G.F. 326
CONFIDENTIAL #
23
39.
In the first half of 1988, there were signs of some slow down in the growth rate of outward processing activities, reflecting Hong Kong's less buoyant domestic
The recent export performance in its overseas markets. upsurge in investment in outward processing plants in the Pearl River Delta region may not make particular good
But in the business sense, at least in the short term.
longer term, Hong Kong businessmen are expected to continue to take advantage of the lower labour and land costs in China so as to maintain their price competitiveness in the world market.
It seems that most
manufacturers in Hong Kong consider the Pearl River Delta region as more attractive than Thailand as a place for their outward processing activities, mainly on account of geographical proximity.
Economic Analysis Division Economic Services Branch Government Secretariat 27 September 1988 WP 09 03 Z
CONFIDENTIAL **
No comments yet.
Private notes are available after approval.