hong kong: cdb of asia and global logistics hub › wp-content › uploads › 2015 › 02 ›...
TRANSCRIPT
© Copyright Invest Hong Kong, HKSAR
8 August 2016
Benjamin Wong
Head of Transport and Industrial
Hong Kong: CDB of
Asia and Global
Logistics Hub
Interesting Facts about Hong Kong
• Hongkongers are the longest living in the world :
Male - 81.24 / Female – 87.32; BTW, Hong Kong is
also home to the oldest-living giant panda in the
world, Jia Jia (38 years old)
• Hong Kong has some of the most affordable
Michelin restaurants in the world, with some star-
rated dishes costing less than US$2!
• Hongkongers are the biggest tea drinkers in Asia,
with per capita consumption of 1,360 gram
• About three quarters of Hong Kong is countryside,
with urban areas making up less than 25%, and
nearly 40% of total land area is protected for
conservation and recreation
Topics
- Business Friendly Environment
- Connectivity and Logistics Infrastructure
- Logistics Infrastructure Development
- Commercial Relations with Australia
- How InvestHK Can Help
ONE COUNTRY TWO SYSTEMS
LOW & SIMPLE TAX SYSTEM
• VAT/GST/Sales tax
• Capital Gains Tax
• Withholding tax on
investments
• Estate duty
• Global taxation
• Wine duty
HONG KONG
SINGAPORE
SHANGHAI*
Corporate Income
Personal Income
Employer Social
Security
Employee Social
Security
VAT
* There is no standard rate across the Mainland China. Shanghai is used as an example.
Hong Kong has signed
Comprehensive Double
Taxation Agreements (CDTAs)
with 35 jurisdictions.
Negotiations with
12 jurisdictions are in progress.
25%
45%
37%
11%
17%
17%
20%
16%
20%
7%
16.5%
15%
5%
5%
0% VAT
(as of May 2016)
BUSINESS-TO-
CONSUMER
5.1M in Asia Pacific
142,000 HNWIs in HK,
up 281% (2009-2015)
45.8M from Mainland
59.3 million visitors
in 2015
84% of the world’s
leading luxury and
fashion retailers
are in HK
US$63bn sales
600people
One restaurant every
PRIME CONDUIT FOR FDI
Rank FDI Inflows (2015) US$ bn
1 USA 380
2 Hong Kong 175
3 China 136
4 Ireland 101
5 Netherlands 73
6 Switzerland 69
7 Singapore 65
8 Brazil 65
9 Canada 49
10 India 44
ALL TIME HIGH –
7,904 companies of which
3,798 are RHQs and ROs in
2015
Source: 2015 Annual survey, HKSAR
Government’s Census & Statistics Department
Source: World Investment Report 2016, UNCTAD
BUSINESS-
TO-BUSINESS
HK
SHENZHEN
STOCK
CONNECT
951 listed Mainland enterprises
Launched in
Nov 2014
RMB hub
Expect to be
launched in 2016
RMB deposits in HK
Source: HKMA
US$1.97 tn accounting 62.1% of market total
(Total market cap)
Source: HKEX
1trillion
Oct 2015
33bn
2007
Topics
- Business Friendly Environment
- Connectivity and Logistics Infrastructure
- Logistics Infrastructure Development
- Commercial Relations with Australia
- How InvestHK Can Help
HEART OF ASIA
Hong Kong
Most of Asia’s key markets within four
hours’ flight time
From half the world’s population
Hong Kong
4hrs
5hrs
More than 100 airlines operate about 1,100 flights daily,
linking the Hong Kong International Airport to 190
destinations worldwide, including 47 Mainland cities
GLOBAL SUPER CONNECTOR
The busiest air cargo airport in the world – 4.4 million
tonnes of cargo handled in 2015
Zhaoqing Foshan
Guangzhou
Dongguan
Huizhou
Shenzhen Zhongshan
Jiangmen
Zhuhai
Macau
GREATER PEARL
RIVER DELTA
POPULATION
64mn
>UK, Italy, South Africa
EXPORTS
US$527bn
>UK, Italy
GDP
US$962bn
>Indonesia, Netherlands, Turkey
LAND AREA
56,000km2
<Ireland, Latvia, Panama,
West Virginia (US)
Hong Kong
Logistics Infrastructure - Air
• Hong Kong International Airport (HKIA) ranked as the
busiest airport for international air cargo since 1996. In
2015, HKIA handled 4.38 million tonnes of freight.
• Air services to about 190 destinations, including 47 in
the Mainland, which adds up to about 1,100 daily flights
by more than 100 airlines.
Logistics Infrastructure – Sea &
River
• Fifth-busiest container port in the world.
• Has nine ocean container terminals and one river trade
terminal, with total throughput of 20.1 million TEUs in 2015.
• About 340 liner services per week to over 470 destinations
worldwide.
• River transport - consolidation of containerized, break bulk
and bulk cargo between the Hong Kong and ports along
the Pearl River Delta.
Logistics Infrastructure – Rail and
Road
• A small city of 1,104 sq. km.
• Railway network - a total length of
about 250 km, connected with the
Mainland China by two railway
crossings.
• Comprehensive road network –
2,101 km of roads and 1,335 road
structures, 16 road tunnels
(including the three immersed-tube
cross-harbour tunnels), and five
major cable supported bridges.
• Connected with the Mainland China
by four goods vehicle boundary
crossings.
Customs Efficiency and Facilitation
• Round-the-clock border crossings / one-stop customs
clearance: efficient transfer of goods to and from
Mainland China and Hong Kong
• Efficient customs clearance: clearance of detained sea
cargo within five working days and air cargo within 80
minutes
• Cargo facilitation initiatives: Regulated Agent Regime,
Authorised Economic Operator (AEO) Programme, FTA
Transhipment Facilitation Scheme, Wine Facilitation
Scheme
FTA Transhipment Facilitation
Scheme
• The Mainland China is proactively establishing FTAs with
different economies (Australia-China FTA entered into
force on 20 Dec 2015)
• Direct-shipment between the contracting parties is usually
required to apply for tariff preference
• For transhipment cargo through Hong Kong, Hong Kong
Customs provides supervision service and issues
Certificate of Non-manipulation to certify that they have
not undergone any further processing in Hong Kong, thus
eligible for tariff preference under the FTAs
Wine Facilitation Scheme
• Hong Kong is Asia's premier wine hub and among the top three
wine auction centres in the world, noted for the trade in deluxe
wines.
• Co-operation arrangement between the Mainland China Customs
and Hong Kong Customs to facilitate wine trade
• Facilitation (expedited customs
clearance) will be provided by the
Mainland Customs for wine
consignments exported by
registered Hong Kong Wine
Traders.
• Applicable to all ports under
Beijing, Tianjin, Shanghai,
Shenzhen and Guangzhou
Customs Districts.
Topics
- Business Friendly Environment
- Connectivity and Logistics Infrastructure
- Logistics Infrastructure Development
- Commercial Relations with Australia
- How InvestHK Can Help
Future Development – Hong Kong
International Airport
• Current two runways are fast approaching its maximum
handling capacity
• Construction of three-runway system commenced on 1
Aug 2016, for completion by phases in 2022-24
− Land reclamation of 650 Ha
− 3rd Runway Passenger
Building with 57 new parking
positions
− 3,800-metre-long new
runway
− 2,600-metre-long new
Automated People Mover
(APM) system
Future Development – Hong Kong
International Airport
• The total estimated construction cost is HK$141.5
billion
• Funding will be provided through borrowing (49%),
operational surplus (33%) and airport construction fee
(18%).
• To increase the capacity by 35-50%
Aircraft movement
(Hourly) Passenger (Annual) Cargo (Annual)
Current Capacity 68 74 million 6 million tonnes
Expanded Capacity 102 (⌂ 50%) 100 million (⌂ 35%) 8.9 million tonnes
(⌂ 48%)
Future Development – Hong Kong
Zhuhai Macao Bridge
• The main body of the bridge is about 29.6km long
• A six-lane expressway with vehicle speed of 100 km
per hour
• Construction started
in 2009; completion
by end-2017
• Transportation costs
and time for travellers
and goods on the
road to be
significantly reduced
Future Development – Liantang/Heung
Yuen Wai Boundary Control Point
• Construction in
progress; scheduled
for completion by
2018
• Estimated to handle
20,600 vehicular trips
and 30,700
passenger trips a day
in 2030
• Enhance passenger and cargo flows between Hong
Kong/Shenzhen and the eastern part of Guangdong as
well as adjoining provinces like Jiangxi and Fujian
Future Development – Guangzhou
Shenzhen HK Express Rail Link
• An express rail link connecting Hong Kong, Shenzhen
and Guangzhou
• Travel to Shenzhen in 14 mins and Guangzhou in 48
mins
• Interlinked to the
mainland China
network; travel to
Shanghai in 8 hours
and Beijing in 10
hours
• Target opening by
Q3 2018
Future Development – Land Reserved
for Logistics Development
• The Government has reserved sites for dedicated
logistics facilities.
• Kwai Tsing Area (near container ports and connected
with the airport by highway) – About 7 Ha of land for
logistics development has been auctioned since 2010
• Tuen Mun (near
HK/Mainland China
border and to be
connected with the
airport by a undersea
tunnel) – About 10 Ha
of land is planned for
logistics development
Topics
- Business Friendly Environment
- Connectivity and Logistics Infrastructure
- Logistics Infrastructure Development
- Commercial Relations with Australia
- How InvestHK Can Help
Commercial Relations with
Australia
• In 2015, Australia was Hong Kong's 20th largest trading
partner. Reciprocally, Hong Kong was Australia's 19th
ranking trading partner.
• Bilateral trade in goods between Hong Kong and
Australia amounted to HK$51 billion in 2015
• Hong Kong also plays an important entrepôt role for
merchandise trade between Australia and the Mainland
China, as reflected by the HK$34 billion re-export trade
between the two economies through Hong Kong in
2015.
Topics
- Business Friendly Environment
- Connectivity and Logistics Infrastructure
- Logistics Infrastructure Development
- Commercial Relations with Australia
- How InvestHK Can Help
HOW
WE CAN HELP Networking events,
introduction to
service providers
Facilitation of visa
applications, schooling
PR and marketing
support for launch/
expansion
Information to aid
planning and evaluation
Asian Logistics and Maritime
Conference (22-23 Nov 2016)
• Asia’s largest conference for logistics and maritime services
users and providers
• Will be the core event of the first-ever Hong Kong Maritime
Industry Week (20-26 Nov 2016) organised by the Hong Kong
Maritime and Port Board
• Expected to attract 2,000 industry players from around the
world to exchange latest market intelligence and expand
business connections
• To be divided into three main tracks, namely SCM & Logistics
Forum, Maritime Forum and Air Freight Forum
• Focus on several hot topics including China’s “Belt and Road”
initiative and latest development in Cross-border Ecommerce
GET IN TOUCH
www.investhk.gov.hk
www.flickr.com/photos/investhk
www.linkedin.com/company/invest-hong-kong
#InvestHK
www.youtube.com/user/investhk
© Copyright Invest Hong Kong, HKSAR
Tel: +852 3107 1088
Email: [email protected]
25/F, Fairmont House, 8 Cotton Tree
Drive, Central, Hong Kong
Benjamin Wong
Head of Transport and Industrial
Tel: +61 2 9283 3222
Email: [email protected]
Luca De Leonardis
Head of Investment Promotion,
Australia and New Zealand
Level 2, Hong Kong House, 80 Druitt
Street, Sydney NSW 2000, Australia