2007 Was a Good Year For Invest Hong Kong, Rowse Reveals

by Mary Swire, for LawAndTax-News.com, Hong Kong

10 January 2008

Director-General of Investment Promotion with Invest Hong Kong, Mike Rowse announced this week that both the number of companies assisted and jobs created by those companies reached all-time highs last year.

During 2007, Invest Hong Kong assisted 253 overseas, Mainland and Taiwan companies to set up or expand operations in Hong Kong.

These companies expect the projects in question to lead to the creation of over 8,100 jobs. This includes 3,130 jobs established initially, and a further 5,004 jobs in the next two years as these companies expand. More than $8.39 billion was invested by these companies.

“These results once again highlight Hong Kong’s position as the leading international city in the region and reflect the hard work of our staff here and abroad,” observed Mr Rowse. “We have our challenges, such as pollution and the high cost of rent. But, as these figures demonstrate, our city still is able to attract the very best overseas and Mainland companies to our shores."

He continued: “All of this has a sizable impact on Hong Kong’s economy, beyond the initial investment and job creation. Our professional service providers, restaurants, hotels, and shopping centres all benefit from this influx of new people. And these international companies help to retain Hong Kong’s vibrant, cosmopolitan business environment."

Hong Kong successfully attracted investments from a variety of sectors, led by consumer products, retail and sourcing; business and professional services; and technology. Most of these companies came from the Mainland, Asia Pacific (Japan and Australasia), Western Europe and North America.

During the past year, Invest Hong Kong actively communicated to Mainland enterprises Hong Kong’s unique advantages as a springboard to expand overseas.

The Department’s Nationwide Marketing Campaign, launched last June, promoted Hong Kong as a platform for privately-owned enterprises in high growth provinces to expand internationally. The campaign provided these companies with the information and tools to expand internationally, using Hong Kong as their gateway.

In 2007, Invest Hong Kong assisted 47 Mainland companies in setting up or expanding operations in Hong Kong, which is the highest number ever recorded. These companies brought over $2.28 billion to Hong Kong.

Mr Rowse is optimistic about the outlook for inward investment in the coming year.

He explained that: "Our target for this year is to achieve at least another 250 completed projects. We feel reasonably confident about this goal, since there are over 600 live projects in the pipeline – which is more than we’ve ever had before."

“Hong Kong’s role is well defined. The city serves China as a springboard to international markets and serves international markets as a gateway to China as well as to the region generally. It is a simple strategy and one that works well."

“At the same time, we cannot and will not be complacent. Competition is strong and the world economic outlook is uncertain. This means that we have to continue to work hard to improve our investment environment to attract and retain investors from all over the world,” Mr Rowse concluded.

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