(From left) Fred Lam, TDC executive director; Toshiyuki Shinmachi, Chairman of the Japan-HK Business Cooperation committee and Dr Victor Fung, chairman of HK-Japan Business Cooperation Committee

Hong Kong's role as a strategic base for Japanese companies is increasing further, according to Toshiyuki Shinmachi, chairman of the Japan-HK Business Cooperation Committee.

"New prospects are emerging in the Pan Pearl River delta region, especially in the areas of logistics and finance, and the Japanese business community should proactively capture such opportunities," said Mr Shinmachi.

He was speaking at the Hong Kong - Japan and Japan - Hong Kong Business Cooperation Committee's 28th Plenary session, in Hong Kong recently. The Plenary Session provides a forum for members to discuss ways to boost Hong Kong and Japanese business ties and relations with the Chinese mainland.

Dr Victor Fung, chairman of the HK-Japan Business Cooperation Committee, said that in addition to Hong Kong's traditional role as a gateway to China, it was rapidly becoming a hub for the ASEAN region, "pulling together" Southeast and Northeast Asia.

No 1 in competitiveness survey

In his speech at the plenary, Dr Fung also quoted a report by the Japan Center for Economic Research (JCER) which ranked Hong Kong as No 1 for competitiveness, in a survey of 50 economies.

"These rankings show that Hong Kong's strengths continue to lie in its capabilities as a services centre for China and the rest of the region", said Dr Fung.

Quoting Yasuhiko Kase, Chairman and Managing Director of Japanese conglomerate Mitsubushi Electric HK, Dr Fung added: "The advantage of Hong Kong is that it has a Western style business culture, and it understands China very well. It is very important."

Also in Hong Kong for the Plenary Session (acting as observers) and visiting the Pearl River Delta region was a high profile Japanese think tank mission. Chief Executive Donald Tsang hosted a luncheon for the members.

In another survey of 600 members conducted in September 2005, the Hong Kong Japanese Chamber of Commerce and Industry found that 90 per cent of respondents said that Hong Kong's business environment was "good" or "very good" for their business, with 97 per cent stating that the Hong Kong office was "necessary" for China business. Favourable factors included free economy, good security, political and social stability, convenient geographical location and transparency in bureaucracy.