Australia’s second smallest state is nevertheless its manufacturing heartland and one of its biggest food providers. Victoria also boasts thriving knowledge sectors, backed by a vibrant international business community and a city that offers the best in arts and sporting events. Area: 227,420 sq km Population: 4,822,700 (24.7%) Capital: Melbourne (pop. 3.45m) State Final Demand: A$180.85bn* SFD growth: 5.9% Gross State Product: A$179.37bn‡ Credit rating (S&P): AAA Employment growth: 1.5% Average weekly earnings: A$710.90 (11/02) Unemployment rate: 5.4% (03/03) Inflation: 3.2%* *=2002, ‡=2001/2. Source: ABS.

Victoria

Industry and innovation

Heartland
Victoria lies at the centre of a triangle linking Sydney, Adelaide and Hobart – an area that is home to 70% of Australia’s population and most of its economic activity. An excellent logistics and transport network connects Victoria to all points within this triangle and beyond.

Melbourne has Australia’s only major 24-hour airport and Australia’s largest and most modern container port, handling 40% of Australia’s overseas container trade.

A long tradition of internationalisation in the Victorian business scene has created a vital global network for new companies establishing there. Melbourne is highly competitive with other leading Asian cities, and is one of the best ‘wired’ cities in the world, with is optical fibre network within 100 metres of every major office location in the city.

One of the nation’s main food bowls, Victoria produces more than 80% of Australia’s dairy exports and more than half its processed fruit and vegetable exports. It is services, however, that account for almost 70% of the state’s gross product – Victoria has thriving knowledge-based industries, including strong finance, education and ICT sectors.

Indeed, the ICT industry is increasingly at the heart of the modern Victorian economy, providing solutions and transformation across a wide range of sectors. The state’s globally-focused ICT industry has a turnover of A$18.3bn, with export revenue of A$650m, R&D expenditure of A$223m, and a skilled and creative workforce of 62,000.

international financial technology company Computershare announced this year that it will establish its global headquarters and operations centre in Melbourne, eventually tripling its
current workforce to around 1800, and providing an estimated A$800m boost to the economy over the next six years. Computershare is Australia’s largest home-grown IT company and is spearheading Victoria’s IT push into the international market.

Biotechnology
Victoria is also a centre for research and development. It aims, for example, to be one of the world’s top five biotechnology centres by 2010, with the Victorian government committing A$320m over four years.

Especially exciting is Australia’s first synchrotron, to be based at Monash University in Victoria. This is expected to provide a massive boost to Victoria’s position as a global leader of biotechnology and scientific research. The synchrotron will add to the technology base of Melbourne’s south-east, which already has world-class research facilities that include Australia’s largest industrial concentration of ICT, scientific and medical facilities, about 20,000 advanced manufacturing jobs, and top researchers at Monash University, CSIRO and the Monash Institutes of Health.

Health dominates Victoria’s biotechnology sector – 58% of companies operate in this area. Victoria is home to Australia’s largest biotechnology company, CSL Ltd, as well as the Institute of Drug Technology Australia, Virax Holdings and AMRAD Corporation.

Services sector
The state’s vast services sector has particular strengths in finance and treasury, in addition to marketing services, training, technical support, data processing, call centre operations and related corporate and customer support functions.

Companies that have established such operations in Victoria include Lufthansa, Credit Suisse/First Boston, Shell Services International, Oracle and Daiwa Securities.

Victoria’s financial services industry employs more than 92,000 Victorians and has grown by 32% since 1992. It includes two of Australia’s major banks headquartered in Melbourne – the National Australia Bank and the ANZ, which is targeting growth in developing countries, particularly in Asia. The Australian Securities and Investment Commission (ASIC) is also based in Melbourne, while the Australian Prudential Regulation Authority has established a regional office in Melbourne covering Victoria, South Australia and Tasmania.

Large international financial service companies with their Australian operations in Melbourne include AXA, CS First Boston, Vanguard, HSBC Asset Management, OCBC, GE Capital, Standard and Poor’s, and SSB Citi Asset Management.

Automotive
Victoria is the home of Australia’s automotive industry. With key assemblers, component companies, design houses, toolmakers and other service providers located there, Victoria is responsible for more than 60% of national automotive output. Its automotive industry employs about 30,000 people, generates A$9bn in economic activity, and provides a major market for hundreds of millions of dollars in related goods and services. The Ford Motor Company plans to invest A$500m in Victoria to develop a new vehicle line, which will be launched in 2004, while Toyota Australia employs 4100 Australians, with head office, manufacturing and engineering activities all located in Melbourne. Toyota Australia recently consolidated vehicle production at its new A$420m plant at Altona, Melbourne, now a world-ranking facility in terms of ‘lean’ manufacturing technology and processes.

A rounded economy: Victoria dominates Australia’s dairy production

Food processing
Food processing is Victoria’s largest manufacturing industry, with more than 2000 food processors operating in the state. Victoria dominates Australia’s activity in dairy produce, fruit and vegetables, cakes and biscuits, confectionery and pet foods, while the state also provides a substantial proportion of the nation’s crops and livestock.

The state’s food exports exceed A$4bn, with strong growth predicted to continue as exports to global markets keep expanding. Ten of the world’s largest food companies are located in the state of Victoria, including names such as HJ Heinz, Kraft Foods, JR Simplot, Effem Foods, Cadbury-Schweppes, Nestlé and Campbell’s.

Sport
And of course, Victorians love their sport! Each year Victoria hosts a range of international events, including:

• the Australian Formula One Grand Prix;
• the Australian Open tennis;
• the Melbourne Cup horse race;
• International Cricket Tour; and
• the Australian Rules Football grand final.

In addition, the whole state is a playground for active families, with quick escapes from city living to magnificent coastal and mountain regions for bushwalking, skiing, boating, golfing, swimming, fishing and much more.

For more information contact:
Department of Innovation, Industry and Regional Development
Telephone: +61 3 9651 9329
Fax: +61 3 9651 9531
Email: invest@iird.vic.gov.au
Website: www.invest.vic.gov.au