Seventy-three percent of businesses from Hong Kong (China) expressed their intention to open additional factories in ASEAN countries, with Vietnam coming out on top as their first pick, according to a recent survey conducted by the Hong Kong Productivity Council (HKPC).
Hong Kong businesses' top priority is political stability followed by tax incentives and low operational cost, said respondents.
A majority of businesses showed interest in setting up factories to manufacture electronics, textile products, car parts and toys.
Businesses from Hong Kong who plan to open factories in ASEAN countries must take into consideration stricter environmental protection rules by local governments, said Mohamed Butt, HKPC's executive director.
HKPC said it has the required speciality to support businesses in setting up their operations, meeting environmental regulations and studying local markets and consumers.
Cambodia and Myanmar were other favourites after Vietnam.