ENG-2012 — Page 119

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Commerce and Industry

The Services Sector

The services sector has grown significantly in the past decade. Its share of Hong Kong's Gross Domestic Product (GDP) rose from 88.9 per cent in 2002 to 93.1 per cent in 2012, with 88.4 per cent of total employment in this sector. Hong Kong has become one of the most service- orientated economies in the world. In 2012, Hong Kong's total services trade amounted to $1,421.1 billion, making it the world's 15th largest services trading entity in value, traded and exported $976.9 billion worth of services, contributing to 47.9 per cent of GDP. In 2012, Hong Kong ranked 5th in the region after China, India, Japan and Singapore in total value of services exported, and 11th in the world. The main components of Hong Kong's exports of services in 2012 were transport and travel, accounting for 33.3 and 32.9 per cent respectively of the total value. Hong Kong is a net exporter of services and had an overall surplus of $176.7 billion in 2012, with the surplus for transport and travel $111.9 billion and $86.4 billion respectively.

Inward Direct Investment

Hong Kong's attraction as a place to do business is evident from the inflow of foreign direct investment (FDI) and the number of regional headquarters and regional offices in Hong Kong set up by companies outside Hong Kong. Hong Kong was the second largest recipient of FDI flow in Asia in 2011 according to the United Nations Conference on Trade and Development's 'World Investment Report 2012. The 'External Direct Investment Statistics of Hong Kong 2011' released by the Census and Statistics Department indicates that Hong Kong's FDI inflow in 2011 amounted to $751.8 billion. At the end of 2011, the position of inward direct investment at market value amounted to $8,377 billion. Chart 2 shows source countries or territories of the inward direct investment. The mainland of China was the largest, accounting for 36.3 per cent of the total as at the end of 2011. Chart 3 shows the major economic activities of enterprise groups in Hong Kong'. Those engaged in investment and holding, real estate, professional and business services took up the largest share, at 66.9 per cent of the total at the end of 2011.

Chart 2

Position of Inward Direct Investment in Hong Kong at Market Value by Major Investor Country/Territory

at the end of 2011

Japan

Singapore

2.2% ($182.7 billion)

2.3% ($191.4 billion)

USA

4.3% ($358.8 billion)

Netherlands

7.0% ($589.7 billion)

Bermuda

7.1% ($595.3 billion)

Others

9.7% ($809.5 billion)

The mainland of China

36.3% ($3,042.8 billion)

British Virgin Islands 31.1% ($2,606.8 billion)

1 An enterprise group may consist of a parent company, its subsidiaries, associates and branches.

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