“Made by Hong Kong: Strategies for New Industrialisation” Interim Report Reveals
“Made by Hong Kong: Strategies for New Industrialisation” Interim Report Reveals
09-05-2025
“Made by Hong Kong: Strategies for New Industrialisation” Interim Report Reveals
Hong Kong Industry Accounts for 4.4% of GDP with New Industries Growing Strongly
Federation of Hong Kong Industries (FHKI) commissioned the Hong Kong Institute of Economics and Business Strategy at the University of Hong Kong to conduct a study titled “Made by Hong Kong: Strategies for New Industrialisation”. The interim report was released today (9 May). Based on statistical and economic analysis, the research team estimated that Hong Kong industry added approximately HK$127.1 billion in value to the economy in 2023, representing 4.4% of the city's GDP. This figure includes a significant value-added contribution of HK$40.2 billion from new industries, accounting for 1.4% of GDP. Furthermore, industry-related producer services added HK$473.5 billion in value, representing a substantial 16.2% of GDP.
In his welcome remarks, FHKI Chairman Dr Steve Chuang emphasised the evolving nature of Hong Kong industry, stating, “Since its establishment 65 years ago, FHKI has witnessed a significant transformation of the Hong Kong industry. Many manufacturers have moved up the value chain, focusing on high-value-added activities. This report highlights the need for the society to recognise these developments, particularly in the face of ongoing global challenges. Continuous upgrading and transformation are essential for the sustained growth and prosperity of Hong Kong industry."
The interim report shows Hong Kong industry contributed 4.4% to the city's GDP in 2023. This includes Manufacturing (1%), Publishing and Packaging (0.2%), “Trading Firms Engaged in Subcontract Processing Arrangements” (1.8%), and New Industries (1.4%). Overall, Hong Kong industry added HK$127.1 billion in value in 2023. New industries were a key driver, with their value-added surging nearly fourfold from HK$8.3 billion in 2000 to HK$40.2 billion in 2023, representing a 1.4% contribution to GDP.
New industries are compiled by “Computer Programming, Data-related Services and Industrial Internet”, “R&D, Design, Testing and Environmental Engineering Services”, and “Sewage, Waste Management and Remediation Activities”. Among them, “Computer Programming, Data-related Services and Industrial Internet” generated a value-added of HK$25.5 billion to Hong Kong’s economy in 2023, while that of the “R&D, Design, Testing and Environmental Engineering Services” was HK$13.3 billion. These two datasets have increased by more than 4 times and around 3 times respectively compared to 2000.
“Trading Firms Engaged in Subcontract Processing Arrangements” contributed approximately 1.8% of Hong Kong’s GDP in 2023, with a total value-added of HK$53.4 billion. Over the past few decades, labour-intensive production processes have been relocated to Mainland China and other regions. As a result, many local manufacturing companies have transitioned into import-export trading firms, subcontracting their manufacturing operations—a defining characteristic of Hong Kong's industrial landscape. The study also indicates that the manufacturing sector has stabilised in recent years after a prolonged period of decline. In 2023, the sector generated a value-added of HK$28.2 billion, accounting for around 1% of GDP. Additionally, the Publishing and Packaging industries contributed approximately 0.2% of GDP.
Industry-related producer services have also experienced significant growth, doubling their economic value-added between 2000 and 2023 from HK$230 billion to HK$473.5 billion, representing 16.2% of Hong Kong’s GDP.
Professor Heiwai Tang, Associate Dean (External Relations) of HKU Business School, highlighted the breadth of modern industry, encompassing not only traditional manufacturing but also R&D, design, programming, and data services. He also pointed out the distinctive role of trading firms engaged in subcontract processing within Hong Kong's industrial landscape. Since the 1980s, many Hong Kong manufacturers have outsourced production to Mainland China, evolving into import-export businesses crucial to the industrial value chain.
Professor Tang emphasised the growth potential of new industries, “While new industries contributed 1.4% of GDP in 2023, they are expected to continue their upward trajectory and become a key driver of Hong Kong's economic growth. Moreover, as an international trade hub, Hong Kong provides vital producer services to global industries. Our research reveals that industry-related producer services contributed 16.2% to Hong Kong's GDP in 2023. These services add substantial value within global supply chains and are crucial for Hong Kong's high-value-added economic development."
Ricky Chan, FHKI Executive Deputy Chairman and Chairman of the Steering Committee of the “Made by Hong Kong: Strategies for New Industrialisation” Research Project, stressed the report's comprehensive view of Hong Kong's industrial value chain, "Hong Kong stands at a critical juncture of economic transformation. New industrialisation is a key engine for future growth and has garnered significant attention from both the Central and HKSAR Governments. This study provides a more accurate assessment of the industry's economic contribution. We recommend focusing on developing high-end manufacturing, nurturing talent in both industry and related producer services, and reinforcing domestic and international collaborations to promote the 'Made by Hong Kong' brand."
The research is one of the key projects of the 65th anniversary of FHKI, and is funded by the Trade and Industrial Organisation Support Fund under the Trade and Industry Department. The key findings of the Interim Report has been uploaded to FHKI website (Chinese version only). Full report will be released later this year. Please stay tuned.
Picture 1: Deputy Government Economist Cecilia Lam (second right), FHKI Chairman Dr Steve Chuang (second left), HKU Business School Associate Dean (External Relations) Professor Heiwai Tang (first left) and FHKI Executive Deputy Chairman and Chairman of the Steering Committee of the “Made by Hong Kong: Strategies for New Industrialisation” Research Project Ricky Chan (first right) took a photo before the commencement of the press conference.
Picture 2: Deputy Government Economist Cecilia Lam, FHKI Chairman Dr Steve Chuang, HKU Business School Associate Dean (External Relations) Professor Heiwai Tang and FHKI Executive Deputy Chairman and Chairman of the Steering Committee of the “Made by Hong Kong: Strategies for New Industrialisation” Research Project Ricky Chan took a photo with FHKI leadership before the commencement of the press conference.
Picture 3: FHKI Chairman Dr Steve Chuang (middle), HKU Business School Associate Dean (External Relations) Professor Heiwai Tang (right) and FHKI Executive Deputy Chairman and Chairman of the Steering Committee of the “Made by Hong Kong: Strategies for New Industrialisation” Research Project Ricky Chan (left) share Interim Report of “Made by Hong Kong: Strategies for New Industrialisation”.
Picture 4: FHKI Chairman Dr Steve Chuang responded to media enquiries.
Picture 5: HKU Business School Associate Dean (External Relations) Professor Heiwai Tang explained the methodology and key findings of the Interim Report to the media.
Picture 6: FHKI Executive Deputy Chairman and Chairman of the Steering Committee of the “Made by Hong Kong: Strategies for New Industrialisation” Research Project Ricky Chan explained the findings of the Interim Report to the media.
Picture 7: FHKI Chairman Dr Steve Chuang (middle), HKU Business School Associate Dean (External Relations) Professor Heiwai Tang and FHKI Executive Deputy Chairman and Chairman of the Steering Committee of the “Made by Hong Kong: Strategies for New Industrialisation” Research Project Ricky Chan, responded to media enquiries during the Q&A session.
Picture 8: The press conference attracted a number of FHKI General Committee members, members and media to participate.
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