One IBC: Hong Kong company registration: Doorway for Vietnamese trading

Hong Kong ranked 8th in exporting services and 17th in exporting goods worldwide in 2019 according to WTO’s report. Commerce and logistics accounted for 19.8% of GDP in 2019. This is the 13th largest economy in the world and is always in the sight of international investors. To reach today's position, Hong Kong has had several strategic steps toward supporting international trading.

Hong Kong and its commerce benefits

FTA: Hong Kong (HK) is Asia’s top trading node, connecting with countries all over the world. Aside from mainland China, Hong Kong has FTAs with the ASEAN, New Zealand and Australia, EFTA, Macau and several small island nations. In addition, new agreements with the Pacific Alliance’s members (Colombia, Mexico, Peru, Chile) and the UK are also underway. Hong Kong’s economy is enjoying many benefits from these FTAs.

Commerce policy: Hong Kong is one of the world’s free ports. There is no tariff levied against import and export (except special cases like tobacco, alcohol, etc.). This trading node also does not have strict requirements for certificate of origin and declaration to Hong Kong Customs are allowed to be lodged within 14 days after importing/exporting. Furthermore, if airlines, shipping and freight firms have registered with the Trade and Industry Department, the license requirements for their cargoes can be exempted.

Developed infrastructure: Hong Kong’s international airport is one of the most active airports in the world when it comes to airfreight since 2010. This is also where there are the busiest ports in the world. In 2019, Hong Kong was ranked 8th worldwide in the number of containers being transported. There is no denying Hong Kong’s enormous investment into infrastructure.

Hong Kong company registration: chances for Vietnamese business

As a firm specializes in providing services for company incorporation, One IBC has supported many customers inside and outside of Vietnam in establishing companies in Hong Kong. Hong Kong (HK) can provide many strategic benefits in commerce for Vietnamese companies.

In particular, Mr. Vu Dai Duong - vice director of One IBC assessed that customers can make use of Hong Kong’s policies to expand their business model rapidly. There are noteworthy aspects such as: Fast and convenient export/import procedure; developed ports and airports hasten transport; low tariff and tax reduce cost; FTAs help expand reach to many markets.

In addition, Hong Kong companies can be fully owned by foreigners, no need for a local partner. In fact, among the companies owned by foreigners, international commerce, retail and wholesale account for 47.6% according to a report by the HKSAR. This demonstrates that Hong Kong’s economy and commerce is inseparable.

A business street in Hong Kong

How can Vietnamese customers operate their companies in Hong Kong and which industry is the best option?

This is an example of one type of incorporating for an international commerce company in Hong Kong that One IBC has provided consultants. Customers wanting to trade goods from Asian countries to another country, through One IBC, established an intermediate international commerce company in Hong Kong. As a side note, One IBC’s customers can also utilize our Serviced office to cut costs since Hong Kong's real estate is among the most expensive in the world. Products were imported from factories to Hong Kong then exported to customers or directly from the suppliers to customers. Compared to doing trading at the main company, registering for a company to do this is faster and easier. This is called re-export and many companies in Hong Kong were incorporated in order to do this. According to a report by Censtatd, in 2017 while total export reached 3875 billion HKD, re-export accounted for 3832 billion. The main products were electronics and machinery parts, dry bulk commodities and luxury goods.

One IBC Hong Kong Office

According to the Market intelligence reports of American’s International trade administration, the most potential industry in Hong Kong to invest in is shipping; high tech related to medical, farmacy and new material; IT; personal care product; service in education, finance and franchise.