The program
Set up in June 2012 by the Hong Kong Government, the “Dedicated Fund on Branding, Upgrading and Domestic Sales” (“BUD Fund”) originally aimed at supporting Hong Kong enterprises in exploring and developing the Mainland market through (i) brand development, (ii) upgrade and restructure of operation and (iii) promotion of domestic sales.
Recent updates – Year 2020
In order to further support local enterprises during their expansion plan towards new markets, the Trade and Industry Department (TID) decided to extend the geographical scope of the BUD Fund to include all economies with which Hong Kong has signed Free Trade Agreements (FTAs).
Covering Markets
In January 2020, these enhancement measures have been implemented; hence the new BUD “FTA Programme” is now available for HK companies looking to undertake development projects in countries that signed a Free Trade Agreement with Hong Kong, including:
- ASEAN Markets: Singapore, Thailand, Indonesia, Brunei, Malaysia, Cambodia, Laos, Vietnam, the Philippines and Myanmar.
FTA Markets: the four member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Australia, New Zealand, Chile, Macao and Georgia.
Available Funding
Since April 2020, Hong Kong enterprises can make use of a total funding up to HKD 4 Mio to undertake projects in the Mainland or other economies which have signed FTAs with Hong Kong.
Funding would be provided on a matching basis, meaning the Hong Kong Government will cover a maximum of 50% of the total approved project cost.
Eligibility and Objective
Irrespective of whether the applicants belong to the manufacturing or service sector and whether they already have any business operations in the FTA markets, all non-listed enterprises registered in Hong Kong under the Business Registration Ordinance with substantive business operations in Hong Kong are eligible to apply.
The program’s objective is to provide funding support to Hong Kong enterprises to undertake projects to develop brands, upgrade and restructure their business operations and promote sales in the FTA markets, in order to enhance their competitiveness and facilitate their business development in these areas.
Expenses that can could be covered by the Hong Kong Government’s BUD fund are:
- Operating costs for setting up a new business entity in FTA markets (including business registration, rental/renovation expenses, utility expenses and the expenses for engaging professional services for setting up the new business entity);
- Cost for travelling and accommodation between Hong Kong and the FTA economies;
- Cost for branding, advertisement, marketing and enhancing company website;
- Costs related to trademark/patent registration in Hong Kong or the FTA economies;
- Direct cost for producing or procuring sample/prototype;
- Cost for procuring/leasing additional machinery/equipment;
- Cost for establishing online sales channels, organizing/participating in other promotional events/activities in FTA economies or Hong Kong.
INTERESTED IN OBTAINING FINANCING FOR YOUR BUSINESS THROUGH THE BUD FUND BUT NOT SURE WHERE TO START?
Contact our consultants at Fidinam (Hong Kong) Limited to know more!
