The First Protocol to Amend the Investment Agreement (IA) between the Association of Southeast Asian Nations (ASEAN) and Hong Kong (the Protocol) was signed today (September 20) to activate the relevant provisions of the IA to enable Hong Kong enterprises to enjoy treatments no less favourable than those accorded to local or foreign enterprises in the 10 ASEAN member states.
      
     The Protocol was signed between the Under Secretary for Commerce and Economic Development, Dr Bernard Chan; the Secretary of the Department of Trade and Industry of the Philippines, Ms Ma. Cristina A. Roque; and the Deputy Prime Minister and Minister of Commerce of Thailand, Mrs Suphajee Suthumpun, in Manila, the Philippines, before the 10th ASEAN Economic Ministers - Hong Kong, China Consultation cochaired by Hong Kong and the Philippines as the ASEAN Chair this year. 
      
     The Protocol mainly incorporates the schedules of reservations into the IA to give effect to Article 3 (National Treatment) and Article 4 (Most-Favoured-Nation Treatment) of the IA. These articles provide that a party shall accord other parties' enterprises and their investments non-discriminatory treatment, except for those measures reserved in the schedules. The signing of the Protocol is set to bring about legal certainty, enhancing the investment environment and creating more investment flows.
      
     A spokesman for the Commerce and Economic Development Bureau said, "ASEAN is Hong Kong's key investment partner and has been our third-largest destination of outward direct investment for four consecutive years, with a stock of $671.2 billion. Our flourishing investment relations have been boosted by the IA which has strengthened Hong Kong's position as an international investment hub.
      
     "We are confident that the signing of the Protocol and its subsequent implementation will drive steady growth in Hong Kong's economic, trade and investment relations with the ASEAN region. We will work side by side with our ASEAN partners to strive for further economic development and investment growth in the region," the spokesman added.
      
     Under the trade in services chapter of the free trade agreement (FTA) between Hong Kong and the 10 ASEAN member states, national treatment is committed for services and services suppliers for specified sectors, including through a commercial presence. Complementing the FTA, the IA will accord enterprises and their investments in non-services sectors national treatment and most-favoured-nation treatment, after reservations incorporated by the Protocol into the IA enter into force.
      
     Apart from non-discriminatory treatment, the IA provides for fair and equitable treatment of investments, physical protection and security of investments, and the assurance of the free transfer of investments and returns. In case of expropriation or investment loss owing to war, armed conflict or a similar event, compensation will be provided according to the agreed standard as specified under the IA.
      
     The text of the Protocol will be uploaded onto the Trade and Industry Department's website after all parties have completed signing the Protocol. Hong Kong and the 10 ASEAN member states will continue to work closely to bring about the early implementation of the Protocol, so that Hong Kong enterprises may reap the benefits as soon as possible.
      
     The 10 ASEAN member states concerned are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. An extension of the FTA and IA to Timor-Leste, the 11th member state of ASEAN, is pending the internal procedures of ASEAN.

Ends/Sunday, September 20, 2026
Issued at HKT 14:00

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