HONG KONG: To tap growth opportunities, Hong Kong companies are willing to look at relocating as well as setting up production units in India, according to the SouthEast Asian nation’s trading development council.
The Hong Kong Trade Development Council (HKTDC) is the marketing arm for the country’s traders, manufacturers and service providers.
“India is seeing a rapid economic growth. This is a market we should pay our attention to, not just to sell but also to explore other areas of collaboration including investment,” HKTDC’s Deputy Executive Director Benjamin Chau told PTI here today.
When asked whether some Hong Kong companies are interested in relocating their production lines to India, Chau replied in the affirmative.
“They (Hong Kong companies) do,” since wages are also rising in China, he added.
“When they think of a second production line they will consider to open those factories and production lines somewhere else, including places like India,” Chau said.
Noting that trading relationship between the two sides is going on in a healthy manner, Chau said his organisation would be bringing a delegation from Hong Kong to India.
They could look at “opening factories here or to look at shifting some of their production from China to India… Relocation of production units is possible. The decision will depend on the entrepreneur,” he noted.
India is Hong Kong’s seventh largest trading partner and bilateral trade between the two countries stood at USD 24 billion last year.
For the last 20-30 years, Hong Kong companies focused too much on Western markets, either America or Europe. This is also why HKTDC has been tasked to encourage companies to diversify, Chau said.
During his recent visit to Hong Kong, Finance Minister Arun Jaitley had met officials of HKTDC.
Hong Kong companies are known for their light consumer products such as toys and garments.
About the economic slowdown in China, he said it would not be forever and that Chinese market remains important for companies from Hong Kong.
