The 11th Belt and Road Summit put the spotlight on one of Hong Kong’s most important growth markets – ASEAN. Building on the summit’s outcomes, the Hong Kong Trade Development Council (HKTDC) introduced its first ASEAN Market Day, offering practical insights into opportunities for SMEs across the city’s second-largest trading partner.
The session began with a market overview by HKTDC Director of Research Bruce Pang, who noted that the Free Trade Agreement between Hong Kong and ASEAN lays a solid foundation for business ties. Hong Kong serves as a vital bridge for ASEAN enterprises he said, pointing out that listing in Hong Kong enables them not only to raise capital but also to access international investors, Chinese Mainland capital and professional services teams familiar with Asia’s growth story.
Nevertheless, differences in consumption patterns and industrial positioning across ASEAN member states mean that SMEs need to adjust their business strategies to local contexts, while managing the risks of cross-border business operations.
First-hand perspectives
A panel on doing business in key ASEAN markets brought together business leaders and industry experts to share practical insights on navigating local markets and identifying areas for growth.
Two speakers emphasised the value of business networks, not only to develop new business but also to understand local regulations and business cultures.
Anthony Lam, Group CEO and Vice-Chairman of Golden Resources Development International, a rice supplier and investor in convenience stores in Vietnam, observed that his company had been warmly welcomed in Vietnam and recommended Hong Kong SMEs draw on the resources of the HKTDC’s branch offices and the Federation of Hong Kong Industries.
“Most importantly, businesses need to fully understand local laws and respect local culture. Employees should also see that we are contributing to the country’s social and economic development,” said Mr Lam.
Dicky Yu, Managing Director of metals trading company Novostal and Vice President of the Thai-Hong Kong Trade Association, reinforced the value of such networks saying SMEs should keep a close eye on government policies by tapping into bodies such as chambers of commerce.
Other speakers discussed the role of local banks. Brian Li, Vice Chairman and Executive Vice President of Golden Peak Technology Group, which operates electronics and audio equipment factories in Malaysia, Vietnam and Thailand, said he had been particularly impressed by local banks’ support for industrial development, and encouraged Hong Kong entrepreneurs to explore investment opportunities in ASEAN’s manufacturing sector.
His insight rang a bell with Bank of China’s (Hong Kong) Aero Wong, who explained the bank serves all ASEAN economies.
“Each ASEAN market has its own competitive industries, so SMEs should look at factors ranging from their upstream operations and customer base to the wider supply chain when deciding which markets are the best fit,” he said.
Effective risk management was highlighted by metal materials and services provider Lee Kee Group Chief Executive Clara Chan. “SMEs also need robust risk management strategies. This includes managing climate-related risks, as storms can cause serious flooding in Southeast Asia and severely disrupt transport,” she said. Chan added that ‘Made in Hong Kong’ raw materials have a strong reputation for quality among ASEAN consumers.
Following the seminar, participants met representatives from the HKTDC’s ASEAN offices, as well as consulates and business associations, to discuss opportunities tailored to their overseas expansion plans.
The HKTDC will roll out further promotional events focusing on high-growth markets, including the Guangdong-Hong Kong-Macao Greater Bay Area, Africa and the Middle East. These initiatives aim to help Hong Kong companies, particularly SMEs, explore new avenues for growth as they expand globally.