Hong Kong seizes record high ranking as global FDI recipient (with photo/video)

     Hong Kong was the world's third largest recipient of Foreign Direct Investment (FDI) flows in 2010, according to the United Nations Conference on Trade and Development (UNCTAD)'s World Investment Report 2011 (WIR) released today (July 27). This marks the first time that Hong Kong has gained third place in the global rankings, having jumped into fourth place in 2009 from ninth position in 2008.

     For the 13th consecutive year, Hong Kong continued to be the second largest FDI recipient in Asia, after Mainland China. The all-time record of US$68.9 billion inflows to Hong Kong in 2010 represented a 31.5 per cent increase over 2009.

     In terms of FDI stock, Hong Kong ranked the highest in Asia, enjoying a 30 per cent share, or a little over US$1 trillion in 2010. As a point of comparison, in 1990 Hong Kong's FDI stock was almost US$202 billion.

     Looking ahead, the World Investment Report 2011 also provided a glimpse of global FDI trends. A five per cent rise in global inflows to US$1.2 trillion showed modest improvement in the wake of the global financial crisis. One other feature of the WIR 2011 was that developing and transition economies attracted the lion's share of global FDI inflows. Mainland China, Hong Kong, Brazil, Russia, Singapore, Saudi Arabia, India, Mexico, Chile and Indonesia together accounted for 32 per cent of total FDI inflows in 2010.

     Director-General of Investment Promotion, Mr Simon Galpin said, "Hong Kong's status within the global economy is reflected in its record high ranking as the third largest recipient of global FDI flows. With Hong Kong positioned at the heart of Asia and as the gateway to China, it is clearly benefiting from the shift in economic interest to the East."

     According to UNCTAD, inflows and outflows for developing Asian economies are expected to continue to grow. Countries in the region have made considerable progress in their regional economic integration efforts, which will translate into a more favourable investment climate for intraregional FDI.

     With regards to developed economies, preliminary data from UNCTAD for the first half of 2011 suggest that FDI growth will gradually strengthen for developed countries this year.

     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 Wong Tak-jun, who provided an analysis of the report's findings.

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 11th year of operation, Invest Hong Kong has completed over 2 300 investment projects creating over 28 000 new jobs in the first year of operation or expansion and HK$60 billion of investment. For more information, please visit www.investhk.gov.hk.

About the 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.

     For event photo, please visit www.flickr.com/photos/investhk/5979946553 .

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.

Ends/Wednesday, July 27, 2011
Issued at HKT 15:34