**********************************************************
The Greater Pearl River Delta Business Council today (July 31) issued its third annual report on its work for 2006-07.
On the publication of the 2006-07 annual report, the Chief Executive said he was pleased to note that the Business Council had put forth very constructive views on various major co-operation items relating to Hong Kong/Guangdong co-operation.
He said participation of the private sector was crucial to the development of Hong Kong and Guangdong, and he looked forward to the continued efforts and contribution made by the Business Council in promoting co-operation between the two places.
Chairman of the Business Council, Dr Victor Fung, said that with a strengthened relationship with the Pearl River Delta (PRD), Hong Kong should closely monitor the changes taking place in the region as a whole and put in place relevant measures to maintain its own competitiveness.
In carrying out its work, the Business Council in the past year had maintained a constructive dialogue with the China Council for the Promotion of International Trade (CCPIT) Guangdong Sub-Council on issues of mutual concern. It had also maintained liaison with the governments of both places and individual municipal cities.
Research Study
--------------
Impact of the Mainland's Processing Trade Policy on Hong Kong
-------------------------------------------------------------
Starting from the latter half of 2006, the Central Government had introduced various measures to step up control on the processing trade. As many Hong Kong enterprises on the Mainland (especially in Guangdong Province) were engaged in the processing trade, these policy adjustments would have great impact on Hong Kong. The Business Council conducted a study on the subject.
Research findings revealed that Hong Kong-funded enterprises might have to face many pressures in undertaking restructuring and upgrading of their business, including the lack of the necessary financial resources, the lack of the knowledge and experience in brand management and in the research and development of products and technologies.
In its study report, the Business Council made recommendations to the Central Government to carry out advance consultation before introducing policy adjustments and allow for reasonable transition periods. It also suggested the Guangdong Provincial Government to provide "one-stop" consulting services and expedite the processing of applications by enterprises for conversion from the operation mode of "processing with supplied materials" into "foreign-investment enterprises".
It suggested the HKSAR Government and relevant organisations strengthen ties with the Central Government and the Hong Kong business community by stepping up communications and consultation work on matters relating to policy adjustments on the processing trade, and to step up efforts to provide market information for enterprises.
Apart from conducting the research study, the Business Council also promoted co-operation between Hong Kong and Guangdong in many areas. The five sub-groups of the Business Council have studied a number of topics. They are:
1. Cross-boundary passenger and cargo flow
The Business Council discussed various items concerning cross-boundary passenger and cargo flow. These included the passenger and cargo flow at Shenzhen Bay Port and Futian Port, and ways to ease the increasing flow of cross-boundary private cars at Lok Ma Chau control point.
2. Service industry development
The Business Council considered that Hong Kong should be able to develop as a knowledge hub in the Greater PRD. Hong Kong should actively promote its training service industry, in particular on professional training, for entry to the mainland market. This would, at the same time, provide necessary training for staff of PRD enterprises.
3. Joint investment and trade promotion
The Business Council and the CCPIT Guangdong Sub-Council had held seminars and visits to Guangdong enterprises to introduce the investment environment of Hong Kong and the kind of services available with a view to attracting them to invest in Hong Kong. The Business Council was also considering how chambers of commerce in Hong Kong could strengthen support services for Guangdong enterprises operating in Hong Kong.
4. Sustainable Development
The Business Council continued to join with the Hong Kong General Chamber of Commerce, the Business Coalition on the Environment, the CCPIT Guangdong Sub-Council and the Guangdong Environment Protection Industries Association in promoting the "Clean Air Charter". It aimed to encourage both Hong Kong and local manufacturers in Guangdong to set a good example by taking emission reduction measures voluntarily to improve air quality. The Business Council has also collaborated with the above-mentioned organisations to organise visits to enterprises engaged in clean production in Guangdong and hold seminars on clean production to raise the awareness of Hong Kong manufacturers in Guangdong on energy saving, emission reduction and application of clean production technology.
5. Education and technology
Supporting the establishment of "Shenzhen/Hong Kong Innovation Circle" by the Hong Kong and Shenzhen governments, the Business Council was also mindful of ways to further enhance the technology co-operation between Hong Kong and Guangdong.
The Business Council was set up in March, 2004, with the aim of advising the Chief Executive of the HKSAR on matters relating to Hong Kong and Guangdong co-operation. It also provides avenues for the private sectors of both places to exchange ideas and views.
People can access the website at http://www.cmab.gov.hk/en/issues/council_report_0607.htm for the annual report.
Ends/Tuesday, July 31, 2007
Issued at HKT 15:18
NNNN
