Economic Tie between Hong Kong and ASEAN
Tammy: Hi Maredith, it’s been so long since the last time we’ve talked, how are you?
Maredith: I’m good Tammy, despite all happenings in Hong Kong, I’m sure our listeners and client’s are all worried about Hong Kong, but actually, there is nothing to worry about when it comes to Business, as it is not affected. They say “Business as usual”.
Tammy: Oh, yes.. I hope everything is okay and will end what is happening soon. If people are wondering if it’s still safe to incorporate company in Hong Kong, Yes! It is safe and nothing to worry about.
Maredith : Yes, I agree with you Tammy, nothing to worry about.
Tammy : Anyway, these past few days, I’ve been researching about ASEAN and Hong Kong, I would like to share with you.
Maredith: Yes Tammy, what is it all about?
Tammy: I came across this topic of Economic Tie between Hong Kong and ASEAN. And you know what?
Maredith: Oh! What is it all about?
Tammy: In the past few years, the ASEAN bloc has become Hong Kong’s 2nd largest merchandise trade partner. Imagine that? Total merchandise trade between Hong Kong and ASEAN amounted to HKD 833.3 billion.
Maredith: Gosh, really? HKD833.3 billion?
Tammy: Yes Maredith! And it’s representing 11.0% of Hong Kong’s global merchandise trade in 2016 and registering an annual average growth rate of 3.4% per annum between 2012 and 2016.
Tammy: Well, Hong Kong is also an important entrepot for trade between the Mainland China and ASEAN. Re-exports of goods of ASEAN origin through Hong Kong to the
Mainland grew by an annual average rate of 6.4% since 2012. In 2016, Do you know how much is it worth?
Maredith: I heard that it is around HKD 238.6 billion of the Mainland’s import of goods from ASEAN were routed through Hong Kong, right?
Tammy: That’s right Maredith, On the other hand, re-exports of Mainland origin goods to ASEAN through Hong Kong grew by an annual average rate of 3.7% since 2012 and exceeded HKD 184.1 billion in 2016. That’s actually a great thing to hear!
Maredith: Yes it is! But what about Hong Kong Trade Policy?
Tammy: hmmm.. Well, Hong Kong is a free port, We pursue a free trade policy and do not maintain barriers on trade. No tariff is charged on import or export of goods. As I mentioned in our previous talked. Although licensing is required for the import and export of some goods, this is only to fulfil obligations undertaken by Hong Kong to our trading partners, or to meet public health, safety or internal security needs. The licensing procedures are as simplified as possible in such cases.
Maredith : This is no wonder why the Hong Kong’s economy in 2018 grew by 3.0% and was the world’s 7th largest trading economy in goods – the 8th largest exporter and the 8th largest importer. Imagine how Hong Kong is stronger now and how it grew rapidly each year.
Tammy: Yes, Maredith. I agree with you. That’s why the Hong Kong economy is externally oriented and highly dependent on trade with the rest of the world. And you know what?
Tammy : Other than that, In 2018, Hong Kong was the world’s 18th largest commercial services trading economy – the 15th largest services exporter and the 19th largest services importer.
Maredith : Imagine that! That’s why Hong Kong and ASEAN are very important trading partners, for your information Tammy, ASEAN was Hong Kong’s second largest trading partner in 2018, after the Mainland of China, not only that, Singapore, Malaysia and Thailand were Hong Kong’s top three trading partners among all ASEAN Member States in 2018. They represented 35.8%, 21.0% and 14.3% of Hong Kong’s total merchandise trade with ASEAN.
Tammy : What a great information you have there Maredith, to add a little information, HONG KONG IS AN IMPORTANT LOCATION FOR ASEAN INTERESTS as well, as Hong Kong welcomes ASEAN investment and offers an environment in which there is free flow of capital and return on investment without exchange controls.
Maredith : That’s right Tammy, to our listeners and clients, in the best of our capacity to ensure all above information mentioned are accurate, we cannot guarantee this to be so and will not be held liable for any reliance placed on the same, as events and information change at any time.
Tammy : Yes, and we would like to let you know that choosing Hong Kong for your company is the best choice. We will continue to be the best and give you the best service we can offer.
Maredith : Yes, you may check our website and send us an e-mail if you have any questions or concerns, like company incorporation or opening a bank account.
Tammy : That’s right, feel free to e-mail us at firstname.lastname@example.org, or call us at +852 3153 4327. Thank you Maredith and to all our listeners!
Maredith: Thanks too tammy, lets discuss about ASEAN achievements, prospects, opportunities and challenges for the future in our next discussion, so stay tuned listeners!
Tammy: Yes, i’m sure it will be exciting!
Maredith: I agree, Tammy! Bye,