Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
Established in June 2012, the BUD Fund currently provides funding support to non-listed Hong Kong enterprises to enhance their competitiveness and further business development in the Mainland, the Association of Southeast Asian Nations (ASEAN), and other markets with which Hong Kong has signed Free Trade Agreements (FTAs) through developing brands, upgrading and restructuring operations and promoting sales.
To support enterprises in exploring more diversified markets, the Government has injected $1.5 billion into the BUD Fund in April 2021 and will launch enhancement measures by phases from July 2021 including -
- extending the geographical coverage from all economies with which Hong Kong has signed FTAs to also include all economies with which Hong Kong has signed Investment Promotion and Protection Agreements (IPPAs); and
- increasing the cumulative funding ceiling per enterprise from $4 million to $6 million.
A comparison of the current and enhanced funding scope and ceilings is set out below.
|Current Arrangement||The Arrangement After Full Implementation of Enhancement Measures|
Mainland, ASEAN and other economies with which Hong Kong has signed FTAs1
(20 in total)
Mainland, ASEAN and other economies with which Hong Kong has signed FTAs and/or IPPAs2
(37 in total)
|Cumulative Funding Ceiling per Enterprise||$4 million||$6 million|
|Funding Ceiling per Project||$1 million||$1 million|
The enhancement measures will be implemented by phases as follows:
|Phase 1 (July 2021)||
|Phase 2 (Q1 2022)||
|Phase 3 (Q2 2022)||
For details of the BUD Fund, please visit its website (https://www.bud.hkpc.org/en).
1 So far Hong Kong has signed eight FTAs covering 20 economies, namely the Mainland, New Zealand, the four member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macao, the ten member states of the ASEAN (comprising Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Georgia and Australia.
2 So far Hong Kong has signed 22 IPPAs covering 31 foreign economies, namely the ten member states of the ASEAN, Australia, Austria, Belgo-Luxembourg Economic Union, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, Republic of Korea, Kuwait, Mexico, the Netherlands, New Zealand, Sweden, Switzerland, Thailand (an ASEAN member state), the United Arab Emirates and the United Kingdom.