Why is this important
Hong Kong is a global financial center and an entry point for Asian capital. The Hong Kong Bank branch will open access for Uzbek companies to international financial markets and investments. The agreement on the avoidance of double taxation will make Uzbekistan more attractive for investors from Hong Kong and mainland China.
What happened
- On October 24, the Deputy Minister of ICT, Shohrukh Gulyamov, met with the head of InvestHK, Alfa Lau;
- Agreements on avoiding double taxation and mutual protection of investments were discussed;
- The possibility of opening a branch of the Hong Kong Bank in Tashkent was considered;
- It is planned to open a representative office of the MIIT in Hong Kong;
- On the agenda is the launch of direct flights from Tashkent to Hong Kong.
Air traffic
In August, Transport Deputy Minister Jasurbek Choriyev discussed the prospects of regular flights with JDB Group Limited Vice President Chang Man Hin. Priority partner-operator is Hong Kong Airlines.
In September, Uzbekistan Airports signed a memorandum with the administration of Hong Kong International Airport. The document provides for the opening of direct flights and the training of Uzbek specialists at the Hong Kong International Aviation Academy.
Context
Hong Kong is one of the world’s largest financial centers alongside London and New York. China’s Special Administrative Region serves as a bridge between Western capital and Asian markets. The opening of a Hong Kong bank branch in Tashkent could be a breakthrough for Uzbek companies in need of international funding.
The Double Tax Avoidance Agreement is crucial for attracting investment: it guarantees that investors’ income will not be taxed twice – in Uzbekistan and Hong Kong. This is standard practice for the development of international economic relations.
Direct flights will simplify business trips and tourism. Now it takes 12-15 hours to transfer from Tashkent to Hong Kong. The direct flight will reduce the time to 6-7 hours, stimulating business tourism and investment activity.
Hong Kong can also become a platform for Uzbek companies to enter international stock exchanges. Hong Kong Stock Exchange is one of the largest capital markets in the world, attracting companies from all over Asia.
The MIIT Representative Office in Hong Kong will strengthen the promotion of Uzbekistan as an investment destination in the Asian region and ensure the coordination of economic projects.
