Dr Victor Fung says the thriving business partnership between Hong Kong and the PRD is poised for even greater strength

Speaking at an American Chamber of Commerce luncheon, Dr Fung focused on how Hong Kong and the PRD can leverage their respective strengths to form an even more dynamic relationship.

"Hong Kong needs the land and manpower resources available in the PRD to support the expansion of its economy in both the manufacturing and service sectors. On the other hand, the PRD needs Hong Kong's capital, global trade experience, management expertise and technical know-how to modernise and grow its economy," he said.

Dr Fung said he fully supports the Hong Kong government's plans to position the SAR as a logistics hub of the region. "The reason is simple. Supply Chain Management (SCM) is now the norm in global trade. Hong Kong is recognised internationally as a leader in cargo handling capability, efficiency and trace record. There is no reason why we should not become a leader in SCM as well."

To succeed in SCM and logistics, it is important that Hong Kong takes up the role of managing and integrating the myriad supply chains linking manufacturers and service providers in the PRD and the entire Chinese mainland, and probably the rest of the Asia-Pacific region as well, he said.

Hong Kong and the PRD have traditionally been China's windows to the outside world, and this role will remain strong following China's entry into the World Trade Organisation (WTO).

"With their established experience, track record and advanced communications infrastructure, Hong Kong and the PRD can continue to play the role of an integrator or intermediary between China and the world market. We can easily merge our capabilities through an even closer partnership."

Dr Fung said the volume of trade between China and world markets is expected to increase dramatically, and the demand for SCM services and logistics support would grow by leaps and bounds.

"In this regard Hong Kong's capabilities and potential as a regional logistics hub will complement those of the PRD. Together we can be one single value creator for trade activities across the region, and build the PRD into the logistics centre for the mainland and the Asia-Pacific region."

Dr Fung said that after China's accession to the WTO, the PRD has unlimited potential in playing a key role in driving the economic growth of China.

"As the PRD's lifelong partner, Hong Kong has the ability to facilitate the region's growth and development, and will benefit as a result." 

Related links:
Li & Fung www.lifung.com
Hong Kong Airport Authority www.hkairport.com
American Chamber of Commerce  www.amcham.org.hk