Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
U.S. exports to Hong Kong: In 2019, the United States exported $30.78 billion in goods to Hong Kong, much of which was transshipped to mainland China and other regional markets. The top export categories from the U.S. to Hong Kong include electrical machinery, precious metal and stone, art and antiques, machinery, and agricultural products.
Best prospects for U.S. suppliers: Leading export sectors for U.S. firms include electronic components, medical equipment and pharmaceuticals, aviation and airport equipment, transportation infrastructure, financial services, education and training services, travel and tourism services, retail, and consumer goods such as packaged food, wine, cosmetics, and toiletries. Smart city development initiatives being undertaken by the Hong Kong government also present opportunities for U.S. technology providers.
Hong Kong public infrastructure constructions are in various stages of planning, execution, and completion: Completed projects include the West Kowloon Cultural District, the University of Hong Kong Campus Expansion, the Ocean Park amusement park enhancement, the Harbor Area Treatment Scheme, and multiple subway and light rail lines. New projects include the Hong Kong International Airport Expansion Plan, tourism infrastructure, and city improvement plans. The Kai Tak Airport Redevelopment has been an ongoing project, and additional new tenders are expected due to the magnitude of the project.
Hong Kong-based private procurement: Hong Kong is home to a large number of procurement agents and purchasing offices. Many purchasing decisions for major projects and conglomerates in Macau, mainland China, or other regional economies are made in Hong Kong.
SelectUSA – Hong Kong serves as a priority market to attract foreign investment to the U.S.: Established in 2011 by Executive Order of the President, SelectUSA is a government-wide initiative to promote foreign direct investment (FDI) in the United States to create jobs, spur economic growth, and promote American competitiveness. SelectUSA works in partnership with state, regional, and local economic development organizations to promote FDI into the U.S. and works on behalf of the entire nation, exercising strict geographic neutrality. SelectUSA chose ten pilot markets to initiate the program in 2012, including Hong Kong, because of the territory’s special role as a commercial and financial hub through which over 60 percent of China’s overseas investment flows. SelectUSA can work with locations in the U.S. interested in attracting FDI and with FDI-support service providers (such as consultants, law firms, financial service providers, etc.). For enquiries, please visit SelectUSA or contact: (202) 482-6800 / +852 2521-1467 in Hong Kong.
U.S. exports to Macau: In 2019, U.S. capital goods (in comparison with 2018) dropped by 11 percent amid the slowdown in China’s economic growth and decline in investment. Consumer goods and raw materials/semi-finished products rose by 13 percent and 23 percent, respectively amid a steady growth in consumer spending.
Specific U.S. export opportunities: The expansion of Macau’s hospitality sector has created demand for food/beverage products and services and related hospitality consumables. Other opportunities include: gaming equipment; architectural services; energy-efficient lighting, HVAC systems, and “smart building” systems; recreational and sports equipment; building security equipment; hotel, restaurant, and resort management training services; computer and financial software; and meetings, incentives, conventions, and exhibitions (MICE) services such as exhibition and event planning.
Major projects: Among the ongoing private and public projects are the development of the Cotai Strip (in 2019, with the number of visitors increasing, Las Vegas Sands added additional rooms to three new hotels; neighboring competitors Hong Kong-based SJM and Galaxy Entertainment, MGM Macau, and Wynn also plan to add new facilities to accommodate more visitors) and the ongoing expansion of Light Rail Transit System.
Hengqin Island and Regional Development in Zhuhai, PRC: Hengqin Island in Zhuhai, adjacent to Macau’s Taipa and Coloane islands, is being developed by several investors who are also currently building projects in Macau. A number of planned projects have been reported in the press, including resorts, hotels, integrated retail and convention centers, luxury villas, education facilities and other services areas in Hengqin and elsewhere in Zhuhai. Notably, these projects will not include gaming facilities. With focused planning and support from Beijing, Hengqin could help diversify Macau’s economy beyond gaming.