan o

2 Disclaimer Subject to any terms implied by law which cannot be excluded, in no event shall the Northern Territory Government be liable for any losses or damages, including incidental or consequential damages, resulting from use of the published material. While care has been taken to ensure that information contained is true and correct at the time of publication, changes in circumstances after the time of publication may impact on the accuracy of this information. Northern Territory Government gives no warranty or assurance, and makes no representation as to the accuracy of any information or advice contained, or that it is suitable for your intended use.

3 Beijing Seoul Xi an Tokyo 6000 km Shanghai 5000 Guangzhou Taipei km Hanoi Hong Kong km Bangkok Manila 3000 km Kuala Lumpur Singapore Kota Kinabalu Bandar Seri Begawan 2000 km 00 Jakarta Dili 500 km Distances from Darwin Dili Denpasar 722 km 1760 km Denpasar Darwin km Katherine NORTHERN TERRITORY Tennant Creek Nhulunbuy 2850 km Port Moresby Cairns Banda Seri Begawan Jakarta Manila 2600 km 2700 km 3180 km 2650 km Alice Springs A U S T R A L I A 3150 km Brisbane Singapore 3350 km 2600 km 3180 km Kuala Lumpur 3660 km Hong Kong Taipei Bangkok 4260 km 4286 km 4430 km Perth Adelaide Melbourne Sydney Canberra Hanoi 4616 km Shanghai Tokyo 4940 km 5410 km Hobart Seoul 5574 km Beijing 5990 km

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5 Our 2020 operating environment Over the next five years, the Northern Territory is well positioned for continued strong economic and population growth. Our diverse multicultural profile is likely to expand further as the Territory attracts more people from Asia and our Asian communities grow. That will foster a greater appreciation of Asia s importance for our future and an increased focus on Asian languages and culture in our learning institutions. At a national level there is increased focus on enhancing people-to-people ties with Asia through programs such as the New Colombo Plan and Sports Diplomacy which the Northern Territory can join. regions that have fast-growing economies, notably from the Asia-Pacific region. Continued strong growth is forecast for most of our priority economic partners, which means their residents may have more money to spend on goods and services that the Northern Territory can provide. They include our energy, mineral and food commodities as well as emerging opportunities to supply high-value consumer goods, such as our famous pearls, and services, such as education and training. As governments move to free up trade and increase access to regional markets, it will be easier for Australian businesses (and those from other nations) to establish themselves in these Asian countries. That means exports from the Northern Territory will increase. In the next five years we are likely to see strong outward investment from major economies in Asia to Australia. Lower Australian interest rates and Australian dollar value will encourage more interest from foreign investors, especially with the opportunities to invest in our new development projects. The Northern Territory will be well placed to benefit from this inflow of foreign capital through developing more investor-ready projects. There is some uncertainty and risk on the horizon that can impact smaller economies as global and regional environments change. Tensions in regional relationships could affect the Northern Territory s engagement efforts, including our access to markets. The Northern Territory will remain exposed to some risk due to its current dependence on a narrow range of commodities and supply chains that need further development. The countries of Southeast Asia are moving closer together through the establishment of the ASEAN Economic Community (the 10-member Association of Southeast Asian Nations plan to create a single market for goods, services, capital and labour in their region). The Australian Government will continue its efforts to strengthen ties with Asia at the national level. Our near neighbours in Southeast Asia will continue to develop and the Northern Territory is well placed to provide niche assistance in certain areas. Northern Australia is emerging as a new economic development priority for Australia, and the Northern Territory is at the centre of this national agenda. While the world economy will continue to face some challenges, the Northern Territory will be increasingly engaged with Traditional trading models are changing as organisations increasingly focus on the elements of production where they are most competitive and can gain the most value. We need to think about where the Northern Territory s greatest advantage lies and how innovation could help us capture greater value from what we produce. More attention is likely to be paid to the integrity of supply chains, especially in the areas of food safety and environmental sustainability. While this could require Northern Territory exporters to meet the standards of foreign markets, it could also highlight the Northern Territory s competitive advantage in our own strong food safety regulations and pristine environment. Overall, the outlook for the Northern Territory s engagement with Asia to 2020 is very positive. Our opportunity will be taking advantage of this period to increase and widen our involvement in an increasingly competitive environment in Asia Asian Engagement, Trade and Investment Strategic Plan 5

6 Strategic framework This Asian Engagement, Trade and Investment Strategic Plan outlines the Northern Territory Government s direction for our international engagement over the next five years, from 2015 to Every year, we will review our progress towards four strategic goals and four critical enablers that will help us achieve those goals. They are: Strategic goals The Northern Territory will achieve increased economic returns from a diversified range of exports. The Northern Territory will be an excellent partner for capacity-building assistance with our near neighbours. Long term international investment in the Northern Territory will increase across the natural resources, infrastructure and tourism sectors. The Northern Territory will be positioned as a pre-eminent supply and service hub in our region. Critical enablers The Northern Territory will have strong relationships with more Asian partners. Northern Territory businesses will be more internationally competitive. The Northern Territory will have sustainable international transportation links with our major trading partners. The Northern Territory s profile will be better recognised and what we have to offer better understood by our Asian partners. Economic Development Strategy This strategic plan supports the Northern Territory Government s Economic Development Strategy goal to create a prosperous economy under the Government s Framing the Future and Northern Australia development agendas Asian Engagement, Trade and Investment Strategic Plan

7 Focus Work with our private sector and community organisations. Pursue market niches where the Northern Territory can add and capture the greatest value. Foresight Act on evidence-based research and market intelligence. Consider what is now, new and next across Asia as the region continues to undergo rapid change. Flexibility Tailor and innovate our approaches for different partner countries and their changing dynamics. Use the best skill sets available across government, industry and the community organisation sectors.

8 INDUSTRY & COMMUNITY ORGANISATIONS Asian Engagement, Trade and Investment Strategic Plan

9 Our team The Northern Territory s private sector leads the creation of greater wealth for the Northern Territory through international trade and investment. The Northern Territory Government supports and facilitates development across industries at both the individual company level and with business associations. Our community organisations, and particularly our Asian community groups, have extensive experience and established relationships to contribute to our international engagement efforts. The Northern Territory as a smaller but strategically significant, regionally located Australian jurisdiction benefits from close partnerships with Australian Government agencies, especially the Department of Foreign Affairs and Trade and Austrade. Both these agencies have considerable networks and resources that support the Northern Territory s international engagement efforts. The Northern Territory has taken a leading role in engaging its near neighbours and has considerable insight and experience to share. The Northern Territory Government s international engagement effort is led by the Department of Business and includes input from multiple agencies as well as local government. There is much to be gained from agencies working together on international engagement, and this strategic plan is a whole-of-government endeavour. NORTHERN TERRITORY GOVERNMENT AUSTRALIAN GOVERNMENT ONE TEAM Asian Engagement, Trade and Investment Strategic Plan 9

10 Our current Asian Engagement, Trade and Investment profile Northern Territory s major goods exports % OTHER 9.8% LIVE ANIMALS & FOOD In , the Northern Territory s top four merchandise export destinations were: Japan (A$2.73 billion) Reflecting LNG exports from the Darwin LNG plant China (A$1.36 billion) Predominately mineral ores (manganese and iron ore) and concentrates (zinc/lead) Thailand (A$636 million) Mainly petroleum products Indonesia (A$409 million) Predominately live cattle 22.8% MINERALS 53.8% LIQUIFIED NATURAL GAS (LNG) Northern Territory s top five export trading partners AU$ (B) AU$ (B) AU$ (B) AU$ (B) AU$ (B) AU$ (B) TOTAL VALUE OF TERRITORY EXPORTS Japan China Thailand Indonesia Vietnam Asian Engagement, Trade and Investment Strategic Plan

11 Northern Territory s major service exports 2014 Personal travel excluding education Government services Business travel Others International education 15.21% ($119m) 13.81% ($108m) 21.99% ($172m) 48.97% ($383m) Main Asian Languages The People of the Northern Territory Census 2011, Australian Bureau of Statistics TAGALOG/ FILIPINO 3,034 SPEAKERS MANDARIN 1,199 SPEAKERS INDONESIAN 949 SPEAKERS VIETNAMESE 880 SPEAKERS THAI 710 SPEAKERS CANTONESE 687 SPEAKERS HAKKA 607 SPEAKERS KOREAN 259 SPEAKERS Asian Engagement, Trade and Investment Strategic Plan 11

12 Our vision The Northern Territory will be a gateway between Asia and Australia, with a high level of connection making us a natural hub for our region.

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14 Our four strategic goals 1. The Northern Territory will achieve increased economic returns from a diversified range of exports. How will we achieve this by 2020? 1.1 Consolidate engagement with core economic partners (Japan, China and Indonesia) and strengthen links with emerging export partners (India, Malaysia, South Korea, Thailand, Timor-Leste, United States and Vietnam) as well as regional trading hubs including Singapore through regular missions and overseas representation that will help open doors and break down barriers to trade for Northern Territory businesses. 1.2 Work one-on-one with Northern Territory businesses and with business associations to research, identify and pursue export opportunities. 1.3 Support more Territory businesses getting into exporting with trade development programs, and assist businesses already exporting to further develop their international capability and capacity. MEASURING THE TERRITORY S SUCCESS More Northern Territory businesses will be exporting. 2. The Northern Territory will be an excellent partner for capacity building assistance with our near neighbours. How will we achieve this by 2020? 2.1 Shape the Northern Territory s capacity building offering across niche areas of excellence in government, the private sector, and community organisations. Build partnerships for delivery of assistance, including in the sectors of health; education; primary industry; arts & culture; tourism; and emergency services. Work with stakeholders in-country to identify opportunities for the Northern Territory to provide assistance that will make a positive difference to development in those areas and benefit both of us. 2.2 Evaluate that assistance with stakeholders later on to ensure projects are effective and that we can develop bestpractice models for delivering assistance in the future. MEASURING THE TERRITORY S SUCCESS Our neighbours seek and appreciate the Northern Territory s assistance. The Northern Territory will export a greater range of goods and services, including higher-value exports. The Northern Territory will export a greater range of goods and services, including higher-value exports. Economic returns from international engagement will be spread across the Northern Territory private sector Asian Engagement, Trade and Investment Strategic Plan

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16 Our four strategic goals 3. Long term international investment in the Northern Territory will increase across the natural resources, infrastructure and tourism sectors. How will we achieve this by 2020? 3.1 Support the ongoing development of a pipeline of solid investment proposals across the Northern Territory s natural resources, infrastructure, and tourism sectors and promote these opportunities and projects to new and existing international investors. 3.2 Identify and strengthen engagement with suitable international investors to attract new investment, including investment in the development of major infrastructure. 3.3 Continuously review how the Northern Territory Government can best support foreign direct investment by regularly speaking with existing and new international investors. 3.4 Work with industry to identify and help address gaps around scale and supply to attract larger international investments. 3.5 Foster regional centres of excellence for sectors where the Northern Territory is at the leading edge (oil and gas, Indigenous economic development, tropical agribusiness and tropical health). 4. The Northern Territory will be positioned as a pre-eminent supply and service hub in our region. How will we achieve this by 2020? 4.1 To achieve greater scale, strengthen the ways government and industry work together in the oil and gas, minerals and defence sectors - including through greater industry and government commercial expertise. 4.2 Connect Territory businesses with international contractors and foreign small and medium enterprises that have won business around major projects in the Northern Territory and our region. 4.3 Ensure that government s future infrastructure planning supports the development needs of the Northern Territory s supply and service industries. 4.4 Stimulate growth of regional supply and service centres across the Northern Territory by promoting investment in infrastructure that supports further industry development. 4.5 Promote the quality of education and training opportunities in the Northern Territory that can support trade and investment initiatives. MEASURING THE TERRITORY S SUCCESS MEASURING THE TERRITORY S SUCCESS The Northern Territory will retain and attract new foreign direct investment. International investors will recognise the benefits from our government s proactive and professional support. Northern Territory industries have greater capacity and capability and so are better positioned to tender for contracts. International companies will see the Northern Territory as a natural, go-to hub for regional projects. The Northern Territory will offer a wider range of supply and service capabilities Asian Engagement, Trade and Investment Strategic Plan

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19 Our four critical enablers 1. The Northern Territory will have strong relationships with a greater number of Asian partners. How will we achieve this by 2020? 1.1 Increase our understanding of our Asian partners aspirations and of how we can work with them for mutual benefit. 1.2 Develop more collaborative and influential relationships with regional partners through a coordinated program of engagement, including two-way visits and events. 1.3 Support regular exchange, collaboration and research with partners in the region to enhance and strengthen these relationships. 1.4 Develop and strengthen our Asian language and cultural engagement skills through our learning institutions and by working with our Asian communities in the Northern Territory. 2. Northern Territory businesses will be more internationally competitive. How will we achieve this by 2020? 2.1 Support businesses seeking to work together to create greater sector scale both within Australia and our region. 2.2 Support and promote research and innovation partnerships between institutions and the private sector that inject new technologies and systems into our goods and services sectors so as to foster higher value products. 2.3 Support Northern Territory exporting businesses looking to integrate their goods into supply chains in Asia. 2.4 Promote greater Asian business knowledge and skills, and build on the Northern Territory s existing community ties in Asian markets. 2.5 Support businesses seeking foreign skilled workers to address labour market employment gaps in the Northern Territory. MEASURING THE TERRITORY S SUCCESS The Northern Territory is well regarded for its engagement focus and effort by our Asian neighbours. Our Asian neighbours tell us they like doing business and interacting with the Northern Territory. There are regular visits to and from the Territory across government, industry and community organisations. MEASURING THE TERRITORY S SUCCESS Businesses inform us that the Northern Territory Government s assistance provides a competitive edge that assists them to compete in overseas markets. More Northern Territory businesses will have greater and sustained profiles in regional markets Asian Engagement, Trade and Investment Strategic Plan 19

20 Our four critical enablers 3. The Northern Territory businesses will have sustainable international transportation links with our major trading partners. How will we achieve this by 2020? 3.1 Support the increased use and expansion of air and sea ports, and gas pipeline infrastructure by the private sector to meet the needs of export and investment growth across the Northern Territory. 3.2 Support the sustainable growth of international aviation and shipping services to the Northern Territory, focussing particularly on more direct and increased services with major Asian transportation hubs, while supporting existing linkages for tourism flows from Western markets. 3.3 Promote the Northern Territory as a freight and logistics hub for northern Australia and Asia, including exploring customs pre-inspection arrangements with key international trading partners. MEASURING THE TERRITORY S SUCCESS 4. The Northern Territory s profile will be better recognised and what we have to offer better understood by our Asian partners. How will we achieve this by 2020? 4.1 Shift international perceptions about the Northern Territory to align with our desired image as both a quality, welcoming neighbour and also as a trading partner. 4.2 Develop and implement a public relations campaign that targets key economic partner markets. 4.3 Expand our profile and presence through a coordinated program of visits and events in key target markets. 4.4 Promote the Northern Territory as a unique destination for film, TV and media productions. MEASURING THE TERRITORY S SUCCESS Market research will show greater awareness of the Northern Territory and an understanding of what we have to offer. The Northern Territory will have an expanded sustainable international transportation network and supporting infrastructure. Improved transportation services will have assisted in providing new trade flows through the Northern Territory Asian Engagement, Trade and Investment Strategic Plan

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22 Contact Office of Asian Engagement, Trade and Investment Department of Business Northern Territory Government Phone investment@nt.gov.au or tradesupport@nt.gov.au Website investnt.com.au or tradesupport.nt.gov.au