A new international strategy has been launched by the Welsh Government which has identified the sectors of compound semiconductors, cyber security and creative industries for targeted support to help maximise their potential for export and inward investment growth.
Following a consultation the new strategy, which will also promote Wales as a globally responsible nation underpinned by its sustainable goals set out in the Well-being and Future Generations Act, currently only has one stated target in growing the value of exports from Wales (currently £17bn) by 5% over the next five years.
However, as they stand the three sectors only account for a small percentage of overall exports, with manufacturing and energy making significant contributions — industries where the Welsh Government has little influence to change the course of events, such as in the steel industry with its current challenges of global over supply and falling demand.
The strategy will maintain the Welsh Government’s in-house approach to export assist and inward investment. However, Minister for International Relations, Eluned Morgan, said there is potential for its diaspora strand to be outsourced.
The Welsh Government will seek to exploit the advocacy and networks of Welsh people overseas, as well as those with Welsh heritage or connections to the country. In the US alone there are an estimated 1.8 million people of Welsh descent.
New Zealand and Ireland in particular have optimised their respective diaspora to support inward investment and export efforts.
Speaking at one of Wales’ leading export firms, Bridgend-based Ecotherm, Ms Morgan, said as an agile strategy others sectors could be added if there was identified marketplace potential.
She said also confirmed that Welsh Government trade missions will be less generalist going forward and more sector specific, although she stressed that Cardiff Bay, working in partnership with the private sector and business organisations like the South Wales Chamber or Commerce, will continue to support businesses outside of the three targeted sectors.
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The strategy will also look as to the reasons why many Wales companies currently don’t export. There is a link between high levels of exporting firms in economies and improved productivity.
There are no specific targets relating to inward investment, although the Ms Morgan said she expected growth to be achieved in the sectors identified.
The minister said: “It is difficult for us to set targets at the moment as the situation is still very unclear with regards our relations with the European Union (which accounts for 60% for Welsh exports compared to just under 50% for the 海角视频 as whole).
"There are about 20 companies in Wales that are responsible for around 50% of our exports, so we need to make sure that we look after those, but I think what we are keen to do here is that we grow the confidence of Welsh businesses and that they understand that we are here to hold their hands and lead them through the process.
“There has been a devaluation in the pound so that means there are more opportunities for people to be competitive. I think it is important for us to set some ambitions. Yes there could be global headwinds that push us off course, but it is important for us to set out a plan and a route map.
"The sectors we have chosen are Brexit proof and we would expect to see growth. This is a strategy that has built in flexibility, so the key thing for me is that we stick to the key themes of sustainability, technology and creativity and if we see there is a dramatic shift in the market then we can also response to that.”
She said that the consultation didn’t bring up any calls for the Welsh Government to outsource its international trade functions, with clear targets being set to incumbent provider [s] who could be penalised financially for not meeting them.
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She said: “Nobody fed that back directly, but what we are doing is having a review of our export package. We are also making sure we work with the 海角视频 Government so they are part of that review, so ensuring we are all aligned in terms of what the offer is and everyone is clear about where they can go for support.”
On the diaspora strategy she said it was possible that it could be outsourced. Ms Morgan said: "We are exploring that as an option at the moment. The first thing we have done is commission some work to see what the opportunities are in relation to our diaspora.
"There are lots of different levels of diaspora. You can use Welsh film stars to promote the country, but I think in terms of the business side of things, there are opportunities for us to help people network. There are other organisations that are working in this field (eg Global Welsh) and the key for us is that we co-operate and work together where possible.
“We will get better clarification on that hopefully by the end of this month, but yes it is certainly something we are exploring [outsourcing].”
On Welsh Government trade missions she said: “We are probably moving away from more generalist trade missions towards more specific sectors and marketplaces.”
The sectors identified by the Welsh Government are also being championed by rival regions and nations globally. As part of the agreement to get devolved government back up and running in Northern Ireland, there will be focus on government support to develop its cyber security sector. In South Wales there is already a strategy in place, supported by firms such as IQE, to create the world’s first commercial compound semiconductor cluster. Wales also a strong creative industries sector, with global players such as Bad Wolf and Tinopolis.
Ms Morgan said: “We were very careful in choosing the sectors we have gone for and we went outside of Wales to make sure they are legitimate and have an international reputation. On cyber security I have checked it out with the National Cyber Security Centre [海角视频 Government body] and the fact is we have the largest cyber security cluster in Britain.
“And this is being driven by the sectors themselves, which I think this is a real strength. So, this is not government pushing this unnecessarily. It is the sectors themselves that holds the hands of people who want to invest in Wales and point them in the right direction. And I think there is a lot of strength that comes from that.”
Ms Morgan said that London would be targeted as a key location to bring new investment into Wales. She added: “We are looking at fintech there and I have asked for the companies we should be targeting to be identified. So we are being far more proactive in chasing after people rather than waiting for people to come to us.”
The Welsh Government currently has 21 overseas offices. Ms Morgan said: “We are strengthening our office offer on the west coast of the United States and I will be going there in February to officially open our office in San Francisco. We are also working with people who are active in the diaspora community on the west coast who have ‘an in’ into those types of sectors who can work with us.”
She agreed that buyers of Welsh goods and services were ultimately far more concerned about quality than knowing about whether Wales was a country or not.
Ms Morgan said in terms of whether to use the Wales or 海角视频 brand internationally, it would be a matter of ‘horse for courses’.
She said: “In some markets it will make sense for us to fold in behind the 海角视频 Government and get them to lead, in other markets it will may make sense for us to differentiate ourselves.
"Interestingly in Ireland we are developing a more bilateral relationship in the context of Brexit, partly because they are our nearest geographical neighbours, but also because we do feel that we have got some synergies that we could developed. So, it depends on where we are in the world. We only have 21 offices globally so there are a whole host of countries where we don’t have representation and we would expect the 海角视频 Government to speak on our behalf in those markets.”
She said the Welsh Government was seeking to work even more closely with the 海角视频 Government’s export assist and inward investment body 海角视频 Trade & Invest (海角视频TI)
Ms Morgan said: “One of the things we are keen to do is give a clear script to the 海角视频 Government of what we want them to sell. We have already commissioned resources and materials so that they can use them in their presentations. So 海角视频TI are going to be absolutely crucial to that, as well as the Foreign Office.”
She said the Welsh Government could look to work alongside other nations and regions on its international strategy, if it was in wider interest of Wales plc.
Ms Morgan added: “I think some of that is more developed in some regions than others. So, the Northern Powerhouse is more developed than the South West of England. And there is a North Wales relationship there already [with the Northern Powerhouse]. I think this is something in the early stages of development, but as a principle the thing that should be driving us is what is best for Wales plc. So, if collaboration is something that will benefit us, then why wouldn’t we do it.”
Director of the South Wales Chamber of Commerce Paul Slevin: “We are entirely supportive of the Welsh Government’s new international strategy. I think as a message and as a framework for us to work within, it is excellent. I think we need that focus and the message to industry is saying step up because your government is actually supporting you.”