1 Hong Kong: Your Partner in International Trade Shirley Wong Director, Indochina, HKTDC 16 July 2015

2 Hong Kong 2

3 Hong Kong: Strong Fundamentals Rule of law: protection of contracts & IP International arbitration centre Free flows of information, people, goods & capital 3

Hong Kong: Strong Fundamentals 4 Low & Simple Tax System Source: PricewaterhouseCoopers Factors: No. of tax payments Time taken to comply with tax laws Total tax rate

5 Asia’s Financial Centre World’s 2nd largest IPO Centre 3rd largest stock market in Asia, 7th in world Asia’s 2nd largest private equity centre 5 Largest offshore Rmb market Global hub for Rmb bond issuance Largest offshore capital- raising hub for Chinese companies Hong Kong: Strong Fundamentals Image credit: headlineasia.com

An Asian Lifestyle Trendsetter & Marketing Hub 6 Hong Kong: Strong Fundamentals

Beijing Seoul Osaka Tokyo Changchun Harbin Shenyang Dalian Tianjin Nanjing Fukuoka Shanghai Hangzhou Nanchang Fuzhou Guangzhou Taipei Jinan Shijiazhuang Taiyuan Zhengzhou Xian Hefei Wuhan Chengdu Chongqing Changsha Guiyang Kunming Guilin Haikou Manila Ho Chi Minh City Bangkok Hanoi Kuala Lumpur Singapore Jakarta Dhaka Delhi Chennai Mumbai Bangalore Colombo Hong Kong All of Asia’s key markets within from half the world’s population Hong Kong: Ideal Location 7

Asia’s Logistics & Maritime Hub No. 1 international air cargo hub 4.38 million tonnes throughput (2014) 100+ airlines 180 destinations One of world’s busiest container ports 22.3 million TEUs (2014) 380 container liner services weekly, 550 destinations Top photo credit: Hong Kong International Airport 8 Hong Kong: Ideal Location

Hong Kong: Dynamic People Hong Kong speaks the language of international business 9 Generations of entrepreneurial spirit Unrivalled international business experience Diverse international workforce

Bridge to International Markets 10 Regional headquarters Easy-access trade arrangement with Chinese mainland Globally recognised free market Hong Kong: Hub for Global Businesses

Vietnam – Hong Kong’s 12 th Largest Trading Partner Trade performance: USD 14 billion +11.7% Total exports to Vietnam: USD 8.6 billion+14% Total imports from Vietnam: USD 5.4 million +8.2% Hong Kong Economic Ties with Vietnam

Creating opportunities in international trade Hong Kong Trade Development Council (HKTDC) 12

HKTDC: Connecting Buyers & Suppliers Integrated Marketing Solution Trade fairs Online marketplace Product magazines Mobile applications 13

30+ world-class trade fairs Forming 10 largest marketplaces in Asia Gifts & Premium Electronics (Autumn) + electronicAsia Houseware Fashion Fall/Winter Electronics (Spring) FILMART Licensing Watch & Clock Toys & Games HKTDC: Marketing & Sourcing Trade Fairs 14 Jewellery + Diamond, Gem & Pearl World’s Largest Marketplaces World’s Largest Marketplaces

15 35,000+ exhibitors 750,000+ buyers HKTDC: Marketing & Sourcing Trade Fairs

16 ASEAN: 35,000Over 35,000 buyers and exhibitors joined HKTDC fairs in 2014 – 2015 fiscal yearVietnam: 2,000Over 2,000 participants Involvement of ASEAN

17 hktdc.com Small Orders Helps SMEs Gain More Business

18 70% of interviewed buyers are sourcing small-order products Buyers source small-order products via internet, trade fairs & existing suppliers No (30%) Sourcing small-order products (70%) *The survey interviewed some 1,400 buyers & exhibitors at the HKTDC trade fairs in April Internet Trade Fairs Existing Suppliers Referrals Product Magazines Others Buyers’ Sourcing Trend on Small-order Products

19 Buyers tend to place smaller orders to:  test the market  offer more product varieties  minimize inventory cost Buyers’ Sourcing Trend on Small-order Products Me and My Sons AB (Sweden) Roni Kara, Purchasing Manager “hktdc.com Small Orders is very good for small companies like us as we do not need to go through any middleman; plus small quantity also plays safe for fast-changing items like i-Phone accessories.” Cogns N Keys (Australia) Graham Emmott, Proprietor “Not everybody can afford the money and place to buy in big quantity, hktdc.com Small Orders is therefore an excellent idea! With smaller order, we can offer more style varieties to customers, do more business which keeps everything going.

20 Suppliers sell in smaller order to:  diversify risk  expand client base  attain better profit margin Suppliers Small-order Trading Strategies

21 At Trade Fairs

22 The zone is located at the high-traffic Expo Drive entrance or major aisle of the fairground Product Displays at Trade Fairs Toys fairJewellery Show Electronics Fair (Spring) Gifts & Premium Fair Watch & Clock Fair Lighting Fair (Autumn) Fashion Week (Fall/Winter) Lighting Fair (Spring) Houseware Fair Fashion Week (Spring/Summer) Electronics Fair (Autumn)

23 Display items with MOQ from 5 to 1,000 A price tag placed next to each product to facilitate sourcing:  product name  unit price in USD  MOQ Table-top Display Garment Rack Hot Picks Showcase Product Displays at Trade Fairs

Online Transaction $ smallorders.hktdc.com

Online Transaction Platform Receive Payment Instantly Online Transaction Platform Receive Payment Instantly

hktdc.com Online Marketplace 1.5M+ registered buyers 120,000+ quality suppliers 12M+ monthly page views 20M+ buyer enquiries generated annually 27

HKTDC Conferences Asian Financial Forum Asian Logistics & Maritime Conference Business of Intellectual Property Asia Forum 28

HKTDC: A Global Organisation 13 offices on Chinese mainland, more than 40 worldwide Beijing Hong Kong Tokyo New York Bangkok Dubai Toronto 29 Frankfurt Sydney L.A. Chicago London Paris

Tel: (08) Website: Contact HKTDC Ho Chi Minh City Office 30

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