GOVERNMENT SUPPORT FOR BUSINESSES

Trade departments and offices

The Hong Kong government provides support to all companies doing business in Hong Kong via its Trade and Development Council (SME Service Station, Trade & Industry Department Tower, M/F, 700 Nathan Road, Mongkok; www.tdctrade.com; tel. 1830 668; fax 2787 3092). The TDC website provides a business contacts database and hosts a sourcing guide and business matching service. Other information links include credit checking, tendering and procurement, transport and logistics, trade fairs, customs and trademarks. Papers on economic issues affecting the region and tender notices for mainland China projects are also viewable. A free, web-based video conferencing service is provided at the TDC Business Information Centre (Hong Kong Convention and Exhibition Centre, Wanchai; tel. 1830 668).

Other government-sponsored agencies that can provide advice and information include:

• Invest Hong Kong (15/F, One Pacific Place, Queensway; www.investhk.gov.hk; tel.3107 1000; fax 3107 9007). This provides an overview on the advantages of doing business in Hong Kong; a breakdown of business setup procedures; the market outlook for different sectors; cargo, container and freight forwarding logistics; and links to detailed finance, sales and labour statistics.
• Business Portal (www.business.gov.hk). This was launched in February 2004 by the government’s Commerce, Industry and Technology Bureau (CITB) to help investors start, finance and grow a business in Hong Kong.
• Hong Kong Trade and Industry Department (Room 908, Trade & Industry Department Tower, 700 Nathan Road, Kowloon; www.tid.gov.hk; tel. 2392 2922; fax 2787 7422). Besides disseminating trade policy information, forms, industry circulars and so on, the Department also provides information on funding for SMEs (www.smefund.tid.gov.hk) and a virtual SME information centre (www.sme.gcn.gov.hk/smeop/english/index.cfm).
• Hong Kong Productivity Council (HKPC Building, 78 Tat Chee Avenue, Yau Yat Chuen, Kowloon; www.hkpc.org; tel. 2788 5678; fax 2788 5900). The Council provides training, news and support to maximize businesses’ productivity and also hosts the SME Centre (www.smecentre.com/carenet/index.asp; tel. 2778 1166), which offers customized business solutions and networking opportunities for SMEs; clinics and expert advice; and training, self-assessment and business planning tools.

China trade initiatives

Since 1997, China has taken steps to boost Hong Kong’s business by making it easier for the city to benefit from the huge developing market on its doorstep.

• Developing over the past twenty years into a major manufacturing hub, the Pearl River Delta Economic Development Zone, located around the Macau/Hong Kong/Guangzhou triangle in southern China, is likely to be a vital artery for Hong Kong’s future economic success. The government is endeavouring to establish a pivotal role for Hong Kong in servicing the needs of the hub through management, logistics and professional services. Building a bridge to connect Hong Kong to Macau and Zhuhai has been mooted to aid export and logistics. More information is available at www.investhk.gov.hk.
• The Closer Economic Partnership Arrangement (CEPA) came into effect on 1 January 2004. It is designed to expedite trade in services, goods and investment between Hong Kong and China by abolishing tariffs on selected exports from Hong Kong, permitting involvement in distribution on the mainland and making it easier for Hong Kong companies to invest in service sectors on the mainland. More information is available at www.tid.gov.hk.
• Since 2004, mainland tourists from Beijing, Shanghai and all of Guangdong have been allowed to visit Hong Kong individually, rather than as part of a tour group as was previously required. Mainlanders form the largest number of visitors to Hong Kong and are some of the biggest spenders.
• From February 2004, major local banks started offering Renminbi (RMB) deposit, remittance, credit card transactions and foreign exchange services. This is seen by many as testing the waters for future full convertibility of RMB worldwide.
• CCPIT (China Council for the Promotion of International Trade; www.ccpit.org), based in Beijing, has extensive information on doing business in China and can provide business services. Advice, reports and services are also offered by the accountancy firms Ernst & Young, Deloitte and PricewaterhouseCoopers (details above). The South China Morning Post’s website has a map of China that contains useful information on major cities (http://china.scmp.com/map/).

IT INFRASTRUCTURE

Hong Kong has caught up fast with other Asian countries such as Taiwan and Korea in its adoption and application of technology in business, particularly in the B2B domain. According to Christine Petersen, Managing Director of Time Technology Solutions, the volume of e-mail traffic is as high as in places such as the US, and knowledge management and leverage through technology are well developed although secretarial manpower is heavily entrenched. A significant advantage here is the widespread availability of broadband.

Government initiatives so far include:

• The Growth Enterprise Market (GEM) was established in November 1999 as a dedicated fund-raising mechanism for Hong Kong IT-related companies. It serves as a complement to the main Stock Exchange and is operated by Hong Kong Exchanges and Clearing Limited.
• Cyberport (www.cyberport.com.hk), billed as ‘Hong Kong’s IT flagship’, is a hi-tech $15.8 billion multimedia hub that is being developed in conjunction with private enterprise. Located in Pokfulam, the Cyberport comprises four office buildings housing a five-star hotel, a retail entertainment complex and a deluxe residential development.
• Hong Kong Science Park (www.hksciencepark.com) is Hong Kong’s answer to Silicon Valley: a 22-hectare state-of-the-art corporate campus at Tolo Harbour waterfront in Pak Shek Kok, New Territories, scheduled for completion by 2009. It is designed to house large and small corporations, with shared IT, business, IC Design and R&D services.
• ESDlife (Electronic Service Delivery Life Scheme – www.esdlife.com) offers online services, including Government-to-Citizen (G2C) and Government-to-Business (G2B), which feature an Electronic Tendering System.
• The governent’s ‘Digital 21 – Information Technology Strategy’ is designed to promote e-business in Hong Kong. Initiatives include the inauguration of an Applied Science and Technology Research Institute and a $5 billion contribution towards an Innovation and Technology Fund.

CHAMBERS OF COMMERCE

Local chambers of commerce have a key role in Hong Kong as networking forums. They offer various services to businesses and are open to members of all nationalities involved in all types of enterprise. Members can obtain referrals of work, publicize business opportunities and advertise products and services. They can also gain access to local business news, obtain business advice and enjoy round table luncheons, speaker events, conferences and professional development, as well as social events.

Key chambers include:

• American Chamber of Commerce (www.amcham.org.hk; tel. 2526 0165; fax 2810 1289). ‘AmCham’ is the largest international chamber in Hong Kong, but considered expensive by many SMEs. It publishes useful titles such as the China Business Directory and Who’s Who in Hong Kong Communications.
• British Chamber of Commerce (www.britcham.com; tel. 2824 2211; fax 2824 1333). ‘BritCham’ is influential and proactive, and has about 1,000 members. It publishes The British Directory, a guide to British companies doing business in Hong Kong and the Asia region. Individual membership is available to professionals under the age of 30 ($4,000).
• Hong Kong General Chamber of Commerce (www.chamber.org.hk; tel. 2529 9229; fax 2527 9843). A significant chamber in Hong Kong.
• Australian Chamber of Commerce (www.austcham.com.hk; tel. 2522 5054; fax 2877 0860). Favoured by many SME owners as being reasonably priced and excellent for networking and socializing.
• Canadian Chamber of Commerce (www.cancham.org; tel. 2110 8700; fax 2110 8701).
• Chinese General Chamber of Commerce (www.cgcc.org.hk; tel. 2525 6385; fax 2845 2610).
• Indian Chamber of Commerce (www.icchk.org.hk; tel. 2523 3877; fax 2845 0300).
• New Zealand Business Association (www.nzhkba.org.hk; tel. 2526 7898; fax 2810 9068).
• Taiwan Trade Association (tel. 2721 7636; fax 2721 3470)

A list of other trade associations and chambers appears on the AmCham website at www.amcham.org.hk/contacts/hongkong.html.

OTHER BUSINESS CLUBS AND NETWORKING ORGANIZATIONS

• The Foreign Correspondents’ Club (2 Lower Albert Road, Central; www.fcchk.org/; tel. 2521 1511) provides a watering hole and networking gossip nexus for those in business, diplomacy and the media. It frequently hosts speaker events and lunches featuring international opinion formers and news-makers.
• The Entrepreneurs Club (www.entrepreneurs.com.hk) aims to provide existing and would-be entrepreneurs with a regular monthly forum for intellectual exchange.
• The Women Business Owner’s Club (www.hkwboc.org; tel. 2541 0446) aims to support the owners of existing businesses and encourage those who aspire to own their own business through professional development activities and networking. Membership is around 200 strong. Men are welcome.
• The International Association of Business Communicators is a global network of PR and marketing professionals. The Hong Kong chapter (www.iabchk.com; tel. 2525 7488) meets regularly for informal drinks and speaker meetings.
• Expatriate doyenne The Hong Kong Club (1 Jackson Road, Central; tel. 2525 8251) and sparring partner The China Club (13–15/F, Old Bank of China Building, Bank Street, Central; tel. 2521 8888) cater to the wealthy elite of Hong Kong, although most people wind up at a function there at some time or another. Newer contender, the Kee Club (6/F, 32 Wellington Street, Central; tel. 2810 9000), is a funky, younger lounge/restaurant/bar club.
• The Hong Kong Toastmasters Club (www.toastmasters.org.hk), founded in 1954, gives members a chance to practise their public speaking skills, as well as running workshops and presentations led by guest speakers.

Details of other networking organizations are provided in Chapter Fourteen, ‘Professional Women in Hong Kong’.