Investors cast vote of confidence in Hong Kong (with photo)

Investors cast vote of confidence in Hong Kong (with photo)
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The Chief Executive, Mr Donald Tsang, hosted a reception today (September 5) to thank new foreign and Mainland investors for their substantial contribution to the Hong Kong economy.

More than 200 guests representing some 160 overseas and Mainland companies that set up operations or increased their overall investment in Hong Kong from July last year and August this year attended the reception. Consulates General and heads of international chambers of commerce in Hong Kong also joined the event.

Welcoming the guests, Mr Tsang said, "It is always exciting living and working in Hong Kong, but the next few months are likely to be particularly lively."

"We are just one week away from the opening of Hong Kong Disneyland, thereby joining Tokyo and Paris as international home for some of the world's best loved characters. In December we play host to the World Trade Organization's Sixth Ministerial Conference, a clear illustration of the important role Hong Kong plays in international trade. Just one week later we will open AsiaWorld-Expo, our new world class exhibition center at the airport. That in turn will make it possible for us to host ITU Telecom World in December 2006, the first time the event will have been held outside Geneva."

The Chief Executive assured the investors that "we are not complacent, we are aware that there are aspects of our city that need improving if we are to maintain and enhance our position."

He urged them to play a full part in the public life of Hong Kong and together make it truly Asia's World City.

The Secretary for Commerce, Industry and Technology, Mr John Tsang and the Director-General of Investment Promotion at Invest Hong Kong, Mr Mike Rowse, greeted the new investors at the reception.

Mr Rowse said, "We at Invest Hong Kong would like to thank you for choosing Hong Kong. Your presence here today means a lot to us -- it shows your vote of confidence in our city, your commitment to long-term development of Hong Kong and your trust in Hong Kong as the best city to live and to do business in Asia. We understand that most of you conducted extensive evaluation of alternative locations before investing or expanding in Hong Kong. We can assure you that you have made the right decision."

Mr Rowse said that 2004 was Hong Kong's most successful year ever for investment promotion. Invest Hong Kong assisted 205 foreign and Mainland companies to set up or expand operations in Hong Kong last year. Hong Kong also recorded all-time highs in the number of regional headquarters and offices operated by foreign companies here.

He also noted that inward investment has stayed on the upswing. At the end of June, Invest Hong Kong had assisted 144 companies to invest or expand in Hong Kong, achieving more than half of its annual target of 220 and representing a healthy 13.4% increase from the same period last year.

These projects led to the immediate creation of more than 1,400 jobs. The same investors plan to create over 3,000 additional jobs in the next two years. Initial investment by these companies investment topped $1.5 billion.

"CEPA had a clearly positive impact on attracting investors," Mr Rowse said. "A quarter of the companies we have assisted so far this year told us that CEPA played an important role in their decision to invest here."

"We continue to see increased interest from Mainland companies in using Hong Kong as a springboard to overseas markets," he said. "It has been 12 months since the implementation of the Ministry of Commerce's investment facilitation policy for Mainland enterprises to invest in Hong Kong. Between September 1, 2004 and August 15, 2005, 257 Mainland enterprises were granted approval to invest in Hong Kong, according to the Ministry. These projects involve an investment amount of $8.03 billion (US$1.03 billion)."

Mainland companies made up 17% of the department's completed projects in the first six months, and now constitute around 20% of the current live case-load.

"At the same time, our traditional source markets of investment projects including the Asia-Pacific, Europe and North America, continue to be key contributors to our economy," Mr Rowse said. "They represented 36%, 25% and 19%, respectively, of our total number of projects in the first six months."

The department is optimistic that the results of investment promotion in 2005 will reflect a steady growth.

"We believe that the opening of new large-scale facilities in Hong Kong later this year, such as Hong Kong Disneyland and AsiaWorld-Expo, will have a positive impact on the growth of various sectors in Hong Kong. Moreover, we have successfully won some significant inward investment projects for Hong Kong in the past few months. We expect these projects will be completed in the next 12 to 18 months."

Mr Rowse also expressed sincere thanks to the business chambers and consulates for their continued support in promoting Hong Kong as the ideal business location.

After the reception, senior representatives of four companies, accompanied by Mr Rowse, met the media to share their views on the overall investment environment in Hong Kong. They included the following executives: Partner of Baker Botts, Mr John Kuzmik; Managing Director and CEO of Fubon Bank (Hong Kong) Limited, Mr Jin-Yi Lee; Vice-President, Ultra-Terminal Division, Asia Pacific　of Schneider Electric Business Solutions Hong Kong and CEO of Clipsal Asia Holdings Limited, Mr Xavier Datin; and Sales Director, Asia Pacific (except Japan) of UFIDA Software Co, Ltd, Mr Alex Wong.

The executives also discussed their companies' recent investment in Hong Kong. In summary:

Baker Botts
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The US-based international law firm opened its first Asian office in Hong Kong to enhance its involvement in major energy projects throughout the Asian region. The firm sees Hong Kong as its regional hub, a natural gateway for China. Opening a Hong Kong office with lawyers experienced in the law and customs of this region enables Baker Botts to respond immediately to clients' demand for services. Baker Botts will use Hong Kong to build a strong base of operations that can expand as the regional economy and opportunities grow.

Fubon Bank
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The Taiwan-based Fubon Group chose to set up a fully licensed banking entity in Hong Kong as its first step in the internationalisation of this financial services conglomerate. The establishment of Fubon Bank (Hong Kong) Limited through its first overseas acquisition demonstrated Fubon's strong and long-term commitment to Hong Kong. The branches here are full-service banking operations providing a wide range of banking and financial services. From its base in the leading international financial centre in Asia, Fubon Group will seek new business opportunities in the banking arena in and beyond the Asia-Pacific region.

Schneider Electric
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Schneider Electric is a world leader in Electrical Distribution and global number two in Automation & Control. Hong Kong is an important base for the company to manage operations in the region. In addition to locating its regional headquarters at Cyberport, Schneider has increased its investment in the city continuously by opening a new regional logistics centre in Kwai Chung. The usable space has been expanded from 2,800sqm at the initial stage to 14,800sqm currently.

With the new logistics centre, Schneider Electric is committed to the long-term development of its operations in Hong Kong, which plays an integral role in providing logistics services and support within the Asia-Pacific region. Moreover, the company increased its activities in Hong Kong by taking 50% in Clipsal Company, which is a leading electrical products and total solutions company for homes, hotels, offices and commercial buildings in Hong Kong.

UFIDA
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Beijing-based software company UFIDA expanded its operations in Hong Kong into a regional headquarters to oversee its business in Asia-Pacific, except Japan. For UFIDA, Hong Kong serves as a bridge connecting the company with the rest of the Asian market. The company chose to set up its first overseas office in 2003 in Hong Kong. Demonstrating its confidence in Hong Kong as its regional hub, UFIDA has invested substantially more resources in its operation here, tripling the size of its office size and the number of staff.

Ends/Monday, September 5, 2005
Issued at HKT 19:16

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