SAN FRANCISCO (Diya TV) — Broadcasting the country as gateway to mainland China, Hong Kong on Friday attempted to attract Indian investors by asking them to set up ventures that would take advantage of their world-class infrastructure and stable tax system.
“India is a very important market for us and we are hopeful that we can attract more Indian companies to Hong Kong this year,” Invest Hong Kong associate director General Jimmy Chiang told reporters Friday.
Chiang represents a government department charged with attracting and facilitating foreign investment into Hong Kong.
While highlighting the purported advantages of investing in Hong Kong, Chiang said the country’s global finance hub offers a thriving infrastructure, low and stable tax system and an independent judiciary to protect the interest of investors.
“Hong Kong has simple and low tax system. But we are not a tax haven because profitable companies need to pay some tax to government, which is 16.5 percent of their profit.”
When questioned on the sector for Indian companies to invest in an effort to tap the Chinese market, Chiang said Indians can look at tourism and hospitality, consumer products and logistics and industrial goods.
“The key sectors for Indian investors are tourism and hospitality and its sub-sector food and beverage,” he said, adding, “Indian companies which are food suppliers and traders can look at the possibility of setting up sales offices here not only to cater to local needs of Hong Kong consumers but also make use Hong Kong as hub to sell products in mainland China.”
“Indian companies are very strong in doing jewelry, diamond and other luxury trading business and they can also make Hong Kong as hub for the same,” he said.
Opportunities are also available for logistics and shipping companies, and companies in the business of producing industrial products, Chiang said.
“These sectors demonstrate strong potential for our friends from India in terms of business development in Hong Kong and China.
“India is number one country for which we have received applications for work visas and this shows Indian investors are coming to Hong Kong to set up businesses.”
Last year, Invest Hong Kong assisted seven Indian companies in setting up investments and businesses in Hong Kong, Chiang said. “They were from consumer products financial services, tourism and hospitality as well as transportation and industry.”
In total, Invest Hong Kong is seeking to assist nearly 400 foreign companies set up business ventures this year. Last year, the Chiang’s administration assisted 375 companies from different parts of the world, he said. In 2014, Hong Kong attracted foreign investments of $103 billion, which is second to only that of mainland China’s that equalled $129 billion the same year. Chiang believes this year’s quota could be a bit ambitious, but is fully convinced it’s within the margin of possibility given the global economic climate.
“Hong Kong is super connector between China and rest of the world,” he said.
Currently, there are 8,000 companies with offices in Hong Kong, of which 3,798 companies have regional offices.