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Hong Kong was the world's fourth largest Foreign Direct Investment (FDI) recipient in 2009, according to the World Investment Report 2010 (WIR) unveiled today (July 23) by the United Nations Conference on Trade and Development (UNCTAD). This marks the first time that Hong Kong has gained fourth place in the global rankings and represents a jump from its ninth position in 2008. For the 12th consecutive year, Hong Kong continues to be the second largest FDI recipient in Asia, after Mainland China.
Although the global financial and economic crisis drove global FDI inflows down by 37 percent in 2009 versus 2008, the impact on Asia was less profound. The US$48.4 billion FDI inflows to Hong Kong, for example, represented a 19 percent decrease. Hong Kong's share of FDI inflows into Asia held up at about 21 percent in 2009, similar to 2008.
In terms of FDI stock, Hong Kong ranked the highest in Asia, enjoying a majority share of 37 percent, or US$912.2 billion in 2009. This represented a 12 percent increase from 2008. As a point of comparison, in 1990 Hong Kong's FDI stock was US$201.6 billion.
Looking ahead, the World Investment Report 2010 provided a glimpse of the global economic recovery picture. The report highlighted Asia's rapid recovery in FDI flows compared to the more gradual improvement in global numbers. In the first quarter of 2010, FDI inflows to Hong Kong, for example, amounted to US$20 billion, representing a significant increase of 72 percent versus the same quarter last year.
Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin said, "Hong Kong's status as an international economy is reflected in this record high ranking as the fourth largest global FDI recipient. With Hong Kong positioned at the heart of Asia and as the gateway to China, it is benefiting from the region's economic recovery."
Outward FDI from developed countries is expected to recover in 2010 and increase in the medium term, according to the UNCTAD report. Data for the first quarter of 2010 showed that FDI outflows increased by 17 percent over the same period last year. For the BRIC economies (Brazil, Russia, India and China), and countries in Latin America and the Caribbean, outward FDI prospects from transnational corporations were expected to increase as they became more active over the first five months of 2010.
Mr Galpin said, "FDI is important to Hong Kong's economy, bringing in new technology, transferring soft skills and creating jobs. We are committed to upholding the advantages of Hong Kong to maintain its competitive position as a business location. Measures such as CEPA, the growing network of Double Taxation Agreements and positioning Hong Kong as the offshore centre for renminbi trading all support the city's role as the preferred investment destination for foreign and mainland companies."
Co-hosting today's press conference with Mr Galpin was the Dean of the Faculty of Business Administration at The Chinese University of Hong Kong, Professor T J Wong, who provided an analysis of the report's findings.
Note: All FDI data and estimates in WIR are continuously revised. Because of ongoing revisions, FDI data reported in the WIR may differ from those reported in earlier reports or other publications of UNCTAD or any other international or regional organisations.
About Invest Hong Kong
Invest Hong Kong is the department of the Hong Kong Special Administrative Region (HKSAR) Government established in July 2000 to take responsibility for Foreign Direct Investment and support overseas, mainland and Taiwanese businesses to set up or expand in Hong Kong. It provides free advice and customised services to help businesses succeed in Hong Kong's vibrant economy. As it celebrates its 10th anniversary, Invest Hong Kong has completed over 2,000 investment projects creating over 25,000 new jobs in the first year of operation or expansion and HK$52 billion of investment. For more information, please visit www.investhk.gov.hk.
About United Nations Conference on Trade and Development (UNCTAD)
Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy. For more information, please visit www.unctad.org.
Ends/Friday, July 23, 2010
Issued at HKT 15:33
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