12
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1191
INTILL
- 2
21:
Hong Kong and the economy of Guangdong are becoming ingepasingly
linked and it is estimated that at least 2 million people and some
15,000 factories in Guangdong Province work for Hong Ko
companies. At least 60% of all foreign investment there
from
Hong Kong. The Province provides the low cost labour bage required
for Hong Kong products to remain competitive while manufacturing
in Hong Kong moves on to higher value added products and increased
automation. (Re-exports make up 65% of total exports). At the same
time, the service industries continue to grow in importance.
Hong Kong businessmen continue to see commercial and political
advantage in fostering relations with the PRC. Since June 4 1989
however, other low cost labour economies in the region (Thailand,
Indonesia Malaysia, Philippines,
Philippines, Vietnam etc.) have become
increasingly attractive for manufacturing investment
investment for those who
wish to spread their risks and find cheap labour. The is still
not the natural home for investment which falls outside this
pattern.
OR
The USA, Canada and Australia are most likely to attract
the Hong Kong businessmen's attentions. There is also the
consideration that some 90% of Hong Kong manufacturing businesses
employ less then 52 people. They concentrate on light industry
textiles and low technology electronics. The opportunities for
attracting inward investment from Hong Kong are likely to remain
limited.
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