President of The Chinese Manufacturers' Association of Hong Kong Wingco Lo, who will travel to Laos, Cambodia and Vietnam later this month as part of a delegation led by Chief Executive John Lee, believes opportunities for growth and transformation await Hong Kong businesses in Southeast Asia amid a rapidly changing economic landscape and geopolitical situation.

Mr Lo said that while the three countries to be visited are less developed compared with other member states of the Association of Southeast Nations (ASEAN) such as Thailand and Singapore, they have some key advantages, including those relating to production costs.

In particular, Laos has been granted certain trading privileges by the European Union, the US and Japan, including tax exemptions on imports, and many products from Laos can access global markets with lower tariffs.

Moreover, Laos is part of China's Belt & Road Initiative and has established the China-Laos Railway. Given its geographical location, Mr Lo believes the country has the potential to develop into a trading hub.

He also noted that many enterprises are eyeing Cambodia, which is pursuing further economic liberalisation and has become more open to business and investment.

In addition to business opportunities, Mr Lo is hopeful that the delegation will tell good stories about Hong Kong and promote the city’s business advantages and talent attraction policies to encourage ASEAN companies to develop their business in Hong Kong.

He said: “We hope to establish a good relationship with these local business communities and discuss the issues of mutual interest and our mutual business growth, especially by leveraging Hong Kong’s role as a super connector to explore the Greater Bay Area market.”