Slight rise for HK

Hong Kong has been ranked seventh among the most attractive regions for doing business for the next five years, while Singapore has retained its position at the top, according to the latest business environment rankings from EIU.

Hong Kong moved up one place in the rankings for 2023-2027 after its score increased by 0.05 points to 8.25.

The EIU says Hong Kong is expected to maintain one of the most competitive business environments in the Asia and Australasia region, ranking behind only Singapore.

Despite Hong Kong's high rankings in international comparisons for taxes, infrastructure and foreign trade and exchange controls, political risks have resulted in the city's exclusion from the top five in the global business environment.

However, Hong Kong still performs well in policy toward foreign investment and the labor market, although labor has experienced some deterioration.

EIU said Asia's score for policy toward foreign trade is improving, benefiting Hong Kong, Singapore, New Zealand, Taiwan and South Korea, thanks to trade deals.

Overall, Vietnam is the biggest mover worldwide, climbing 12 spots to No 41 in the rankings on the back of favorable policies for foreign investors and an improving economic outlook.

But China slipped by 11 spots - from No 50 to No 61, the largest drop, because of regulatory changes and rising costs.

While the end of the zero-Covid policy is a positive development for firms operating in China, the business environment in the country is still affected by regulatory changes resulting from the state direction of economic policy and rising local costs, which limit opportunities for international investors, the EIU said.