Cristobal Mendez de Vigo encourages Spanish companies to seize the opportunities Hong Kong presents

As head of strategic planning at Allianz Global Investors and ex chairman of the Spanish Chamber of Commerce in Hong Kong, Cristobal Mendez de Vigo is acutely aware of the opportunities opening up for Spanish companies using Hong Kong as their platform to the region. He tells why the newly launched Casa Asia, a Spanish government initiative fostering cross-cultural links, broadens the horizons even further.

"I am one of those people who came to Hong Kong to do a 10-month project and am still here six years later. I absolutely have no regrets, as I love working in the city that is without doubt the financial services capital of Asia.

Hong Kong is at the cusp of the most exciting (financial) market for a number of reasons. You not only have diversity of investment, but fantastic growth rate - Asia is experiencing double digit growth, whereas the US and Europe are struggling. Asia is also in the early stages of developing pension provisions through membership funds (such as Hong Kong's Mandatory Provident Fund) and this will bring tremendous growth to the region in terms of wealth management.

And obviously, you have the China story, which everyone in the world is willing to listen to.

SMEs' starting block

Hong Kong is by far the best place for SMEs (small and medium-sized enterprises) to launch into China, especially for first-timers, because of the size, complexity and diversity of the market. Overseas firms need a basis to work from that offers the same standards as their place of origin, and Hong Kong has it all: a legal framework that they feel comfortable with; a pool of know-how; transparent logistics services that allow easy access to the vast China market; and rule of law, which provides security in contracts and relationships.

Hong Kong also offers a clear fiscal framework. There are two types of taxes for two types of income, and no hidden charges or indirect taxes of which there are so many in the mainland.

SMEs are strongly supported in Hong Kong, with the Trade Development Council organising effective roadshows and trade events, and also because of the Cepa free trade agreement, which makes access into China easier.

Historically there has been no cultural proximity between China and Spain, but the new Casa Asia represents a great start. It began in 2000, when the then Prime Minister of Spain visited Hong Kong and China and realised that the future of our economy lies in Asia. He launched the framework for an increasing Spanish presence in Asia, based on three pillars: cultural proximity, easy and accessible communications, and a system that allows for commercial integration.

Beyond paella

Casa Asia addresses cultural proximity, creating an environment of seminars, exhibitions and discussions about Asia (in Spain). The Spanish Chamber of Commerce in Hong Kong recognises the potential of Casa Asia, and aspires to further the initiative here by making Hong Kong a showcase for Spanish culture and language. We will promote our image as more than paella, flamenco and bullfights, but as a much more vanguardist Spain that people in this part of the world are not aware of.

The Spanish chamber sees China as a good counterpart in Asia, and Hong Kong the natural gateway. The growth that Hong Kong can bring to the table, its status as a hub and unsurpassed access to the region, give Hong Kong an undoubted competitive advantage. We consider Hong Kong to be a more attractive place to do business than Shanghai or Singapore, despite it being more expensive."

Related links
Spanish Chamber of Commerce 
Allianz