Thursday, 21 September 2017 Sydney
RSS
Connect
Newsletter

VICTORIA & MELBOURNE - Investment Destination Profile 2010::

Victoria’s population is projected to reach 6,600,000 people by 2051. That is an increase of 1.5 million people (or 30%) from its current population of 5,128,000. Melbourne, Victoria’s capital city is the most populated area within the state with a current population of 3,744,000. Victoria occupies only 3% of Australia’s total landmass, yet accounts for 25% of the nation’s economy. With AAA credit ratings from both Standard and Poor’s and Moody’s Investor Services, Victoria has one of the strongest and most resilient economies in the world. 

 

MARKET SIZE

In 2009 Victoria’s Gross State Product (GSP) totaled $ 283,784 million A$ (or 23.3% share of national). Victoria ranked second in market size after NSW.

 

In 2010, national GDP is US$983 billion, with Victoria contributing about US$210 billion of it.

 

GROWTH FIGURES AND FDI FIGURES

The most recent Victoria economic indicators show a growth rate revised up 0.2 per cent to 2.5 per cent for 2009-2010, buoyed up by a strong banking policy.

 

In 2008-09, Victorian exports totaled over $33 billion, including $20.4 billion in goods and $12.7 billion in services.

 

KEY INVESTMENT AREAS

Key investment areas include:

 

Automotive: Melbourne’s history of more than 100 years in vehicle manufacturing has resulted in generations of expertise and broad industry capability. It’s one of the few locations in the world that can take a vehicle through the entire development spectrum, from concept to complete manufacture. This has attracted global companies such as General Motors, Toyota, Ford, Kenworth and Iveco to set up in the state. In short, Victoria offers the highest quality in the Asia-Pacific region at competitive operating costs.

 

Aviation & Aerospace: Building on Victoria’s established competitive manufacturing capabilities, Melbourne has been at the centre of aircraft manufacturing and maintenance in Australia for over half a century.

Victoria’s aviation and aerospace sector employs more than 22,000 people in more than 500 businesses – making it the biggest in Australia. Melbourne boasts Australia’s largest concentration of aviation and aerospace education and training facilities ensuring a steady supply of high-caliber skilled people are ready to enter the workforce.

 

Biotechnology & Life Sciences: Melbourne has given the world four Nobel prize winners in medicine or physiology. The city continues that tradition to this day, as a global centre for excellence in life sciences education, research and innovation. Melbourne's expertise in stem cell, infectious diseases, cancer, neuroscience and agricultural biotechnology is internationally recognized.

 

Business Services: Melbourne is a premier location in the Asia-Pacific for high-value shared services including business process outsourcing and knowledge process outsourcing. The city enjoys a reputation for high-quality professional research and consultancy services including financial, legal, media and publishing, engineering, and medical services. Recent global studies by KMPG and Gartner highlight Australia’s strengths for Knowledge Process Outsourcing (KPO) and offshore services:

 

    * High current availability and pipeline of talent;

    * Low infrastructure costs; and

    * Greater political and economic stability and security than other Asia-Pacific

locations.

 

Carbon Market Services: Melbourne is establishing itself as a leading centre for carbon market services in the Asia-Pacific region. As Australia’s energy and environmental trading hub, Melbourne is home to the majority of industry compliance buyers and national energy markets. Major compliance buyers based in Melbourne include BHP Billiton, Rio Tinto, Amcor, Shell and Great Energy Alliance Corporation. Melbourne is also home to Australia’s premier carbon market event, Carbon Expo Australasia.

 

Financial Services: Australia’s financial services sector is resilient and booming.

The strength of the nation’s markets during the Global Financial Crisis was highlighted by the World Economic Forum, which in 2009 ranked Australia as the world’s second-best financial centre after the UK. Australia was the only country in the top 20 to improve its ranking. Victoria offers expertise in pension funds management and global financial services, as well as financial services research, education and training.

 

Food & Beverage: Victoria’s food processing industry is renowned for high quality raw ingredients, excellent innovation infrastructure and seamless 24-hour access to global markets. They’re the reasons why major global companies like Cadbury, Mars Foods, Heinz, Kraft Foods, Pepsi, Nestlé, Unilever and Yakult have operations in Victoria. Melbourne’s multicultural population was instrumental in creating a domestic market for foods from around the world. This demand led to the formation of a strong export industry, and turned Melbourne into Australia’s food and wine capital.

 

Information Technology: Victoria’s ICT strengths include:

  • Telecommunications and broadband
  • Niche software development, solutions and services for industry
  • Games and animation
  • Web applications and interactive media

 

 

SPECIAL INCENTIVES

Incentive programs applicable to all industry sectors are available at all levels of government. Further information is available by contacting Invest Victoria.

 

Partnership Development

Victorian Government - Partnerships Victoria

Partnerships Victoria oversees Victoria’s public-private partnerships (PPPs) for the provision of pubic infrastructure and related services. There are 20 Partnerships Victoria projects worth around $10.25 billion in capital investment currently underway.

 

Skills & Training

Skills & Training - Victorian Government

Skills for Growth: Victorian Training Guarantee - makes government subsidized training places (at TAFE colleges) available to all eligible Victorians at all levels of skills development.

 

Skills for Growth

Skills for Growth: The Workforce Development Program works with small and medium-sized businesses to explore training and education opportunities that will benefit the business and develop the skills of staff.

 

Community Regional Industry Skills Program (CRISP)

Community Regional Industry Skills Program (CRISP) facilitates industry development, job creation, skills uptake and improved services for rural and regional communities. It can assist in attracting new investment to a region, building firms’ business skills, and support for communities to fill skills gaps.

 

Regional Programs & Incentives

Regional Infrastructure & Development Fund (RIDF)

 

Regional Infrastructure and Development Fund (RIDF) supports infrastructure projects that improve the competitive capacity of regional Victoria and enhance economic development through investment, job creation and the promotion of export opportunities.

 

Companies establishing in Australia may also be eligible for generous federal assistance in training, research & development, export market development, and in addition companies may be able to quickly depreciate plant and equipment.

 

Additionally, the following incentives are available to encourage companies to establish regional headquarters or support centers in Australia:

  • Exclusive streamlined immigration procedures.
  • Wholesale sales tax exemption for selected used equipment.
  • Tax deductibility of certain relocation expenses.
  • Assistance with obtaining information for site selection studies, facilitation of visit programs, introductions to govt. agencies, professional service firms.

 

 

WHY INVEST IN VICTORIA AUSTRALIA

Melbourne is an attractive center of investment for world-wide businesses due to it’s:

 

Competitive & Dynamic Business Environment: Victoria accounts for only 3% of Australia’s landmass, yet is responsible for 24% of Australia’s economic activity. During the global financial crisis, Australia was the only advanced economy to record positive growth. What’s more, Victoria has led the national recovery, creating 115,800 new jobs in 2009-10, over 25,000 more than any other state. Victoria is the manufacturing, services, innovation and knowledge powerhouse of Australia.

 

Skilled & Innovative Workforce:  Victoria’s talent pool is young – nearly half the population of 5.5 million is under 35 – and well educated. Victorians’ diverse origins foster an outlook of tolerance and internationalism. Victorians are also Australia’s most highly educated citizens, thanks to a concentration of world-class universities and training institutes in the state.

 

World-Class Infrastructure: Victoria enjoys Australia’s most advanced and best- connected system of road, rail and marine transport infrastructure. It also offers fast, reliable and cost-effective access to utilities.

 

Enviable Lifestyle: Consistently rated as one of the world's three most livable cities by the Economist Intelligence Unit, Melbourne’s quality of life is the envy of the world.

 

Supportive Government: For a decade, Victoria has led the National Reform Agenda. This is a historic agreement between Australian state, territory and federal governments to meet the challenges of staying globally competitive. The agenda includes competition reform, regulatory reform and human capital reform to improve health, learning and work outcomes.

 

Victoria's Regions: Regional Victoria is a competitive location for operations including food processing, component manufacturing, data processing and information technology. Victoria's agricultural strengths include wheat and other cereal crops, dairy and beef cattle, wool, vegetables, citrus fruit and grapes.

 

FACTS

According to Invest Victoria:

  • During the global financial crisis, Australia was the only advanced economy to record positive growth. What’s more, Victoria has led the national recovery, creating 115,800 new jobs in 2009-10, over 25,000 more than an In 2010, Melbourne was rated number one by consultants KPMG for cost competitiveness in the Asia-Pacific region. y other state.
  • Economic growth averaged 3.8% in the decade to 2007-08, significantly higher than the global and OECD average.
  • Victoria has a diverse range of manufacturing and service industries, supported by an excellent education and R&D base.
  • Each day, Australia is the first financial market to open in the world. This time zone advantage enables us to bridge US and European business hours, ideal for round-the-clock operations.
  • Melbourne Airport is Australia’s largest, curfew-free and open 24 hours. More than 200 international flights arrive each week, with an average of 30 direct flights a day.
  • The Port of Melbourne is the southern hemisphere’s largest container port.
  • Twenty-eight of Australia’s 100 top-performing companies are foreign owned. The 500 biggest foreign companies operating in Australia account for:
    • 55% of total manufacturing revenue
    • 20% of wholesale trade revenue
    • 25% of communications revenue
    • 11% of finance and insurance revenue

 

TRENDS

 

Investment in Innovation: Melbourne gave the world the cochlear implant, the first frozen embryo birth, the black box flight recorder, and the first cervical cancer vaccine. That tradition of fostering talent and new ideas continues. In 2000, Victoria became the first Australian state to have a dedicated innovation minister.

 

Demographic Trends: Victoria’s talent pool is young – nearly half the population of 5.5 million is under 35 – and well educated. Victorians’ diverse origins foster an outlook of tolerance and internationalism. More than half a million Melbournians’ speak a European language other than English – the highest concentration in Australia. And Asian language speakers number more than 475,000.

 

 

 

REFERENCES:

 

Invest Victoria http://www.invest.vic.gov.au/

Australian Bureau of Statistics www.abs.gov.au

Avanti, Kumar, “Victoria state government woos collaboration opportunities with Southeast Asian companies”, Mis Asia, Aug. 2010 

Unknown, “Property Research & Investment Solutions”, Marshe Group

Foreign Investment Review Board www.firb.gov.au  

 


Current Investment Opportunities in Australia:

 

For current investment opportunities in Australia, please click here  :   http://investinaustralia.com/current-opportunities