ENG-1991 — Page 107

INDUSTRY AND TRADE

deal of time and money and can delay trading operations. Electronic data interchange, the computer to computer exchange of business information in a standard format, is one of the techniques being implemented by major ports overseas in an attempt to improve efficiency. It is rapidly becoming the preferred way of doing business for an increasing number of international organisations.

Electronic data interchange, in one guise or another, has been available to users in Hong Kong for nearly 10 years. Its use has been restricted mainly to users within the same industry. In recent years, however, more and more value added network service providers have started to offer commercial services in Hong Kong. As a result, the number of organisations using electronic data interchange is increasing.

At the same time, the government has been actively considering the use of electronic data interchange in its operations, particularly in the areas where the operations are part of the overall trade cycle. Examples are the lodgement of trade declarations and applications for import and export licences.

In order to facilitate the quicker adoption of electronic data interchange, the United Nations Economic Commission for Europe has been developing a standard language for electronic trading, namely the United Nations Electronic Data Interchange for Administration, Commerce and Transport. North American and European countries have been actively involved in the development process and the participation of Asian countries is growing. The government is fully aware of the need for Hong Kong to be involved and has been keeping a close watch on developments. Hong Kong's participation will be considered at the appropriate time.

The Industrial Scene

Hong Kong enjoys a worldwide reputation as a producer and exporter of manufactured consumer goods. Although the territory has a thriving construction industry and, as a major trading economy, has developed shipbuilding, ship repair and aircraft engineering industries, light manufacturing industries predominate. About 90 per cent of Hong Kong's manufactured products are exported, and clothing, electronic products, watches and clocks, textiles, and plastic products (particularly toys) have for many years accounted for the bulk of this output. The total value of Hong Kong's manufactured exports in 1991 was $231,045 million, and its major export markets were the United States (27.2 per cent), China (23.5 per cent), Germany (8.4 per cent), and the United Kingdom (5.9 per cent). In 1991, the territory was the world's second largest exporter by value of clothing and watches, and the third largest exporter of toys.

Manufacturing developed on a large scale in Hong Kong in the 1950s. The territory's small size limited the amount of land which could be made available for industry and precluded the development of heavy or land-intensive industries: its manufacturing industries are therefore characterised by small-scale firms, mostly operating from premises in multi-storey buildings, and manufacturing light consumer goods for export.

For many years, manufacturing was both the territory's largest employer and its most important economic sector, but lost this dominating position in the 1980s. Manufacturing employment fell from 904 709 in 1984 (41.7 per cent of total employment) to 654 662 (26.3 per cent) in 1991, and its contribution to GDP fell from 24.1 per cent in 1984 to 16.7 per cent in 1990. During these years manufacturers took advantage of China's open door policy to shift labour-intensive jobs into China to take advantage of lower land and labour

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