What to Keep in Mind When Expanding Your Business to Hong Kong
Hong Kong with its open trading environment has a large market of its own and is a strong trading partner. Innately linked to China, Hong Kong is one of those places with a synergy of ethnicity and foreign practice. It is a fascinating proposition and is an attractive destination for expansion with government investment incentives, a strong communications infrastructure and good business support services. The city has a high level of autonomy and its government acts as its own legal system, police force and customs with its own immigrations policies.
Hong Kong, a good choice
Many companies regard Hong Kong’s business system highly mostly because of its low taxation, legal system and its infrastructure. It has one of the most open economies in the world and the reason for that can be attributed to excellent banking system, nearly no public debt, a solid legal system, and an anti-corruption regime that has been effectively imposed. After China’s entry into the WTO (World Trade Organization), Hong Kong aims to improve its trading and commercial appeal. Hong Kong is also a member of Asia Pacific Economic Cooperation (APEC), the leading forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region.
Studying the Economic Climate
Hong Kong’s Economy has doubled in size with the GDP growth at an average annual rate of 5 percent in real terms in the last twenty years. As a growing business economy, the government plays an important role in Hong Kong’s development. Earlier, services contributed to 69 percent of the GDP, while 30 percent of the GDP was contributed by manufacturing, but today Hong Kong is looking at a change in the GDP constituents. 90 percent of the GDP is services and around 10% is manufacturing. This clearly indicates the extent to which Hong Kong and its residents are capable of adapting and recreating. It has also started embracing vital elements to the success of the country”s economy like management, finance, marketing, trade, and tourism. Hong Kong is extremely successful in terms of trade and its total trade volume s approximately split halfway between imports and exports.
Main Areas for business opportunities in Hong Kong
Hong Kong is a regional centre for aviation with its location linking China to the rest of Asia, Europe and America. There is a huge market for the aerospace industry with main opportunities for companies in Aero-engine maintenance and repair, Training on aircraft engineering, Aircraft conversion, Private/Business jet aviation, Base and line maintenance, repair and overhaul (MRO) of aircraft. Hong Kong is also a major trading centre for chemicals and plastics. As a part of the economic stimulus, it also has opportunities in construction for architecture and planning. There is also tremendous opportunity in the creative industry, education and training, environment, financial and professional services.
Take the help of an expert
When expanding business overseas it is best to seek the help of professionals who can assist you in your venture. As the fear of the unknown is inherent when doing business overseas, a professional partner can provide unlimited assistance in offering global integrated solutions in all areas of business, like HR, legal, tax, finance, or international accounting. With expert guidance, you can be stress-free about your business expansion.
Processing your request, Please wait....
