global FDI destination
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Hong Kong retained its position as Asia's second largest destination for foreign direct investment (FDI), according to the "World Investment Report 2005", released today (September 30) by the United Nations Conference on Trade and Development (UNCTAD). Hong Kong and the Mainland, again the largest FDI recipient in Asia, accounted for over two-thirds of FDI inflows in the region last year.
UNCTAD recorded an overall increase in global FDI inflows in 2004, representing a rebound after three years of decline. Total FDI inflows reached US$648 billion in 2004, up 2% from 2003. FDI growth in Asia and Oceania was especially robust, growing nearly 50% to over US$148 billion.
Asia remained the largest FDI recipient among developing regions. FDI flows to Hong Kong increased by 150% to US$34.0 billion, the best investment growth rate among the region’s economies. According to the Report, the next largest FDI recipients in Asia, after Hong Kong, were Singapore (US$16.1 billion), South Korea (US$7.7 billion), and India (US$5.3).
According to the latest figures released by the Census & Statistics Department, Hong Kong's inward FDI in the first six months of 2005 amounted to about US$20 billion. During the same period, Invest Hong Kong has assisted 144 foreign and Mainland companies to invest here.
On a global scale, Hong Kong ranked 7th in FDI inflows in 2004, and continued to be classified as one of the "front-runner" economies. This means that the SAR out-performed its investment potential by attracting high FDI flows relative to its economic size. Hong Kong led all Asia economies and was fourth globally in the amount of inward FDI stock, with US$456.8 billion last year.
The Director-General of Investment Promotion at Invest Hong Kong, Mr Mike Rowse, commented on UNCTAD's World Investment Report. He said, "It is encouraging to see that we strengthened our position as a major destination for FDI globally, rising to become the 7th largest destination for FDI in the world."
"The report's positive outlook coincides with ours. We are optimistic that Hong Kong will remain one of the largest FDI recipients in Asia," Mr Rowse said.
"While the numbers are heartening, one of the great benefits of the investment coming into Hong Kong is the innovative technological and business know-how contributed to our economy by the new entrants. Some of this know-how is cutting edge – not only in IT, technology or telecoms sectors, but also in such areas as financial services and sophisticated management consulting."
"We are aware of keen competition for FDI in the region. Invest Hong Kong will continue to undertake targetted efforts to promote existing advantages and enhance our competitive edge to attract foreign investors," he concluded.
The overall findings of the 2005 UNCTAD survey on FDI prospects for FDI in 2005-2006 are promising. More than half of the responding transnational corporations and experts, as well as four-fifths of the investment promotion agencies (IPAs), expected short-term (2005-2006) growth in FDI flows; almost all of the remaining respondents expected FDI levels to be stable. Expectations are the most positive for Asia and other developing regions.
Ends/Friday, September 30, 2005
Issued at HKT 11:20
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