Hong Kong remains a crucial platform for sourcing China-made products, although direct sourcing of overseas buyers from the Mainland is starting to pose a challenge.
These are the findings of a Trade Development Council report based on two interlocking surveys - one on 2,109 overseas importers from the US, Germany, Japan, France, Italy and the UK, and the other on 187 overseas buying agents in Hong Kong.
HK suppliers 'competitive'
Over 90% of respondents consider Hong Kong suppliers competitive or very competitive compared with Mainland suppliers in terms of design capabilities, product quality, responsiveness, customer services and delivery.
Overseas importers regard good English standards, good telecommunications and transportation facilities, professionalism in conducting international trade, proximity to the Mainland/production base, good legal protection, among the most significant advantages of Hong Kong as a sourcing centre.
This is followed by our position as a free port, our concentration of suppliers with a wide range of products, low taxes, operation costs, good financial facilities, and Hong Kong being a centre for trade fairs and exhibitions.
To overseas buying agents based in Hong Kong, the city's competitive edge as a sourcing centre lies mainly in its vigorous service sector, which backs up their sourcing activities in the region.
Most buying agents said they conducted financial control, accounting and auditing, business negotiation/liaison, banking and financial services, insurance, marketing and sales in Hong Kong as they believe we have an edge over Mainland cities.
In contrast, production-related activities are more likely undertaken on the Mainland, such as transportation and logistics, and quality control/testing/inspection.
HK cos. should boost value-added services
The council's Assistant Chief Economist Dickson Ho said: "In face of the challenge, it is the overall attractiveness of Hong Kong and its suppliers, which matter in maintaining the city's 'premium' as a sourcing centre.
"For Hong Kong as a whole, maintaining excellent 'hardware' and 'software' infrastructure could give overseas buyers greater confidence and convenience in sourcing from Hong Kong. For Hong Kong companies, it is vital to step up their capability in the provision of value-added services, in addition to better supply chain management."
Hong Kong was the world's 11th largest exporter last year. In the first half of 2003, our total exports rose 13.5% to $959,395 million.
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