Hong Kong remains the preferred destination for foreign direct
investment (FDI) in Asia despite its nagging problems of air
pollution and unbalanced industrial structure.
Census and Statistics Department figures released yesterday
showed the first quarter saw an inflow of HK$102.6 billion, more
than a third for the whole of last year.
The figures released by Invest Hong Kong (IHK) showed a total of
156 investment projects were introduced in the first quarter, 13
percent of which were from the mainland and more than half from
North America and Europe.
Investment projects ushered in by IHK were worth over HK$6.82
billion and would create more than 4,285 jobs in the city. IHK is
reported to have already created 1,699 jobs. It will create 2,586
more in the next two years.
But Hong Kong has to maintain its existing atmosphere that meets
overseas companies' investment criteria, both geographically and
financially, instead of just attracting FDI, assistant professor of
Hong Kong Polytechnic University's Department of Management and
Marketing Zhang Xubing said.
"Hong Kong has long been well-known for its geographical
advantages and dynamic system of doing business. Hong Kong is
almost a good brand name for that, and that's why it remains an
attractive location for companies from all over the world...," he
said.?
"But concerns such as air pollution and industry marginalization
that have arisen in recent years may discourage investors to commit
themselves further.
"Besides the clean air issue, there are other things to do to
strengthen Hong Kong's competitiveness, such as improving the
education system and even locals' language proficiency," he
said.
Hong Kong Chief Executive Donald Tsang addressed a FDI
delegation yesterday, saying: "We are aware of the problem and (we)
are taking active steps to deal with it."
Tsang appealed to Hong Kong's business community, including
international companies doing business here, to do their bit to
ensure that manufacturing operations in the Pearl River Delta
region were as environmentally friendly as possible.
"Everything in the character of Hong Kong people reassures me
that our community will remain alert both to dangers and
opportunities. Our community never idles. Nor will our government,"
Tsang said.
Of the 156 completed projects, 22 percent are from the consumer,
retail and purchase sector and 13 percent from business and
professional services.
One of the firms to invest in Hong Kong is Planet Payment. A New
York-based company engaged in tourists' payment clearance, it
opened its regional office in Hong Kong at the end of last year
with an initial investment of over HK$1 million and hopes to cash
in on the mainland market.
"We have our presence in Singapore for years. Now in a bid to
tap the mainland market, we have opened a new office in Hong Kong,"
Planet Payment senior vice-president for corporate development
Thomas DeLuca said.
Planet Payment's Hong Kong office is in Mong Kok with a team of
eight employees, DeLuca said.
(China Daily HK Edition July 12, 2006)
