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Speech by the Director-General of Trade and Industry, Ms Maggie Wong, at Workshop on ASEAN Online Dispute Resolution (ODR): ODR in Facilitating Cross-Border Trade and Investment for ASEAN and Hong Kong Businesses (English only)
Wednesday, November 9, 2022

Following is the closing remarks by the Director-General of Trade and Industry, Ms Maggie Wong, at the workshop on ASEAN Online Dispute Resolution (ODR): ODR in Facilitating Cross-Border Trade and Investment for ASEAN and Hong Kong Businesses, organised by the Department of Justice on November 9:

Dr James (Dr James Ding) thanks. Friends from ASEAN Member States and ASEAN Secretariat, distinguished guests, ladies and gentlemen,

Good afternoon. It is my great pleasure to join you all today at this Workshop on "ODR in Facilitating Cross-Border Trade and Investment for ASEAN and Hong Kong Businesses". Supported by the Economic and Technical Cooperation (ECOTECH) Work Programme under the ASEAN-Hong Kong, China Free Trade Agreement (ASEAN-HKC FTA), I would like to thank the Department of Justice of the HKSAR Government for organising this hybrid Workshop. Today is the second phase of this ECOTECH project. Building on the very positive ground work and feedback of the first phase, I am sure today's Workshop will contribute tremendously to mutual cooperation with ASEAN and benefit our participants, in particular the micro, small and medium enterprises (MSMEs) in the region.

Through today's detailed presentations and lively discussions on the four main themes, I am sure we have all learnt more about ODR and in particular, the value of its wider application to the business sectors. It is encouraging to note the trend and efforts devoted to promoting ODR and its application in cross-border trade. The promulgation of the ASEAN Guidelines on ODR in April 2022 opens a timely window for greater collaboration between Hong Kong and ASEAN on this front.

Echoing the theme of e-commerce and cross-border trade, I would like to highlight the increasing role of e-commerce in cross-border trade. Some ten years ago, e-commerce took up only 2% of retail sales in Asia as a whole. As of 2021, e-commerce accounted for 23% and 19% of retail sales in Asia and ASEAN respectively. The figures are further projected to grow to 29% and 28% respectively by end-2026. The unprecedented challenges brought about by the COVID-19 pandemic have in turn provided some tailwinds to the booming e-commerce market.

With the growth in e-commerce, it is all the more important to have a reliable and accessible platform for resolving possible contractual disputes that will ease the minds of businesses, in particular MSMEs, when they tap cross-border business opportunities. Thanks to the introduction of the Electronic Business Related Arbitration and Mediation (eBRAM) Platform, businesses are now able to benefit from this efficient, cost-effective and secure means for online deal-making and resolving disputes among parties in any part of the world based on state-of-the-art technology such as Blockchain, Smart Contract and Artificial Intelligence.

An important element of today's workshop is "Encouraging Greater Participation in ODR & Capacity Building". According to a study by the Asia-Pacific Economic Cooperation (APEC) Business Advisory Council, more than 90% of MSMEs reported that dispute resolution was one of the greatest challenges they face when trading across borders. ODR has thus become a handy solution to MSMEs as it helps resolve low-value disputes across borders and support participation of MSMEs in international trade by providing speedy and cost-effective dispute resolution through the use of technology. Capacity-building will thus become crucial to promoting the wider application and utilisation of ODR among MSMEs.

Capacity building of MSMEs is indeed a subject close to my heart as the Trade and Industry Department in Hong Kong plays a key role in supporting the over 340 000 MSMEs in Hong Kong. They constitute more than 98% of our business establishments and employ more than 45% of our workforce in the private sector. Their vitality and business performance are of crucial importance to the development of our economy. We provide a comprehensive range of free business information through the Support and Consultation Centre for SMEs (SUCCESS); we administer funding schemes to support their brand building, upgrading and export marketing. So I, together with my team in the Trade and Industry Department, will spare no efforts in promoting ODR to MSMEs which will boost their confidence to venture further afield to economies with huge market potential like ASEAN.

Another key role of my department is to actively participate in international trade organisations and promote trade and investment liberalisation. To this end, we have been actively coordinating Hong Kong, China's participation in regional fora, such as APEC, and in forging free trade agreements. Against such background, I am pleased to note the continued development of an APEC-wide collaborative ODR framework for MSMEs in business-to-business transactions under Dr James Ding's leadership in the APEC's Economic Committee. At the same time, Hong Kong has been actively seeking to expand its free trade agreement network in order to secure favourable conditions for Hong Kong's goods and services to enter outside markets. So far, we have signed eight FTAs with 20 economies.

FTA indeed provides an excellent platform for us to take forward projects in capacity building and technical assistance for our trading partners. The ECOTECH Work Programme is indeed one of the unique features of the ASEAN-HKC FTA which showcases our joint commitment to enhancing capacity building and helping all Parties reap benefits from the Agreements. Hong Kong, China is committed to contributing HK$25 million in five years to support the ECOTECH Work Programme. And I am very pleased to say that a total of 21 ECOTECH projects have been approved covering a wide range of subjects, including trade facilitation, SME cooperation, e-commerce, etc. The fact that the Work Programme is warmly received by the stakeholders reinforces our longstanding and close cooperation with ASEAN.

Today's Workshop is the very first project with physical participation from our ASEAN friends since the implementation of ASEAN-HKC FTA ECOTECH Work Programme in early 2020. Your presence today means a lot to us. The participation of many MSMEs representatives who are unable to attend physically is also greatly appreciated, I am sure all of us would benefit from today's very fruitful exchanges.

Ladies and gentlemen, my heartfelt thanks, once again, to the Department of Justice for organising this ECOTECH project. I would also like to thank all of the speakers for their generous sharing and support today. I have every confidence that the Workshop will contribute to a better understanding and wider use of ODR in the region.

Last but not least, to participants who flew all the way from wherever you are, thank you so much for taking your time out of your busy schedules to join us here in Hong Kong today. Please do come back with your family and friends and see for yourselves the opportunities that this vibrant city offers. I wish you all the very best of business and health in the coming year. Thank you.

Ends