In an aggressive and multi-faceted push to cement its status as a premier international business hub, Hong Kong is rolling out the red carpet for foreign entrepreneurs, with a particular focus on Thailand’s burgeoning startup scene. Government agency Invest Hong Kong (InvestHK) is spearheading the initiative, offering a powerful cocktail of non-equity grants, a favorable tax regime, extensive networking support, and streamlined pathways to residency, signaling a clear strategy to attract global talent and innovation.
The move comes as Hong Kong seeks to differentiate itself from regional competitors, positioning itself not merely as a gateway to Mainland China but as a strategic, two-way launchpad for global expansion.
“We provide comprehensive, free-of-charge support for companies looking to land in Hong Kong,” said Lu Chin Yung, Senior Vice President of InvestHK’s Startups Team, during a recent outreach event. “Our role extends beyond providing information; we connect businesses to the right people and resources to ensure their success. With 34 offices globally, including on the ground in Bangkok, and ten dedicated sector-specific teams, our support is both localized and deeply specialized.”
A Multi-Million Dollar Bet on Innovation
Central to Hong Kong’s appeal is a robust, multi-stage funding apparatus designed to de-risk the notoriously challenging startup journey. The support begins with an “Ideation Program” that can provide a grant of approximately HK100,000(US12,800), enabling founders to validate their business concepts without shouldering the initial financial burden.
For ventures that demonstrate potential, the government-backed Hong Kong Science Park and Cyberport offer an “Incubation Program” that unlocks up to HK1.3million(US166,000) in non-dilutive funding. “This is a grant, not a loan,” Lu emphasized. “Even if things don’t work, we are not going to take it back. We want to encourage innovation.” This support is often bundled with subsidized office space, a significant benefit in a city known for high real estate costs. Beyond this, further acceleration programs can invest millions more and even provide funding for Hong Kong-based startups to join prestigious overseas programs like Y Combinator.
This state-funded support has fueled a dynamic ecosystem now numbering over 4,700 startups, a figure that has grown steadily by 7-9% annually for the past five years. InvestHK has identified several key sectors where it sees maximum potential: Fintech, ICT/AI, E-commerce, EdTech, and Data Analytics. The opportunities are underpinned by a pro-business economy with a simple, low tax system—corporate profits are taxed at just 8.25% on the first HK$2 million and 16.5% thereafter, with no VAT or sales tax. This structure, according to Lu, boosts disposable income and domestic spending power.
Thai Success Stories Pave the Way
The strategy is demonstrably bearing fruit, with several Thai companies already making significant inroads. Jewelry brand Ravipa serves as a compelling case study in retail, launching its first Hong Kong store in late 2023 and, buoyed by strong sales, opening a second location in under six months.
In the tech sector, Thai food-waste app Yindee has found such a receptive market that Hong Kong is now its most successful city of operation. Yindee’s journey illustrates the power of local partnerships, having established a key collaboration with the local Big C supermarket chain to reduce food waste. Their success highlights that market entry can be achieved directly, without necessarily going through incubation programs, for businesses with a clear market fit.
Talent Visas and Residency a Key Differentiator
To further bolster its talent pool, the government has introduced aggressive visa policies like the Top Talent Pass Scheme. The program grants a two-year visa to graduates from the world’s top 100 universities, critically, without requiring a prior job offer. This policy has already attracted over 40,000 applications, allowing a new generation of entrepreneurs to move to the city and establish their ventures from the ground up.
In a move that sets it apart from regional hub Singapore, Hong Kong offers a clear-cut path to permanent residency and potential citizenship after seven years of continuous residence. “You don’t waste your time staying in Hong Kong,” Lu noted. “You might be able to get a new identity that allows you to go further.” This long-term incentive provides a level of stability that is highly attractive to founders looking to establish a permanent base.
Strategic Advice for Founders
For Thai entrepreneurs considering the leap, Lu Chin Yung advises a pragmatic and open-minded approach based on three core principles.
First, Adapt and Localize. “You cannot do a direct copy,” he urged. “Hong Kong has a different cost model. You must adapt to the Hong Kong way, leveraging digital platforms and starting with a smaller footprint to compete.”
Second, Build Partnerships, Not Walls. He cautioned founders against viewing everyone as a competitor. “When you go overseas, you are there to make partnerships. These new friends will lead you on to more opportunities.”
Finally, Start with Reconnaissance. “Before you commit, come to our events. Understand the ecosystem, share your ideas, get feedback, and build your network. That confidence is crucial for success.”
As Hong Kong continues to refine its value proposition, its message to the world, and especially to its Southeast Asian neighbors, is unequivocal: it is open for business, backed by capital, and ready to transform promising ideas into global enterprises.
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