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External
Investment
The
Industry Department promotes and facilitates overseas investment in the
industries of Hong Kong. It maintains a One Stop Unit in Hong Kong which
works closely with seven overseas Investment Promotion Units in North
America, Europe, Japan and Australia. Together, they provide advice and
assistance to potential overseas investors in developing and implementing
their investment plans in Hong Kong.
Industry Department and Census & Statistics Department
surveys show that Hong Kong had 364 foreign-owned manufacturing companies
and 7 440 foreign-owned non-manufacturing companies at the
end of 1997. The total stock of inward direct investment amounted
to $732.4 billion at historical cost. Charts 3 and 4 show the industries
and source countries of the external investment. These foreign-owned companies
together employed 404 708 people (i.e. 18 per cent
of Hong Kong's total employment). Foreign-owned manufacturing companies
accounted for 35 per cent of Hong Kong's total domestic
exports.
Chart
3: Stock of inward direct investment in Hong Kong at end-1997
(Distribution by business sector)

Chart
4: Stock of inward direct investment in Hong Kong at end-1997
(Distribution by major investor country)

Another Industry Department survey identified 2
449 overseas companies which had established regional headquarters
or regional offices in Hong Kong by June 1, 1998. To provide additional
assurance to overseas investors, Hong Kong has concluded bilateral investment
promotion and protection agreements with 14 of its major investment partners:
Australia, Austria, Belgium/Luxembourg, Denmark, France, Germany, Italy,
Japan, Korea, the Netherlands, New Zealand, Sweden, Switzerland and the
UK.
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