Revving up to be a 5-star powerhouse

Overcoming obstacles

"Many foreign investors and companies need to overcome a steep learning curve before they can find their comfort zone and foothold in the Greater Bay Area. This could sap their resources, energy and confidence," said Chiang.

To solve the problem, InvestHK conducts market feasibility studies, creates a dedicated business development team to promote the region's advantages and opportunities for global investors, and forges connections between prospective global investors and strategic partners or relevant government bodies in the region.

"For example, introducing foreign investors to professional advisory firms will give them an insight into the business environment in Shenzhen, Guangzhou or Zhongshan," Chiang said. "Prospective investors could not only draw lessons from the first-hand experience of successful investors, but also discuss partnership opportunities with them."

Chui foresees obstacles in securing talents, as well as a lack of understanding of how to apply for business licenses, for international firms in the Greater Bay Area.

"Some multinational companies based abroad are worried about the lack of mid-level executives with both international and local experience, and the challenges in aligning the technologies that are applicable to both the Chinese mainland and overseas markets," he said, "More support and advice in making major investment decisions are needed."

AmCham's recent survey also delved into what sort of problems its members might encounter in trying to set up shop on the mainland. Their three biggest worries concern policy uncertainties, free flow of talents and the mobility of senior executives on both sides of the border, as well as the lack of policy coordination among cities in the region.

However, compared with other mainland cities, it is more convenient for foreign companies to relocate mid-level executives to the Greater Bay Area due to the sophisticated infrastructures already in place for domestic and international travel, said Chui.

Key infrastructure projects, such as the Hong Kong-Zhuhai-Macao Bridge and the high-speed rail linking Hong Kong and the mainland, have strengthened transportation links among cities in the Greater Bay Area, while Hong Kong's Northern Metropolis plan envisions five new railway projects that would connect various nodes in future, including the Qianhai cooperation zone.

Simpfendorfer said nuances in practice standards and unresolved mutual recognition of professional qualifications between Hong Kong and the mainland cities in the Greater Bay Area have been an impediment to some foreign enterprises. "While our members are able to capture the opportunities in the Greater Bay Area by building businesses in Hong Kong and on the mainland, sometimes, they feel they're running two separate businesses and that creates friction."

"The reality is there're 11 cities in the Greater Bay Area cluster and each has its own policies concerning things like taxation when it comes to attracting talents from Hong Kong," he said.Such policies, if left unattended or not reconciled, would create complexities for international enterprises, especially those that are keen to set up businesses in more than one city in the Greater Bay Area, Simpfendorfer added.

But he said all international companies should be serious about setting up offices in the Greater Bay Area, where there's a wealth of world-class opportunities afforded by "the sheer number of companies, startups and customers".

"That's why we always encourage our members to join our delegations on visits to the mainland and get engaged commercially," Simpfendorfer said, referring to tours of mainland cities in the Greater Bay Area, organized regularly by AmCham.

While Shenzhen and Guangzhou have a strong track record in fostering a vigorous entrepreneurial culture, they will never threaten Hong Kong's position as an international business hub. "Rather, we see a more collaborative and complementary relationship (between Hong Kong and the mainland GBA cities) going forward," said Simpfendorfer.

Chiang remains upbeat. "We've been talking to many prospective investors. They're quite excited about the opportunities in Hong Kong and other cities in the Greater Bay Area. They're just waiting for quarantine-free travel to resume and go to the mainland to kick-start their plans."

Zeng Xinlan contributed to this story.