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Information and communications technology to Hong Kong
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(Last updated: 5 Nov 2008)
Trends and opportunities
The market
Hong Kong has developed into a leading business, financial and e-commerce centre and has a vibrant software industry. It has some of Asia’s biggest and most sophisticated computer installations and is one of the most sophisticated and successful telecommunication markets in the world.
Most local software developers are small firms with less than 20 employees but they manage to produce competitive customised software to support local and foreign clients. There are approximately 660 independent software vendors (ISVs) and about 1,800 packaged software products available in Hong Kong. About 25 per cent of these products are developed by local ISVs.
In the World Economic Forum’s Global Information Technology Report 2007-08, Hong Kong was ranked third in Asia and 11th in the world in the Network Readiness Index, indicating Hong Kong's advanced position in telecommunication infrastructure, regulatory environment, and readiness of business to use information technology.
Core characteristics of Hong Kong’s telecommunication infrastructure and application make it a leading hub in the region. For example, Hong Kong is the first city in the world to have a fully digitised fixed telephone network and leads the region in terms of international call time and the penetration of telephone lines, mobile phones and fax machines. There are:
- Eleven fixed carrier licensees
- Five mobile operators
- Over 168 Internet Service Providers
- Around 7,200 public Wi-Fi hot spots in the city. Complementing the commercial hot spots, the government provides public free Wi-Fi services in some 350 government premises in phases.
In June 2008, the number of mobile service subscribers reached 10.98 million, representing a penetration rate of 176 per cent.
Hong Kong’s broadband penetration rate is also among the highest in the world – 76 per cent of the households are using broadband service.
The Hong Kong Government is one of the largest purchasers of IT products and services and has moved rapidly to support Internet development. It is determined to make Hong Kong the Asia-Pacific Internet content hub. Several key projects such as Cyberport, Science Park, Information Technology Solution Centre (ITSC), Information Technology Development Centre (ITDC) and Hong Kong Wireless Development Centre (HKWDC) are testimony to this.
The Hong Kong Government’s Digital 21 Strategy is the blueprint for the development of ICT in Hong Kong. The 2008 edition of the strategy highlighted five action areas:
- Facilitating a digital economy
- Promoting advanced technology and innovation
- Developing Hong Kong as a hub for technological cooperation and trade
- Enabling the next generation of public services
- Building an inclusive, knowledge-based society
A dynamic trend in Hong Kong is that of companies building e-versions of their business. A diverse range of companies are forming strategic partnerships to build business-to-business (B2B), business-to-customer (B2C), and portals to explore new ways of attracting customers, generating revenue and streamlining operations. This trend is now occurring across many sectors such as real estate agencies, banks, utility companies, and entertainment outlets working with telephone operators. Different industry portals, such as steel, building materials, healthcare, entertainment and food are enabling e-commerce and trading online, and the use of online e-banking services is widespread.
Opportunities
Hong Kong offers a favourable environment for the development of Internet and e-commerce applications. Since the beginning of the first commercial Internet Service Providers in 1993, Internet use among business and households has rapidly increased.
Australian IT companies have not been as active in Hong Kong as those from the USA, Canada or Europe. However, the success of the Octopus Card in Hong Kong - the world’s largest smart card-based application for public transportation –and other Australian success stories are driving a greater interest in Australian suppliers.
Value added services are also in demand with potential areas of opportunity including:
- Finance, security and banking
- Telecommunications (3G/WiMAX solutions, mobile TV, digital content, wireless technologies)
- Security solutions
- E-government applications
- RFID applications for logistics and supply chain management
- Green IT solutions
- IT outsourcing and business consulting
Key directions for software-related development in the coming years includes multimedia, online database services via Internet, brokerage software, automation simulation system and game software. |
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Tariffs, regulations and customs
Hong Kong is a free port and there are no import restrictions, tariffs or sales tax on imported hardware and software products.
Industry standards
For software applications the ability to handle the Chinese language is a requirement.
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Marketing your products and services
Market entry
Maintaining ongoing contact and communication with customers is important in Hong Kong for sustaining business and growth.
If your product is a generic application, then a product launch, public seminar or open conference, and participation in related exhibitions are good ways to build up a brand image and attract potential buyers. If the application or product is more industry-focused or niche, then a targeted seminar and one-on-one visits to potential customers will be more effective.
Local customers have a strong demand for on-the-ground support and long-term relationship building, especially when dealing with government projects. Foreign companies that do not have local partners significantly reduce their prospects of winning projects.
A common market entry strategy is to approach customers directly and at the same time appoint local agents, distributors or strategic partners on a project-by-project basis or to provide in-market support.
Distribution channels
The major distribution channels for information technology in Hong Kong are through:
- agents
- resellers
- distributors
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Links and industry contacts
ICT–related resources
Hong Kong Internet Service Providers Association – www.hkispa.org.hk
Hong Kong Information Technology and Broadcasting Bureau
1/F Murray Building, Garden Road
Central, Hong Kong
Tel: +852 2189 2222
Fax: +852 2827 6646
Email: itbbenq@itbb.gcn.gov.hk
Hong Kong Information Technology Services Department – www.info.gov.hk
25/F Wanchai Tower
2 Harbour Road
Wanchai, Hong Kong
Tel: +852 2582 4520
Fax: +852 2824 3208
Hong Kong Office of the Telecommunications Authority – www.ofta.gov.hk
36/F Wu Chung House
213 Queen’s Road East
Wanchai, Hong Kong
Tel: +852 2961 6333
Fax: +852 2891 0990
Hong Kong Computer Society – www.hkcs.org.hk
Unit D, 1/F Luckifast Building
1 Stone Nullah Lane
Wanchai, Hong Kong
Tel: +852 2834 2228
Fax: +852 2834 3003
Hong Kong Software Industry Information Centre – www.siic.org.hk
2/F HKPC Building
78 Tat Chee Avenue
Kowloon, Hong Kong
Tel: +852 2788 5693
Fax: +852 2788 5878
Hong Kong Information Technology Federation
Unit 3701, Windsor House
311 Gloucester Rd
Causeway Bay, Hong Kong
Tel: +852 2923 8021
Fax: +852 2576 0181
Hong Kong Society for Multimedia and Image Computing
21/F Tung Wah Mansion
199-203, Hennessy Road
Hong Kong
Tel: +852 2868 1322
Fax: +852 2523 9100
Media
The South China Morning Post – www.scmp.com.hk (Major English newspaper)
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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