As the world’s leading free market, Hong Kong is currently the number one choice to establish an e-commerce company – an ideal and attractive place for Vietnamese entrepreneurs to assert their name in the e-commerce industry.
Many opportunities are opening up
With nearly 5 million people shopping online daily, the market penetration rate of the e-commerce industry is expected to be 72.6% (in 2023) and reach a value of $11.3 billion (by 2025). Individual customers account for about 60% of all e-commerce sales. When comparing e-commerce and traditional commerce, this is undeniably the future for setting up a company in Hong Kong.
Here, 61% of transactions in the e-commerce industry are done through the website or phone application of the selling company, and 22% are done through third-party intermediaries. Popular e-commerce platforms in Hong Kong are Taobao, Amazon, JD, Alibaba, and eBay. With a 32% compound annual growth rate, e-wallet payments are expected to top this year. The major e-wallets are PayPal and Stripe.
Foreign entrepreneurs can take advantage of the big brands and advanced online sales systems available to set up an e-commerce company in Hong Kong easily and quickly.
The top criteria for customers to choose an online store are price, product quality, and convenience when shopping. Customers who have a positive shopping experience are more likely to come back and buy something else.
Hong Kong also requires fewer formalities when it comes to e-commerce, allowing businesses to be creative. The characteristic tax system with a tax on income generated abroad of 0% attracts many people to set up an e-commerce company.
Infrastructure and technology driving the e-commerce industry
According to the 2019 government report, more than 2 million households in Hong Kong have internet-connected computers and nearly 6 million people own smartphones, of which about 74% of orders are via computer, and 16% by phone. phone and 6% via tablet. Young people are more active online, but people of working age have the strongest purchasing power. To capture market share in this industry, it is necessary to focus on young customers and optimize services for phones and tablets.
Hong Kong’s facilities are very developed, meeting the needs of the e-commerce industry. Hong Kong has favorable import-export policies and modern trading ports, ranking first in the logistics ranking by the Bank. world goods evaluation. It is a duty-free trading port with abundant traffic to Asian countries.
Benefits of e-commerce in Hong Kong for Vietnamese people
Cross-border e-commerce business with mainland China accounts for 37%, with the US accounting for 21% and Japan accounting for 16% according to Statista data. Shoppers in Hong Kong also prefer Chinese, Singaporean, and Japanese goods. In this field, electronics and communications are at the top, accounting for $1.07 billion in market share. Followed closely by fashion items with $990.5 million. These are also two items that Vietnam produces and exports very much. Setting up a company in Hong Kong opens up many opportunities for e-commerce business in the international market.
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