the Asia Pacific region because so many of them have been traditionally been US preserves and most will still look North to Japan or across the Pacific to the USA or Australia unless we take concerted action to build better bilateral relations.
We have already made great strides in cultivating an awareness of the UK as the natural and preferred European partner. It is particularly evident in our relations with Japan. It shows up in our improved market position there, in the increase in British direct investment in Japan and in the high proportion, of high quality Japanese manufacturing investment in this country.
We are pursuing similar objectives elsewhere in the region, developing a network of relations with China, Taiwan, Hong Kong, Singapore and others. My colleague Richard Needham, the Minister
of Trade has recently visited Indonesia and plans to go to Thailand shortly.
The South China growth triangle is a particular priority. Richard Needham has visited China three times in the last 8 months, including one mission to Hong Kong and South China in the company of 19 businessmen. The China Britain Trade Group recently took over 100 UK companies to China.
This strong
interest in these markets is encouraging. But we need to continue to push home the message that China is no longer a distant, exotic and esoteric market, but is now very firmly in the mainstream of the Asia Pacific's dynamic development a market for consumer goods as well as for major projects.
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Britain of course, has a natural and widely envied entré into the Chinese market through with Hong Kong. Hong Kong offers the unique advantages of proximity to China, a common legal system, mature financial markets, excellent infrastructure and communications, a low tax policy, and a wealth of available expertise. Many UK companies have recognised these benefits and been quick to take advantage of them by establishing a springboard presence in Hong Kong.
If you would like a tip on where to explore next, try Vietnam. It is emerging from years of economic mismanagement but has tremendous resources on which to build. It has recently discovered oil, there is a huge labour force, and a history of entrepreneurship. The recently updated Investment Law is widely regarded as the most liberal in South East Asia and the UK is already the fifth largest investor in Vietnam - largely in the oil and gas sector.
[I would like to emphasise one particular part of our strategy and that is the portfolio approach to the Asia Pacific region. There is a need to be aware of the world setting of the Asia-Pacific. But what is absolutely essential too is a sub-regional and individual market-orientated strategy, covering the whole range of opportunities which may exist for a company
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