Because of its prudent economic policies, Hong Kong emerged from the recent global recession stronger than ever, retaining its status as one of the world’s leading financial and trading centers.

Its cultural diversity, a harmonious, perfect blend of East and West, has created a very business friendly playing field.

Ranked 3rd by the World Bank in 2009’s Ease of Doing Business Index, Hong Kong has one of the highest concentrations of corporate headquarters in the Asia-Pacific region.

With the world’s sixth-highest GDP, Hong Kong is clearly an important center for international finance and trade, as it also supports 33 percent of foreign capital flows into China.

Aside from geographical accessibility, Hong Kong gets its competitive edge from a number of
factors, including its world-class infrastructure, low corporate tax rate, rule of law, free trade and minimal government intervention.

Yoshihiro Fujiura, chairman of the Hong Kong Japanese Chamber of Commerce and Industry

Its “hot sectors” continue to be finance, logistics, tourism and professional services.

Alex Fong, CEO of the Hong Kong General Chamber of Commerce, is confident that 2010 will be a year of positive growth, as the world slowly but surely sees signs of recovery and stability in the world’s major consumer markets.

“Hong Kong is fortunate because we have China, with its growing economy,” says Fong about the special administrative region’s (SAR) critical role in facilitating the mainland’s economic interaction with the rest of the world, which is the core of the region’s economy.

“From two-way trade and logistics to capital investment, business services and initial public offerings, the opportunities available in Hong Kong lean strongly toward the China market. It is a safe place for foreign businesses and SMEs to test the Chinese market,” he continues.

Yoshihiro Fujiura, president of the Hong Kong Japanese Chamber of Commerce and Industry agrees with Fong, noting the influx of “Japanese companies looking for joint ventures in Hong Kong to do future business in China.”

Hong Kong maintains strong business ties with Japan, with bilateral trade amounting to 25 percent of Hong Kong’s nominal GDP, according to Fong.

There remains a strong flow of foreign investment into Hong Kong, with Japanese companies
favoring the financial services sector and more than 2,000 Japanese companies setting up offices in the region.

With the Hong Kong government determined to minimize pollution generated from industrial growth, particularly in the South China region, and address other environmental issues, Japanese companies, well-versed in environmental technologies, have identified a fresh opportunity for growth.

Alex Fong, CEO of the Hong Kong General Chamber of Commerce

“Japanese companies can use this to their advantage by collaborating on several projects in Hong Kong using advanced green technologies, particularly in air and water treatment and energy management,” says Fujiura.

Meanwhile, the relationship between Japan and Hong Kong continues to evolve, says Japanese Consul General Shigekazu Sato.

“Our bilateral relationships are constantly developing. Hong Kong has become the largest importer of Japanese agricultural and marine products, even surpassing the amount of Japan’s exports to the United States,” Sato points out.

Hong Kong also hosts the world’s busiest international air cargo terminal, with excellent connections throughout Asia and the world, and is one of the world’s finest shipping ports. Despite the global recession, the industry has grown.

“A big reason for our success as established shipowners in the region is the historical relationship we have with our Japanese friends, which is unduplicated anywhere else in the world” says Hong Kong Shipowners Association Chairman Kenneth Koo.

The association’s past chairman, Peter Cremers, confirms there has been continual growth in the region’s shipping industry despite the global crisis.

“In particular, the ship-management industry is doing very well, because in a difficult market cost becomes very important. Hong Kong gives the best possible environment for the shipping industry because you are in full control of your own business, and any income from shipping is tax exempt,” Cremers says.

Chairman Kingson Lee of the Hong Kong Sea Transport and Logistics Association is optimistic
that this industry will benefit from the growth and transformation of China from a low-cost industrial hub into a huge consumer market.

Minoru Suzuki, director general of the Japan External Trade Organization in Hong Kong, agrees. “The SAR is an international financial and logistics center with lots of accumulated knowhow and expertise. This status can be maintained for years to come and will also evolve from being just a gateway to mainland China to becoming the economic center for South China and the Pearl River Delta,” says Suzuki.