Vietnam Expansion Made Easy: Hong Kong Companies Tap into BUD Fund’s HKD 1M Grant
Hong Kong, a bustling international financial hub, has long been a favoured location for entrepreneurs and businesses. With its strategic location and well-established infrastructure, many Hong Kong companies are now eyeing new opportunities abroad, and one market that stands out as a promising destination for expansion is Vietnam. To facilitate this journey, the Hong Kong government offers a valuable resource known as the BUD (Dedicated Fund on Branding, Upgrading and Domestic Sales) fund. In this article, we will explore how Hong Kong companies can leverage the BUD fund, with grants of up to HKD1 million, to successfully expand their businesses to Vietnam.
Understanding the BUD Fund: A Gateway to Expansion
The BUD fund is a government initiative designed to support non-listed enterprises with substantive business operations in Hong Kong, helping them boost their competitiveness through branding, upgrading, and domestic sales activities. This makes it an ideal financial tool for Hong Kong companies looking to establish a foothold in Vietnam.
Eligibility for the BUD Fund
Before delving into the opportunities offered by the BUD fund, it’s crucial to understand the eligibility criteria. To qualify, a Hong Kong company must be non-listed and registered under the Business Registration Ordinance, with substantial business operations in Hong Kong.
The Three Areas Covered by the BUD Fund
The BUD fund covers three key areas that are integral to business growth and development:
Building and promoting a strong brand presence is vital for success in any market. The BUD fund supports Hong Kong companies in formulating effective brand strategies, brand building, brand promotion, and brand management, enabling them to create a lasting impact in Vietnam.
2. Upgrading and Restructuring:
To stay ahead in today’s fast-paced business landscape, embracing technological advancements and upgrading management and logistics systems are imperative. The BUD fund extends its assistance to Hong Kong companies for new product design, adopting advanced technology, improving manufacturing automation, and upgrading overall business infrastructure.
3. Domestic Sales:
Expanding into a new market like Vietnam requires a well-planned approach to domestic sales. The BUD fund aids Hong Kong companies in strategic planning, sales business operation management, channel management, and team formation and management, ensuring a smooth entry into the Vietnamese market.
Expenses Covered by the BUD Fund
The BUD fund can significantly ease the financial burden of expanding to Vietnam by covering various business expenses. Hong Kong companies can utilise the fund for the following purposes:
1. Staff Costs: With the BUD fund, up to 50% of staff costs can be covered, providing much-needed support for hiring new talent and assembling a proficient team to drive the expansion.
2. New Business Setup Costs: Starting a new venture in a foreign market can be costly. However, the BUD fund grants a maximum funding of up to 20% to offset these expenses, making it easier for Hong Kong companies to set up shop in Vietnam.
3. Branding and Marketing Activities: Establishing a strong brand presence is essential for market penetration. The BUD fund can assist in covering expenses related to branding and marketing activities, including trademark registration, to ensure a compelling brand image in Vietnam.
4. Product Development and Intellectual Property Protection: For businesses involved in product-based industries, the BUD fund supports the development of new products, prototyping, and patent registration to safeguard intellectual property rights in the Vietnamese market.
5. Machinery and Equipment: The fund can be used to cover costs related to additional machinery and equipment required for the smooth functioning of the business operations in Vietnam.
6. Establishing Sales Channels and Metaverse Space: The BUD fund aids in establishing effective sales channels and e-commerce platforms, paving the way for seamless market entry and increased visibility. As the metaverse becomes an integral part of the global economy, the BUD fund ensures that Hong Kong companies can take full advantage of this digital revolution for developing innovative sales channels to navigate virtual commerce.
7. Product Testing and Certification: Compliance with local regulations is crucial when entering a new market. The BUD fund assists in covering expenses related to product testing and certification, ensuring that products meet Vietnamese standards.
As Vietnam emerges as a thriving market with significant growth potential, Hong Kong companies are presented with an excellent opportunity to expand their businesses beyond their home turf. Leveraging the BUD fund, with grants of up to HKD 1 million, and its comprehensive support for branding, upgrading, and domestic sales activities, can be the key to unlocking success in the Vietnamese market. By capitalizing on this government initiative, Hong Kong companies can confidently venture into Vietnam, exploring new horizons and reaping the rewards of their strategic expansion efforts.