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Foresight of Hong Kong logistics development - Essay Example

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While the region is under the Chinese sovereignty, the political system of Hong Kong differs from that of Mainland China. Hong Kong covers 426 sq. mi with a population exceeding 7.2…
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Foresight of Hong Kong logistics development
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Foresight of Hong Kong logistics development

Download file to see previous pages... With the seventh largest stock exchange, Hong Kong enjoys large market capitalization.
The growth in the economy of Hong Kong has been as a result of foresight in logistic development. The high population density plus its position in mainland China has forced the government of Hong Kong to plan and develop effective logistic to drive economic growth. Logistics in Hong Kong responsible for growth include, a good transportation network, development of a free economy, low taxation, good government policies and a good communication network.
Hong Kong is situated at the heart of mainland Asia. Located at the Southern doorstep of China, it is within a 5 hour flight period from most of the other Asian countries, thus having access to about half of the population of the world (Li, 2007). The location of Hong Kong has also led it to act as the gateway for trade to and from southern China. The location has granted Hong Kong access to the Pearl River Delta, where over 31% of the Mainland’s export products are manufactured (LOGSCOUNCIL, 2013). Its location also allows Hong Kong to access a large supply of labor from neighboring areas. The region has an abundant supply of both skilled and unskilled laborers that facilitate business growth, both local and international.
Hong Kong instituted CEPA (Closer Economic Partnership Arrangement) which lets local and foreign-owned corporations within Hong Kong to access the various opportunities that the fast growing Chinese market offers. This partnership also allows service providers to take advantage of the fastest growing service market in terms of logistics, transport sales agency, freight forwarding and road and maritime transport, and set up businesses in the Mainland (GovHK, 2013). The trend setting agreement also allows businesses in Hong Kong to expand on the mainland and strengthen the role of Hong Kong as the leading gateway for ...Download file to see next pagesRead More
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