Italian firms eye HK for Asian expansion

A recent survey revealed that 77 percent of Italian companies aim to expand in Asia in the next three years, with 73 percent of them prioritizing Hong Kong and mainland markets.

Conducted by the Hong Kong Trade Development Council and the Italy China Council Foundation from August to October, the study covered 172 Italian C-suite and senior business leaders currently engaged in business with Asia from healthcare, innovation, industrial goods and machinery, retail and wholesale, and transport and logistics sectors.

Over 62 percent of respondents regard Hong Kong as a competitive or extremely competitive business hub, with many citing the city’s favorable tax system and stability of economic and business environment as strengths.

Those with plans to expand in Asia include 95 percent of surveyed innovation and technology firms, followed by 88 percent of healthcare companies.
Irina Fan Yuen-yee, HKTDC director of research, emphasized that 93 percent of Italian respondents believe Hong Kong can significantly aid their expansion efforts in Asia, owing to its strategic gateway to many Asian markets and its capabilities as a logistics and supply chain management hub.

Fan also noted the untapped potential within regional trade agreements such as the Regional Comprehensive Economic Partnership and the Closer Economic Partnership Arrangement.

While 51 percent of Italian firms utilize RCEP, many are unaware of CEPA’s benefits, highlighting the need for greater institutional support and information sharing.