Overview
ASEAN-Hong Kong, China (HKC) trade value reached USD 132.5 billion in 2024, accounting for 3.5% of ASEAN’s total trade, placing HKC as the 6th largest trading partner for ASEAN. Meanwhile, FDI inflows from the HKC to ASEAN amounted to USD 14.3 billion in 2024, accounting for 6.3% of ASEAN’s total FDI in the same year.
During the AEM Retreat held in Vietnam on 7-10 March 2013, AEM decided to engage on a FTA with HKC. Considering the Basic Law of the Hong Kong Special Administrative Region (HKSAR) both ASEAN and HKC agreed to have a separate investment agreement which is negotiated in parallel with the main FTA agreement. The negotiations for the AHKFTA and AHKIA commenced in 2014 and was concluded on 9 September 2017. The ASEAN-HKC Free Trade Agreement (AHKFTA) and the ASEAN-HKC Investment Agreement (AHKIA) entered into force on 11 and 17 June 2019, respectively. They are comprehensive in scope, encompassing trade in goods, trade in services, investment, economic and technical co-operation, dispute settlement mechanism and other related areas. The Agreements are expected to bring legal certainty, better market access and fair and equitable treatment in trade and investment, thus creating new business opportunities and further enhancing trade and investment flows between ASEAN and HKC.
On 19 September 2025, Economic Ministers from ASEAN and Hong Kong, China signed the First Protocol to Amend the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) to incorporate the new Product Specific Rules of Origin to the AHKFTA to further facilitate seamless trade between ASEAN and HKC. All Parties have also concluded the negotiations for the First Protocol to Amend the ASEAN-Hong Kong, China Investment Agreement (AHKIA) and commenced the preparatory work to give effect to the Schedules of Reservations of Parties.
Priority Areas of Cooperation
ASEAN Hong Kong FTA and Investment Agreement
The ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) and ASEAN- Hong Kong, China Investment Agreement (AHKIA) are the key platforms to foster economic partnership, support technical capacity building and policy dialogue between ASEAN and HKC in various areas, including trade in Goods and its related issues (Rules of Origin; Customs Procedure , Sanitary and Phytosanitary Measures; Standards, Technical Regulations and Conformity Assessment Procedures; Trade Remedies); Trade in Services; Economic and Technical Co-operation; Intellectual Property and Investment.
Economic Cooperation under ASEAN-Hong Kong FTA
The Chapter on Economic and Technical Cooperation (ECOTECH) under the AHKFTA is implemented through an ECOTECH Work Programme, which was finalised in September 2017. The HKC’s total contribution for the implementation of the ECOTECH Work Programme is HKD 25 million (approximately USD 3.2 million) for a period of five years starting from 1 January 2020. The Work Programme covers 10 areas of co-operation namely (i) Customs Co-operation, (ii) Professional Services, (iii) Small Medium Enterprises (SMEs) Co-operation, (iv) Trade Facilitation/Logistics, (v) E-Commerce Co-operation, (vi) Sanitary and Phytosanitary (SPS) Co-operation, vii) Standards, Technical Regulations, and Conformity Assessment Procedures (STRACAP) Co-operation, viii) Intellectual Property (IP) Co-operation, ix) Digital Technology to Facilitate Trade, and x) Promotion and Facilitation of Investment. The AHKFTA ECOTECH Work Programme can be accessed here.
To date, the AHKFTA Joint Committee (AHKFTA JC) has endorsed 28 project proposals submitted by AHKFTA Parties, out of which 13 projects have been completed as of 31 December 2023.
Summaries of the completed projects are as follows:
- Customs Co-operation
- Small Medium Enterprises (SMEs) Co-operation
- Trade Facilitation/Logistics
- Capacity Building and Export Promotion for ASEAN Start-ups at HKTDC Electronics Fair (Autumn Edition) 2023
- Networking Promotion for ASEAN ICT stakeholders in InnoEX 2024
- Transposition of the AHKFTA PSR from HS 2012 to HS 2017 and subsequently to HS 2022
- Workshop on Promoting IP Commercialisation in a Knowledge-based Economy
- Development of the AHKFTA Guidebook for Business
- Capacity Building for the Front-Line Officers and MSMEs of Cambodia, Lao PDR, and Myanmar to implement ASEAN-Hong Kong FTA Tariff and Rules of Origin
- Professional Services
- ASEAN Capacity Building on Retro-commissioning (RCx)
- Online Workshop on Understanding Trade in Professional Services and Developing Mutual Recognition Arrangements (MRAs) between ASEAN and Hong Kong
- Workshop on Strengthening Regulatory Framework and Implementation for Accountancy Services
- Workshop on Online Dispute Resolution (ODR): efficient and cost effective dispute resolution mechanism for cross-border disputes for ASEAN traders
- E-Commerce Co-operation
- Digital Technology to Facilitate Trade
- Promotion and Facilitation of Investment
Major Sectoral Bodies/Committees
The primary element of the institutional structure is the AHKFTA Joint Committee (AHKFTA-JC), which reports regularly to the consultations of the Economic Ministers of ASEAN and HKC (known as AEM-HKC Consultations) through the meetings of their Senior Economic Officials (known as SEOM-HKC Consultations).
A number of subsidiary bodies to the AHKFTA-JC were established to deal with tasks on specific matters.
Key Documents
Agreements
Statement/ Press Releases:
- 7th AEM-Hongkong, China Consultations 20 August 2023, Semarang, Indonesia
- 6th AEM-Hongkong, China Consultations 17 September 2022, Siem Reap, Cambodia
- 5th AEM-Hongkong, China Consultations 14 September 2021, Video Conference Meetings
- 4th AEM-Hong Kong, China Consultations, 28 August 2020, Video Conference Meetings
- 3rd AEM-Hong Kong, China Consultations, 9 September 2019, Bangkok, Thailand
- 2nd AEM-Hong Kong, China Consultations, 9 September 2017, Pasay City, Philippine
- 1st AEM-Hong Kong, China Consultations, 6 August 2016, Vientiane, Lao PDR
