HKETO: Exploring New Horizons in Hong Kong-Thailand Collaboration

Director of Hong Kong Economic and Trade Office in Bangkok: Hong Kong and Thailand can strengthen partnerships for a prosperous future together

 

Hong Kong and Thailand’s longstanding partnership continues to strengthen. In an exclusive interview with The Nation, Parson Lam, Director of the Hong Kong Economic and Trade Office in Bangkok (HKETO), highlighted some of Hong Kong’s recent initiatives in economic development which would provide business opportunities for Thailand. 

 

“Our office represents the Hong Kong Special Administrative Region (HKSAR) Government in Thailand. Our mission is to deepen connections and foster trade, economic and cultural exchanges between Hong Kong and Thailand,” Lam began by introducing the role of the HKETO. 

 

“Thailand and Hong Kong share a long-standing history of friendship and collaboration. There is a strong foundation for us to elevate our collaboration across trade, culture, tourism, and other sectors to new heights.”

 

When asked about Hong Kong’s distinct advantages as a business hub, Lam emphasised its unique position under the “one country, two systems” framework.

 

“Hong Kong is an inalienable part of China; at the same time, we enjoy a high degree of autonomy in various areas. We maintain our own economic system with free flow of capital, our own social systems with free flow of information and freedom of speech, as well as an independent judicial system based on common law,” he remarked. 

 

Lam further highlighted the city’s business-friendly environment, with a low and simple tax regime—profits tax is capped at 16.5%, with no capital gains, inheritance taxes, or VAT. He also noted Hong Kong’s strategic geographic location, with half of the world’s population reachable within a five-hour flight, as well as its world-class airport connecting to 180 destinations and status as a global logistics and aviation hub.
          Key initiatives of the 2024 Policy Address

During the interview, Lam outlined some of the initiatives in Hong Kong’s latest Policy Address, a comprehensive policy blueprint which aims to, amongst others, bolster the city’s status as an international hub for trade, finance and shipping.

 

Consolidating its leading position as a trading hub

Hong Kong aims to solidify its position as a global high-value-added supply chain service hub.  “The shifting dynamics of global supply chains, particularly toward the Global South and Belt and Road countries, present unique opportunities for Hong Kong. Our strategic location, world-class professional services, talent pool, and simple tax regime position us as a gateway for Mainland China and international enterprises to expand,” Lam explained.

 

“The HKSAR government will actively identify and support businesses from Mainland China as well as other places, Thailand included of course, to establish offshore trading headquarters and treasury centers in Hong Kong, helping them to leverage Hong Kong’s unique advantages to access Mainland China or the global markets seamlessly.” 

 

Another noteworthy measure is the reduction of the liquor duty rate, which will see the duty rate for imported liquor over HK$200 (US$25.7) to be reduced to 10% for the portion above HK$200, a move aimed at boosting Hong Kong’s position as a leading liquor trading hub. 

 

“Since eliminating wine duties in 2008, Hong Kong has become a global leader in wine trade and auctions.  Reducing liquor duties will further strengthen the sector while boosting the logistics, tourism and high-end food and beverage industries,” Lam added.  Cementing leadership as a financial centre

Hong Kong continues to lead as Asia’s premier international financial centre, ranking third globally and first in Asia by the Global Financial Centres Index.  In 2025, Hong Kong will further solidify its leading position through initiatives in various areas such as offshore RMB business, green finance and fintech.  

 

“Hong Kong processes about 80% of global offshore RMB payments and holds over RMB 1 trillion in deposits.  As the leading offshore RMB centre, we offer the widest range of offshore RMB financial products globally, not only providing investors with unparalleled investment options and opportunities but also facilitating trading and settlement in RMB.  In 2025, Hong Kong plans to expand its RMB-denominated investment products and enhance RMB liquidity through its currency swap arrangement with Mainland China,” Lam said.

 

“On green finance, Hong Kong remains Asia’s top green bond issuer and a leader in ESG product innovation.  As of mid-2024, Hong Kong hosted 233 ESG funds managing a total of US$169.3 billion in assets. We are also home to Asia’s first Green Bond Exchange Traded Fund (ETF), offshore A-shares ESG ETF and Retail Certificate of Green Deposits. In 2025, we will continue to develop green finance products while enhancing our sustainability disclosure system to further bolster the growth of the green finance ecosystem.”

 

Hong Kong will also continue to advance fintech through various initiatives such as the development of the Central Bank Digital Currencies (CBDCs), digital banks and virtual assets (VA), etc. 

 

“The Hong Kong Monetary Authority, together with the Bank of Thailand and a number of other central banks, are actively developing the CBDCs with good progress. The project, when implemented, can facilitate cross-boundary payment and settlement in a much more efficient manner. Meanwhile, for a more sustainable VA development, Hong Kong will enhance the regulations for stablecoins and VA trading. We will also continue to foster the exchanges and collaboration of the Thai and Hong Kong fintech industries to enrich the ecosystems in both places,” Lam added. 

 

Strengthening as a shipping and maritime hub

The 2024 Policy Address also underscored Hong Kong’s commitment to becoming an international shipping centre.  

 

“Hong Kong is not only one of the most efficient ports globally but also a leader in high value-added maritime services. Initiatives include promoting ship broking, financing, maritime insurance and arbitration while providing tax incentives to attract business,” he noted. 

 

Moreover, Hong Kong aims to establish a robust commodity trading ecosystem, particularly for gold and non-ferrous metals, supported by tax concessions and enhanced regulatory frameworks. This will facilitate international commodity exchanges to set up accredited warehouses in Hong Kong and support relevant businesses (e.g. trading and storage), further promoting the development of Hong Kong’s financial, maritime and trading services.

 

          Thailand-Hong Kong collaboration 

In 2023, bilateral trade between Thailand and Hong Kong reached USD 19 billion, and Hong Kong ranked among Thailand’s top five foreign investors in the first three quarters of 2024, contributing over USD 120 million in direct investments.

 

Looking forward, Lam reaffirmed Hong Kong’s commitment to fostering stronger trade relations with Thailand. 

 

He expressed confidence in the potential for even deeper collaboration: “As a 'super-connector’ and ‘super value-adder’, Hong Kong leverages its unique position under the ‘one country, two systems’ framework to bridge Mainland China with the rest of the world.  We are prepared to support Thailand in tapping into opportunities in the Belt and Road and Guangdong-Hong Kong-Macao Greater Bay Area initiatives.”

 

He invited Thai enterprises to connect with the HKETO for tailored and free support. “Together, we will continue to explore innovative ways to enhance our economic ties and achieve mutual growth,” Lam concluded.

(2025/01/23-00:00)