turkey: a regional business hub
TRANSCRIPT
Republic of Turkey Prime Ministry
Investment Support & Promotion Agency of Turkey (ISPAT)
:
A Regional Business Hub
Necmettin KAYMAZ Chief Project Director
Turkey is located in the center of the most
promising markets of the World
Turkey : A Regional Hub for Your Global Business
Turkey’s geographic location is very convenient for accessing major markets..
Source: IMF World Economic Outlook and WTO; GDP, Imports and population figures as of 2014
Access to Multiple Markets
1,5 Billion People
$27 Trillion GDP,
$8+ trillion trade
(45% global trade)
at a 4-hour flight
distance
EUROPE
GDP: $20.8 trillion Import: $6.7 trillion Population: 670 million
RUSSIA
GDP – $1.9 trillion Import: $308 billion Population: 144 million
CENTRAL ASIA & CAUCASUS
GDP: $0.44 trillion Import: $97 billion Population: 85 million
MENA
GDP: $3.9 trillion Import: $1.1 trillion Population: 703 million
Turkey’s geographic location also enables you to follow and cover markets in 16 times zones from New York to Tokyo…
Custom union with the EU and free trade agreements (FTA) with 26 countries..
FTAs:
1. Albania 8. Lichtenstein 15. Tunisia 22. Lebanon*
2. Bosnia & Herzegovina 9. Macedonia 16. Montenegro 23. Kosovo*
3. South Korea 10. Morocco 17. Serbia 24. Ghana*
4. Egypt 11. Norway 18. Chile 25. Moldova*
5. Georgia 12. Palestine 19. Jordan 26. Faroe Islands*
6. Iceland 13. Switzerland 20. Mauritius
7. Israel 14. Syria 21. Malaysia Source: Ministry of Economy * In ratification process
Lucrative export opportunities are supported by custom union with the EU and free trade agreements with 26 countries…
Turkey has one of the best logistic performances in region, enabling efficient transportation of goods to export markets..
1
2
3
4
5Overal LPI
Customs
Infrastructure
International shipmentsLogistics quality & competence
Tracking & tracing
Timeliness
Germany (BestPerformer)
Turkey
Europe &Central Asia
Middle East &North Africa
Source: World Bank, 2014. 1=Low, 5=High performance 1) Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs; 2) Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology); 3) Ease of arranging competitively priced shipments; 4) Competence and quality of logistics services (e.g., transport operators, customs brokers); 5) Ability to track and trace consignments; 6) Timeliness of shipments in reaching destination within the scheduled or expected delivery time.
Logistics Performance Index (LPI)
Turkey’s improved connectivity has been providing ease of transport of goods, especially through sea transport…
Source: UNCTAD Note: The Liner Shipping Connectivity Index captures how well countries are connected to global shipping networks. It is computed by the United Nations Conference on Trade and Development (UNCTAD) based on five components of the maritime transport sector: number of ships, their container-carrying capacity, maximum vessel size, number of services, and number of companies that deploy container ships in a country's ports. For each component a country's value is divided by the maximum value of each component in 2004, the five components are averaged for each country, and the average is divided by the maximum average for 2004 and multiplied by 100. The index generates a value of 100 for the country with the highest average index in 2004. . The underlying data come from Containerization International Online.
Source: TurkStat, breakdown based on trade value ($400bn in 2014)
0
25
50
75
100
125
150
175
Liner shipping connectivity index, 2014 (maximum value in 2004 = 100)
Sea; 57,0%
Rail; 0,5%
Road; 23,2%
Air; 9,7%
Other; 9,7%
Turkey's Foreign Trade by Mode of Transport
2014
Turkey is also well-connected with the rest of the world through airline transportation….
110 Countries & 229 International Destinations
Source: Turkish Airlines, as of 01.09. 2015
International connectivity
Source: Ministry of Development, 10th Development Plan, Taşımacılıktan Lojistiğe Dönüşüm Programı Eylem Planı
The government is committed to improving and transforming Turkey’s logistics infrastructure, which will further integrate Turkey with key markets…
From Transportation
to Logistics
Enhance competitiveness
of logistic companies
Establish
international logistic centers
Develop strategy &
institutional structuring
Improve logistics
infrastructure in cities
Provide effective custom
transactions
Complete large-scale
infrastructure projects
LPI Rank
Increase Air Cargo Capacity
Availability of skilled labor force together with a diligent working culture and cost-competitive edge provides companies to run their business efficiently in Turkey..
Source: IMD World Competitiveness Yearbook 2014, IMD WCY Executive Opinion Survey based on an index from 0 to 10 (0 = Not available 10 = Readily available); Eurostat
6,0
5,2 5,2 5,2 4,8
4,1
2,7
0
1
2
3
4
5
6
7,1 6,8 6,7
6,22 6,0 5,6
3,9
0
1
2
3
4
5
6
7
8
Annual Average Hours worked per week, 2014
45,8 45,0
39,2
28,8 27,2
18,8
12,4 11,5 9,7 8,8 6,9
0
15
30
45
Labor Cost Per Hour in Manufacturing ($), 2012
50,3
41,4 41,3 41,1 40,7 40,5 40,4 40,4 40,0 39,6 39,3 38,8
30
35
40
45
50
Availability of Competent Senior Managers, 2014 Availability of Qualified Engineers, 2014
SOURCE: TSKB
PCs and peripherals • Tripling production with new investment • To export 90% of total
production
Commercial vehicles • New model to be
manufactured in Turkey and exported to 65 countries
Diversified Technology • Super Hub;
manufacturing facility serving Europe, Middle East and Africa
FMCG
• Production base for the Middle Eastern and North African markets
Filters and generators • 85% of total
production to be exported
Textile
• Group’s largest production facility
in the world (15% of the group’s total volume sourced from Turkey)
New line of trucks
•Regional manufacturing
hub for new line of trucks
• Annual production capacity of 150K units
• Exporting 90% of its production to 30 countries
Due to its strategic location, many global companies have already been using Turkey as a manufacturing and export hub..
Multinational Company
Number of Countries Managed from Turkey
Coca Cola 90 GE Healthcare 80 Microsoft 80 Intel 67 Unilever 36 Verifone 30
Schneider Electric 27
Ericsson 22 Cargill 20 Pfizer 20 Volvo 18 BASF 18 PepsiCo 14 P&G 11 LG Electronics 9 Adobe 9
Turkey is also becoming a regional management hub for global companies…
Company Regions managed
from Turkey Rationale behind choosing Turkey as a management hub
90 countries • Eurasia • Africa
“Turkey is a strong country due to its dynamic economy and young population” -Ahmet Bozer, Executive Vice President and President of Coca Cola International, 2011
79 countries • Middle East • Africa
“Besides, the business opportunities Istanbul offers, its educated workforce and infrastructure supporting expats are important” -Ala Faramawy, VP Microsoft International, 2011
67 countries • Middle East • Africa
"Turkish managers have the European business ethics and discipline and the strong communication skills of Eastern managers" –Intel's Business Dev.Manager, Burak Aydın, 2012
52 countries • Europe • Central Asia • Middle East • North Africa
“Besides regional proximity to our clients, İstanbul provides appropriate infrastructure, convenient airport links, and a good quality of life for our staff.” Dimitris Tsitsiragos, VP, IFC, 2010
20 countries • Caucasus • Central Asia • Eastern Europe
"Pfizer Turkey is referred to as 'A School of Leaders', since it continuously transfers successful executives to Pfizer companies worldwide. Today, more than 35 Turkish senior executives are appointed to Pfizer affiliates all around the world. " –ISPAT website, 2012
Source: Press releases
Companies have a strong rationale for choosing Turkey as a regional hub..