Hong Kong Update
 Hong Kong Economic and Trade Office - Canada  

Summer / Fall 2010 Issue_

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Invest Hong Kong celebrates new milestone
Invest Hong Kong, the government department responsible for attracting and servicing foreign, Mainland Chinese, and Taiwanese investments in the Special Administrative Region (SAR), celebrated its 10th anniversary earlier this year while launching its 2,000th investment project -- Start Asia, an integrated branding consultancy from the United Kingdom.

Director-General of  Invest Hong Kong, Mr Simon GalpinThe Secretary for Commerce and Economic Development, Mrs. Rita Lau, at a commemorative certificate presentation ceremony, said that the Hong Kong government has identified six growth industries where Hong Kong enjoys clear advantages. Apart from the cultural and creative industry, the other five are testing and certification, medical services, educational services, innovation and technology, and environmental industries.

Mr. J. Cummings, Start Asia's managing director, said, "we base the business in Hong Kong because of its rule of law, low taxes, banking structure and, most importantly, its easy access to Mainland China... the Hong Kong office will act as a strategic and creative hub managing smaller satellite offices in the region."

To date, Invest Hong Kong has completed over 2,000 investment projects and attracted HK$52 billion worth of investment. Last year, it assisted 265 overseas, Mainland Chinese, and Taiwanese companies to set up or expand in the city. One of the critical reasons overseas firms are continuing to invest in Hong Kong is the shift from traditional markets in the West towards new ones in the East. The shift has been magnified recently by the credit crunch and global financial crisis.

Hong Kong's Chief Executive, Mr. Donald Tsang, at this year's annual reception for new investors, reiterated that Hong Kong's business-friendly environment also provides other appealing advantages such as a law-abiding government, the rule of law upheld by an independent judiciary, a free flow of information, capital, people and goods, and a level playing field for business.

Invest Hong Kong's recently released sixth edition of the Greater Pearl River Delta (GPRD) report highlighted the city's central position in the GPRD's development, and forecasts great promises for the future.

The report states that in the past 20 years, the GPRD has become one of the most affluent and fastest growing regions in Mainland China, and one of the world's most dynamic economic areas with an average annual GDP growth of over 11%.

A range of key policy initiatives, including the "Outline Plan for the Reform and Development of the PRD (2008-2020)", and major cross-border infrastructure projects such as the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link, are improving significantly the connectivity within and between the GPRD and the rest of the world; making it easier for foreign investors to access opportunities in there than ever before.

Invest Hong Kong's Director-General, Mr. Simon Galpin, commented that "Hong Kong is the traditional access point for multi-national companies into the GPRD and Asia Pacific. This latest edition of the report highlights the ways in which overseas companies are using Hong Kong as part of their successful GPRD business strategies."

"The Hong Kong-PRD combination has resulted in the PRD developing into one of the world's leading manufacturing centres, while Hong Kong has become a principal centre for management, information, co-ordination, finance and professional services."

One of the report's authors, Professor Michael Enright, pointed out that over the years, GPRD has increased in importance as a production centre and a market within Mainland China and globally. "As part of the GPRD, Hong Kong is becoming not only a place where the rest of world meets China, but also where China meets the rest of the world."

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