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The latest 2010 full year Foreign Direct Investment (FDI) figures for Hong Kong saw a sharp increase of 32 percent year-on-year, registering a record FDI inflow of HK$535.3 billion*. Hong Kong's FDI stock valued at the end of 2010 reached HK$8.5 trillion, also representing a significant increase of 17.5 percent year-on-year. The latest figures from Census and Statistics Department underscore Hong Kong's continued ability to attract FDI and reinforce its status as one of the world's top FDI destinations.
According to the UNCTAD estimates, global inflows of FDI rose marginally by one percent from US$1.11 trillion in 2009 to almost US$1.12 trillion in 2010. For the first time, developing and transition economies received more than half of global FDI flows, and there were strong rebounds in FDI flows to Asia and Latin America offsetting the further decline in inflows to developed countries.
Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin, said, "It is very encouraging to see such a strong increase in FDI inflows. This is in line with the result of our investment promotion efforts at Invest Hong Kong. FDI brings many economic benefits to Hong Kong, creating jobs, and bringing in new technology and skills that enhance the competitiveness and sustainability of our economy."
He continued, "We have had a very good start to the year in 2011. The number of completed projects in the first three months is well on track to meet our annual target. We also have a strong pipeline of live projects from a diversified source of countries. Mainland China remains our leading source of investment together with the US and the UK. We are also tapping into opportunities presented by the growing trade and investment links with the emerging markets of Brazil, Russia, India and the ASEAN economies."
* Source: Hong Kong's Balance of Payments and International Investment Position Statistics for 2010 from Census & Statistics Department
About Foreign Direct Investment (FDI)
Direct Investment (DI) refers to external investment which allows an investor of an economy to have a lasting interest and a significant degree of influence or an effective voice in the management of an enterprise located in another economy. For statistical purposes, an effective voice is taken as equivalent to a holding of 10 percent or more of the equity in an enterprise.
Inward Direct Investment or Foreign Direct Investment (FDI) refers to DI in a Hong Kong enterprise by a non-Hong Kong resident. Typical examples of inward DI are multinational corporations' branches and subsidiaries operating in Hong Kong.
About Invest Hong Kong
Invest Hong Kong is the department of the Hong Kong Special Administrative Region (HKSAR) Government established in July 2000 to take responsibility for Foreign Direct Investment and support overseas and Mainland businesses to set up or expand in Hong Kong. It provides free advice and customised services to help businesses succeed in Hong Kong's vibrant economy. As it celebrates its 10th anniversary, Invest Hong Kong has completed over 2,100 investment projects creating over 26,000 new jobs in the first year of operation or expansion and HK$57 billion of investment. For more information, please visit www.investhk.gov.hk.
Ends/Friday, March 25, 2011
Issued at HKT 18:43
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