SAR companies should consider tapping the Russian market as lower income tax rates and tariffs create a more favourable business environment, according to Trade Development Council economist Chu Wing-chor.
Mr Chu said Russia was experiencing a robust economic recovery and Hong Kong companies could make use of the opportunity to explore the market.
'The majority of Hong Kong's exports go to the United States and Europe and other so-called developed markets,' he said.
'But competition in these markets is fierce and local companies should consider diversifying into markets such as Russia.'
In January, the income tax rate in Russia was lowered to a flat 13 per cent, down from a progressive structure of up to 30 per cent.
To open the market to foreign enterprises, the government has also liberalised import restrictions and reduced tariffs.