ENG-1991 — Page 109

INDUSTRY AND TRADE

Plastics

The plastic products industry is the fifth largest export-earner. In 1991, the industry employed 41 522 workers (six per cent of total manufacturing employment), and earned $7,027 million in exports (three per cent of total domestic exports). Plastic household articles and plastic toys together accounted for 40 per cent of domestic exports of plastic products. Other major export items included travel goods, handbags, footwear and plastic flowers.

Toys

Hong Kong's toy industry has an international reputation, but its various segments are classified under the plastics, electronics, metal products and other industries in official publications. Considered as a separate industry, however, the toy industry employed 18 836 persons in 1991, and earned $4,098 million in exports, making Hong Kong the world's third largest exporter of toys by value, after Taiwan and South Korea. The manufacture of plastic toys accounted for 75 per cent of employment in the toy industry and 55 per cent of its exports.

Other Industries

Other important light manufacturing industries include metal products, printing, food and beverages, jewellery, industrial machinery, household electrical appliances, and photographic and optical goods. The development of the metal products and industrial machinery industries has enabled Hong Kong to produce sophisticated parts and components and other semi-manufactures of high quality. This has benefitted the manufacturing sector in general, as the quality of finished products depends heavily on the capability of the linkage industries which service them.

Hong Kong's shipyards provide a competitive repair service and build a variety of vessels. Several large shipbuilding and repair yards on Tsing Yi Island provide services to the shipping industry and construct and service oil rigs. Hong Kong's aircraft engineering industry has a high international reputation and provides extensive maintenance and repair services. Facilities are available for the complete overhaul of airframes and engines for many types of aircraft.

Overseas Investment in Manufacturing

As at end-1990, there were 545 manufacturing companies in Hong Kong with overseas investment. The total value of direct overseas investment was $30,933 million, and the 545 companies concerned employed 90 262 workers (12.6 per cent of total manufacturing employment) and accounted for 20 per cent of Hong Kong's total domestic exports. The main sources of investment were Japan (32 per cent), the United States (31 per cent), China (11 per cent), and the United Kingdom (seven per cent). Nearly three-fifths of this investment was concentrated in four industries: electronics (30 per cent), electrical products (11 per cent), textiles and clothing (11 per cent), and chemical products (eight per cent).

Industry Department

One of the main tasks of the Industry Department is to carry out regular studies of Hong Kong's main manufacturing industries, to enable the government to identify constraints on their efficiency and assess where its support is needed. It also conducts annual surveys to establish the value of overseas investment in Hong Kong's manufacturing industries, and to assess the investment climate in the manufacturing sector.

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