Record year for investment promotion in Hong Kong

These investments resulted in the immediate creation of over 2,517 jobs, with at least another 5,407 planned by these same companies during the next two years. More than HK$8.9 billion was invested, representing a 91% increase over last year's record total.

Overall foreign direct investment into Hong Kong also remains strong. For the first three quarters of 2005, FDI inflows reached US$26.7 billion - nearly US$2 billion higher than for the same period in 2004.

Getting even better

The Director-General of Investment Promotion at Invest Hong Kong, Mike Rowse, expects InvestHK to exceed 2005's achievements during the next 12 months:

'While we are gratified by last year's results, they will only encourage us to work even harder to strengthen and promote the attributes that make Hong Kong the preferred location for international businesses serving the Asia Pacific region. We will aim to do even better in 2006 to attract even more companies to invest and expand their presence in our city.'

It was a very good year

Hong Kong's position as a two-way service platform for business between the Mainland and the rest of the world provided a strong appeal to both overseas and Mainland companies. And Hong Kong's unique positioning as the heart of Asia has attracted companies from different industries to set up operations here to access target clients in the region.

In particular, many investors have been attracted to Hong Kong as the natural business hub for the Greater Pearl River Delta, encompassing most of Guangdong Province, Hong Kong and Macao. In response to this demand, InvestHK published the third edition of our most popular publication - 'The Greater Pearl River Delta - the Facts and Figures,' written by Professor Michael Enright of the University of Hong Kong and Dr. Edith Scott.

The Closer Economic Partnership Arrangement (CEPA), which has entered into its third phase this year, played a significant role in encouraging companies assisted by InvestHK during 2005. Of the investment projects completed last year, 63 companies (27%) said that CEPA influenced their decisions to establish or expand their operations in Hong Kong.

In 2005, InvestHK continued its cooperation with the Ministry of Commerce (MOFCOM), provincial and municipal governments, and relevant associations to promote Hong Kong as the platform for the Mainland enterprises to expand their international business. The Department organised 21 seminars in 17 cities, including Shanghai, Guangzhou, Shenzhen, Chengdu, Tianjin, Shejiachuang, Kunming, Ningbo, Foshan, Changsha, Changchun, Xiamen, Xian, Dongguan, Jinan, Chengzhou and Wuhan.

To provide better coverage in the Mainland in future, more resources will be devoted to that market. During the next 12 months, two investment promotion units will be set up in the new Hong Kong Economic and Trade Offices (HKETOs) in Chengdu and Shanghai. InvestHK also will expand its presence in the Beijing office and the Guangdong HKETO.

Advantages of Hong Kong

The department actively promoted the combined advantages of Hong Kong and the Mainland in 10 overseas cities last year - in co-operation with Mainland authorities and several times with other Hong Kong organisations like the Trade Development Council. For example, InvestHK and Guangdong Province conducted a seminar in San Francisco and Vancouver on 14 and 24 October, respectively. These events received overwhelming response from companies, with 1,300 participants in San Francisco and 1,400 in Vancouver.

InvestHK also partnered, for the first time, with provinces and cities outside of Guangdong Province. In March, the Department joined hands with Shanghai for a joint promotion in Tokyo, and in November, conducted a joint promotion with Fujian in Düsseldorf.

InvestHK continued to support and participate in major international business events in Hong Kong and abroad. They included: the 38th International General Meeting of the Pacific Basin Economic Council; the 88th International Lions Convention; the Cable and Satellite Broadcasting Association of Asia (CASBAA) Convention 2005; the 8th Annual Conference of the Competitiveness Institute; BusinessWeek's 9th Annual CEO Forum; the 3G World Congress and Exhibition; and the 6th World Trade Organisation Ministerial Conference.