Hong Kong's Investment Promotion and Protection Agreements
Hong Kong has been endeavouring to sign Investment Promotion and Protection Agreements ("IPPAs" or "Investment Agreements" in short) with foreign economies in order to enhance two-way investment flows and boost our economy. An IPPA is an agreement between governments for the promotion and protection of investments made by investors of one contracting party in the area of the other contracting party.
Hong Kong's IPPAs give additional assurance to overseas investors that their investments in Hong Kong are protected, and enable Hong Kong investors to enjoy similar protection in respect of their investments overseas.
A typical IPPA provides for, among others, the following:
- fair and equitable treatment of investments;
- full protection and security of investments;
- non-discriminatory treatment of investments;
- non-discriminatory treatment in compensation for losses owing to, among others, war or other armed conflict;
- compensation for expropriation of investments;
- free transfer abroad of investments and returns;
- exceptions to obligations to provide policy space to a contracting party including for reasons of essential security interests;
- settlement of investment disputes between a contracting party and an investor of another contracting party; and
- settlement of disputes between the contracting parties on interpretation or application of the IPPA.
Hitherto, Hong Kong has signed 24 IPPAs with foreign economies. Separately, an Investment Agreement under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) was signed in 2017 and has been implemented since 1 January 2018.
IPPAs in Force
- Brunei Darussalam
- Cambodia
- Indonesia
- Laos
- Malaysia
- Myanmar
- The Philippines
- Singapore
- Thailand
- Viet Nam
13.10.2019
(for Malaysia)
4.7.2020
(for Indonesia)
20.10.2020
(for Brunei Darussalam)
12.2.2021
(for Cambodia)
# The part relating to the Philippines took effect from 12.5.2020 onwards.
Side agreements:
- Side agreement with Brunei Darussalam, Malaysia and Singapore
- Side agreement with Singapore
- Invest in ASEAN
- Invest Brunei Darussalam
- Council for the Development of Cambodia
- Indonesian Investment Coordinating Board
- Investment Promotion Department, Laos
- Malaysian Investment Development Authority
- Directorate of Investment and Company Administration, Myanmar
- Philippine Board of Investments
- Singapore Economic Development Board
- Thailand Board of Investment
- Ministry of Planning and Investment, Viet Nam
Press release:
[Note: the previous IPPA signed in 1993 by Hong Kong and Australia was terminated on 17.1.2020.]
