Page 7 - The South China Business Journal
P. 7
percent annually on average. In 2016, 12 percent of The FTA will reduce the customs duties imposed by
trade between ASEAN and Mainland China, with a value ASEAN and improve Hong Kong’s overall competitiveness
of over US$54 billion, was routed through Hong Kong. in the international market. The AHKFTA together with
the China-ASEAN FTA and the Mainland China-Hong
Further, in the last ten years, the value of bilateral Kong CEPA will broaden Hong Kong’s position as a hub
commodity trade between Hong Kong and members of for international trade and services.
the ASEAN has increased by 72 percent. ASEAN is Hong
Kong’s second largest partner in commodity trade. In In terms of business benefits, the agreement will
2016, the commodity trade between ASEAN and Hong offer four key advantages to stakeholders in the region,
Kong reached US$107 billion (HK$833 billion), whereas namely tariff reduction fortrade in goods; better and
trade in services stood at US$15.4 billion (HK$121 billion) fairer investment protection; fewer restrictions for trade
in 2015. in services; and a longer stay for business travelers.
Among the individual member states, Singapore, Previously, only seven of the ten ASEAN countries
Thailand, and Vietnam are Hong Kong’s leading trading allowed business travelers from Hong Kong to stay in
partners, representing 38.8 percent, 15.7 percent and 15.2 the country without a visa for up to 14 – 30 days. The
percent of Hong Kong’s total merchandise trade with free trade deal will allow Hong Kong business travelers
the region respectively. to stay in any ASEAN country for up to 90 days, without
requiring a business visa.
In terms of investment, at the end of 2015, the ASEAN
ranked sixth among Hong Kong’s destinations for With regards to trade restrictions, both Hong Kong
outward direct investment, at US$ 28 billion (HK$218 and ASEAN countries will remove barriers on foreign
billion), and also sixth among Hong Kong’s sources of capital participation and the number of foreign
inward direct investment, at US$ 71 billion (HK$555 workers employed. Foreign businesses can benefit
billion). significantly from AHKFTA as the agreement will extend
Hong Kong’s network to cover all major economies
Opportunities arising from the Hong Kong – ASEAN in South East Asia. As all ASEAN member states are
Free Trade Agreement also economies along China’s Belt and Road Initiative
(BRI), the closer ties established between Hong Kong
Hong Kong is among the world’s freest and most open and ASEAN will help foreign enterprises tap business
economies. However, the customs duties imposed by opportunities offered by the BRI.■
ASEAN on Hong Kong goods put Hong Kong at a great
disadvantage in terms of its trade relationship with Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign
South East Asian countries. The newly signed AHKFTA clients through Asia’s complex regulatory environment and assisting them with all
is set to change this. aspects of legal, accounting, tax, internal control, HR, payroll, and audit matters. As a
full-service consultancy with operational offices across China, Hong Kong, India, and
ASEAN, we are your reliable partner for business expansion in this region and beyond.
For inquiries, please email us at info@dezshira.com. Further information about our
firm can be found at: www.dezshira.com.
South China Business Journal 5
trade between ASEAN and Mainland China, with a value ASEAN and improve Hong Kong’s overall competitiveness
of over US$54 billion, was routed through Hong Kong. in the international market. The AHKFTA together with
the China-ASEAN FTA and the Mainland China-Hong
Further, in the last ten years, the value of bilateral Kong CEPA will broaden Hong Kong’s position as a hub
commodity trade between Hong Kong and members of for international trade and services.
the ASEAN has increased by 72 percent. ASEAN is Hong
Kong’s second largest partner in commodity trade. In In terms of business benefits, the agreement will
2016, the commodity trade between ASEAN and Hong offer four key advantages to stakeholders in the region,
Kong reached US$107 billion (HK$833 billion), whereas namely tariff reduction fortrade in goods; better and
trade in services stood at US$15.4 billion (HK$121 billion) fairer investment protection; fewer restrictions for trade
in 2015. in services; and a longer stay for business travelers.
Among the individual member states, Singapore, Previously, only seven of the ten ASEAN countries
Thailand, and Vietnam are Hong Kong’s leading trading allowed business travelers from Hong Kong to stay in
partners, representing 38.8 percent, 15.7 percent and 15.2 the country without a visa for up to 14 – 30 days. The
percent of Hong Kong’s total merchandise trade with free trade deal will allow Hong Kong business travelers
the region respectively. to stay in any ASEAN country for up to 90 days, without
requiring a business visa.
In terms of investment, at the end of 2015, the ASEAN
ranked sixth among Hong Kong’s destinations for With regards to trade restrictions, both Hong Kong
outward direct investment, at US$ 28 billion (HK$218 and ASEAN countries will remove barriers on foreign
billion), and also sixth among Hong Kong’s sources of capital participation and the number of foreign
inward direct investment, at US$ 71 billion (HK$555 workers employed. Foreign businesses can benefit
billion). significantly from AHKFTA as the agreement will extend
Hong Kong’s network to cover all major economies
Opportunities arising from the Hong Kong – ASEAN in South East Asia. As all ASEAN member states are
Free Trade Agreement also economies along China’s Belt and Road Initiative
(BRI), the closer ties established between Hong Kong
Hong Kong is among the world’s freest and most open and ASEAN will help foreign enterprises tap business
economies. However, the customs duties imposed by opportunities offered by the BRI.■
ASEAN on Hong Kong goods put Hong Kong at a great
disadvantage in terms of its trade relationship with Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign
South East Asian countries. The newly signed AHKFTA clients through Asia’s complex regulatory environment and assisting them with all
is set to change this. aspects of legal, accounting, tax, internal control, HR, payroll, and audit matters. As a
full-service consultancy with operational offices across China, Hong Kong, India, and
ASEAN, we are your reliable partner for business expansion in this region and beyond.
For inquiries, please email us at info@dezshira.com. Further information about our
firm can be found at: www.dezshira.com.
South China Business Journal 5
