Hong Kong a stepping stone to intl business for Thai start-ups

The invitation is part of its commitment to maintaining its long-standing status as a trusted stepping stone for local businesses around the world to gain exposure to international markets. 

"While western companies have traditionally come to Hong Kong to prepare to enter China and other Asian markets including ASEAN, Asian companies like those in Thailand can consider Hong Kong as a springboard to jump into the international markets and China," Lua said in a media interview on Monday. 

The interview was part of InvestHK's one-day road show in Bangkok, which aimed to encourage Thai investors and businesses to consider Hong Kong as another potential overseas market for Thailand's products and services. 

Aside from persuading more traditional Thai companies in fashion and luxury goods, consumer products, food and beverages, and gems and jewellery, Lau stressed that Hong Kong wanted to include more Thai start-ups on its list of invitees for this year. 

"We are open to every level of start-up in Hong Kong, no matter whether they have already grown strong in their local market and want to move upwards and onwards or are just beginning and looking for the right place to groom their business," she said. 

She then highlighted the Hong Kong government's support programme for start-ups through Science Park and Cyberport.

She praised Thai start-ups' diverse innovations in fintech, e-commerce, supply chain management, logtech (logistics technology), information, computer and technology, education and learning, and data analytics, and expressed her belief that the country's start-ups would greatly benefit from Hong Kong's dynamic start-up ecosystem.

According to InvestHK's 2023 start-up survey, the number of start-ups and employees reached a new high, with 4,257 start-ups employing 16,453 people despite various external challenges.

Lau pointed out that the figures demonstrate Hong Kong's appeal to start-up founders. Those characteristics were aided by favourable factors such as a simple tax system and low tax rate, access to international and regional markets, funding availability, business opportunities in Mainland China, and free flow of information.
 
She added that Hong Kong's strong entrepreneurial culture and high staff productivity encourage start-ups to use the SAR as a base for their operations to access the Guangdong-Hong Kong-Macao Greater Bay Area and the rest of Asia. 

Thailand's products from its traditional industries such as consumer products, fashion and attire, food and beverages, and retail are still wanted in the Hong Kong market.

"Thailand's products are always popular among Hong Kong people, especially your tasty food and creative fashion," Lua explained, citing Thai rice as an example.

Thai rice now accounts for 60% of total rice consumption in Hong Kong, and the figure is likely to rise, she said.

Appointed as InvestHK's director-general in November last year, Lau is committed to introducing more Thai brands to the Hong Kong and Chinese markets. 

"The Hong Kong market is regarded as a premium international product among Chinese consumers. So, before entering the mainland market, a brand can establish a presence and raise awareness among Chinese consumers in Hong Kong. Once the brand is known, the next step to entering China becomes easier," she explained.

While noting that Hong Kong's status as an international financial and commercial hub remains unchanged, she pointed out that the territory is currently going through a process of diversification, with a greater emphasis being placed on ASEAN emerging markets, of which Thailand is one. 

"In addition to promoting Thai brands, InvestHK is willing to assist Thailand in promoting its soft power, such as collaborating with the Thai government to hold more Thai-related festivals in Hong Kong," Lau said. 

Citing its success in registering 412 international companies, including those from Thailand, to do business in Hong Kong last year, InvestHK's director-general predicted that the number would increase significantly this year as the global economy improved. 

At the weekend, Hong Kong Financial Secretary Paul Chan Mo-po wrote on his blog about expanding trade ties with ASEAN, whose share of exports by value increased to 7.9% in 2023, up from 6.1% in 2022, making it Hong Kong's second-largest export market after China.

He mentioned that the city is stepping up efforts to generate new economic growth opportunities. The 2024-2025 Hong Kong Budget proposed transforming the HKSAR into a multinational supply chain management centre that would provide one-stop services for supply chain management, trade finance, consulting, and talent training.

The initiative also seeks to entice Chinese mainland manufacturers to establish offshore trading regional headquarters in Hong Kong, leveraging the city's extensive management experience and favourable market conditions, he said.