XN000022-1995-12-20 — Page 5

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HK attracts external investment in manufacturing industries

The continuing increase in external investment in Hong Kong's manufacturing industries in the past 10 years reflects the attractiveness of Hong Kong as a manufacturing base, the Director-General of Industry, Mrs Regina Ip, said.

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Mrs Ip was commenting on the findings of the latest survey conducted by Industry Department on external investment in Hong Kong's manufacturing industries at a press conference today (Wednesday).

She said according to the latest survey findings, the total value of external investment totalled $44 billion, at original cost, at the end of 1994, representing eight per cent higher than the amount identified in last year's survey. It was four times the figure of $11.4 billion in 1984 when the first survey on external investment in Hong Kong's manufacturing industries was conducted.

"The increase was largely accounted for by the rise in stock of fixed assets,' Mrs Ip said.

Japan kept its position as the leading source country of external investment, accounting for $14.7 billion or 34 per cent of the total.

The United States of America was the second largest investor with investment totalling $11.8 billion (27 per cent of the total), followed by China with investment valued at $4.2 billion (10 per cent) and the United Kingdom at $3 billion (seven per cent).

The electronics, electrical products, textiles and clothing, and food and beverages industries accounted for about 60 per cent of total external investment last

year.

"External investment is important to Hong Kong not only because of the capital inflow, but also because it helps to introduce new or improved products, advanced technologies, innovative designs and management techniques to help Hong Kong's manufacturing industries remain competitive in the world market," Mrs Ip said.

The survey found that 149 of the 424 respondent companies (35 per cent) with external investment were joint ventures with local partners, which is a form of co- operation that facilitates technology transfer.