HKTDC helps businesses connect with Thai officials and discover market opportunities

Thailand has emerged as one of the most favoured destinations for Hong Kong exporters seeking to expand their markets.

Thailand offers an attractive business environment based on its large youth population, a rapidly growing middle class, advances in information technology and increasingly developed infrastructure.

Two local SMEs discovered these advantages during a recent visit to the Thai Consulate General in Hong Kong, organised by the HKTDC’s Transformation Sandbox (T-box) business support programme.

Baide Juye Group produces cosmetics and beauty products and intends to invest HK$10 million (US$1.3 million) to set up a production line in Thailand.

“We became a T-box member last year and took part in a T-box visit to the Indian Consulate in Hong Kong to learn more about the Indian market,” said Group President Mr Huang Shao-ju.

“This year's visit to the Thai Consulate-General allowed us to learn more about the requirements for setting up a cosmetics factory in Thailand, including how to obtain a licence from the Department of Business Development and the process of applying for a Foreign Business Licence.”

Andy Cheung, Director of garment manufacturer Ludwick Ltd, said that they had attempted to enter the Thailand before the pandemic, but lacked understanding of the local market. “We currently export our clothing products to Singapore, Malaysia, the Middle East and other places. Thai clothing is light and thin, which is our ideal sales market. This visit has enabled us to meet Thai representatives and learn about the details of entering the Thai market.”

With a population of more than 66 million, Thailand’s GDP exceeded US$500 billion last year, giving it a per capita GDP of US$7,300. The per capita figure increased 2% compared to 2022, reflecting the continued rise in local incomes, which will help drive consumption and overall economic development.

According to Consul General Chaturont Chaiyakam, under the Thailand 4.0 strategy, the country's manufacturing sector is moving up the value chain and leveraging the power of innovation and technology to transform the economy and improve livelihoods.

A priority development is the Eastern Economic Corridor, which will focus on smart electronics, new-generation automobiles, digital services, high-end medical and healthcare tourism, biotech and future food products.

On the trade front, Thailand encourages free trade and continues to launch incentives to strengthen its position as a preferred investment destination. These include a range of business tax exemptions and discounts for foreign investment projects.

Trade between Hong Kong and Thailand is flourishing. From January to July this year, total bilateral trade exceeded US$9.2 billion, representing an increase of 23% over the same period last year.

While the value of goods imported into Hong Kong (US$6.5 billion) exceeds those in the other direction (US$2.6 billion), exports from Hong Kong to Thailand are growing strongly, with a 74% increase in the first half of 2024 compared to a 10% increase in the value of imports.

Free of charge, T-box is open to all companies registered in Hong Kong and provides participants with a tailored package, including advice, workshops, market insights and networking opportunities. In the past four years, over 4,300 SMEs have participated in the three-month programme.

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AFC Capital Partners eyes new sources of capital in Hong Kong

Africa stands on the brink of an economic transformation, thanks to a young population and an abundant supply of the natural resources and critical minerals that the world needs to decarbonise.

Elie Aloko, Vice President, Business Development at AFC Capital Partners (ACP), is engaging investors around the world – from Asia, in particular – to turn this promise into reality. 

ACP is the asset management arm of Africa Finance Corporation (AFC), an investment-grade multilateral finance organisation established in 2007 to accelerate industrial and infrastructure development in Africa.

To date, AFC has invested over US$13.5 billion across 36 African countries.

“We want to see more investment coming from Asia, to develop infrastructure and set up productive industries in Africa,” Mr Aloko said, speaking to Hong Kong Means Business at the recent Belt and Road Summit in Hong Kong.

“It’s no longer a story where Africa is a solution to the world by providing the natural resources, but how Africa can be part of that solution with globally competitive industries, creating value through local manufacturing and processing,” he added. 

ACP was established three years ago with a mandate to manage capital from African and overseas institutional investors – such as pension funds, insurance companies and sovereign wealth funds – to help diversify AFC’s sources of funding. 

These investors tend to be unaware of the opportunities that Africa offers.

“The Belt and Road Summit is a great platform to engage with professional institutional investors, and tell them what is happening in Africa,” Mr Aloko said.

“Whether we like it or not, Asian private and institutional capital has been remote from Africa. We don’t see the traction we want to see.”

Mr Aloko took to the stage at the Belt and Road Summit in Hong Kong to introduce the Infrastructure Climate Resilient Fund (ICRF), which aims to mobilise and deploy US$1 billion in Africa.

The world’s largest multilateral climate fund, the UN Green Climate Fund, has already committed US$240 million to the ICRF. 

“We see ourselves as an investors’ gateway to Africa,” Mr. Aloko said. “Our role in the coming years will be to mobilise large pools of capital from all over the world, including Asia, to invest in bankable infrastructure and industrial projects.”

In April, AFC published its first State of Africa’s Infrastructure Report, a new annual study that aims to quantify and prioritise infrastructure investment in Africa.

This report has already helped AFC map out strategic trade corridors and landmark projects that can fast-track sustainable growth in Africa.

Many investors from outside Africa have a high perceived risk on the continent, Mr Aloko said, pointing to a 2020 Moody’s study that showed lower default rates for infrastructure debt in Africa compared to other regions of the world, apart from the Middle East.

“There’s a strong bias in how Africa risk is perceived. We are not saying Africa is without risk, but the perception of risk is higher than what the actual numbers reveal.”

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Event will host 80+ key officials and business leaders.

This year’s Belt and Road Summit – a key platform for Hong Kong to promote the Belt and Road Initiative (BRI) – is bringing together more than 80 officials and business leaders to discuss collaboration opportunities in BRI markets.

The Summit, which is taking place on 11-12 September at the Hong Kong Convention and Exhibition Centre, is organised by the Hong Kong SAR Government and the Hong Kong Trade Development Council (HKTDC).

The Business Plenary on the first day – featuring Hong Kong, Mainland China and overseas business leaders – will look at Hong Kong’s role in facilitating cooperation as well as how companies are responding to the current global landscape.

The second day’s Business Plenary will explore opportunities in the Middle East and other Belt and Road markets, another key topic for this year’s event.

“The Belt and Road Summit will deepen international business cooperation and consolidate Hong Kong's position as the preferred business platform for the Belt and Road Initiative,” said Algernon Yau, Secretary for Commerce and Economic Development for the Hong Kong SAR Government.

As China looks for ways to drive more collaboration between Belt and Road markets, Hong Kong can play an even more active role as a global hub for investment, trade and innovation, Mr Yau explained.

Dr Peter K N Lam, Chairman of the HKTDC, highlighted the business support that HKTDC provides to foster closer cooperation, including business delegations and outreach activities to Belt and Road countries and regions.

The main theme for this year’s Summit is Building a Connected, Innovative and Green Belt and Road.

This year’s event is also introducing a Green Chapter, reflecting its focus on sustainability, with thematic sessions on green construction, innovation, finance and more.

Sessions that are part of the Finance Chapter will analyse opportunities to leverage Hong Kong's financial services, while the Youth Chapter will host young business leaders who will share their views on BRI opportunities.

This year’s Summit will also feature two new thematic sessions, on multi-dimensional connectivity and people-to-people exchanges.

Investment and business matching services remain an integral part of the Summit. Business matching meetings will run on-site on 11-12 September and online on 16-17 September.

Organisers expect to match more than 280 investment projects, with more than 800 one-to-one project matching meetings already lined up.

Project investment sessions will focus on four main areas: energy, natural resources and public utilities; innovation and technology; urban development; and transport and logistics infrastructure.

The Summit’s exhibition will gather over 100 exhibitors across three zones.

A Hong Kong Zone will showcase Hong Kong service providers. A Global Investment Zone will present large-scale investment projects and opportunities as well as major cultural and technological developments. An InnoTech Zone will feature cutting-edge innovations and solutions from exhibitors around the globe.

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Annual event attracted thousands for deal-making opportunities.
 

The 9^th Belt and Road Summit finished in Hong Kong last Friday, bringing to a close a packed two-day schedule of pitching, deal-making and networking events focused on developing business in the Belt and Road countries and regions.

Under the banner of “Building a Connected, Innovative and Green Belt and Road”, the summit was co-organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC) as a key event celebrating the 75^th anniversary of the founding of the People’s Republic of China.

Over 6,000 business participants from more than 70 countries and regions attended the event.

Over 280 investment projects were matched at the event in sectors, including energy, public utilities, technology, urban development and transport and logistics infrastructure.

25 G2G and B2B memoranda of understanding were announced between government bodies and companies from Hong Kong, Mainland China, ASEAN - Indonesia, Malaysia, Vietnam - and the Middle East - Bahrain, Kuwait, the United Arab Emirates - Kazakhstan and more.

An agreement between the HKTDC and the Ministry of Commerce of Cambodia promises to facilitate trade missions and business matching between Cambodian and Hong Kong companies as well as promoting Hong Kong's advantages to Cambodian businesses.

Many projects announced at the summit have a focus on sustainability and technology solutions. Farmacy International from Hong Kong and FutureBright Society Enterprise from Australia announced a strategic joint venture that aims to drive sustainability in agricultural innovation and develop scalable green food networks across Australia and New Zealand.

State-Owned Enterprise of Indonesia - Perumda Varia Niaga Samarinda, LINKTA Technologies Holdings from Indonesia and Rainmaker Ventures Holdings from Hong Kong announced that they will cooperate to develop investment in smart chicken farms and agriculture in Nusantara, Indonesia’s new capital region.

More than 110 exhibitors promoted products and services at the summit including more than 50 trade and service enterprises from Mainland China, which highlighted innovative achievements in areas, such as greentech, culture and creativity, cross-border e-commerce, cloud services and big data.

Featured speakers at the summit included John Lee, Chief Executive of the HKSAR, Dr Peter K N Lam, Chairman of the HKTDC, Li Yongjie, Deputy China International Trade Representative of the Ministry of Commerce, Gou Ping, Vice Chairman of the State-owned Assets Supervision and Administration Commission, and Xiao Weiming, Deputy Secretary-General of the National Development and Reform Commission.

A keynote address was delivered by H.E. Nguyen Hoa Binh, Permanent Deputy Prime Minister of Vietnam.

Other speakers included Paul Chan, Financial Secretary of the HKSAR Government, Chen Liang, Chairman of the Board of Directors and Chairman of the Management Committee of China International Capital Corporation Limited, and Dilma Rousseff, President of New Development Bank.

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A series of agreements are bringing the two regional hubs closer together.

Trade and investment opportunities are continuing to open up between Bahrain and Hong Kong.

The Bahrain Chamber of Commerce and Industry and the Hong Kong Trade Development Council (HKTDC) signed an MoU at September’s Belt and Road Summit in Hong Kong, paving the way for business missions, conferences and training programs as well as new formalised channels for information exchange and collaboration. 

“Information flow is important, but human connectivity is even more important,” said Mohamed Abduljabbar Alkoheji, Second Vice-Chairman of the Bahrain Chamber, in an interview with Hong Kong Means Business.

“It is very important that both sides understand each other,” Mr Alkoheji added, emphasising the value of exchange programs for businesses, entrepreneurs and students to foster deeper connections.

Mr Alkoheji spoke alongside other heavyweight business leaders from Belt and Road countries and regions at a Business Plenary session at the Summit, exploring new opportunities created by the Belt and Road Initiative and the role Hong Kong can play.

The MoU follows two major bilateral deals that Bahrain and Hong Kong signed in March: a comprehensive avoidance of double taxation agreement (CDTA) and an Investment Promotion and Protection Agreement (IPPA). 

These pacts help create financial safeguards to encourage more direct investment and joint venture deals between the two regional hubs. 

As part of the IPPA deal, the Hong Kong SAR Government’s Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD) fund – which provides financial assistance to local businesses expanding abroad – has extended its reach to include Bahrain.

The Bahrain Chamber also signed an MoU with the Hong Kong General Chamber of Commerce in April to help facilitate mutual growth.

Governments from Hong Kong and Bahrain have been engaging more closely  in recent years, Mr Alkoheji noted, in a bid to strengthen economic and trade ties.

“Both countries have agreed that we should be focusing more on business relations,” he said. “That's why we've been here. We came here three months ago, and we’re here today. That shows our commitment.”

Bahrain and Hong Kong share many similarities, Mr Alkoheji pointed out, as financial and logistics centres that can facilitate access to larger regional markets while serving as gateways connecting the East and West.

In May, Bahrain’s King Hamad bin Isa Al Khalifa and Chinese President Xi Jinping signed a comprehensive strategic partnership, pledging closer cooperation on a range of areas, including investment, transport, renewable energy and the digital economy.

Both Bahrain and Hong Kong are also positioning themselves as innovation centres as part of their development plans, especially as a fintech and start-up hub.

“In Bahrain, we are moving from red tape to the red carpet,” Mr Alkoheji said.

Tamkeen, a labour fund set up to support the growth of the private sector in Bahrain, has provided BD2 billion (US$5.3 billion) in direct and indirect support since it was set up in 2006, with a particular focus on SMEs.

The initiative is an integral part of the Bahrain Economic Vision 2030, a far-reaching program unveiled in 2008 to strengthen and diversify the Kingdom’s economy.

Bahrain’s GDP recorded 2.4% year-on-year growth in real terms during 2023, driven primarily by a 3.4% expansion in the non-oil sector, according to preliminary data released by the Information and eGovernment Authority, while the oil sector witnessed a 2.4% year-on-year decline, making the island nation one of the most diversified economies in the Gulf Cooperation Council trading bloc. 

The financial services sector maintained its position as the largest contributor to GDP in 2023, accounting for 17.8% of GDP.

The Bahrain Chamber, which has around 40,000 corporate members, is organised around 10 committees representing different commercial sectors, including technology, health, finance and logistics.

The MoUs that the Chamber has signed can make it easier to connect these sectors with their counterparts in Hong Kong.

“Structure is very important in any aspect of business,” Mr Alkoheji said. “Our communication needs to be very clear in terms of what it is required to do business in Hong Kong. The MoUs that we have signed corroborate the need to focus more on our relationship.”

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Finance company uses Hong Kong success to aid enterprises expand along Belt and Road.

The critical role of Hong Kong as a financing hub for Mainland Chinese companies keen to expand internationally emerged as a strong theme at this year’s Belt and Road Summit in Hong Kong.

At a symposium discussing trade in services, senior executives from mainland-invested technology and finance firms emphasised that Hong Kong’s international business environment acts as a springboard, from which mainland companies can expand into international markets.

Huatai International serves as one such example, an investment firm with roots in the mainland that has expanded globally using Hong Kong as a launchpad.

In his company’s efforts to internationalise and expand, Huatai CEO Dr Levin Wang rated Hong Kong’s financial markets as “absolutely critical” to developing Huatai’s ability to provide equity and debt financing to both Chinese enterprises going abroad and local enterprises in the domestic and overseas markets.

Last year, Huatai International's revenue exceeded HK$10 billion, making it the highest-earning mainland-funded brokerage in Hong Kong and second in the number of IPOs brought to market in Hong Kong.

In fact, a key message from the symposium is that mainland-funded finance companies now play a larger role in Hong Kong financial markets than ever before, accounting for about two-thirds of the market.

According to Dr Wang, Huatai’s success in Hong Kong has given it the confidence to pursue opportunities in markets as diversified as Saudi Arabia, Japan and Southeast Asia.

“As a mainland-based financial company, our role is to support mainland companies with financial services, as they expand abroad.”

“The experience we have gained in Hong Kong’s highly competitive and developed financial markets has given us great confidence in developing cross-border stocks, bonds, commodities and financial derivatives.”

“With the significant opportunities open to companies in the Belt and Road Initiative, Huatai will expand to provide services in the Belt and Road countries and regions.”

Observing that Chinese industrial parks have been set up in Saudi Arabia, Malaysia, Indonesia and other countries, Dr Wang predicts that as Chinese companies start to cluster, their demand for financial services will also increase, providing Huatai with opportunities to explore new markets.

Looking ahead, he suggested that Chinese securities firms should use Hong Kong's unique advantages to capture the continued growth of the middle class in Belt and Road markets and move their business steadily forward.

"We can use Hong Kong as the 'bridgehead' for our internationalisation and a hub to connect across markets.”

“This means first building a good bridge of investment products, second being a good 'tour guide' for overseas clients investing in China and, finally, helping more mainland enterprises to go global”.

Original article published in https://hkmb.hktdc.com