Thai-Hong Kong ties reinforced by solid business relationships
The HKTDC’s efforts to cultivate closer relationships between the trading partners extend to new sectors of the economy
[Sponsored Article]
Building a stronger partnership between Thailand and Hong Kong has been a long-term objective of the Hong Kong Trade Development Council (HKTDC) – and the effort is bearing fruit, assisted by the support of some of Thailand’s leading businesspeople.
Leading the development of the trading relationship between Thailand and Hong Kong have been important agreements, such as the ASEAN-Hong Kong Free Trade Agreement, which came into force earlier this year for Thailand as well as Myanmar, Singapore and Vietnam.
It has been a concerted effort that will create more opportunities for small- and medium-sized businesses to tap into a two-way trading relationship that was worth HK$152.7 billion last year, according to the Hong Kong Trade and Industry Department.
Part of the reason for the success of the endeavour stems from the involvement of industry leaders. In his first official trip as the new Chairman of the HKTDC, Dr Peter K N Lam led a business delegation comprising more than 20 Hong Kong business leaders to Bangkok in July. The group was received by Thailand’s Deputy Prime Minister Dr Somkid Jatusripitak and took in meetings with some of the ASEAN nation’s biggest businesses and investors. The delegation met with Dhanin Chearavanont, Senior Chairman of Charoen Pokphand (CP) Group, Thailand’s largest privately-held conglomerate; Vikrom Kromadit, Chairman of Amata Group, the biggest industrial estate developer in Thailand; and Kavin Kanjanapas, CEO and Managing Director of BTS Group, a leading provider of transportation, media and property services.
The meetings explored how Hong Kong can leverage its expertise in financing and professional services to connect Mainland Chinese and international investors through key development, trade and infrastructure programmes in Thailand.
Last month (September), Thai business leaders and project owners also attended the Belt and Road Summit co-organised by the Hong Kong Special Administrative Region Government and the HKTDC in Hong Kong. Echoing the event’s theme of “creating and realising opportunities”, Mr Dhanin of CP Group spoke about maximising value from infrastructure projects designed to enhance interregional connectivity.
“Thailand, in its participation in the Belt and Road Initiative, presents ample opportunities through development plans such as the Eastern Economic Corridor, which is inspired by the success of China’s special economic zones and aims at attracting talent to boost Thailand’s technology and innovation capacity,” Mr Dhanin told a plenary session entitled Investing for Value – Making Belt and Road Projects Viable.
A frequent visitor to Hong Kong, Mr Dhanin was among the more than 5,000 participants from over 60 countries and regions at the summit on September 11 and 12. He was an early investor in Shenzhen, listed his company in Hong Kong in 1988 and now has corporate entities listed in Shanghai as well as Bangkok. CP Group’s estimated overall earnings from 19 listed companies are more than US$400 billion.
Mr Dhanin and a number of leading businesspeople are supporting a 20-year infrastructure development programme directed by the Thailand government that is designed to support innovation and creativity. The Thailand 4.0 strategy focuses on creating advanced infrastructure and technology, and one of the key initiatives is the Eastern Economic Corridor (EEC), a plan to build advanced infrastructure in a trio of provinces east of Bangkok. Each initiative under the Thailand 4.0 programme can dovetail with the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area development plan.
Thailand is now opening up more sectors for overseas investment, including next-generation automobile production, smart electronics, medical and health tourism, agricultural technology, biotechnology and the food business. These developments will in turn bring opportunities for sectors such as talent training, professional services and other related areas. Current investment hotspots include robotics, aviation, logistics, biofuel and biochemistry, technology and healthcare services.
Through its Bangkok office and business missions, the HKTDC has been highlighting to the Thai business community Hong Kong’s competitive advantage in finance, services, trade, talent and construction, which can be leveraged to build Thai projects such as high-speed railways, industrial parks and smart cities.
To that end, the HKTDC has recently signed memorandums of understanding with government agencies responsible for SMEs, industry, investment and trade in Thailand. The agreements will support a framework to foster bilateral trade and investment, the development of SMEs and enhanced economic cooperation.
The raft of new agreements is in addition to strong Thai participation in Hong Kong trade shows and conferences, such as the HKTDC’s International Jewellery Show, Toys and Games Fair, FILMART, Asian Financial Forum and International Licensing Show. Among these ongoing success stories is the Hong Kong Houseware Fair, a platform for Asia-Pacific businesses to reach a global audience that is staged each April. This year saw 20 Thai SMEs land about 100 orders.
The platform of Hong Kong is working for Hong Kong businesses too. In 2016, Michael Li was the Brand Director for Herkomst Holding, a specialist retailer of handmade soaps and fragrances. Through the HKTDC, he came into contact with an outlet at Bangkok’s Siam Paragon mall. After some research, he was exporting his products within a year.
It is linkages such as these that Hong Kong and the HKTDC can continue to exploit for the benefit of both regions as the Greater Bay Area development plan and the Belt and Road Initiative become increasingly important to pan-Asian trade.
