Safety and Security Equipment
Hong Kong
Overview
| x | 2004 | 2005 | 2006 (estimated) |
| Total Market Size | 78 | 82 | 100 |
| Total Local Production | 300 | 300 | 300 |
| Total Exports | 1091 | 1098 | 1100 |
| Total Imports | 869 | 880 | 900 |
| Imports from the U.S. | 61 | 62 |
70 |
Source: Hong Kong Census & Statistics Department
All figures are in US$ millions, and they are unofficial estimates.
US$1=HK$7.75
Hong Kong is a growing market for safety and security equipment and services. In general, the Hong Kong market leans towards more sophisticated, high-tech products, an area in which U.S. firms enjoy a prominent market share. In 2005, imports for security and safety equipment totaled approximately US$880 million. After Japan, the U.S. was the second largest supplier of high-tech security products. The European Union was the third major competitor in this area. China and Taiwan are market leaders in the low-end technology security market.
Hong Kong – security products sourcing agent for China
Security is of outmost importance in Beijing's preparations for the hosting of the 2008 Olympic Games. Security arrangements in the construction of Olympic venues and infrastructure facilities are priorities. The Olympics project covers 29 large facilities with a total floor area of over 1.5 million sq.m. Explosive detectors, security alarms and entry-exit control systems will be installed in all of these facilities.
To accommodate the mass influx of tourists during the Beijing Olympics, the number of five-star hotels in Beijing will double to over 800 by 2008. All of these hotel development projects require large quantities of fire and security alarms, as well as digital, network and intelligent systems integration products. US manufacturers, contractors and vendors should actively market their products using Hong Kong as a springboard.
U.S. exporters should be aware that certain security products may be subject to U.S. Export Control Regulations, and should pursue China projects after determining compliance requirements.
Best Products/Services
The best prospects for US companies:
Opportunities
Hong Kong has been a sourcing agent for China in terms of security equipment. It re-exported about 29% (or US$ 256 million) of its total security equipment imports to China in 2005. Re-exports of security equipment to China has shown tremendous growth (20% average annual growth rate for the period beginning 2004 to end of 2005). US companies should use Hong Kong as a base for outreaching final customers in China.
This growing trend will continue under the Closer Economic Partnership Agreement (CEPA), which took effect at the beginning of 2004. Not only will this agreement benefit Hong Kong companies, it will open up tremendous new business opportunities for overseas companies, if they partner with or buy into a CEPA-qualified Hong Kong firm. U.S. security equipment manufacturers should note that HS product category 85291010, 85299030, 85299041, 85299049 (radar apparatus, video cameras and digital cameras) are among the categories of products, which will benefit from zero import tariff treatment by China under CEPA.
Resources
Trade Shows:
Asian Securitex 2008 - Asian International Security, Safety & Fire Protection Show and Conference
Date: June 2008
Venue: Hong Kong Convention & Exhibition Center
Website: www.asiansecuritex.com
Trade Associations:
International Professional Security Association (Hong Kong) Ltd.
Website: www.ipsa.com.hk
Asian Professional Security Association
Website: www.apsahk.org
Hong Kong Commercial Specialist’s Contact:
Olevia Yim
Email: olevia.yim@mail.doc.gov
Tel: (852) 2521-6166; Fax: (852) 2810-0970