Anthony Lam, chairman of the Federation of Hong Kong Industries (FHKI), described Central Asia as a developing frontier booming with opportunities.
He said Kazakhstan and Uzbekistan, the two largest economies in the region, are both paring down their reliance on natural resources and turning to digital industries, light manufacturing and green technology.
“Hong Kong is poised to supply them with these opportunities and technology,” Lam said.
“They consider themselves developing [countries]. As what we did when China just opened 40 years ago, Hong Kong participated a lot and benefited a lot from the opening of the Chinese economy.”
Lam identified several areas where Hong Kong’s expertise could prove useful in Central Asia.
These include medical-related investments and supplies which could serve the region’s population of over 80 million people.
On the other hand, Lam was keen to explore collaboration with Uzbekistan’s fur and leather industry.
“They eat a lot of meat, so they’ve got a lot of leather. Leather then relates to furniture and the shoe industry,” he explained, suggesting potential supply chain extensions from Central Asia to Hong Kong.
Wingco Lo, president of the Chinese Manufacturers’ Association of Hong Kong (CMA), was optimistic about meeting the trip’s objectives, one of which is to identify business opportunities in innovation, technology, manufacturing, green development and trade.
But he also struck a pragmatic tone, pointing to various challenges awaiting Hong Kong businesses.
“Their languages — they use Russian and local dialects. We have to adapt to cultural differences, especially those that are Islamic countries,” he said.
Financial infrastructure presents another obstacle. “The financial infrastructure may not be that mature,” Lo said. “Different financial services and exchange currency rates may be very fluctuating.”
Logistics, too, remain a work in progress. “The logistics infrastructure is now building up. We hope after they build this up, it will be better for us to set up manufacturing there,” he said.
On the other hand, Lo pointed to demographic advantages, including low labour costs and a young population. “They have enough manpower with young generations, which will help our manufacturers to settle there.”
Both Lo and Lam view Lee’s upcoming visit to Central Asia as a critical step in establishing sustained ties with the region.
“Hong Kong is being a super connector — to the outside, to China, and also to Central Asia. This is a great opportunity for Hong Kong companies to participate in the development and growth of Central Asian countries,” Lam said.
