Shoppers flock to Hong Kong’s newly opened Christian Dior boutique, the largest in the Asia-Pacific region

Chief Executive Tung Chee Hwa said the continued influx of foreign direct investment has re-affirmed Hong Kong's position as a major business hub in the region. The investors' move, he said, demonstrated the city's sound economic fundamentals and is "a great vote of confidence in Hong Kong".

Mr Tung added that foreign firms can look forward to more business opportunities with the recent removal of Hong Kong from the WHO list of Sars-affected areas, the mainland's rapid growth especially in the Pearl River Delta, and the implementation of the Closer Economic Partnership Arrangement.

According to Elizabeth Thomson president of ICS Trust (Asia) Ltd, a specialised professional private banking and corporate services organisation, "Hong Kong supports business - it doesn't interfere with business. It has one of the best tax regimes in the world, and certainly the best in Asia to support regional business operations."

Retail sector draws attention

Investors have shown strong interest in the retail sector. Over 20 foreign retailers entered the Hong Kong market, opened additional shops or upgraded their presence by setting up large-scale flagship stores since last year.

Upmarket French luxury brand Christian Dior recently opened its 4,500 square feet flagship boutique - the largest in the Asia-Pacific region - in early June in Hong Kong's Tsim Sha Tsui shopping district.

Philippe Fortunato, managing director of Dior Far East, said the opening of the slick new store is a "symbol of our commitment to Hong Kong".

"We have always been and will continue to be committed to Hong Kong as a major world city. The opening of our new flagship store and the two-day celebrations pay tribute to the soaring spirit of Hong Kong," Mr Fortunato added. 

Luxury brand Louis Vuitton is also expanding its presence by setting up a global store - its fourth in the world - ranking Hong Kong alongside the fashion capitals of London, New York and Paris. Louis Vuitton currently has three shops in Hong Kong representing its largest market in Asia after Japan. 

CEO Serge Brunschwig said that by 2005 there would be five Luis Vuitton shops in Hong Kong, with the flagship store in the Landmark Building in the financial district of Central. 

Other recent retail outlets opened by foreign brands include Japanese furnishing store Franc Franc, American fashion accessories store Kate Spade and Italian fashion chain Miss Sixty. Byford International Limited, the worldwide owner and licensor of the British innerwear brand Byford, also established its global headquarters in Hong Kong.

Business connectivity attracts foreign firms

Mike Rowse director-general of Invest Hong Kong, an agency tasked with attracting overseas investment to Hong Kong, pointed out that Hong Kong's transparent and business-friendly regulatory environment has made the city an attractive destination for foreign direct investment.

Hong Kong's sophisticated infrastructure has recently attracted the Pacific Region of Airports Council International (ACI -Pacific) to relocate its Pacific regional office from Vancouver, Canada, to Hong Kong by 2004. The SAR was chosen for its "strong position in terms of business connectivity and infrastructure".

Hong Kong's gateway role to the mainland and proximity to Macau has also attracted the Nevada Commission on Economic Development to open a representative office in Hong Kong. 

Related link:
Invest Hong Kong www.investhk.gov.hk