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On external investment in the manufacturing sector, Mr Ho said the value of external investment in Hong Kong's manufacturing industries was $48 billion at original cost at the end of 1995.
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"This is a 10 per cent growth (by $4.3 billion) over that of 1994, and a four-fold increase on the external manufacturing investment of $11.4 billion in 1984, when the first survey was conducted," Mr Ho said.
Japan kept its position as the leading source country of investment in Hong Kong's manufacturing industries, accounting for 39 per cent of the total. The US (with 28 per cent) was the second largest investor, followed by China (seven per cent) and the UK (five per cent).
For the two leading countries, Japan and the US, their investment had increased by 27 per cent and 13 per cent respectively when compared with 1994.
Electronics, textiles and clothing, electrical products and chemical products were the industries receiving the lion's share of the external investment, accounting for about 60 per cent of the total external investment in 1995.
"One reason for the Industry Department to promote inward investment in Hong Kong's manufacturing sector is that this can help bring in new product, technology and management techniques to Hong Kong." Mr Ho said.
"In this regard, our survey reveals that 35 per cent of the companies with external investment were joint ventures with local partners, which is a form of co- operation that facilitates technology transfer.
"Forty-one per cent of the companies with external investment also reported that they had benefited from the managerial, professional and technical skills of experts sent to work in Hong Kong by the parent overseas companies." he added.
On the attractiveness of Hong Kong as a manufacturing base, more than 80 per cent of the respondents considered Hong Kong's banking and financial facilities and infrastructure as favourable factors, Mr Ho said. Other favourable factors included Hong Kong's tax regime, rule of law, availability of managerial skill, government economic policy and clean government.
Commenting on the 1996 Survey of Regional Representation by Overseas Companies in Hong Kong, Mr Ho said: "The survey reaffirmed the increasing importance of Hong Kong as a major regional business centre for overseas companies."