The Asian tech startup ecosystem is booming. Countries across the region are actively fostering innovation, cultivating talent, and encouraging the growth of new ventures. As these startups scale, many of them aim to establish a foothold in neighbouring markets with strong innovation hubs, such as Hong Kong. Known for its sophisticated financial systems, strategic location, and pro-business environment, Hong Kong serves as a gateway for tech startups seeking to expand across the Asia-Pacific (APAC) region and beyond. 

For ASEAN startups, entering a new market like Hong Kong presents an exciting opportunity but also comes with challenges. These include a lack of local market insights, achieving product-market fit, insufficient funding or business networks, and navigating regulatory and compliance hurdles. 

Recognizing these challenges, the Hong Kong Science and Technology Parks Corporation (HKSTP) launched the HK Sandbox Programme. Notably, it aims to help foreign startups seamlessly expand their businesses in Hong Kong and mainland China. It has also partnered with renowned universities in Hong Kong. Through it, the Programme provides startups with business consultation, critical resources, networking opportunities, and access to strategic partners. This enables them to scale, adapt, and thrive in Hong Kong’s vibrant ecosystem and the Greater Bay Area (GBA).

This initiative not only provides startups with invaluable insights and resources but also offers students hands-on learning experiences that can ignite their entrepreneurial spirit. Moreover, the programme aims to enhance Hong Kong’s innovation and technology (I&T) ecosystem through international collaborations. By creating a triple-win scenario, the Programme is poised to elevate the entire community, driving growth and innovation in the region.

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ASEAN tech startups are exploring Hong Kong

Thailand, in particular, has emerged as a rising star within Southeast Asia. This is thanks to a combination of young entrepreneurs, government support, and increasing venture capital interest. Today, 16 Thai startups joined the Programme to strive to expand beyond their local border. In late October, 13 of them travelled to Hong Kong and had a week-long “Market Exploration Tour.” It provided networking opportunities and insights into scaling their businesses. They also participated in StartmeupHK Festival events organised by Invest Hong Kong (InvestHK).

Significantly, the programme works with universities to bridge the gap between the Thai startups and the dynamic Hong Kong environment. It partnered with two Hong Kong universities, The Hong Kong University of Science and Technology (HKUST) and The University of Hong Kong (HKU). Through this collaboration, the Thai startups will be receiving support from students on market entry strategies and recommendations. The end goal of the programme is to propel their entry into the Hong Kong market. Joseph Koc, advisor to Thailand Science Park, remarked, “The HK Sandbox Programme creates a mutually beneficial platform for both regions.” He also serves as Adjunct Associate Professor at the Department of Management, School of Business and Management of HKUST.

Koc elaborated that Thai startups receive quality recommendations from consulting teams made up of students from HKUST of local and international background to assess and better understand the Hong Kong market as part of a market entry strategy recommendations. “Reciprocally, this arrangement will bring to Hong Kong entrepreneurs fresh ideas and diverse perspectives when they settle in at HKSTP. By fostering this one-of-a-kind cross-border collaboration, this partnership will not only fuel innovation but also enhance the global competitiveness of both Thailand and Hong Kong,” he added.

Universities weigh in on the Sandbox Programme

According to Joseph Chan, Associate Director of the Centre for Innovation and Entrepreneurship of HKU Business School, “This collaboration between HKU and HKSTP through the Sandbox programme is a significant achievement. While the concept of academia, research, and industry collaboration is often discussed, this programme truly brings it to life.” He continued that engaging students in market validation and business strategic planning facilitates the commercialization of products and services developed by Thai startups to be implemented in HK and subsequently the GBA.

Chan added, “This initiative bridges geographic and cultural gaps, providing valuable practical training in design thinking for students, namely empathy, cross-disciplinary innovation, and iteration.  It establishes a solid foundation for their future endeavours in corporate settings or startups, enriching the innovation and entrepreneurship ecosystem in HK.”

Meanwhile, Joon Nak Choi, Adjunct Associate Professor, Department of Management, School of Business and Management of HKUST, noted the programme’s value for both startups and students, offering strategic advice to startups and hands-on experience for students, ultimately strengthening Hong Kong’s entrepreneurial ecosystem.

Choi said, “Startups receive strategic and tactical advice from our top students, which can be crucial for successful market entry. Meanwhile, students gain hands-on experience by working on real projects, motivating them to achieve more than they thought possible. This collaboration fosters Hong Kong’s entrepreneurial ecosystem and equips the next generation of professionals with essential skills for success.”

Two startups in Cohort 2, Chosen Digital and Swees Plant, aim to scale their greentech solutions to this larger market.

Advancing Innovative Energy Solutions

Chosen Digital focuses on providing innovative energy solutions, particularly in the electric vehicle (EV) and energy management sectors. According to Worapoj Chosen, Founder and CEO of Chosen Digital, “Hong Kong is a promising market for EVs as 50% of new cars are already electric. However, while Thailand is made up of mostly houses and villages, Hong Kong has more high-rise buildings. That is why we need to study the market and customise our solutions.”

Chosen Digital offers EV charging solutions compatible across ASEAN and AI-driven energy load management to prevent infrastructure overload. Its entry into Hong Kong and the GBA will mean making a positive environmental impact in one of the world’s busiest regions. In fact, Worapoj’s participation in the HK Sandbox Programme is driven by the passion to bring about a more sustainable future. This is true not just for Thailand but also for the rest of Asia.

“I don’t see it as a competition, I see it as a collaboration. There are many startups in this space and green is for everyone so we must work together,” he emphasises. Worapoj believes that the networking and market research opportunities provided by the programme will be instrumental in encouraging more businesses and even countries to make the switch to EVs.

Mainstreaming Plant-Based Non-Dairy Products

Swees Plant, another Cohort 2 participant, specialises in producing plant-based, dairy-free cheese. Positioned at the intersection of agritech and greentech, it is a leader in Thailand’s growing plant-based food sector. In fact, CEO Nicolas Frauenfelder shares that their products are available in all major supermarkets with over 250 outlets nationwide. They are working on making non-dairy products even more accessible by expanding their product lines and partnering with fast food chains. And now, they are hoping to replicate their success in Hong Kong and the GBA.

“We are already the leading manufacturer of plant-based cheese in Thailand. Our vision is to become the leader in this category in APAC,” shares Frauenfelder. He further explains that Swees Plant was attracted to Hong Kong for a number of reasons. First, there is a significant portion of the population who either practice vegetarianism full time or adopt a plant-based diet at least once a week. Second, younger generations are looking for healthier and more sustainable food alternatives. And third, it is a unique market with high spending power that also serves as a gateway to mainland China.

For Frauenfelder, HKSTP’s HK Sandbox Programme offers an exciting opportunity to build valuable local connections and gain critical market insights. It presents numerous avenues for growth, which the company is eager to pursue. Through this collaboration, the company aims to establish a solid presence in Hong Kong, foster strong relationships with HKSTP and other key stakeholders, and achieve a successful product launch by early 2025.

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HKSTP is Empowering Tech Startups and Beyond

Chosen Digital and Swees Plant are just two of 16 ventures currently participating in Cohort 2 of HKSTP’s HK Sandbox Programme. Originally launched in 2023, the Programme was designed to help Thai startups explore growth opportunities in Hong Kong. In its first cohort, eight Thai startups joined HKSTP’s Ideation programme, where they engaged in activities to facilitate their entry into the Hong Kong and Greater Bay Area (GBA) markets. As a result, all eight successfully registered their businesses in Hong Kong.

The Programme draws overseas startups by offering end-to-end support as both a validation and landing partner throughout their entrepreneurial journey. This comprehensive support helps startups establish a foothold in Hong Kong’s dynamic ecosystem. As a result, they can navigate the local market with greater ease. The programme also includes project-based learning opportunities for university students. This gives them hands-on experience with real-world case studies. It also creates pathways to potential jobs within the innovation and technology (I&T) sector.

The programme’s impact so far proves that HKSTP’s holistic approach benefits startups, students, and the broader I&T community alike. It attracts tech startups and talents with high potential to join Hong Kong’s largest I&T ecosystem. Further, it reinforces the city’s role as a regional innovation hub. And it will continue to do so as applications for the next cohort are open until 15 January 2025.

“The HK Sandbox Programme utilises the local academic community to assist overseas startups in exploring markets in Hong Kong and the mainland, it is also designed to create a triple win for startups, students, and Hong Kong’s I&T ecosystem. The third cohort of the HK Sandbox Programme is now open for application, we welcome startups from Malaysia and Indonesia to collaborate with the top business students in the city, join our vibrant ecosystem, ignite collaborations and use Hong Kong as a springboard for accelerated growth,” concluded HKSTP Head of Startup Ecosystem and Development Derek Chim. 

For more information on how to apply for the HKSTP Sandbox Programme, visit this website.

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This article is produced by the e27 team, sponsored by HKSTP

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Featured Image Credit: HKSTP

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