Hong Kong

 
 

General Overview

Population: 6,940,432 (July 2006 est.)
GDP (purchasing power parity): US $227.3 billion (2005 est.)
GDP per capita: US$32,900 (2005 est.)
GDP (real growth rate): 7.3% (2005 est.)
Industries: textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks
Imports: US $291.6 billion (2005 est.)
Import commodities: raw materials and semi-manufactures, consumer goods, capital goods, foodstuffs, fuel (most is re-exported)
Exports: US $286.3 billion f.o.b., including re-exports (2005 est.)
Export commodities: electrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones, printed material
Alberta's export to Hong Kong: CDN$115 million (2005)
Alberta's main exports to Hong Kong: ethylene, bovine hides and skins, telecom equipment, artificial filament and wheat
Canada's main exports to Hong Kong: nickel, mink fur skins, ginseng roots, newsprint and ethylene

For detailed information about Hong Kong, the following website provides economic, political and historical information:

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Export Statistics

For detailed statistical information on Alberta and Canadian exports to Hong Kong, consult the following statistical publications and databases:

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Alberta-Hong Kong Relations

A significant market in its own right, Hong Kong also serves as an entrée for Alberta business to mainland China and other parts of Asia.

  • World Relations
    Alberta International and Intergovernmental Relations summary of Alberta's relationship with Hong Kong.

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Sector Opportunities

The Closer Economic Partnership Arrangements (CEPA) between Hong Kong Special Administrative Region (HKSAR) and the mainland of China provides Hong Kong with the comparative advantage in three areas, namely trade in goods, trade in services and investment facilitation. Hong Kong companies are given easier access to the mainland market, typically in the service sectors.

  • Alberta International Marketing Strategy (AIMS)

    According to AIMS, Hong Kong has been identified as priority market for the following sectors:

    • Education and Training
    • Health and Bio-industries

  • Agri-Food, Functional Foods and Nutraceuticals

    Food consumption trends in Hong Kong suggest growth in meat, private label grocery items, healthy and even organic foods. Growing consumer demand for convenience foods also translates into markets for prepared foods and sauces. Alberta and Canada have built the distinct image as the supplier of clean and safe products for the market.

    Alberta beef is able to get some inroads into the market, through persistent marketing efforts, and especially after the hiccups caused by BSE. Other notable products include canola oil, pork hock, flour, and raw hides and skins. There is a growing demand for quality functional foods and nutraceuticals in the Hong Kong market.

  • Architecture/Construction/Engineering Services

    Hong Kong is planning substantial infrastructure projects, including improved cross-border links, railway systems, environmental services and new container terminals. Accompanying these activities are ever-present housing demands. To support these continually growing projects, Hong Kong's need for services from consultants, building professionals, engineers, and construction companies are at high demand.

  • Construction Products and Services

    The construction market in Hong Kong is heavily dependent upon imported building materials. There are no locally manufactured construction products in Hong Kong. Market access into Hong Kong is very open with minimal government restrictions on foreign participation in highway development. Canadian firms have shown some success in the supply of building materials as well, including veneer and wallboard, heating and ventilation equipment, carpets and hardwood flooring, wall coverings, and plumbing supplies. Competition is intense and a local presence is important. Price is a major consideration.

    Liberalization of the gaming concessions in Macao has led to a construction boom in the enclave, as the concession holders and developers are putting the casinos, hotels, resorts, convention facilities in place. The Co-Tai (long, narrow reclaimed land connecting Coloane island and Taipa island in Macao) is sometimes referred to as The Strip in the Orient.

  • Education and Corporate Training

    Quality education products and services from Alberta and Canada are of great interest to Hong Kong and mainland China. Thousands of Hong Kong students, primarily post-secondary and secondary students come to Alberta for education and English language training. Alberta's advantage in this market can be further expanded into corporate training programs for the corporations and government alike. IT in education and public administration are identified as areas of potential. Applied subjects and technical training are met with enthusiasm in mainland China. Typical examples include Computer Numeric Control (CNC) machining, automobile mechanics, animation, and business administration.

  • Environmental Goods and Services

    The Hong Kong government is committed to various environmental programs designed to control problems of air, water, sewage, and solid waste. The city is about to introduce a charging scheme for waste disposal, a more efficient waste sorting system, and some government led incentives and facilitation to breed the recycling industry. Cross border actions to monitor and to improve air quality are in the pipeline. Incineration, coupled with waste-to-energy management of municipal waste will be introduced, against the backdrop of the fast depletion of landfill space.

    Hong Kong and Canada entered into a Memorandum of Understanding on Environmental Collaboration (MOU) since 1992. During the Team Canada Mission 2001 to Hong Kong, the Work Plan 2001 under the existing MOU was signed between Mr. Pierre S. Pettigrew, Minister for International Trade of Canada, and Mrs. Lily Yam, Secretary for the Environment and Food of the Hong Kong SAR.

    The Canada/Hong Kong Work Plan 2001 has identified the following areas of co-operation:

    • Training on environmental emergency response
    • Promoting environmental trade and technology
    • Exchanging experience of environmental conservation and protection
    • Sharing information on air quality management
    • Exchanging experience of solid waste management
    • Promoting environmental education and public awareness

  • Forestry Products

    Hong Kong is completely dependent on imported paper products. With 6 per cent annual growth in the publishing industry expected to continue, the demand for high quality and environmentally friendly paper products will continue.

  • Furniture and Furnishings

    The total market value of office furniture in Hong Kong is approximately C$245 million. There are no tariff barriers, or import quotas for office furniture, and certification are not required in this area.

  • Information and Communications Technology (ICT)

    Alberta companies have registered impressive gains in communications and IT equipment, notably remote terminal units (RTU) for the utilities companies, interconnect devices, and computer software. Advanced Alberta products such as wireless communications equipment for networking and multi-media presentation equipment will enjoy a healthy growth in the market. Radio Frequency Identification (RFID) is in demand, typically in applications like logistics, retailing, and security control.

    Advancement in information technology (IT) is causing Hong Kong to undergo rapid transformations. The government plans to enhance the effectiveness of teaching and learning through the use of IT and the Internet. The government has already planned to spend CDN$126 million in procuring IT facilities, software, network sources, and teacher training, CDN$750 million over the next five years in promoting the use of IT in schools, and CDN$1 billion in improvements to the quality of education. Business opportunities exist for companies that can provide software in local content and language that suit the HK education curriculum (especially in subjects such as English, Chinese (Cantonese), science, and mathematics), interactive learning software, and multi-media application development for course materials and multi-media resource-based learning.

    Under the Memorandum of Understanding renewed in 2005 between Hong Kong and Canadian governments, both sides are committed to encourage co-operation, technology and business partnerships, educational and learning exchanges, and exchanges in policy and regulatory information. Other areas of potential include systems support and applications development in relation to e-commerce, e-learning, mobile and wireless communications. Typical areas include network security, validation authentication, on-line secure payment, and on-line trading.

  • Medical and Scientific Equipment

    Growth of Hong Kong's hi-tech manufacturing base is increasing the demand for medical and scientific instruments. This demand is important for product development, laboratory analysis and quality control. In addition, Hong Kong's medical and health standards have risen considerably in recent years and are among the best in the world. Hong Kong relies entirely on imports for all of its medical equipment. Large portions of its imports are re-exported to China.

  • Telecommunications Equipment and Services

    Canada is now a major supplier of telecommunications equipment to Hong Kong, including switching, PBXs, data communications and systems engineering. On January 1, 1999, the Hong Kong Government allowed free competition in international telephone (IDD) services. This effectively makes Hong Kong the most liberal telecommunications environment in Asia.

    Canada is a major contender in many large telecommunications projects and is actively pursuing business in the area of cable television, satellite communications, and cellular voice and data products. The Hong Kong government has launched its "Digital 21" strategy, which aims to create a favorable environment for e-commerce to flourish. Leading Canadian telecom companies can provide telecommunications services as contractors in developing the government's telecommunications infrastructure or alternatively, partner with local telecom companies to formulate innovative technology.

For additional information on business opportunities and resources for market intelligence, visit:

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Exporting Your Products - Services for Exporters

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Other Resources

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Alberta International, Intergovernmental & Aboriginal Relations Contacts

For customized export facilitation, contact our sector officers for Hong Kong:

  • John Larson, Team Leader, Asia and Emerging Markets, Agriculture & Food
  • Josephine Choi, Team Leader, Advanced Industries, Asia
  • Richard Jiang, Trade Development Officer, Energy Industries & Services, Asia
  • Joe So, Managing Director, Alberta-Hong Kong Office

Date Updated: Sep 30, 2008
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