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Below is the speech delivered by the Chief Executive, Mr Donald Tsang, at the annual reception for new investors in Conrad Hong Kong today (June 22):
Distinguished guests, ladies and gentlemen,
Good afternoon. Thank you for joining our annual reception for new foreign and Mainland investors.
It is always a pleasure to host this event, and to welcome both new investors to Hong Kong and those who have expanded their operations here.
Thank you, first of all, for your confidence in our city. Let me also congratulate Invest Hong Kong on its 10th anniversary. Time flies.
At this reception last year, I talked about the economic stimulus package that the Hong Kong Government had put in place to counter the worst effects of the global financial crisis. Well...what a difference a year makes!
Hong Kong's economy expanded at its fastest pace in four years in the first quarter of this year with GDP growing at 8.2 per cent year-on-year. It was the fourth consecutive quarterly rise and above economists' expectations.
This positive news is being reflected in Invest Hong Kong. Last year, Invest Hong Kong assisted 265 overseas, Mainland and Taiwanese companies to set up or expand in our city.
Indeed, every year since its launch, Invest Hong Kong has managed to exceed the previous year's target for completed projects. So I was very pleased - but not entirely surprised - when Simon told me the Department is on track to beat its target of 270 new investment projects this year.
One of the 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. This shift has been magnified by the credit crunch and the global financial crisis.
Our business-friendly environment also provides some pretty appealing advantages too. We have the rule of law upheld by an independent judiciary; we have a free flow of information, capital, people and goods; we have low taxes; and we have a level playing field for business. And most of all, we have a very law-abiding government in the sense that we are being sued almost every day. And often, we lose. Yesterday, we lost a case badly. We regard it not as a weakness but a strength in that we do maintain a level playing field. And we have the humility as an administration to admit that occasionally we might be wrong. All this, and much more, has attracted many high growth companies, like yours to set up in Hong Kong.
Your presence in Hong Kong is not just testimony to the business potential you see; it is also testimony to the strengths I mentioned that underpin our development as Asia¡¦s world city.
Hong Kong is not a place that stands still. We take every opportunity to enhance our overall competitiveness. That is why we have targeted six new growth industries where Hong Kong has a clear advantage. These industries are testing and certification, medical services, innovation and technology, cultural and creative industries, environmental industries and education services.
Also this year, a growing network of bilateral tax treaties has begun to bring fresh business, trade and investment opportunities to Hong Kong. We have signed the avoidance of double taxation agreements with Austria, Belgium, Brunei, Indonesia, Kuwait, Luxembourg, Mainland China, the Netherlands, Vietnam and Thailand. Our tax authorities have also reached agreement on DTAs with 14 other countries, among them France, Ireland, Italy, Japan, Switzerland and the UK. More are coming.
Hong Kong is establishing itself as the preferred location for trade settlement in Renminbi. The Trade Settlement Scheme launched last year gives enterprises in Mainland China the chance to settle trade with companies in Hong Kong, Macao and ASEAN countries in Renminbi. At the same time, companies outside these regions can use Hong Kong as a platform to conduct their Renminbi trade, as some South American countries are doing.
This provides companies the opportunity to sell to the Mainland in Renminbi via a Hong Kong company. It also enhances our status as an international business and financial centre in Asia.
Ladies and gentlemen, once again, welcome to Hong Kong and thank you for attending our reception this year. More importantly, thank you for choosing our city as a base for your business in Asia.
I wish you every success in Hong Kong -- and there's no reason why it wouldn't happen in the best of time and the best of place. Thank you very much.
Ends/Tuesday, June 22, 2010
Issued at HKT 20:05
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