InvestHK's Mike Rowse points to positive figures showing Hong Kong is the No.2 largest FDI recipient in Asia after the mainland

The UN Conference on Trade and Development's (UNCTAD) World Investment Report 2004 said FDI in Hong Kong surged 40 per cent to US$13.6 billion in 2003 from US$9.7 billion in 2002. This ranks Hong Kong 11th in the world and number 2 in Asia behind the mainland.

Mike Rowse, director-general of Invest Hong Kong, a government agency tasked with attracting foreign investment to Hong Kong, said that "foreign companies continue to find Hong Kong attractive for all the traditional reasons."

"Asian growth rates have been higher than those in Europe, and investors want to take advantage of Asia. Hong Kong, because of its geographic position, allied with its legal and tax systems, these are the traditional values of Hong Kong and they really count as far as international businesses are concerned," said Mr Rowse.

The report noted that Hong Kong also retained its position behind the mainland in FDI inward stock and that its total was higher than the next five Asian markets combined. After Hong Kong, the next largest Asian recipients were Singapore, India and South Korea.  

The report added that FDI inflows declined globally and in North America last year, but grew in Asia and the Pacific. UNCTAD surveys suggest investment flows are expected to rise again, boosted by faster economic growth and improved corporate profitability.

Mr Rowse added that UNCTAD's positive outlook coincided with the favourable forecasts for the mainland and Hong Kong as the Cepa free trade pact signed earlier with the mainland "should help in bringing higher investment flows in the next 12 to 18 months." 

Details in HK still a magnet for investors

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UNCTAD 
Invest Hong Kong