Overview of Thai-Hong Kong SAR Relations

 Trade 

Source:  Ministry of Commerce of Thailand 

             In 2007, Thailand is Hong Kong’s 10^th most important trading partner and 14^th most important export market and better yet, the 8^th most important import market. For Thailand, Hong Kong is her 6^th most important trading partner and her 5^th most important export market. Thailand exports more goods to Hong Kong than she imports, thereby gaining a trade surplus. 

Thailand’s top 5 exports to Hong Kong are:

(1)  computers and parts;

(2)  electrical circuits;

(3)  jewellery and accessories;

(4)  plastics; and

(5)  books and print materials.

            Thailand’s top 5 imports from Hong Kong are:

(1)  jewellery, silver and gold;

(2)  electrical machines and parts;

(3)  computers and parts;

(4)  textiles; and

(5)  electrical circuits.

Investment 

            Each year, Thailand’s Board of Investment (BOI) receives applications for various categories of investment. Once approved, they would be entitled to tax and non-tax benefits. BOI statistics show that in 2006 and 2007, investment projects applied by Hong Kong investors ranked 5^th  and 10^th, respectively.  For the period 2003-2007, a total of 92 projects by Hong Kong investors have been approved by the BOI, the value of which is 40.29 billion bath (approximately 1,184.9 million USD). 

            The top 3 industries for investment are: services; electrical goods and electronics sector; and textiles.  

            It should be noted that although the value of Hong Kong’s investment in 2007 did not fall, the change in ranking from 5^th to 10^th above is due to the fact that other investors increased their investments.  

Tourism 

            Thailand is Hong Kong’s 3^rd favourite destination after mainland China and Macau. In 2007, statistics from the Tourism Authority of Thailand reveal that approximately 448,057 residents from Hong Kong visited Thailand while approximately 222,383 Thai nationals visited Hong Kong. 

Impact and Opportunities 

1. Hong Kong’s law on food safety and regulation on chemical residuals in vegetables and fruits will require greater scrutiny from the Thai authorities in issuing health certificates and assessing the quality of goods before they are sent to Hong Kong; otherwise, there would be delays and recalls would affect brand image. The new regulation on goods labeling would similarly affect all Thai exports to Hong Kong. 

2. Under the Closer Economic Partnership Agreement (CEPA), a Thai investor could seize an investment opportunity by partnering with a Hong Kong company and export goods into China that are exempt from taxes under CEPA. Jewellery and watches are particularly good choices. As for services, a Thai investor could partner with a Hong Kong company to conduct, in mainland China, businesses that are related to tourism and restaurants, for CEPA has granted flexibility for Hong Kong companies to do business in China in these areas. 

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Royal Thai Consulate-General

                                                                                                               11 April 2008