ENG-1995 — Page 126

TRADE AND INDUSTRY

added manufacturing processes to China, the restructuring of the manufacturing sector is characterised by the development of more knowledge-based and higher- value-added manufacturing.

The clothing industry was the largest employer in the manufacturing sector in 1995, followed by printing, publishing and allied industries. Information on the number of persons employed by the manufacturing sector in 1995 broken down by major industries is contained in Chart 1.

Printing

11.6% (44 790)

Electronics 11.4% (44 078)

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Clothing 29.0% (111 917)

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Textiles

7.3% (28 194)

Metal Products 5.8% (22 281)

Food & Beverage

5.5% (21 139)

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Others 29.4% (113 707) ..

Chart 1: Number of Persons Employed by the Manufacturing Sector in 1995

Manufacturing establishments in Hong Kong are generally small. There were 31 114 manufacturing establishments in 1995, of which 29 821 employed fewer than 50 persons. The remaining 1 293 establishments account for about 49.6 per cent of Hong Kong's total manufacturing employment. Many smaller establishments are linked with larger factories through an efficient and flexible sub-contracting network. Such an arrangement has enabled the manufacturing sector to respond swiftly to changes in demand.

The manufacturing sector remains export-oriented: about 80 per cent of the products manufactured were exported. Domestic exports amounted to HK$231,657 million in 1995. Major export items include clothing, electronics, textiles, watches and clocks, and chemical products. Hong Kong is one of the world's leading exporters of clothing. It was also the largest exporter of watches by quantity and the second- largest exporter of watches by value in 1993. Major export markets in 1995 were China (27.4 per cent), the United States of America (26.4 per cent), Germany and Singapore (both 5.3 per cent), and Japan (5.1 per cent). The clothing industry was also the largest export-earner in the manufacturing sector in 1995, followed by the electronics industry. Chart 2 presents the value of domestic exports of the manu- facturing sector in 1995 by major industries.