ENG-1994 — Page 129

TRADE AND INDUSTRY

components and accessories. Hong Kong is the world's second largest exporter of complete watches by value.

Plastics

During 1994, the plastic products industry employed 19 867 workers (4.5 per cent of total manufacturing employment), and earned $5,152 million in exports (2.3 per cent of total domestic exports). Major export items included toys, containers, packing bags, household articles, travel goods, handbags and plastic parts and components.

Printing

The printing industry has grown significantly in the past two decades. Most manufacturing industries in Hong Kong produce mainly for export, but the majority of the output of the printing industry is for local consumption. In addition to printing books, newspapers and periodicals, the industry supports other manufacturing industries by providing packaging printing services. In 1994, the industry employed 42 621 workers (9.7 per cent of total manufacturing employment) and earned $4,520 million in exports (two per cent of total domestic exports).

Other Industries

Other important light manufacturing industries include jewellery, industrial machinery, metal products, food and beverages, toys, household electrical appliances and photographic and optical goods. The development of the industrial machinery and metal products industries has enabled Hong Kong to produce sophisticated parts and components, as well as moulds, dies and other semi-manufactures of high quality. This has benefited 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, while the 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.

External Investment

There were 433 manufacturing companies in Hong Kong with inward direct investment at the end of 1993, according to a survey by the Industry Department. The total value of inward direct investment in manufacturing was $40,899 million. The 433 companies employed 66 322 workers (13.7 per cent of total manufacturing employment) and accounted for 25 per cent of Hong Kong's total domestic exports. The main sources of investment were Japan (34 per cent), the United States of America (28 per cent), China (11 per cent) and the United Kingdom (four per cent). About three-fifths of this investment was concentrated in four industries: electronics (30 per cent), electrical products (nine per cent), textiles and clothing (10 per cent) and chemical products (nine per cent). In addition, 1 846 multinational companies had established regional headquarters and offices in Hong Kong to conduct and co-ordinate their regional economic activities.

The Industry Department recognises that inward investment can help raise technological levels in the local manufacturing sector. It has an active programme to promote inward

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