September 16, 2024
HONG KONG – Hong Kong and ASEAN member states should tap potential areas in green finance, trade and logistics to foster mutually beneficial cooperation, a senior government official of Laos, the chair of the Southeast Asian bloc, said at a summit in Hong Kong on Friday.
The Deputy Minister of Finance, Mr Phouthanouphet Saysombath, led the Lao delegation that attended the 2024 Hong Kong-ASEAN Summit, where he underlined the pivotal relations between the Chinese city and the 10-member grouping.
“ASEAN and Hong Kong recognise each other as critical and indispensable partners in realising our respective visions,” Mr Phouthanouphet said in his address to the annual gathering.
Emerging ASEAN economies can leverage Hong Kong’s robust financial hub as a source of funding, notably green finance to bolster the ASEAN region’s green development drive.
In 2023, the total amount of green and sustainable debt issued in Hong Kong surpassed US$50 billion. Out of this, the total amount of green and sustainable bonds arranged for issuance in the city ranked first in the Asian market, accounting for 37 percent of the total.
ASEAN, as a growing global manufacturing and trade hub, offers investors a wide range of opportunities.
“There is room for small, medium or large enterprises. There is a long list of possible industries to go into, depending on the country’s strengths and needs,” Mr Phouthanouphet said.
“Most ASEAN member states decide on special economic zones to attract investors.”
ASEAN, the world’s fifth largest economy, is Hong Kong’s second largest trading partner. Last year, two-way trade was valued at US$144.6 billion, accounting for nearly 13 percent of Hong Kong’s total foreign trade.
In Laos, 12 special economic zones have been developed to attract investment and boost trade, Mr Phouthanouphet said. Facilities have been put in place and incentives are being offered.
Logistics services offer robust opportunities for both Hong Kong and ASEAN, leveraging Hong Kong’s role as a super connector between China and the world as well as leveraging the growing China-ASEAN connectivity that has been amplified by the Laos-China Railway, part of the Belt and Road Initiative (BRI).
Mr Phouthanouphet said innovation and technology, academic research, and cultural exchanges are another potential area of cooperation.
In his opening address, the Chief Executive of the Hong Kong Special Administrative Region (Hong Kong SAR), Mr John Lee, said the city values its strong relations with ASEAN, Hong Kong’s sixth-largest source of inward direct investment, and the third largest destination for the city’s outward investments in 2022.
“Hong Kong is keen to invest in this buregeoning region of growth in Asia,” Mr Lee said.
Last year, Hong Kong contributed to 6.5 percent of direct investment inflows into ASEAN, making it the fourth largest source of direct investment among the bloc’s external partners.
Mr Lee said he believed the relations of both sides will be significantly fostered by his visit to the ASEAN region, most recently a visit to Laos, Cambodia and Vietnam in July, after his trip to Indonesia, Malaysia and Singapore the previous July. The ASEAN tours resulted in the signing of a number of memorandums of understanding.
“Those results bring home a clear and compelling message – that Hong Kong and ASEAN mean business. Today, tomorrow and long down our promising road together,” Mr Lee said.
Hong Kong has so far opened three Economic and Trade Offices (ETOs) in ASEAN states – in Singapore, Bangkok and Jakarta. The city hopes to open another one soon in the Malaysian capital of Kuala Lumpur.
“The Hong Kong SAR Government is doing everything in our power to build on our long-term promise with ASEAN,” he said.
The Hong Kong-ASEAN Summit, organised annually by South China Morning Post, the Hong Kong-based English newspaper, provides a platform for fostering closer relations between the city and ASEAN states.