Harrison White
In an effort to deepen economic collaboration between Cambodia and Hong Kong, a high-level business delegation led by Mr. John Lee, Chief Executive of the Hong Kong Special Administrative Region (HKSAR), visited Cambodia on July 30-31, 2024. The visit is part of a broader mission to three ASEAN member states, including Laos and Vietnam, with the aim of enhancing trade, investment, and cultural exchanges between Hong Kong and Southeast Asia.
The visit was marked by the signing of 13 memoranda of understanding (MoUs), covering a wide array of sectors such as trade and investment promotion, innovation and technology (I&T), transport, banking, and industrial development. These agreements represent a significant step towards strengthening bilateral cooperation and are expected to catalyze economic growth in both regions.
Hong Kong a Hub For International Business
During the visit, Mr. John Lee underscored the strategic importance of Hong Kong as a hub for international business, particularly for companies in Cambodia looking to expand their global footprint. “Hong Kong’s strategic location, coupled with our robust financial infrastructure and free trade practices, positions us as the gateway to Mainland China and the world,” Mr. Lee remarked. “For Cambodian businesses with aspirations for growth, Hong Kong offers unparalleled opportunities to connect with global markets and to scale operations efficiently.”
The delegation’s visit to Cambodia builds on the success of previous ASEAN missions to countries such as Singapore, Malaysia, and Indonesia in 2023, and Thailand in 2022. The overarching objective of these missions has been to explore new avenues for collaboration and to deepen the already strong relationships between Hong Kong and ASEAN countries.
In an exclusive interview with Cambodia Investment Review, Mr. Steve Chuang, Chairman of the Federation of Hong Kong Industries, elaborated on the evolving economic relationship between Hong Kong and Cambodia. “The next five years are likely to witness substantial growth in bilateral trade and investment, driven by the concerted efforts of the Hong Kong Trade Development Council and other key stakeholders,” Mr. Chuang predicted. “Our mission is to leverage our strengths and collaborate with Cambodia to foster economic development that benefits both regions.”
Mr. Chuang emphasized that the current mission to Cambodia aims to establish strategic partnerships, sign key MoUs, and identify new investment opportunities. “We are here with a clear intent—to build lasting partnerships that can drive mutual growth. The agreements and discussions we engage in during this visit will be pivotal in boosting trade volumes and enhancing economic cooperation between Hong Kong and Cambodia,” he stated.
Hong Kong’s business community is poised to play a significant role in Cambodia’s economic development, particularly through the introduction of advanced technology, capital, and expertise. “Hong Kong companies have the know-how and resources to support Cambodia’s infrastructure development, manufacturing sector, and service industry,” Mr. Chuang explained. “Our collaboration will not only help create jobs but also renew skills across industries, driving overall economic growth in Cambodia.”
Regulatory Differences and Logistical Barriers Remain Hurdles
Reflecting on past successes, Mr. Chuang cited the establishment of joint ventures in the garment industry as a prime example of fruitful collaboration between Hong Kong and Cambodia. “The garment industry joint ventures have been instrumental in increasing production capacities and export numbers in both regions,” he said. “This partnership has also led to significant improvements in the quality and competitiveness of Cambodian products on the international stage.”
When discussing the sectors that are most attractive to Hong Kong investors in Cambodia, Mr. Chuang highlighted infrastructure, real estate, manufacturing, and technology. “These sectors are ripe for investment, and we see tremendous potential for growth in these areas,” he noted. Additionally, the tourism and hospitality industries in Cambodia have garnered increasing interest from Hong Kong investors due to Cambodia’s rich cultural heritage and natural beauty. “Tourism and hospitality are sectors where we see a lot of synergies between Hong Kong and Cambodia,” he added.
The Federation of Hong Kong Industries plays a crucial role in supporting businesses as they expand into Southeast Asia, offering market insights, networking opportunities, and promotional support. “Our mission is to facilitate easier market access for Hong Kong companies by providing them with the necessary tools and knowledge to navigate the regulatory environment in Cambodia,” Mr. Chuang explained. “We also focus on connecting these companies with potential partners and investment opportunities, ensuring that they can establish a strong foothold in the Cambodian market.”
However, Mr. Chuang also acknowledged the challenges in enhancing economic ties between Hong Kong and Cambodia, particularly regarding regulatory differences and logistical barriers. “Navigating these challenges requires continued dialogue, bilateral agreements, and initiatives aimed at simplifying trading procedures,” he commented. “By addressing these issues collaboratively, both Hong Kong and Cambodia can benefit from smoother and more efficient trade relations.”
Sustainability is increasingly becoming a key focus for Hong Kong companies, as global awareness of environmental issues grows. “Many Hong Kong firms are investing heavily in green technologies and sustainable practices,” Mr. Chuang said. “These sustainability tools and practices could be incredibly valuable for Cambodia, helping to address environmental challenges and promoting the growth of greener industries.”
In his closing remarks, Mr. Chuang extended an open invitation to Cambodian businesses to explore the numerous opportunities for collaboration with Hong Kong. “Hong Kong is a city that is open for business, and we are eager to build supportive and sustainable relationships with Cambodian companies,” he concluded. “We believe that by working together, we can create a future of shared prosperity and growth for both our regions.”
