30-1-2024 (HONG KONG) The Secretary for Commerce and Economic Development, Mr Algernon Yau, today provided an update to around 120 representatives from consulates, local and foreign chambers of commerce, professional bodies and the business community on the Government’s efforts to strengthen ties with the Association of Southeast Asian Nations (ASEAN). He spoke at a “Connecting Hong Kong and ASEAN” luncheon organised by the Trade and Industry Department and Invest Hong Kong.
Mr Yau said the Government is boosting partnership with ASEAN, Hong Kong’s second largest trading partner, including through the Free Trade Agreement (FTA) and Investment Agreement between Hong Kong and ASEAN that entered fully into force three years ago.
He pointed out these Agreements have strengthened Hong Kong’s relations with ASEAN. Since signing in 2017, Hong Kong’s cumulative investment in ASEAN rose 32% to US$73 billion in 2022. In 2022, ASEAN accounted for almost 14% of Hong Kong’s total merchandise trade worldwide.
“Earlier this month, I signed the First Protocol to amend the FTA to update Product Specific Rules of origin, enhancing coverage from around 200 to 600 product categories. This will help Hong Kong traders gain originating status more easily to enjoy preferential tariffs, further boosting trade with ASEAN,” Mr Yau added.
Apart from trade and investment, the Government also promotes people-to-people bonds and experience sharing through the FTA’s Economic and Technical Cooperation Programme.
With a HK$25 million contribution, it encourages activities for regional growth like sharing best practices. So far, 28 projects proposed by ASEAN states and Hong Kong have been approved across areas including services, SME cooperation, trade facilitation and IP, benefitting over 4,000 participants. 13 projects have completed.
Mr Yau highlighted Hong Kong’s commitment to lifting cooperation with ASEAN to a new level, and called for continued support for early Hong Kong accession to the Regional Comprehensive Economic Partnership (RCEP).
“All RCEP members, including ASEAN, are already key Hong Kong trade partners, accounting for 71% of merchandise trade and 46% of services trade in 2022 and 2021. Hong Kong can uniquely add value to RCEP through our logistics, trading and finance hub strengths towards further optimising regional supply chains,” he said.
In opening remarks, the ASEAN Secretary-General welcomed Hong Kong joining RCEP and looked forward to more practical cooperation on mutual interests to further boost economic and people-to-people ties.
The Director-General of Trade and Industry thanked professionals for supporting ECOTECH projects and fostering Hong Kong-ASEAN bonds. She outlined government measures to ensure SMEs connect with ASEAN and RCEP, including HK$657 million under a Dedicated Fund to assist exploring the ASEAN market.
