Business Opportunities

in Hong Kong

Paula Kant

Head, Investment Promotion

YOUR!

Thessaloniki, 15th of March 2017

Interesting Facts about Hong Kong

• Hongkongers are the longest living in the

world : Male - 81.24 / Female – 87.32;

BTW, Hong Kong is also home to the oldest-

living giant panda in the world, Jia Jia (38

years old)

• Hong Kong has some of the most affordable

Michelin restaurants in the world, with some

star-rated dishes costing less than US$2!

• Hongkongers are the biggest tea drinkers in

Asia, with per capita consumption of 1,360g

• About ¾ of Hong Kong is countryside, with

urban areas making up less than 25%, and

nearly 40% of total land area is protected for

conservation and recreation

The three topics of today

1. InvestHK: Who we are and What we do

2. HK: ideal place in Asia for biz

3. How can InvestHK help you?

1. HK: interesting home market and Gateway to Asia

2. How can InvestHK and HKTDC help you do business?

3. Spotlight on 2 sectors: F&B and Infrastructure & Construction

Zhaoqing Foshan

Guangzhou

Dongguan

Huizhou

ShenzhenZhongshan

Jiangmen

Zhuhai

Macau

GREATER PEARL

RIVER DELTA

POPULATION

64mn

>UK, Italy, South Africa

EXPORTS

US$527bn

>UK, Italy

GDP

US$962bn

>Indonesia, Netherlands, Turkey

LAND AREA

56,000km2

<Ireland, Latvia, Panama,

West Virginia (US)

Hong Kong

XRL – Express Rail Link

XRL

HZMB

HZMB – Hong Kong-Zhuhai-Macao Bridge

BUSINESS-

TO-BUSINESS

HK

SHENZHEN

STOCK

CONNECT

951listed Mainland enterprises

Launched in

Nov 2014

RMB hub

Launched in

Dec 2016

RMB deposits in HK

Source: HKMA

US$1.97 tnaccounting 62.1% of market total

(Total market cap)

Source: HKEX

1trillionOct 2015

33bn2007

PRIME CONDUIT FOR FDI

Rank FDI Inflows (2015) US$ bn

1 USA 380

2 Hong Kong 175

3 China 136

4 Ireland 101

5 Netherlands 73

6 Switzerland 69

7 Singapore 65

8 Brazil 65

9 Canada 49

10 India 44

ALL TIME HIGH –

7,904 companies of which

3,798 are RHQs and ROs in

2015

Source: 2015 Annual survey, HKSAR

Government’s Census & Statistics Department

Source: World Investment Report 2016, UNCTAD

* Up from 103 US$ bn in 2014!

*

BUSINESS-TO-

CONSUMER

5.1Min Asia Pacific

142,000 HNWIs in HK,

up 281% (2009-2015)

42.8Mfrom Mainland

56.6 million visitors

in 2016

84%of the world’s

leading luxury and

fashion retailers

are in HK

US$63bnsales

600people

One restaurant every

BURGEONING STARTUP

ECOSYSTEM

Funding SupportNumber of Co-work Spaces /

Incubators / Accelerators

2010

2016

48

3

Number of Startups in 2016

24%

1,926

from 2015

Source: Startup Profiling Survey, InvestHK, 2015

What can HKTDC and InvestHK offer you?

Creating opportunities for

international trade.

Assist companies with potential to

contribute to HK’s economy to set

up a company and expand in HK.

Hong Kong Trade Development Council.

Invest Hong Kong

10

HOW HKTDC CAN HELP

A Hong Kong statutory body established in 1966

Helps international businesses explore opportunities in and through Hong Kong

Promotes Hong Kong as Asia’s business platform and services hub

More than 40 offices globally, including 13 on the Chinese mainland

Assists international companies and investors to explore and enter new markets on the Chinese mainland and throughout Asia

Facilitates Chinese outbound investment in both mature and emerging markets

Connects businesses worldwide with Hong Kong partners, including product suppliers and services providers

Provides market intelligenceTel: (852) 1830 668

Email: hktdc@hktdc.org

www.hktdc.com

https://www.linkedin.com/company/hong-kong-trade-development-council

@hktdc

San Francisco

Mexico City

Bogotá

Toronto

New York

London

Brussels

Paris

Berlin

Milan

Istanbul

Jerusalem

Dubai

Moscow

Gothenburg

Mumbai

Chengdu

Bangkok

Seoul

Wuhan

Guangzhou

Shanghai

Osaka

Tokyo

Beijing 1

Taipei2

Kuala LumpurSingapore

Rio de Janeiro

Sydney

Hong Kong

Investment Promotion Units inHong Kong Economic and Trade Offices

Consultants

Note:1 Beijing Office2 Hong Kong Economic, Trade and Cultural Office (Taiwan)

Office locations are subject to change. For the latest version, please refer to InvestHK’s website.

INVESTHK’S WORLDWIDE

NETWORK

• InvestHK Overseas: 30 country offices

• InvestHK HQ: 9 sector teams

• InvestHK’s services are free!

Priority Areas 2017 covered by NINE SECTOR TEAMS

Nine Sector Teams Priority Sub-sectors 2017Four Traditional Pillar

Industries

Business & Professional Services (BPS)

• Education •Professional services

Creative Industries (CI) • Digital marketing

Consumer Products (CP) • E-retail •Trading & logistics

(trading)

Financial Services (FS) • Asset management •Financial services

Financial Technology (FinTech)

Innovation & Technology (I&T) • Internet of Things (IoT)

Information & Communications Technology (ICT)

• Fintech

Transport & Industrial (T&I) • Maritime•Trading & logistics

(logistics)

Tourism & Hospitality (T&H) • Food trading •Tourism

HOW

WE CAN HELPNetworking events,

introduction to

service providers

Facilitation of visa

applications, schooling

PR and marketing

support for launch/

expansion

Information to aid

planning and evaluation

5 STEPS to set up in Hong Kong

1) Select Company Type and Company Name

2) Register and Incorporate a Company- Shareholders can be foreigners, company secretary must be HK resident

3) Open a bank account

4) Choose a business premises

5) Immigration and Visas

,…………………InvestHK can help every step of the way!

Success story:

Diamanti per Tutti

• Unique jewellery designs, 18K gold plated sterling

silver, hand-set with real diamonds

• From Antwerp, with shops all around Europe

• HK office is regional HQ for Asia

• Why HK? Cosmopolitan culture, and Asia’s

centre for diamand and jewellery trade

• DPT explored various retail models; pop-up shop,

next step 2015: shop in PMQ, 2 permanent retail

locations in HK. 3 new shops opened in 2016!

• InvestHK helped with:

- Company set-up

- Info re. government regulations, latest HK

retail trends, additional perspectives for

growing the business.

Success story: MosquitNo

Mosquito repellent

• Insect repellent using nano

technology + R3535 active

ingredient (no DEET)

• Clothes and homes mosquito-free

for up to 3 months

• HK office is regional hub for all

business in Asia

• Important potential in Asia in view

of threat of Dengue fever

• InvestHK helped with:- Company set-up

- Marketing & PR; “Marketing Pitch”,

major event where InvestHK invites

journalists

Success story 2016: GreenPeak

Technologies

• A world leading Internet of Things

and Smart Home technology

system provider.

• GreenPeak is based in Utrecht, The

Netherlands and has offices in

Belgium, France, Korea, Japan,

Hong Kong, China, India and USA.

• Why office in HK Science &

Technology Park? commits to the

Chinese Smart Home market to

support large service providers

• InvestHK helped with:- Company set-up

- Intro and contacts with HKSTP which

wants to attract cutting edge companies

Sector in the spotlight: F&B

F&B RETAIL

SALES

RESTAURANT

SALES

REAL GDP

FORECAST

POPULATION

FORECAST

F&B IMPORT

40% 37%

24%

3%p.a. 0.8%p.a.

2010-2015 2010-2015

2010-2015

2017-2020 2011-2021

DEMAND FOR F&B IS

TREMENDOUS

Source: Census and Statistics Department Photo credit: Hong Kong Tourism Board

GREAT VARIETY OF

IMPORTED FOOD

Source: Census and

Statistics Department

Food

Imports

US$27.1bn

Others (US$1.6bn)

8%

Sugars (US$0.4bn)

2%Feeding Stuff for Animals

(US$0.1bn)

1%Meat (US$6.1bn)

29%Vegetables and Fruits (US$4.9bn)

23%Seafood (US$3.5bn)

17%

Dairy Products and Eggs (US$2bn)

9%

Cereals (US$1.1bn)

5%

Coffee, Tea, Cocoa (US$0.6bn)

3%Live Animals (US$0.6bn)

3%

39%2010-2015

Imports of major

food items are

skyrocketing

28%2010-2015

58%2010-2015

17%2010-2015

124%2010-2015

Live Animals and Meat Vegetables and Fruits Seafood Dairy Products and Eggs

Ageing population in HK that 1/3 of population will be

aged 60+ in 2040

Government promotes healthy eating and less

wasteful habit

Consumers continue to eat out but consume more

plant-based and healthier food

Foodservices emphasize on using fresh, quality and

natural if not organic ingredients

Importance of traceability from “farm to fork”

Selective eaters on the rise e.g. vegan, dairy free, nuts

free, gluten free etc

Green concerns centre on self and family- consume

sustainable produce and use recyclable products

Growing emphasis on Halal-certified

OPPORTUNITIES AND TRENDSHEALTHY FOOD AND SUPERFOOD

OPPORTUNITIES AND TRENDSHEALTHY FOOD AND SUPERFOOD

• New SUPERFOOD

acai berry moringa辣木!

• New PLANT WATER

coconut cactus,

maple or aloe vera water!

• Next MEAT alternative

Soy jackfruit大樹菠蘿!

FACTORS SUPPORTING

F&B GROWTH

Source: CBRE Research, Q3 2016

F&B SECTOR EVENTS –

To target

traditional

food trading

prospects

To target

healthy

and

superfood

trading

prospects

To target

restaurant and

food startup by

food

entrepreneurs

workshops &

awards eventsYEAR

2017

8 – 11 MAY Date TBC - JUN 30 AUG – 1 SSEP Date TBC - SEP

InvestHK

Reception

2017

MARKETING RESOURCES

AVAILABLE TO INVESTORS

1. Tourism & Hospitality

Monthly Newsletter

2. Sector Flyers x 8- Food Trading and Distribution

- Foodservice Companies

- Wine

- Beauty & Wellness Services

- Cruise

- Hotel Operators

- MICE

- Travel Service Companies

http://www.investhk.gov.hk/publications-resources.html

3. Case Study Booklet

4. Euromonitor Market Research Report

Sector in the spotlight:

Infrastructure & Construction

Future Development –

Hong Kong International Airport

• Current two runways are fast approaching its maximum

handling capacity

• Construction of three-runway system commenced on 1

Aug 2016, for completion by phases in 2022-24

− Land reclamation of 650 Ha

− 3rd Runway Passenger

Building with 57 new parking

positions

− 3,800-metre-long new

runway

− 2,600-metre-long new

Automated People Mover

(APM) system

Future Development –

Hong Kong International Airport

• Total estimated construction cost is HK$141.5 billion

• Funding will be provided through borrowing (49%),

operational surplus (33%), airport construction fee (18%).

• To increase the capacity by 35-50%

Aircraft movement

(Hourly)Passenger (Annual) Cargo (Annual)

Current Capacity 68 74 million 6 million tonnes

Expanded Capacity 102 (⌂ 50%) 100 million (⌂ 35%)8.9 million tonnes

(⌂ 48%)

Future Development –

Hong Kong Zhuhai Macao Bridge

• The main body of the bridge is about 29.6km long

• A six-lane expressway with vehicle speed of 100 km/hr

• Construction started

in 2009; completion

by end-2017

• Transportation costs

and time for travellers

and goods on the

road to be

significantly reduced

Future Development – Guangzhou

Shenzhen HK Express Rail Link

• Express rail link connecting Hong Kong, Shenzhen and

Guangzhou

• Travel to Shenzhen in 14 mins and Guangzhou in 48 mins

• Interlinked to the

mainland China

network; travel to

Shanghai in 8 hrs

and Beijing in 10 hrs

• Target opening by

Q3 2018

Foreign companies in HK

Infrastructure and Construction

• Foreign companies need to be established in Hong

Kong if they want to participate in government tenders

• Most foreign companies start as subcontractors in large

projects.

• Public tenders are published on a government website:• https://www.gldpcms.gov.hk/etb_prod/jsp_public/ta/sta00305.jsp

• Also, One Belt, One Road Initiative will bring new

opportunities for construction companies, architects, etc.

Hong Kong is looking for innovations

to help solve future challenges

• The challenges of Hong Kong,........extreme topography & density

• “Extreme” urbanisation

• “Extreme” electricity reliability

• And related challenges re. requirements for clean water, waste

management, energy saving, public transport.

Air

Biodiversity

Climate Change

Energy &

Buildings

Waste

Water

Energy Saving Infrastructure

58%energy saving

$3.33 m saving per year;

pay back 4 years

Most EE

Building in

the World

Massive Rail Expansion

Introduce Desalination

GET IN TOUCH

Tel: (32) 473 97 81 96

www.investhk.gov.hk

Email: paula_kant@hongkong-eu.org

Hong Kong Economic & Trade Office

Brussels

Rue d'Arlon 118

B-1040 Brussels

BELGIUM

www.flickr.com/photos/investhk

www.linkedin.com/company/invest-hong-kong

#InvestHK

www.youtube.com/user/investhk

https://be.linkedin.com/in/paulakant

THANK YOU!

HK: nternational Maritime Centre

• One of the largest shipping communities;

9% of the world’s merchant fleet and a

vibrant maritime cluster of > 800 maritime

service companies

• World-class maritime services, most of the

leading shipbroking, maritime law firms,

finance and insurance companies have a

presence in Hong Kong

• Competitive tax incentives for shipping: income from international

carriage of goods and towage is exempt from profits tax for ships

registered in HK. Charter hire income is also exempt from profits tax

for international operations, regardless of the nationality of the ships

• China’s Belt and Road Initiative covers some 60 countries. Hong Kong

Port has cargo movements to and from about 45 of them

HK: Reputable Shipping Register

• World’s fourth largest shipping register

• Crossed the 100mn GT mark in 2015

• Quality port state control

- detention rates of HK-flagged ships well below world average

• Preferential taxation arrangement - 30% reduction in dues in Chinese port

• Cost-effective and efficient services from Marine Department