Union of Chambers and Commodity Exchanges of Turkey

The agreement was witnessed by the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and DEİK President M. Rifat Hisarcıklıoğlu, DEİK Executive Committee President Rona Yırcalı, International Chamber of Commerce (ICC) Honorary President Victor Fung and signed by Turkey-Hong Kong Business Council Founding President Hakan Bulgurlu and HKTDC European Region Director Lore Buscher in honor of the World Federation of Chambers (WFC) President Rona Yırcalı’s Turkey visit at a lunch at the Four Season for Fung.

TOBB President Rifat Hisarcıklıoğlu stated that as one of the investors in Turkey, Fung is one of the largest exporters. Hisarcıklıoğlu said that, as the Turkish private sector they would like to strengthen economic relations with Asia Pacific countries, especially China and he went to say that Asia Pacific countries, who dominated more than 50% of the world’s economy until the 18th century, were on the rise again.

Hisarcıklıoğlu stated that China has become the driving force behind the global economic growth and that Turkey had increased it trade to 19 billion dollars with China and 43 billion dollars with the region’s countries. However there stands to be an extraordinary imbalance between the two countries with Turkey racking up 33 billion in trade deficit while China stood at a deficit of 15 billion dollars.

- “China is an ocean of opportunity”

Rifat Hisarcıklıoğlu spoke, “As the Turkish business world we must work to develop and strengthen our economic relations on a global scale with our old friend, China. Bilateral trade relations should not be viewed as just mutual trade. Developing creative, innovative solutions, balancing all aspects of relations; we must base our relations on serving reciprocal benefits. Reaching 500 billion dollar export goal by 2023 is only possible by strengthening our place in the Asia Pacific, and therefore China, market.”

Having neglected the China, India and Asia Pacific markets as cheap, Hisarcıklıoğlu said that as the Turkish business world, they regard China as “an ocean of opportunity” and that China’s domestic consumption has increased, the growth of cities has hastened and that quality of the consumption has increased, all of which brings about many opportunities for Turkish companies to take part in China’s economic transformation.

Hisarcıklıoğlu said, “During our visit to China with our Esteemed President of the Turkish Republic, I saw the most BMW automobiles I’ve seen in one place. However most of them were knock-offs. There is an extraordinary interest in brands and production. There is an extraordinary market. A market geared towards brands. We must not miss this opportunity. China’s increasing demand for not only energy and materials but food is very exciting to us. In this regard I think there are many opportunities.”

Stating that he is aware of the global transformation in progress, Hisarcıklıoğlu went on, “As the umbrella institution of the Turkish business world we have one foot in the Pacific with the other in the Atlantic. The whole Turkish business world needs to operate this way. We cannot just turn westward with its 400 million population and be stuck in an area with uncertain economic direction.”
Drawing attention to the fact that Mexico is the world 14th largest economy, Hisarcıklıoğlu said that in order to be one of the top 10 economies in the world the Turkish business world would have to conduct business not only in Europe but the USA, Central America, Latin America and Asia.

Hisarcıklıoğlu announced that they would be opening the DEİK Shanghai office soon.

- Yırcalı: “We have felt the lack of a business council with Hong Kong"

Rona Yırcalı stated that as DEİK, they aim to strengthen their places in classic markets while enlarging their share in new markets on the rise; paralleling the global economic transformation, the propagation of economic relations with Africa, Latin America and the Asia Pacific zones are given due attention with the Asia Pacific becoming the fulcrum of global markets; this region is viewed not only as a means for cheap materials acquisition, but also as an important market for Turkish export goods and an important capital exporter.

Yırcalı, “Hong Kong is an important economic center of the region. Hong Kong, viewed as the world’s economic gateway into China, holds increasing importance in textiles, electronics production, tourism and logistics. As DEİK, we have felt the lack of a business council with Hong Kong.”

- Fung: “We would like to increase our business in Turkey”

The International Chamber of Commerce (ICC) Honorary President Victor Fung said that Turkey was like a second home and drew attention to business opportunities in Hong Kong. Fung said that the two vibrant economies had a lot to be traded between them and that Hong Kong companies were aware of Turkey’s value, that a prestigious hotel chain would be opening its first hotel in Istanbul in the next year.

Fung stated that Hong Kong is the 10th largest Commerce City in the world and a platform for entry into China as well as China’s 3rd economic partner, enabling direct foreign investment into China, increasing economic relations between Turkey and China.

Drawing attention to the possibilities for Turkish brands and designers for doing business in China via Hong Kong, Fung said that Vestel and Atasay had opened offices in Hong Kong and that Turkish businesses could reach important markets in China via Hong Kong as the commercial fair center of Asia.

- Li & Fung Group predict 20% growth in Turkey this year

Li & Fung Group President Fung, in reply to reporters’ questions prior to the ceremony, stated that they viewed Turkey as a gateway for the Middle East and Asia, that Turkey has great potential in the medium-to-long term; Turkey is a central power for the whole region, a center for sale and distribution for Eastern Europe, North Africa, Middle East and even Russia.

Also a member of the Koç Holding Board of Directors, Fung emphasized the importance of further developing IT and logistics infrastructure for Turkey to grow in terms of trade, “Turkey is a market that is able to respond to the European market’s demands. We also sell Turkish goods. This is a center where we conduct acquisition for the EU. We would like to increase our business in Turkey. Turks are good entrepreneurs. They have quality and style. The transportation is fast. A market that supplies quickly. Textiles and design is powerful in Turkey. Turkey is gateway to both Europe and Asia for us.”

LF Centennial Pte. Ltd., under the Li & Fung Group, Istanbul Operations Senior Vice-President Kadri Akdemir stated that their acquisitions had reached 400 million dollars last year, with 95% of it textiles and that the acquisitions directed from Istanbul had reached nearly 1 billion dollars. They predict that, this year, Turkey would reach 20% growth. Akdemir said, “Our biggest market is Europe. 90% of our products are sold there.”
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