This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Unit: USD thousands

 

2015

2016

2017 (Estimated)

2018 (Estimated)

Total Imports

1,904,516

1,941,161

2,005,219

2,065,376

Total Exports

2,842,194

2,856,000

2,950,248

3,038,755

Import from U.S.

263,613

277,677

286,841

295,446

Export to U.S.

315,097

264,903

273,645

281,854

Exchange Rate: 1 USD

7.75

7.75

7.75

7.75

Iformation Source: Census and Statistics Department, Hong Kong SAR Government

Sub-Sector Best Prospects/ServicesI
nformation Source: Census and Statistics Department, Hong Kong SAR Government

Sub-sector best prospects and services include the following:

  • Cloud Computing;
  • Consulting, Training, Integration Service for end-users of Cloud Services; 
  • Big Data Analytics software; 
  • Internet of Things(IoT);
  • Fintech

Opportunities

Cloud Computing
BMI estimated that cloud computing spending in Hong Kong reached US$900 million in 2016 (the most recent information available at this time). Hong Kong is a leading market in terms of cloud adoption rates, penetration of advanced solutions, and a regional hub for the provision of cloud services. In a recent report published by the Asia Cloud Computing Association, Hong Kong was named the most prepared APAC location in implementation of cloud computing, scoring high in the indexes of addressing data privacy issues, connectivity and datacenter risk management. The Hong Kong Government is also a cloud computing advocate, its GovCloud launched in December 2013 supports about 30 government bureaus and departments in rolling out their common e-government services. BMI estimated that the cloud computing market will continue to expand rapidly with a forecast of 15.3% compound annual growth rate from 2016 to 2021, reaching a value of US$1.8 billion.

Datacenters

The Hong Kong datacenter market is a springboard in the sense that international service providers that want to serve China often start in Hong Kong, which does not have requirements like China’s Internet Datacenter License, uncertainty about data privacy, and content screening. It is estimated that datacenter revenue reached US$708million in 2016, and the market is projected to grow by 15% annually, reaching US$1.39 million by 2020.The Hong Kong Government has been promoting Hong Kong as a prime location for datacenters in Asia Pacific. The plan is part of the government’s Digital 21 Strategy, with the creation of the Datacenter Facilitation Unit, to provide one-stop helpdesk service to assist datacenter operators interested in setting up datacenters in Hong Kong. The unit will liaise with other government departments on matters such as statutory approval processes and compliance requirements and procedures. The government has also created incentives such as waivers for repurposing old industrial buildings into datacenters; and setting aside land in satellite towns for high-tier datacenters. This makes Hong Kong one of the world’s most lucrative markets for datacenter service providers.

FinTech

In order to maintain its status as Asian financial hub, the Hong Kong Government has announced in its 2016 Fiscal budget that it will allocate US$2 billion investment into the financial technology (fintech) sector. Under the proposal, a dedicated team, under Invest Hong Kong, will be set up to organize international events and encourage fintech start-ups, investors, and R&D institutions to set up in Hong Kong. Additionally, the Government also announced that Cyberport (Hong Kong’s IT flagship) will provide 3,000 square meters of co-working space to fintech businesses and support 150 fintech startups over the next five years. This is a great opportunity for U.S. fintech companies who are interested in starting business in Hong Kong.

Internet of Things (IoT)

Hong Kong, with a world-class IT network infrastructure and well-developed ICT applications, is a recognized leader in Smart Cities technologies. In 2013, Forbes named Hong Kong among the world’s top tech capitals to watch after Silicon Valley and New York. Hong Kong also stood 4th in the ranking of the ten smartest Asia-Pacific cities published by Boyd Cohen in 2013. Cohen remarked that Hong Kong scored the highest in his ranking for smart mobility because of the prevalence of public transport and the ubiquitous use of electronic payments. A good example is the City’s Octopus Card, which is usable on almost all public transport and accepted by more than 13,000 retail outlets on Hong Kong, with over 13 million transactions per day. The HKSAR Government attaches great importance to smart city development, such can be seen by the establishment of the “Innovation and Technology Bureau (ITB)” in November of 2015, with the mission of formulating holistic policies relating to innovation and technology; strengthening co-ordination among the Government, industry, academia and research sectors; and expediting the development of innovation, technology and related industries in Hong Kong. The Government also released its long-anticipated Smart City Development Blueprint in December 2017, which outlines a wide range of propopsals for smart city development over the next five years. A link to the Blueprint can be found at: https://www.smartcity.gov.hk/. The Hong Kong government is also investing in research and development centers focused on robotics and articifical intelligence. Hong Kong could be a key regional location for the development of emerging technologies such as IoT and big data analytics.

Web Resources                                                                                  

Major Trade Shows/Events
Cloud Expo Asia
Date: May 22-23, 2019
Description: exhibition and conference
www.cloudexpoasiahk.com

Internet Economy Summit
Date: TBC
Description: a list of annual ICT events
http://www.ieconomysummit.hk
Associations

Hong Kong Information Technology Federation Ltd.
Contact: Erwin Huang, President
Tel: (852) 3101 8197
Fax: (852) 3007 4728
Email: info@hkitf.org.hk
Website: www.hkitf.org.hk

Hong Kong Internet Service Providers Association
Contact: Lento Yip, Chairman
Tel: (852) 28201-1109
Fax: (852) 3011-3108
Email: lento@hkispa.org.hk
Website: www.hkispa.org.hk

Hong Kong Wireless Technology Industry Association Ltd.
Contact: Kenny Yiu, Chairman
Tel: (852) 2370-3130
Fax: (852) 8208-8782
Email: contact@hkwtia.org
Website: http://www.hkwtia.org

Information and Software Industry Association
Contact: Kong Chi Wing, Chairman
Tel: (852) 2622-2867            
Fax: (852) 2622-2731
Email: info@isia.org.hk
Website: www.isia.org.hk

Smart City Consortium
Contact: Eric Yeung, Convener
Tel: (852) 3480-4230
Fax: (852) 3020-8812
Email: eric.yeung@smartcity.org.hk
Website: www.smartcity.org.hk

ICT Journals in Hong Kong
TelecomAsia (www.telecomasia.net)
ComputerWorld Hong Kong (www.cw.com.hk)
Hi-Tech Weekly (best-selling Chinese language magazine)  (www.hitechweekly.com)

For more information about this industry sector, please contact the U.S. Commercial Service in Hong Kong:
U.S. Commercial Service, Hong Kong
Tel: (852) 2521-1467
Fax: (852) 2845-9800
Email: Office.HongKong@trade.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Hong Kong Information and Communication Technology Trade Development and Promotion