This post will be a relatively short one but we will be covering what the thriving industries and businesses here in Hong Kong are.
According to the Census and Statistical Department of Hong Kong, the below are the four key industries (or pillars) in this country in order from largest to smallest:
- Trading and Logistics
- Financial Services
- Professional and producer services
You have probably noticed that manufacturing is missing from this list. Hong Kong once had a thriving manufacturing industry; however, most manufacturing has been replaced by the service industry due to a few reasons. With the limited amount of land in Hong Kong, land prices have shot up as the economy grew, forcing manufacturers to move their operations to areas where land/rent is cheaper (China, etc.).
Trading and logistics has grown drastically thanks to the country’s almost free port trade.
Hong Kong has turned into an international finance center, earning its place as a well-established finance market partly due to its low taxation, which attracts a lot of foreign capital and investment.
The third largest industry mentioned above is the “Professional and Producer Services”; which may lead you to the question. What in the world does this include? To give you an example, some of the following are included:
- Architecture and engineering activities
- Information technology and advertising (marketing and digital marketing)
- Legal, accounting, and auditing services
Lastly, the fourth largest industry/market in Hong Kong is Tourism. In 2015, Hong Kong has attracted over 59 million visitors. Here are just some of the reasons Hong Kong is a tourist magnet:
- It has a diverse culture
- You can get around with English
- Wide array of cuisine from all over the world
- No sales tax + low import duty on many things = Great for shopping
- Convenient transportation
- It’s very safe
If you are thinking to start your business in any of these four industries, you can be sure that there is a demand for it; however, be prepared for some competition.
In some of our future posts we will make some advices on how you can make your business stand out from the crowd.