[MUSIC] Hello, everyone, welcome back for Sara, Global Public Procurement, UN Procurement. Our last session we talked about various issue, how to prepare the proposal for UN and RFQ RNP for UN procurement. Today let's have a look at UN public procurement market overview. This will be very exciting session because most of the people, especially those of you come from the Asian country, and this may give you some opportunity to review what is it all about the UN public procurement. And some of the definition of the country breakdown, the market segment and the product segment you will get very clear idea. So let's have a look at the UN procurement market of all size. So I put together with the information here as you can see here from 2009-2017, UN goes back to 2009, total public procurement budget for UN was about $13.7 billion. But, 2017, it has grown up actually is now $18.6 billion increase from 2017, 5.1% increase from 2016, $17.7 billion. So when we look at the public procurement dollar over here you can see the trend, the UN public procurement market is growing. It is not growing rapidly but rather it's growing steady manner, especially 2009 to 2017 did average in market grow anywhere between 2 to 5% growth. Especially 2016 and 2017, you have a regional growth. So combination for the goods and services, UN buy, a lot of people think UN only buy the product, but that is wrong. But when you look at the statistics over here, actually 2017, UN bought more services than good. 52% of UN public procurement goes into procurement for services element, okay? And then 47% approximately goes for product base procurement. So overall we can say in 2017 and even in 2018 we have reasonable growth it's still 18.67. So all this information we are sharing with you today it is UN public procurement ebooks 2017. You can download information visiting ungm.org. So if you have a look at ungm.org there is a database information center you can retrieve the most of the information in reference to UN public procurement, historical data and also product based data. And also you can look at which country did what. This information is not something that we provided from our research center but this is something we got it from UN, and then you can also have a look at it, what's in there. So as you know there is a number of different agency, and when I say agency it is entity under UN umbrella. So UN have many agency in here. So let's have a look at the top 10 organization of UN accounted more than 89% of total budget. Again, I sort of repeat again because if you want to do business with the UN you better focus on one of these UN agency. If you're trying to get it in the market, a UN agency, not mentioning at the top organization here, you have less chance to have a large volume business because they simply do not have budget allocation. So let's have a look at which one comes first. UNICEF, United Nations Children's Fund. UNICEF, spend the most followed by World Food Program. UNPD, UN Procurement Division. UNDP, UN Development Program. And the UN High Commission for Refugee because of all the things happening in the world, Syria, Myanmar, all this issue. And actually UNHCR spend quite a bit of money for medical and a lot of other issue. And the UNOPS, UN Office for Project Service, they buy a lot of products like IT component, network component and office furniture, equipment. So they spend a lot of money as well. And you have a Pan American Health Organization. They also buy a lot of pharmaceutical product. WHO obviously, this the World Health Organization, the main agency to monitor health care issue and diseases, all other issues. So they purchase quite a bit of a drug related issue and also medical devices and equipment. International Organization for Migration also spend quite a bit of money and followed by Food and Agriculture Organization of UN, we call it FAO. So if you want to do business with the UN, my recommendation is to deal it with one of these UN agency. Next session we're going to talk about how to prepare your company to be able to participate UN public procurement. There is a number of different way and you have to do first your company analysis basically studying your own company come up with a SWOT analysis, strengths, weakness and opportunity and threat analysis. Basically knowing about your company and come up with your descriptive wording for your company background, history, past performance, technology solution, etc. And also you have to do product analysis. What sort of product you have? Is it match with the UN supply code? And whether you have a certification necessary to participate any of the things? So once we have these one, and then you got to do customer analysis. So after you know about your capability, your limit, your resources, and then you need to pick and choose which UN agency you are better off to the divisions. If UNICEF buying main item that you produce for example, as office furniture, as your main business, if you look at the UN database, UN public procurement ebook, it will be easier to find out how much money UNICEF spend for the particular item. And then that demonstrate UNICEF is maybe right customer for you. So you really have to have three different steps. Company analysis and product analysis for UN supply code. And then you have to have customer analysis and selecting a specific customer. And then you can start working with them. Once you define that concept and then you can come up with a writing capability statement. Things we are going to talk about session six. Now let's have a look at the market overall feature of the UN market. So in the service sector of the UN public procurement scope of service provision is expanding. As I said, based on 2017 database, UN bought more services than goods. But services actually include product training is a services, price and method to transfer, all that even with after sale supported or service element. So sometimes service not single alone service, but service is additional element to support product sale. So one key element of UN procurement bidding process is UNGM. So UNGM is a procurement of platform. It is a transparent, very fair market. And the MGM their vision is conducted in accordance with a very specific procedure and stand out stipulated in UN public procurement guideline. So, this system does not give any specific vendor or a specific country any preference whatsoever. There are different mechanism, for example if UNDP procure more than $100,000, they may have certain rules apply. You have to advertise how many day before and how we have to evaluate, but amount of the procurement less than $100,000 they may have a different rule. If procurement is very small like couple thousand dollar, they may be able to procure that particular product, even without going through any tendering process like a source source in the US government, the. Single source that can be another procedure we can come up with. So, when I look at the Korean, the procurement for UN business at the moment in Korea, based on 2017, 2019, Korea is the number 11 sometime number 12 largest economy in the world. So UN annual basis assess analyse each member country and their economic growth, wealth of the country based on GDP, gross domestic product, and other indication and other index. So being a number 11 sort of the largest economy in the UN member country, Korea has a proportional contribution percentage, how much money we have to contribute. Currently Korea contributed more than $60 million a year to the UN. These monies just basically given as a contribution, the no return or a favor. So even Korea as a company government provide UN with a contribution more than $60 million, for example. There is no mandate to not tie whatsoever with the money that's contributed by the Korean government in return for Korean supplier, Korean industry to return their money in favor of Korean company, the public procurement participation. They're totally separate exercise. A lot of people think Korea would do very well in terms of UN public procurement but unfortunately, in Korea, the UN market share for Korean, the company overall in less than 1%. Most of the Asian country except India, it may be in same situation like Korea, as let's have a look at it, what each country doing in terms of public procurement per country database. So if you look at 2018, UN procurement database have a look at the continent for 33%, almost 33.8%. So 34% of entire UN public procurement are done by, supplied by Asian Country. And European 30%, African country 20%, North America 9.6% and the Latin American, South America is 5.9% and other, etc, 0.5%. So having said that, as you can see the Asian country contributed, and more than anybody else in here, UN bought 34% of the entire procurement dollar goes to Asian country. If you look at individual top 10 supplier to UN, and we have slightly different opinion and different idea. So let's have a look at this information. This information is basically top 10 supplier country by procurement volume in 2017 database. This is the information that the public information downloaded from ungm.org and database center. So this is public information so anybody can reach out. Anybody can look at it. Let's have a look at. These are the facts the base. This is the procurement dollar actually UN spend. So have a look at the, United States is number one. Obviously understand that in the US contributed the majority of the contribution for UN operation. So for the procurement they are ranked number one. So number two surprisingly India. India is number two and number three, the UAE, United Arab Emirates. And the third one France, UK and the Northern Ireland combined together, and the Switzerland, Netherlands, Denmark, Kenya. So if you are from Asian country other than India, top ten supplied to the UN no other Asian country I mentioned. This is very disappointing. But I'm not surprising. Let's have a look at why India would be in there because you can't see the China in there because in terms of price competitiveness, India and especially their labor cost all other industrial index for competitiveness, India, overall cost for the manufacturing cost, labor cost, is not actually better than the China. So China's very competitive as a global sort of supply chain for the many and the industry, the leader. But China is nowhere to be seen here. So let's have a look at why Asian country not there, okay? So, if you look at it, I produced another one actually, I gone through. This list is based on the Asian countries. So number two top supplier to UN is India. Third is UAE. Arab Emirate is in obviously not Asian country but it's the Middle East. And also number 12 is Iraq. Number 13 Turkey. And number 14 is Lebanon. And 16 Pakistan. And the rank 24 China, right? And then 34 is Singapore, 35 is Korea. And remember what I said Korea contributed more than $60 million cash every year to UN in operation, but Korea at rank very low. And then after Korea there is Malaysia and Japan and Indonesia and Thailand. So if you are from any of these country except India, we have a lot to think why our country or company from our country not doing very well. Obviously, this lecture will help you to understand why it's a background, what we can do make it better. So we're going to talk about this issue next session. Thank you.
