HKMB Hong Kong Means Business

Hong Kong Means Business Hong Kong Means Business
  • Login / Register

Languages

  • EN
  • 繁
  • 简
  • Events
  • My Feed
  • Contact HKTDC
  • Subscribe
  • Subscribe

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

Languages

  • EN
  • 繁
  • 简
  • HKTDC.com |
  • About HKTDC |
  • My HKTDC |
  • Login / Register |

HKTDC.com About HKTDC My HKTDC

Login Register

Hong Kong Means Business

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

https://hkmb.hktdc.com/en/ODkxOTU3MDg4

hktdc research
SAVE FOR LATER
SHARE / SEND

"Scan QR Code" in WeChat and tap "..." to share.

GBA and RCEP Represent Extended Supply Chain and Market for Electronics Industry

Joint research by HKTDC Research and ACCA

03 November 2021

Wing Chu, Business Advisory Manager, HKTDC Research; Yuki Qian, Regional Head of Policy, ACCA China



Interview with Basil Wai, CEO of the Hong Kong Electronics Industry Association

Photo: GBA and RCEP can help organisations expand both their market and the reach of their supply chain.

GBA and RCEP can help organisations expand both their market and the reach of their supply chain.

Supply chain management is the biggest challenge for electronics makers, says Basil Wai, CEO of the Hong Kong Electronics Industry Association (HKEIA). Initiatives such as the Greater Bay Area (GBA) and agreements like the Regional Comprehensive Economic Partnership (RCEP), can help members of organisations such as the HKEIA expand both their market and the reach of their supply chain.

“The electronics industry relies on many regions for its supply chain, from electronic components manufacturing, assembling, techniques, to product exports and sales. It’s a big supply chain network,” says Wai.

The recent Covid-19 pandemic has demonstrated how supply chains can be disrupted. While some industries have managed to stay afloat, Wai believes it is crucial to have a bigger market to diversify risks in the long term. This is particularly true given the abrupt changes in the US and EU markets.

“We’ve seen members going to Vietnam, Thailand, Malaysia and Indonesia,” Wai says. “Most go to Vietnam to set up factories, and to Indonesia for its market and big population.”

The additional 301 tariffs imposed on goods made in China by the US have also prompted manufacturers to relocate to Southeast Asia. Many Hong Kong businesses have set up branches in ASEAN countries as a result.

Wai noted that RCEP has a more balanced composition than other regional partnerships, since it includes developed economies such as Australia and New Zealand. The former, in particular, is a market that the HKEIA members are eyeing on account of its sizeable Chinese population and the listing opportunities its stock market offers.

Hong Kong as a multilingual hub for professional services

Given the relatively small market in Hong Kong, Wai says: “We know that the GBA and RCEP countries are our markets. We just need to figure out what role Hong Kong can play.”

One potential role is to provide professional services related to intellectual property. Industry stakeholders can collaborate more with professional services providers such as lawyers or accountants to access professional insights. International law firms, for example, have set up offices in Hong Kong to serve businesses looking to expand and operate overseas.

“The advice we look for is from professionals of that jurisdiction,” Wai says. To cite a few examples, he says it is not unusual to find that American lawyers have counselled the HKEIA members on tariffs and Vietnamese lawyers have relocated to Hong Kong to serve clients who are interested in doing business in the Southeast Asian countries.

“Having a place where you can communicate easily is a great advantage of Hong Kong,” Wai says. Most Hong Kong professionals are proficient in three languages – Cantonese, Mandarin and English – and this can help businesses communicate with parties in different jurisdictions.

More collaboration creates synergy

As the trend towards re-industrialisation continues, Hong Kong is becoming a centre where industry players can engage in small batch production, R&D, information technology, product registration, patent applications, quality testing, financial services and professional counselling. These are all areas that require integrity and reputation.

In the long run, as mainland Chinese manufacturers expand to ASEAN countries, Wai advises Hong Kong players to collaborate more with their mainland partners using the GBA advantages, and to use the professional services offered in the city to exploit RCEP opportunities.

“Leveraging advantages from both sides to further develop the industry is the way to create long-term benefits,” he says.


This article forms part of a joint study conducted by HKTDC Research and ACCA : “Tapping the RCEP Opportunities: Hong Kong to Maximise GBA’s Unique Edge as a Business Platform”

BACK TO TOP ^
    Topics:
  • Electronics & Electrical Appliances,
  • Intellectual Property,
  • Hong Kong,
  • Mainland China,
  • ASEAN,
  • Southeast Asia,
  • Macau,
  • rcep,
  • supply chain
  • Electronics & Electrical Appliances
  • Intellectual Property
  • Hong Kong
  • Mainland China
  • ASEAN
  • Southeast Asia
  • Hong Kong
  • Macau
Home

Article Topics

ARTICLE TOPICS

ELECTRONICS...24646
INTELLECTUAL PROPERTY125212
HONG KONG36026
MAINLAND CHINA35607
ASEAN37801

ARTICLE TOPICS

ELECTRONICS & ELECTRICAL APPLIANCES24646
INTELLECTUAL PROPERTY125212
HONG KONG36026
MAINLAND CHINA35607
ASEAN37801
SOUTHEAST ASIA36184
MACAU35997
RCEP75680
SUPPLY CHAIN80903

interest_article

YOU MAY BE INTERESTED IN

23 June 2022

State Council Unveils Plan for Guangdong-Hong Kong-Macao Co-operation in Nansha

17 June 2022

Operational Guidance for the New US Forced Labour Prevention Act

16 June 2022

Bagging a place in the market

08 June 2022

GBA-ASEAN developments boon for companies

Related Events

RELATED EVENTS

5 - 8 July 2022

HKTDC International Sourcing Show 2022

7 July 2022

Smartening up your space – IoT Automation beyond home

25 July 2022

Webinar on Leveraging RCEP Preferential Tariffs to Explore ASEAN Market Opportunities

13 - 16 October 2022

HKTDC Hong Kong Electronics Fair 2022 (Autumn Edition)
FIND AN EVENT

Social Share

FOLLOW US

GET WEEKLY UPDATES

newpaper-img

GET OUR WEEKLY EMAIL UPDATES

banner-img


I acknowledge that the above information may be used by the Hong Kong Trade Development Council (HKTDC) for incorporation in all or any of its database for direct marketing or business matching purpose (and may therefore become available to the public within and/or outside of Hong Kong for use by them), and for any other purposes as stated in the Privacy Policy Statement; I confirm that I have the consent and the authority of each individual named in this form to release their personal data for the purposes stated herein.


*For non-EU/EEA customers, please skip this box which is solely for EU/EEA customers as required by the relevant data protection law in the EU.

THANK YOU

Thank you for registering.

SHARE THIS STORY

EMAIL
LINKEDIN
WeChat
FACEBOOK
TWITTER
WHATSAPP

ID: HKTDCofficial

Don't have an account?

Create An Account

successfully added on your preferences.