120 | Commerce and Industry
Like manufacturing, the services sector is dominated by SMEs. In 2004, 98.2 per cent of Hong Kong's 273 000 service establishments were SMEs (fewer than 50 persons). Together, they employed 1.2 million persons (59.3 per cent of employment in selected service industries in the private sector).
In 2004, Hong Kong's total services trade amounted to US$81.2 billion, making it the world's 15th largest trading entity in terms of value of services trade. In the same year, Hong Kong exported US$52.3 billion worth of services, bearing a ratio of 31.8 per cent of GDP. Hong Kong ranked third after Japan and the Mainland in the region in terms of absolute value of exports of services. In the global league table of exports of services, Hong Kong ranked 10th in 2004.
Hong Kong's exports of services comprise mainly merchanting and other trade- related services, transportation and travel services, which accounted for 36 per cent, 32 per cent and 17 per cent respectively of the total value in 2004. The corresponding share for exports of financial services, insurance and other services was 15 per cent. In addition to being a net exporter of services in overall terms, analysed by component of services trade, in 2004 Hong Kong recorded a surplus in merchanting and other trade-related services (US$16.1 billion) and transportation services (US$9.3 billion).
External Investment
Hong Kong's attractiveness as a place to do business is reflected by two major indicators, namely the inflow of foreign direct investment (FDI), and the number of foreign-owned regional headquarters and regional offices of companies incorporated outside Hong Kong.
A Census and Statistics Department survey shows that Hong Kong's FDI inflow in 2003 amounted to US$13.6 billion. According to the 'World Investment Report 2004' released by the United Nations Conference on Trade and Development, Hong Kong was the second largest recipient of FDI in Asia in 2003.
Hong Kong had 9 072 enterprise groups1 with inward direct investment at the end of 2003, comprising 273 in the manufacturing sector and 8 799 in the non- manufacturing sectors. The market value of the stock of inward direct investment amounted to $2,960.4 billion. Chart 3 shows the major economic activities of these enterprise groups while Chart 4 shows source countries/territories of the inward direct investment. Regarding employment, 70 per cent of them were enterprise groups employing fewer than 20 persons Chart 5.
1 An enterprise group may consist of a parent company, its subsidiaries, associates and branches.
Page 150Page 151
No comments yet.
Private notes are available after approval.