July 26, 2024
HONG KONG – Industry leaders said that the rapid economic development of Southeast Asian countries has heightened their demand for professional services, and Hong Kong has a lot to offer them, with its enduring strengths in sectors such as finance, law and accounting.
Starting Sunday, these industry leaders will join a high-level delegation led by Hong Kong Chief Executive John Lee Ka-chiu that will visit Laos, Cambodia, and Vietnam — three member countries of the Association of Southeast Asian Nations.
During a recent interview, Agnes Chan Sui-kuen, chairman of the Hong Kong General Chamber of Commerce, said that the rapid economic growth in ASEAN countries has presented significant potential business opportunities for Hong Kong.
Chan said that this visit to Southeast Asia is an excellent opportunity to explore business prospects on the ground, and she will particularly focus on professional services, as regions with fast economic development inherently require such services.
The three ASEAN countries that the Hong Kong delegation will visit are all seeing rapid economic growth in recent years. As per the Asian Development Bank’s forecasts, Cambodia’s economy is expected to grow by 5.8 percent this year, while Vietnam’s is projected to grow at a rate of 6 percent.
Chan said that although the three economies, especially Vietnam and Cambodia, have established certain foundations in professional services after economic reforms, Hong Kong’s services sector retains distinct advantages in capital-raising capabilities and integration with innovative technologies.
One of the city’s four pillar industries, Hong Kong’s professional services cover a wide range of areas, including the legal, accounting, human resources, consulting, education, and training sectors. The industry employs about 570,000 people and contributes around 12 percent to the local gross domestic product.
Chan continued that Hong Kong’s internationalized market financing channels can effectively help enterprises of these countries enhance global visibility. Consequently, numerous Vietnamese companies engaged in industries such as airlines, beer production, and electronic component manufacturing have chosen to list in Hong Kong.
She added that innovative technology is increasingly playing a significant role in Vietnam’s economic structure, which will create a great demand for professional training on the new technologies.
Steve Chuang Tzu Hsiung, chairman of the Federation of Hong Kong Industries, said in a separate, earlier interview that ASEAN’s development potential goes beyond being a manufacturing base, and the member countries can also serve as talent pools amid rapidly growing emerging middle-class markets.
Hong Kong, as a financial hub, can meet various cooperation needs of different ASEAN countries.
For instance, Chuang said, Hong Kong can assist large enterprises in Vietnam with listings, while in Cambodia and Laos, Hong Kong can offer support for local enterprises to attract investment or aid their transformation and upgrading to enhance their competitiveness.
He also said that the population of Cambodia is notably youthful, with an average age of 27, possessing significant purchasing power, and has a relatively high willingness to embrace new concepts and businesses, which also presents an opportunity for Hong Kong enterprises to engage with this dynamic market.
Laos is not a big country, he said, but it is rich in resources such as forests that provide abundant timber and minerals.
He also said the recently opened high-speed rail connection from Kunming, China, to Laos will bring about an influx of people, logistics, and capital to Laos, presenting a favorable opportunity for Hong Kong businesses to explore the new market.
Chuang hopes the SAR government will establish more Economic and Trade Offices in overseas countries, aiding Hong Kong businesses in legal matters, local regulations, and fostering relationships with local governments. Currently, Hong Kong has set up 14 Economic and Trade Offices overseas, including three in ASEAN.