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Aug 21, 2026
Hong Kong, known as one of the world’s leading free markets, is now an ideal destination for entrepreneurs looking to form an e-commerce company. With a favorable business environment and abundant growth opportunities, it’s become an appealing choice for establishing a presence in the e-commerce industry.
Every day, nearly 5 million consumers in Hong Kong shop online. E-commerce market penetration reached 72.6% in 2022, and market value is projected to reach $11.3 billion by 2026. The individual consumer segment contributes about 60% of total industry revenue, showing the market’s strong growth.
Compared to traditional commerce, e-commerce is seen as the trend of the future, with 61% of transactions made directly through a business’s own website or app, while 22% go through third-party platforms like Taobao, Amazon, JD, Alibaba, and eBay. E-wallet payments, notably PayPal and AliPay, are growing fast with an annual compound growth rate of about 32%.
As a result, international entrepreneurs can leverage the existing infrastructure and major brands to quickly and effectively build and expand e-commerce operations in Hong Kong.
Online shoppers in Hong Kong pay particular attention to price, product quality, and convenience of service. A good shopping experience often brings customers back, building long-term loyalty.
E-commerce business procedures here are considered minimal, creating favorable conditions for businesses to be creative and innovative. The tax system is also favorable, with a 0% tax rate on income earned from abroad, attracting many international investors to choose Hong Kong as a base for e-commerce growth.
According to a 2019 government report, more than 2 million households in Hong Kong have an internet-connected computer, and nearly 6 million people use a smartphone. Of all online orders, about 74% are placed via desktop computer, 16% via mobile phone, and 6% via tablet.
Although younger people frequently use tech devices, the working-age population is actually the core customer group with strong purchasing power. So focusing on the younger customer group and optimizing the shopping experience on mobile devices is an important strategy for capturing market share.
Physical infrastructure in Hong Kong is highly developed and well suited to e-commerce. Modern seaports and favorable import-export policies keep the city among the world’s top logistics hubs. As a duty-free trading port with high traffic to Asian countries, Hong Kong has repeatedly been chosen as a warehouse or coordination center, helping shorten delivery time and creating a competitive advantage for businesses.
Cross-border e-commerce in Hong Kong is thriving, with 37% of transactions directed to mainland China, 21% to the US, and 16% to Japan. Local consumers favor goods from China, Singapore, and Japan. Among product categories, electronics and communications lead with a market share worth $1.07 billion, followed by fashion at $990.5 million. These are both industries where Vietnam has strong manufacturing and export capability.
Forming a company in Hong Kong lets Vietnamese entrepreneurs conveniently expand their e-commerce business into the international market, taking advantage of the open legal environment along with a modern local payment and banking system.
Support services for businesses here include company formation, business license applications, setting up bank accounts and online merchant accounts, as well as periodic accounting and auditing services. In addition, serviced office spaces help businesses save on operating costs in an expensive real estate market.
Beyond that, intellectual property support and trademark registration are also very important to protect the reputation and identity of companies in the rapidly growing e-commerce sector.
