Hong Kong has moved up two places to become Asia's third-most competitive economy, with its three 'tiger' cousins also ranking in the top five, according to an annual report released by the Boao Forum.
However, the internal and external environment will affect the competitiveness of the region's economies in the future, the forum's 'Asian Competitiveness' annual report for 2012 says.
Separately, Hong Kong ranked as the best place to do business based on data compiled by news agency Bloomberg. The city's free-market policies and low corporate taxes as well as its position as the gateway to the world's most populous nation were cited as chief reasons behind its top ranking.
The Boao Forum's top five are, in order, Singapore, Taiwan, Hong Kong, Japan and South Korea; mainland China came in at No 10, up from 11th last year, among the 37 economies evaluated. Hong Kong was ranked fifth last year.
'Hong Kong has become a competitive economy relying on the Chinese mainland as its economic hinterland,' the report said.
The city leads in three aspects of competitiveness: first-class infrastructure, robust overall economic strength and high commercial and administrative efficiency.