The BUD Fund stands for “Dedicated Fund on Branding, Upgrading and Domestics Sales”. BUD fund is to help Hong Kong enterprises capture the opportunities arising from the National 12th Five-Year Plan. The Hong Kong Special Administrative Region Government set up the BUD Fund of $1 billion in June 2012. To help SMEs. Allowing Hong Kong start-ups, further grasp economic opportunities and boost their competitiveness. The 2018-19 Budget proposed to extend the geographical scope of the BUD Fund. Not only Hong Kong, China and Macau, but also including the Association of Southeast Asian Nations (ASEAN) markets by launching the “ASEAN Programme”. Moreover to increase the cumulative funding ceiling per enterprise for projects involving the Mainland China Market (the “Mainland Programme”).
To provide funding support to individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the FTA markets and Mainland China market. So as to enhance the competitiveness and facilitate the business development in the FTA markets and Mainland China market.
Further enhancements to the BUD Fund will be rolled out within April 2020. For the BUD Fund, the individual ceilings for each enterprise to undertake projects in the Mainland and other economies with which Hong Kong has signed Free Trade Agreements (FTAs) (cumulative funding $2 million each) will be removed. So that enterprises can flexibly make use of the total funding of up to $4 million to undertake projects in the Mainland or other economies which have signed FTAs with Hong Kong. Besides, enterprises participating in virtual exhibitions organized by Government-related organisations or reputable exhibition organisers with good track record will be eligible for funding support under BUD Fund.
All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance (Chapter 310) with substantive business operations in Hong Kong. Irrespective of whether they belong to the manufacturing or service sector or whether they already have any business operations in the FTA markets and the Mainland China.
Funding will be provided on a matching basis. The Government will cover a maximum of 50% of the total approved project cost. While the enterprise has to contribute no less than 50% of the total project cost in cash. During the tenure of the BUD Fund, each enterprise may obtain funding for a maximum of 12 approved projects. And the total cumulative funding amount is $4,000,000 under the “Mainland Programme” and the “FTA Programme”.
Each funded project must be complete within 24 months.
Scope of Funding
Any projects that assist individual Hong Kong enterprises in exploring and developing the Mainland China markets and FTA markets through developing brands, upgrading and restructuring operations and promoting sales are eligible.
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