Wal-Mart Sets Up Asia Regional HQ In Hong Kong

by Mary Swire, Tax-News.com, Hong Kong

09 September 2008

Hong Kong's preeminence as an Asian base for global multinational companies has been underscored by US retail giant Wal-Mart's decision to establish its new regional headquarters in the city.

President and Chief Executive Officer for Wal-Mart Asia, Mr Vicente Trius, said the Hong Kong regional headquarters will have strategic responsibilities for managing the company's current operations in Asia and for business development.

"Just as the Wal-Mart America's regional office in Miami oversees the company's operations in Canada, Central and South America, the new Wal-Mart office in Hong Kong will oversee the company's operations in Mainland China, India and Japan, as well as identify new business opportunities for the company throughout Asia," Mr Trius announced.

Commenting on the reasons why Wal-Mart chose Hong Kong, Mr Trius said that Hong Kong is the "perfect location from which to operate a regional headquarters for Asia," as it is centrally located and offers ready access to markets across the region.

"It is a great staging area from which to manage our current portfolio and potential future expansion," he observed.

Multinational companies are attracted to Hong Kong by a combination of the territory's English common law legal system, its low tax regime and its historical trading links and unique access to the People Republic of China, which in recent years has been the world's fastest growing economy and biggest potential market.

Mr Mike Rowse, Director-General of Investment Promotion at InvestHK, the city's investment promotion agency, welcomed Wal-Mart's decision to choose Hong Kong from among other cities in Asia, telling the compnay that:

"The establishment of your regional headquarters here represents a powerful vote of confidence in Hong Kong as the preferred location for leading global companies to manage their business in Mainland China and elsewhere in Asia."

Over the years, Hong Kong has been the most popular location in Asia for companies from around the world to establish a regional hub. Some 3,900 overseas and Chinese companies operate regional headquarters or regional offices in Hong Kong.

Wal-Mart Asia's Vice President, People, Mr Brian Walker, cited the advantages that Hong Kong offers his company.

"With an abundant pool of talent and professionals in the city, Wal-Mart is able to recruit the right local staff for our regional headquarters. In addition, Hong Kong is equipped with excellent transportation, communications and technology infrastructure, which are essential tools for our regional management team," he noted.

The number of registered companies in Hong Kong has grown 83.7% in the last 15 years, and 460 new overseas companies established a place of business in Hong Kong in the first half of 2008 alone, up 45.57% on the same period last year. The total number of non-Hong Kong companies registered under the Companies Ordinance stood at 8,326 at the end of June 2008, while the number of new local firms registered with the Companies Registry grew to a record high of 101,512 in 2007-08.

The registry has recently implemented several amendments to the Companies Ordinance to modernise the regulatory framework, streamline registration requirements and enhance disclosure requirements. New incorporation forms were introduced in July, and details of new companies will be available to search instantly upon their incorporation.

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