BUD-Free Trade Agreement Program​Formerly known as the ASEAN Plan

BUD special fund for brand development, upgrading and transformation, and expansion of the domestic market

BUD Free Trade Agreement Program

Implementation of optimization measures from April 9, 2020:

  • The mainland plan and the free trade agreement plan will each cancel the 2 million caps
  • Each company can receive a maximum of 4 million yuan under the free trade agreement program

Implementation of optimization measures from January 20, 2020:

  • Increase the cumulative funding limit for each company: from 1 million yuan to 2 million yuan
  • Increase the initial funding from 25% to a maximum of 75%
  • Relax the upper limit of the number of funded projects: increase from 10 to 20

Starting from January 20, 2020, the “ASEAN Plan” has been upgraded to the “Free Trade Area Plan”. Enterprises can receive a total of 4 million yuan in funding for up to 20 ASEAN projects through equal funding. The funding limit for each project It is 1 million yuan.

*ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam
*Free trade areas are New Zealand, the four European Free Trade Association countries, Chile, Macau, Georgia and Australia

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Submit application documents for BUD Free Trade Agreement Program

1. The software file of the application form (MS word format, Chinese or English version)

2. One original copy of the application form signed by the authorized person of the applicant company and stamped by the company

3. Other supporting documents:

- The copy of the business registration certificate of the applying enterprise

- The copy of the supporting documents of the main shareholder information of the applying enterprise (for example: issued by the Companies Registry Annual Return Form AR1)

- Copy of documents proving that the applicant company has substantive business operations in Hong Kong

- Copy of documents proving that the applicant company has direct investment relationship with local business units in ASEAN countries

Application Form

All non-listed companies that are registered in Hong Kong in accordance with the Business Registration Ordinance (Chapter 310) and have substantial business operations in Hong Kong

Maximum funding amount for each project

HK$1 million is positive. The subsidy is provided on the principle of reciprocity, that is, the government subsidizes up to 50% of the total approved expenditure of an individual project, and the enterprise must bear no less than 50% of the total approved expenditure of the project in the form of cash.

The maximum number of projects that each enterprise can be funded

There are a maximum of 20 projects, and the maximum cumulative funding amount for the two projects is HK$4 million.

BUD funding method (applicant companies can choose [1] or [2] method)

Method 1-Set up the initial funding:

  • Enterprises need to open a separate project account to handle project income and expenses.
  • The project can only start after approval and signing of the funding agreement.

Method 2-No initial funding:

  • Enterprises do not need to open a bank account dedicated to the project.
  • The project can start the day after the application form is submitted and sent to the secretariat (but the application must be approved to receive funding).

BUD project time

Each funded project must be completed in no more than 24 months.

ASEAN Program Scope

The plan covers three major areas, including (i) brand development; (ii) upgrading and transformation; and (iii) marketing expansion.

The following are some examples that fit the relevant categories:

Develop brand

(A) Brand development strategy and positioning-corporate brand vision, product and service planning;
(B) Brand establishment, design and communication-brand image and style development, brand reconstruction;
(C) Brand management-brand evaluation, brand protection;
(D) Brand Monitoring-Brand Property Research and Brand Sustainability Investigation

Upgrade and transformation

(A) Business model upgrade and transformation-from original equipment manufacturer (OEM) to original design manufacturer (ODM) and/or private label manufacturer (OBM);
(B) Product innovation and repositioning-product strategy, new product development;
(C) Material management-supply chain planning and execution;
(D) Technology upgrade-manufacturing technology upgrade, process and business automation;
(E) Management upgrade-world-class management system, business process reorganization, quality improvement;
(F) Logistics management-warehousing management, fleet management and distribution management system improvement.

Expand marketing

(A) Marketing strategy planning-marketing strategy formulation;
(B) Marketing business operation management-operation transformation;
(C) Marketing channel management-marketing strategy and research, sales and distribution channel development, publicity and promotion activities implementation;
(D) Marketing team establishment and management-staff development and performance management.

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