Hong Kong Is Fertile Ground for Mexican Franchises: InvestHK

While over 15% of Mexican franchise companies operate internationally, just 5% have presence in Asia, a region with significant growth potential. To address this gap, Hong Kong is promoting itself as a port of entry for Mexican businesses into the Greater Bay Area (GBA).

Jesús Valdez, Foreign Trade Development Officer, Ministry of Economy (SE), stated that the franchise sector directly supports the federal government's ambition to position Mexico as the world's 10th largest economy. Valdez noted that the importance of this sector is its contribution to the national GDP at 5%. “Despite the strong automotive focus in Aguascalientes, the impact on the GDP is only 1.3%. Similarly, Puebla, with its German automotive industry, reaches no more than 4%. Even with Chihuahua's semiconductor industry boost, the contribution does not surpass 3%. In contrast, the franchise sector represents more than 5% of the GDP,” he added. 

Mario Briceño, International Vice President, Mexican Association of Franchises (AMF), highlighted the sector's strong national and growing international presence, noting that over 15% of Mexican franchise companies have expanded abroad. However, he emphasized significant growth potential, particularly in Asia, where only 5% currently operate. 

Briceño noted that Hong Kong represents a strategic market for expansion in Asia, as it boasts a privileged location, a transparent legal and fiscal environment, and serves as a global financial and logistics hub, making it an ideal platform for the expansion of Mexican brands. He also highlighted the association’s recent efforts to actively reduce entry barriers into international markets. “We invite our members to indicate which markets they are interested in, so that we may assist them with the necessary management, networking, and negotiations through our association, especially by leveraging our international alliances,” he added. 

For this purpose and to promote Mexican investments in Hong Kong, Invest Hong Kong (InvestHK) organized a series of events and talks to create awareness about the opportunities Hong Kong has to offer to the Mexican business community. Alison Tsui, Head of International, InvestHK, said that despite the general perception of Hong Kong being an expensive city, it should not be a reason for not investing in it, as it offers lower taxes than other destinations and varied rental prices for offices or buildings, depending on the industry. 

Tsui highlighted Hong Kong's position as a global business hub. Hong Kong attracted over 44 million visitors last year. The city has nearly 10,000 foreign companies, including 1,400 regional headquarters. Tsui underscored Hong Kong's “one country, two systems” framework, which maintains its own currency, political, and legal systems, providing a convergence of global and Chinese advantages. Tsui noted there is a free flow of capital and goods, no tariffs, intellectual property protection, and a profit tax rate of 16.5%, with 8.25% for the first HK$2 million (US$257,228) in profits. 

Hong Kong is located in the heart of Asia, with extensive air and sea connectivity, and access to Mainland China's market, as well as other important Asian cities in less than five hours. "Hong Kong is a dynamic, vibrant, and open-minded city. We welcome businesses from all sectors and backgrounds. It is a friendly city, and anyone, regardless of origin, is welcome to conduct business here,” Tsui told MBN.