How can Hong Kong help to develop the professional supply chain service of textiles and clothing industries under the One belt one road initiative?

The One Belt One Road (hereafter OBOR) initiative is a development strategy launched by China in 2015, with the aim to increase economic co-operation among countries along the belt (Silk Road Economic Belt) and road (21st Century Maritime Silk Road) that connect Asia, Europe and Africa. The anticipated gains for Hong Kong from taking part in this initiative are substantial, including for those involved with the infrastructures, as well as the banking and private business sectors. Among those who stand to gain from the OBOR initiative (which is worth noting for manufacturers in developing their business) are the newly emerging low-cost production bases in the developing countries along the OBOR, which provide significant opportunities for some of the Hong Kong companies to invest in trade-led manufacturing in the low-wage, and labor-intensive sectors, i.e. the textiles and clothing (T&C) industries. The main objective of this paper is twofold. First, it investigates the crucial factors for Hong Kong to improve the coordination process among the T&C sectors and establish Hong Kong as a “super-connector”, to link the OBOR countries. Specific measures are identified so that T & C companies in Hong Kong can establish and facilitate technological upgrades and transformation to potential production facilities in OBOR countries. This would contribute to the sustainable development of T&C companies in Hong Kong in a dynamic globalized market. Second, the gravity trade model is extended to analyze the development of T&C trade patterns among the OBOR countries. It covered other factors not considered in previous studies on the same products, such as logistic performance index (LPI), demographical factors, and those related to business-related environment and policies including qualitative variables (as dummy variables. The model will be utilized to investigate the impacts of country-specific, social determinants as well as supply chain and economic indicators that affect the T&C trade flow between Hong Kong and the OBOR countries. With the analysis result, recommendations are provided to help Hong Kong T&C companies to improve their supply chain efficiency and competitiveness among OBOR countries. The empirical analysis will help to identify the extent that the determinants contribute to T&C trade at the global level. With the development of a database on global trade in the T&C industry, it is then possible to develop a specific gravity trade model of Hong Kong and the OBOR countries to investigate the trade potential between them for sustainable business development. Additionally, this research will also add valuable knowledge to increase current understanding of the factors that affect and enhance the T&C industries in Hong Kong