Hong Kong: CDB of Asia and Global Logistics Hub

Transcription

1 Hong Kong: CDB of Asia and Global Logistics Hub 8 August 2016 Benjamin Wong Head of Transport and Industrial Copyright Invest Hong Kong, HKSAR

2 Interesting Facts about Hong Kong Hongkongers are the longest living in the world : Male / Female 87.32; BTW, Hong Kong is also home to the oldest-living giant panda in the world, Jia Jia (38 years old) Hong Kong has some of the most affordable Michelin restaurants in the world, with some starrated dishes costing less than US$2! Hongkongers are the biggest tea drinkers in Asia, with per capita consumption of 1,360 gram About three quarters of Hong Kong is countryside, with urban areas making up less than 25%, and nearly 40% of total land area is protected for conservation and recreation

3 Topics - Business Friendly Environment - Connectivity and Logistics Infrastructure - Logistics Infrastructure Development - Commercial Relations with Australia - How InvestHK Can Help

4 ONE COUNTRY TWO SYSTEMS

5 37% 11% 7% 20% 17% Corporate Income LOW & SIMPLE TAX SYSTEM 45% 0% VAT 16% 5% 5% 15% 20% 16.5% 25% 17% HONG KONG SINGAPORE SHANGHAI* Personal Income Employer Social Security Employee Social Security VAT * There is no standard rate across the Mainland China. Shanghai is used as an example. Hong Kong has signed Comprehensive Double Taxation Agreements (CDTAs) with 35 jurisdictions. VAT/GST/Sales tax Capital Gains Tax Withholding tax on investments Estate duty Global taxation Wine duty Negotiations with 12 jurisdictions are in progress. (as of May 2016)

6 142,000 HNWIs in HK, up 281% ( ) 59.3 million visitors in 2015 BUSINESS-TO- CONSUMER 5.1M in Asia Pacific 84% of the world s leading luxury and fashion retailers are in HK 45.8M from Mainland One restaurant every 600people US$63bn sales

7 PRIME CONDUIT FOR FDI ALL TIME HIGH 7,904 companies of which 3,798 are RHQs and ROs in 2015 Source: 2015 Annual survey, HKSAR Government s Census & Statistics Department Rank FDI Inflows (2015) US$ bn 1 USA Hong Kong China Ireland Netherlands 73 6 Switzerland 69 7 Singapore 65 8 Brazil 65 9 Canada India 44 Source: World Investment Report 2016, UNCTAD

8 HK SHENZHEN STOCK CONNECT Launched in Nov 2014 Expect to be launched in 2016 BUSINESS- TO-BUSINESS 951 listed Mainland enterprises RMB hub RMB deposits in HK US$1.97 tn accounting 62.1% of market total (Total market cap) Source: HKEX 1trillion Oct bn 2007 Source: HKMA

9 Topics - Business Friendly Environment - Connectivity and Logistics Infrastructure - Logistics Infrastructure Development - Commercial Relations with Australia - How InvestHK Can Help

10 HEART OF ASIA Hong Kong

11 GLOBAL SUPER CONNECTOR More than 100 airlines operate about 1,100 flights daily, linking the Hong Kong International Airport to 190 destinations worldwide, including 47 Mainland cities The busiest air cargo airport in the world 4.4 million tonnes of cargo handled in hrs Most of Asia s key markets within four hours flight time Hong Kong 5hrs From half the world s population

12 POPULATION EXPORTS GREATER PEARL RIVER DELTA 64mn >UK, Italy, South Africa GDP US$962bn >Indonesia, Netherlands, Turkey US$527bn >UK, Italy LAND AREA 56,000km 2 <Ireland, Latvia, Panama, West Virginia (US) Guangzhou Huizhou Zhaoqing Foshan Dongguan Jiangmen Zhongshan Zhuhai Shenzhen Hong Kong Macau

13 Logistics Infrastructure - Air Hong Kong International Airport (HKIA) ranked as the busiest airport for international air cargo since In 2015, HKIA handled 4.38 million tonnes of freight. Air services to about 190 destinations, including 47 in the Mainland, which adds up to about 1,100 daily flights by more than 100 airlines.

14 Logistics Infrastructure Sea & River Fifth-busiest container port in the world. Has nine ocean container terminals and one river trade terminal, with total throughput of 20.1 million TEUs in About 340 liner services per week to over 470 destinations worldwide. River transport - consolidation of containerized, break bulk and bulk cargo between the Hong Kong and ports along the Pearl River Delta.

15 Logistics Infrastructure Rail and Road A small city of 1,104 sq. km. Railway network - a total length of about 250 km, connected with the Mainland China by two railway crossings. Comprehensive road network 2,101 km of roads and 1,335 road structures, 16 road tunnels (including the three immersed-tube cross-harbour tunnels), and five major cable supported bridges. Connected with the Mainland China by four goods vehicle boundary crossings.

16 Customs Efficiency and Facilitation Round-the-clock border crossings / one-stop customs clearance: efficient transfer of goods to and from Mainland China and Hong Kong Efficient customs clearance: clearance of detained sea cargo within five working days and air cargo within 80 minutes Cargo facilitation initiatives: Regulated Agent Regime, Authorised Economic Operator (AEO) Programme, FTA Transhipment Facilitation Scheme, Wine Facilitation Scheme

17 FTA Transhipment Facilitation Scheme The Mainland China is proactively establishing FTAs with different economies (Australia-China FTA entered into force on 20 Dec 2015) Direct-shipment between the contracting parties is usually required to apply for tariff preference For transhipment cargo through Hong Kong, Hong Kong Customs provides supervision service and issues Certificate of Non-manipulation to certify that they have not undergone any further processing in Hong Kong, thus eligible for tariff preference under the FTAs

18 Wine Facilitation Scheme Hong Kong is Asia's premier wine hub and among the top three wine auction centres in the world, noted for the trade in deluxe wines. Co-operation arrangement between the Mainland China Customs and Hong Kong Customs to facilitate wine trade Facilitation (expedited customs clearance) will be provided by the Mainland Customs for wine consignments exported by registered Hong Kong Wine Traders. Applicable to all ports under Beijing, Tianjin, Shanghai, Shenzhen and Guangzhou Customs Districts.

19 Topics - Business Friendly Environment - Connectivity and Logistics Infrastructure - Logistics Infrastructure Development - Commercial Relations with Australia - How InvestHK Can Help

20 Future Development Hong Kong International Airport Current two runways are fast approaching its maximum handling capacity Construction of three-runway system commenced on 1 Aug 2016, for completion by phases in Land reclamation of 650 Ha 3 rd Runway Passenger Building with 57 new parking positions 3,800-metre-long new runway 2,600-metre-long new Automated People Mover (APM) system

21 Future Development Hong Kong International Airport The total estimated construction cost is HK$141.5 billion Funding will be provided through borrowing (49%), operational surplus (33%) and airport construction fee (18%). To increase the capacity by 35-50% Aircraft movement (Hourly) Passenger (Annual) Cargo (Annual) Current Capacity million 6 million tonnes Expanded Capacity 102 ( 50%) 100 million ( 35%) 8.9 million tonnes ( 48%)

22 Future Development Hong Kong Zhuhai Macao Bridge The main body of the bridge is about 29.6km long A six-lane expressway with vehicle speed of 100 km per hour Construction started in 2009; completion by end-2017 Transportation costs and time for travellers and goods on the road to be significantly reduced

23 Future Development Liantang/Heung Yuen Wai Boundary Control Point Enhance passenger and cargo flows between Hong Kong/Shenzhen and the eastern part of Guangdong as well as adjoining provinces like Jiangxi and Fujian Construction in progress; scheduled for completion by 2018 Estimated to handle 20,600 vehicular trips and 30,700 passenger trips a day in 2030

24 Future Development Guangzhou Shenzhen HK Express Rail Link An express rail link connecting Hong Kong, Shenzhen and Guangzhou Travel to Shenzhen in 14 mins and Guangzhou in 48 mins Interlinked to the mainland China network; travel to Shanghai in 8 hours and Beijing in 10 hours Target opening by Q3 2018

25 Future Development Land Reserved for Logistics Development The Government has reserved sites for dedicated logistics facilities. Kwai Tsing Area (near container ports and connected with the airport by highway) About 7 Ha of land for logistics development has been auctioned since 2010 Tuen Mun (near HK/Mainland China border and to be connected with the airport by a undersea tunnel) About 10 Ha of land is planned for logistics development

26 Topics - Business Friendly Environment - Connectivity and Logistics Infrastructure - Logistics Infrastructure Development - Commercial Relations with Australia - How InvestHK Can Help

27 Commercial Relations with Australia In 2015, Australia was Hong Kong's 20th largest trading partner. Reciprocally, Hong Kong was Australia's 19th ranking trading partner. Bilateral trade in goods between Hong Kong and Australia amounted to HK$51 billion in 2015 Hong Kong also plays an important entrepôt role for merchandise trade between Australia and the Mainland China, as reflected by the HK$34 billion re-export trade between the two economies through Hong Kong in 2015.

28 Topics - Business Friendly Environment - Connectivity and Logistics Infrastructure - Logistics Infrastructure Development - Commercial Relations with Australia - How InvestHK Can Help

29 Information to aid planning and evaluation HOW WE CAN HELP Facilitation of visa applications, schooling Networking events, introduction to service providers PR and marketing support for launch/ expansion

30 Asian Logistics and Maritime Conference (22-23 Nov 2016) Asia s largest conference for logistics and maritime services users and providers Will be the core event of the first-ever Hong Kong Maritime Industry Week (20-26 Nov 2016) organised by the Hong Kong Maritime and Port Board Expected to attract 2,000 industry players from around the world to exchange latest market intelligence and expand business connections To be divided into three main tracks, namely SCM & Logistics Forum, Maritime Forum and Air Freight Forum Focus on several hot topics including China s Belt and Road initiative and latest development in Cross-border Ecommerce

31 GET IN TOUCH Benjamin Wong Head of Transport and Industrial Tel: /F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Luca De Leonardis Head of Investment Promotion, Australia and New Zealand Tel: Luca_De_Leonardis@hketosydney.gov.hk Level 2, Hong Kong House, 80 Druitt Street, Sydney NSW 2000, Australia #InvestHK Copyright Invest Hong Kong, HKSAR