ENG-1999 — Page 136

TRADE AND INDUSTRY

Kong switches from a manufacturing base to a control centre of an increasingly globalised production network, a large part of the service activities is in fact related to manufacturing.

The clothing industry was the largest employer in the manufacturing sector in 1999, followed by the printing, publishing and allied industries. Chart 1 shows the breakdown of employment within the manufacturing sector in 1999.

Chart 1 Number of Persons Employed by the Manufacturing Sector in 1999

:

Clothing 23.9% (58 490)

Others 27.8% (68 077)

Metal Products 4.6% (11 256)

Textiles

6.7% (16 482)

Food & Beverages 8.5% (20 711)

Electronics 10.4% (25 479)

Printing, publishing and allied industries 18.0% (44 037)

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Hong Kong's manufacturing establishments are generally small. Of the 23 079 manufacturing establishments in 1999, 22 337 employed fewer than 50 people but accounted for 52 per cent of Hong Kong's total manufacturing employment. Many small establishments are linked with larger factories through an efficient and flexible sub-contracting network. This arrangement has enabled the manufacturing sector to respond swiftly to changes in demand.

The manufacturing sector remains export-oriented. Domestic exports amounted to $171 billion in 1999. Major export items included clothing, electronics, textiles, chemical products and jewellery. In 1997, Hong Kong was one of the world's leading exporters of textiles, clothing, watches and clocks.

Major export markets in 1999 were the USA (30.1 per cent), the Mainland (29.6 per cent), the UK (6.1 per cent), Germany (5.0 per cent) and Japan (3.2 per cent). The clothing industry was the largest export-earner in the manufacturing sector, followed by the electronics industry. Chart 2 shows the value of domestic exports of the major industries in 1999.

External Investment

The Industry Department promotes and facilitates overseas investment in the industries of Hong Kong. It maintains a One Stop Unit in Hong Kong which works