Campus Recruitment Talk HKUST ( )

Promotion of Inward Investment Presentation by the Director-General of Investment Promotion Title Page

Vision & Mission of InvestHK Vision To confirm and strengthen Hong Kong as the leading international business location in Asia. Mission To attract to and retain in Hong Kong economically and strategically important investment.

Mode of Operation Reactive Proactive Aftercare

InvestHK External Presence Sydney Shanghai London Toronto San Francisco New York Brussels HONG KONG Beijing YES WE CAN Guangzhou Tokyo

Marketing Activities Sponsorship of Major Business Conferences Fortune Global Forum 2001 Forbes Global CEO Conference 2002 Sponsorship of International Sporting Events BT Global Challenge Hong Kong Rugby 7s Membership of International Chambers of Commerce

Foreign Direct Investment (FDI) Inflow in Asia (in billion US dollars) Source: UNCTAD World Investment Report Mainland China 40.2 Mainland China 44.2 Mainland China 43.8 Mainland China 40.3 Hong Kong 61.9 Mainland China Hong Kong 10.5 Hong Kong 11.4 Hong Kong 14.8 Hong Kong 24.6 Mainland China 40.8 Hong Kong Singapore 8.6 Singapore 10.7 Singapore 6.4 Japan 12.7 S. Korea 9.3 Singapore 8.6 4Malaysia 7.3 Malaysia 6.3 S. Korea 5.4 Singapore 11.8 Japan 8.3 Japan 6.2 5Indonesia 6.2 Indonesia 4.7 Thailand 5.1 S. Korea 9.3 Singapore 5.4 Taiwan 4.1 6Thailand 2.3 Thailand 3.6 Japan 3.2 Malaysia 3.9 Taiwan 4.9 Thailand 3.8 7S. Korea 2.3 Japan 3.2 Malaysia 2.7 Thailand 3.6 Malaysia 3.8 S. Korea 3.2 8Taiwan 1.9 S. Korea 2.8 Philippines 1.8 Taiwan 2.9 Thailand 2.8 Philippines 1.8 9Philippines 1.5 Taiwan 2.2 Taiwan 0.2 Philippines 0.6 Philippines 1.2 Malaysia Japan 0.2 Philippines 1.2 Indonesia -0.3 Indonesia -2.7 Indonesia -4.5 Indonesia -3.3 Exceptional X-border transaction

Foreign Investment Attracted Investment Amount ($HK million)

Regional Headquarters and Regional Offices in Hong Kong RHQ RO Slight drop in 2002 Mainly Japanese firms (mainly closing NOT moving out)

Strengths of Hong Kong  Tax system  Rule of law and legal framework  Convertible currency, absence of foreign exchange controls  Free flow of information  World class infrastructure

Aspects to be Improved  High cost of business and residential premises  High cost and availability of qualified personnel  Low standard of English and declining use  Environmental pollution  Difficulty of bringing in key Mainland personnel

Certainty Consistency Clarity Creditability 4Cs MGC’S Re-collection & Sharing The HKSAR Govt

Community Attitude Philips/Gold Star JV - its headquarters in HK Why choose HK --> MGC’S Re-collection & Sharing after Intensive due intelligence

Space Program Heavy military base Large bunch of hi-tech graduates MGC’S Re-collection & Sharing Critical Hi-tech Success Factors :

Regional base for Pacific Region National level - compete with Beijing & Shanghai Sub-regional - PRD (HK is Complementary) MGC’S Re-collection & Sharing What HK could offer to MNCs walking with a swagger

5 Key Criteria in becoming a Financial Institute Fully convertible currency No restriction in flow of capital Legal system built on international acceptable principle FREE flow of information The Gov’t does not own any part of the banking community MGC’S Re-collection & Sharing

Vocational Training Council Transport Logistics Symposium (24 October 2002)

Mainland Economy: An Overview  Overall size of US$1.2 trillion, growing at an annual average of 7.8% over past 5 years  Growth in 2001 was 7.3%  Target growth for the 10 th “Five-year Plan” ( ) is 7%, reaching US$1.5 trillion by 2005 or 29% of Japan’s projected GDP for that year  Future growth factors: rising domestic demand, “Western Development” and accession to WTO

Pearl River Delta (PRD) in Focus  Includes most vibrant Mainland cities such as Guangzhou, Shenzhen, Zhuhai, Dongguan, Zhongshan, Huizhou and Zhaoqing in addition to Hong Kong SAR and Macau SAR  Covers an area of 42,821 sq. km, or one-fourth of Guangdong  A population of million, with GDP at US$258 billion  Economic growth at an average of 6.8% for the past 5 years

GDP of Major cities in PRD in ,2614,380 Zhongshan 中山 3,5414,429 Zhuhai 珠海 4,5646,994 Dongguan 東莞 1,9527,432 Jiangmen 江門 3,86312,908 Foshan 佛山 5,23823,615 Shenzhen 深圳 4,59232,448 Guangzhou 廣州 14,2816,202 Macau SAR 澳門 24,383163,974 HKSAR 香港 GDP per capita (US$)GDP (US$ million)

Strengths of PRD  Manufacturing capability  Technology base  Universities and research institutions  Services industries  International financial services (Hong Kong SAR)  Recreational facilities (Macau SAR)

Hong Kong: A Natural Partner for PRD  Already Guangdong’s largest trading partner  World class infrastructure (physical and information)  Business “know-how” and international connections  Well-established legal systems

Hong Kong Port’s World Ranking in Containerised Cargo Throughput (2001) World Top 10 Container Ports Source: Containerisation International

Major Ports within PRD

Container Throughput Comparison of Hong Kong and Major Ports in Guangdong/PRD

Sharpening Our Competitive Edge in Maritime Transport  Port cargo growth following Mainland China’s accession to WTO  CT9 development  Container port productivity enhancement  Hong Kong Port - Master Plan 2020

Our Strengths: Logistics Hub Logistics Heart of Asia  Prime location  World class infrastructure  Physical and information connectivity  A culture for excellence  Friendly business environment

Conclusion: A New Partnership  Mainland –  a strong growth engine for the world economy, with high growth potential  a prominent and ascending trading entity: both as a world supplier and a world market  PRD will continue to lead in terms of the scale, depth and sophistication of economic activities in Mainland China  Hong Kong will continue to play a pivotal role in the Mainland’s long- term economic development, but no longer the sole agent  Hong Kong remains the preferred international transportation and logistics hub in Asia, servicing in particular PRD  Need to develop a closer partnership with PRD, and further enhance competitiveness