14
INDUSTRY AND TRADE
calculators, transistors, integrated circuits, semi-conductors, pre-packaged electronic modules, television sets, smoke detectors and burglar alarm systems.
The plastics industry's performance was fair in 1978. Domestic exports of plastic products were valued at $3,561 million, compared with $3,235 million in 1977. The industry has 4,314 factories and 84,415 workers. Toys represent the bulk of the items produced and Hong Kong is now the world's largest supplier of toys.
The watches and clocks industry continued to expand in 1978. Domestic exports during the year were valued at $2,983 million, compared with $1,881 million in 1977. The industry has 475 factories employing 20,296 workers. Production includes both mechanical and electronic watches, clocks, watch cases, dials, metal watch bands, assembled watch movements and watch straps of various materials.
Other important light industries produce travel goods, handbags and similar articles; metal products; jewellery; domestic electrical equipment; and electrical machinery, apparatus and appliances.
Heavy and Service Industries
Shipbuilding and repairing remained an important heavy industry. Hong Kong ship- yards provide a competitive repair service and many of the shipyards also build a variety of small vessels. Several large shipbuilding and repair yards are being con- structed on Tsing Yi Island. The Kwai Chung Container Terminal, which handled the equivalent of 1.26 million 20-foot containers in 1978, together with its complementary repair and manufacturing facilities, has also enhanced Hong Kong's position as one of the leading ports in Asia.
The aircraft engineering industry has a high international reputation and provides maintenance, overhaul and repair facilities for most airlines operating in Asia.
The manufacture of machinery, machine tools and their parts provides useful support to other local industries and also contributes to Hong Kong's export trade. Of particular importance are blow moulding, injection moulding and extrusion machines of up to 4,250-gram capacity for the plastics industry; power presses; lathes; shapers and drilling machines; polishing machines; printing presses; textile knitting and warping machines; and electroplating equipment.
External Trade
Total merchandise trade in 1978 was valued at $116,964 million, an increase of 25 per cent over 1977. Imports rose by 29 per cent to $63,056 million. There was a considerable growth of 16 per cent in domestic exports which totalled $40,711 million, while re-exports at $13,197 million showed a record increase of 34 per cent.
Appendices 3 and 4 provide summary statistics of external trade, including a break- down of countries and commodities, and comparative figures for recent years.
Hong Kong depends almost entirely on imported resources to meet the needs of its 4.7 million people and the requirements of its diverse industries. Imports of raw materials comprised 42 per cent of total imports in 1978. The major components were fabrics of man-made fibres ($2,572 million), iron and steel ($2,018 million), woven cotton fabrics ($1,850 million), watch and clock movements, cases and parts ($1,739 million) and raw cotton ($1,394 million).