1. The Pearl River Delta in 2020 and beyond
The Canton Benefit
The Pearl River Delta in 2020 and beyond
Alberto Vettoretti
Managing Partner Dezan Shira & Associates

2. Contents What is PRD: The importance of a leading global economy
The role of large-scale infrastructures. Connecting the dots…
Current and future challenges
Looking at The Crystal Ball: What is next for PRD?

3. 1. What is PRD: The importance of a leading global economy

4. Austria 374 bn $ GDP 84,000 km2 land size
Over 6 %
Between 2 and 4 %
Between 4 and 6 %
Austria 374 bn $ GDP 84,000 km2 land size
Source: NSB, ABM
Asia Briefing

5. Countries comparison – Guangdong and Europe
2015 GDP (USD bn)
4th
1.35 times more inhabitants than Germany
6th
= to France in terms of trade (import + export)
8th
2 times Austria’s land area
14th
16th
17th
27th
34th
3 times Austria’s economy
Source: HSBC, HKTDC
Asia Briefing

6. The Greater Pearl River Delta
Asia Briefing
The Pearl River Delta (PRD) is a sub-region of Guangdong Province, including 9 cities. Together with the cities of Macau and Hong Kong they form the Greater Pearl River Delta (GPRD).
HK, M SARs

7. Source: GD Stat. Yearbook

8. 2. The role of large-scale infrastructures. Connecting the dots…

9. Connecting the dots… Map of PRD FTZs HK - - Shenzhen South 14 mins.
HK Guangzhou South 48 mins.
HK Zhongshan 100 mins.
Intercity railway length will double between 2015 and 2020
Highways/bridges will increase by 20%
HK Zhuhai 45 mins.
Map of PRD
Source: CBRE, DSA

10. 3. Current and future challenges

11. Problem solving Time-frame
A freewheeling and glorious past has brought many challenges going forward…
Lack of top talents and top schools
Uneven regional development
PRD Branding and reputation
Inter city competition
Hard
IPR
Workers social tensions
Pollution
Internet speed and censorship
YRD competition
Problem
solving
Schooling for foreigners
Increase industrial productivity
Ease of doing business for FIEs
Commuting in the region
Health Care for foreigners
Easy
Time-frame
Long term (10 to 20 years)
Short – medium term (3 to 5 year)
Source: EUCCC, DSA

12. 4. Looking at the crystal ball: what is next for PRD ?

13. Clusters of excellence will thrive and produce world champions…
Top retailing, e-tailing, sports and leisure centre
Automobiles and parts, electronics, manufacturing, business services and education outsourcing, petrochemical
World class light manufacturing, home appliances, robotics, automobile and parts
World class manufacturing, design and sourcing centres
Global financial and “professionals” centre, touristic hub
World class logistics, shipping and warehousing centre
E-Vehicles, high-tech, finance, modern logistic, design and cultural centre, IT, software, digital innovation
World class R&D and Silicon valley with Chinese characteristics
World’s n.1 casino, leisure and entertainment area
Map of PRD

14. Key trends going forward
Guangdong
Source: CEIC
Asia Briefing

15. Multiple “spillover” effects across the Greater PRD
GZ – FS - Nansha
Shenzhen – Dongguan
HK – Shenzhen

16. Key trends going forward: tap into ASEAN – OBOR
600+ million
people living in 10 high growth countries form the world’s 3rd largest market
7th in the World
Combined real GDP of USD $2.6 trillion in 2015, ASEAN is one of the biggest, fast moving economies - on track to be the 4th largest by 2050
28 years
Median age compared to 40+in the EU
US$ 125 billion
In FDIs in 2015, (135 bn in CN)

17. Thank you ! Alberto Vettoretti
Managing Partner Dezan Shira & Associates