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.