Hong Kong 2006
 GO
Chapter 5:
Commerce and Industry
Introduction
Merchandise Trade Performance
The Manufacturing Sector
The Services Sector
External Investment
The Institutional Framework
External Commercial Relations
Small and Medium Enterprises
Promotion of Innovation and Technology
Protection of Intellectual Property Rights
Professional Services Development Assistance Scheme
Business Facilitation
Trade Documentation
Hong Kong Awards for Industries
Trade and Industrial Support Organisations
Standards and Conformance Services
Human Resources, Technical Education and Industrial Training
Consumer Protection
Trade in Endangered Species
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External Investment

Hong Kong's attraction as a place to do business is evident from the inflow of foreign direct investment (FDI) and the number of regional headquarters and regional offices in Hong Kong set up by companies outside Hong Kong.

A Census and Statistics Department survey shows that Hong Kong's FDI inflow in 2005 amounted to US$33.6 billion. According to the 'World Investment Report 2006' released by the United Nations Conference on Trade and Development, Hong Kong was the second largest recipient of FDI in Asia in 2005.

Hong Kong had 9 075 enterprise groups1 with inward direct investment in 2005, comprising 245 in the manufacturing sector and 8 830 in the non-manufacturing sectors. The market value of the stock of inward direct investment amounted to $4,056.3 billion. Chart 3 shows the major economic activities of these enterprise groups while Chart 4 shows source countries/territories of the inward direct investment. Regarding employment, 66 per cent of them were enterprise groups employing fewer than 20 persons (Chart 5).

Chart 3
Position of Inward Direct Investment in Hong Kong at
Market Value by Major Economic Activity of
Hong Kong Enterprise Group at end-2005
Chart 3 Position of Inward Direct Investment in Hong Kong at Market Value by Major Economic Activity of Hong Kong Enterprise Group at end-2005
 
Chart 4
Position of Inward Direct Investment in Hong Kong at
Market Value by Major Investor Country/Territory
at end-2005
Chart 4 Position of Inward Direct Investment in Hong Kong at Market Value by Major Investor Country/Territory at end-2005
 
Note: British Virgin Islands and Bermuda are important offshore financial centres commonly used by investors to channel inward direct investment funds to Hong Kong.
 
Chart 5
Number of Hong Kong Enterprise Groups (HKEGs)
with Inward Direct Investment by
Employment Size in mid-2005
Chart 5 Number of Hong Kong Enterprise Groups (HKEGs) with Inward Direct Investment by Employment Size in mid-2005
 

According to a survey conducted by the Census and Statistics Department, as at June 1, 2006, 3 845 companies outside Hong Kong had set up either their regional headquarters or regional offices in Hong Kong compared to 3 798 in 2005.

1An enterprise group may consist of a parent company, its subsidiaries, associates and branches.
2005 I 2004 I 2003 I 2002 I 2001 I 2000 I 1999 I 1998 I 1997