Joint Hong Kong-Guangzhou seminar in Tokyo

Invest Hong Kong today (September 20) joined with the Bureau of Foreign Trade and Economic Co-operation of the Guangzhou Municipality to hold an investment seminar for Japanese businessmen in Tokyo.

It was the first overseas investment promotion event jointly organised by the Hong Kong Special Administrative Region Government and a government body of the Mainland.

The aim of the seminar, co-organised by the Hong Kong Economic and Trade Office in Tokyo, was to introduce the advantages Hong Kong and Guangzhou could offer (both separately and together) to Japanese companies as an investment destination following China's accession to the World Trade Organisation.

Associate Director-General at Invest Hong Kong, John Wan, led the Hong Kong team to Tokyo. He said the event was part of Invest Hong Kong's efforts to promote closer co-operation between the Mainland and Hong Kong in publicising the business opportunities in the Pearl River Delta.

"Hong Kong, as an international financial centre with a clustering of professional services, is a springboard for Mainland enterprises to 'go overseas'" he said.

"We are also the gateway to China, providing all the necessary expertise and partnership to foreign firms for exploiting the opportunities in the growing Mainland market.

"Japan has a large manufacturing sector and industry experts estimate that a significant portion will move overseas in the next five to 10 years. China has already attracted a substantial number of Japanese manufacturing companies. This trend is expected to increase in the future."

Mr Wan said Hong Kong and Guangzhou wanted to encourage and facilitate Japanese enterprises to set up manufacturing facilities in Guangzhou, and regional headquarters or 'beachheads' in Hong Kong to control or manage their China operations.

The Director-General of the Bureau of Foreign Trade and Economic Co-operation of the Guangzhou Municipality, Mr Chen Mingde, briefed participants on the latest developments and investment environment in Guangzhou.

He said investors had focused on automobiles and components, mechanical equipment, textiles and fashion, petrochemicals, electronic telecommunications and plastics in the manufacturing sector.

After the British Virgin Islands and Hong Kong, Japan was the next leading investor in China with US$81.27 million in 11 projects in Guangzhou in the first half of 2002.

Mr Chen said the Pearl River Delta was now one of the most economically vibrant regions in the Mainland.

"It is China's largest manufacturing base and merchandise collecting and distributing centre. As the city of Guangzhou is located in the centre of the Pearl River Delta, its advantages of location as well as radiation and focal effects are becoming increasingly apparent," he said.

Also speaking at the seminar, the Principal Hong Kong Economic and Trade Representative in Tokyo, Mr Alex Fong, said that following China's accession to the WTO, Hong Kong saw a second wave of Japanese companies setting up operations in the Mainland. They were using Hong Kong as the platform and hub to integrate their business activities in China and the region.

He said the first wave started with the opening up of China in 1978 and involved large companies. The second wave mainly involved small and medium sized companies.

The seminar was attended by 160 representatives from over 100 Japanese companies, mainly from the IT, automotive components manufacturing and trade, technology, tourism, entertainment, financial services and transportation sectors.

It also included presentations by the Deputy General Manager of Marubeni Hong Kong & South China Ltd, Mr Masumi Mizuno; and the Senior Manager of Tohmatsu & Co, Mr Tomoyasu Maruyama.

Ends/Friday, September 20, 2002