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Hong Kong's Foreign Direct Investment (FDI) continued to surge in 2011, according to the United Nations Conference on Trade and Development's (UNCTAD) World Investment Report 2012 (WIR), released in Hong Kong today (July 6).
According to the WIR 2012, FDI flows into Hong Kong exceeded US$83 billion in 2011, an all-time high and up by 17 percent over 2010. FDI stock remained stable at US$1.14 trillion compared to US$1.09 trillion in 2010.
Globally, Hong Kong ranked fourth in terms of FDI inflows*, after the US (US$227 billion), the Mainland (US$124 billion) and Belgium (US$89 billion). In Asia, Hong Kong was second only to the Mainland in terms of FDI inflows. The city also topped UNCTAD's Global FDI Attraction Index 2011 with "an attractive investment climate and important hinterland". The Index is an annual measure of an economy's success in attracting FDI.
Associate Director-General of Investment Promotion, Miss Victoria Tang, said, "Although there is economic uncertainty in Europe and the US, FDI inflows to Hong Kong have remained stable."
Worldwide, FDI inflows in 2011 reached US$1.5 trillion, an increase of 16.5 percent over 2010. But in the face of global uncertainties, UNCTAD is predicting slower growth in 2012, with flows levelling off at about US$1.6 trillion. It cautioned that FDI flows will be "tested severely" in 2012, as the euro crisis continues to weigh on investor sentiment, causing many companies to hold onto cash in their home markets in the event that the economic situation worsens.
UNCTAD revealed that FDI flows into developing countries reached a record US$684 billion in 2011, up 11 percent over a year ago, and accounting for 45 percent of the total global FDI inflow. The surge was led by increases of 10 percent in Asia and 16 percent in Latin America and the Caribbean.
Ms Tang believed that notwithstanding global uncertainties, Hong Kong would continue to be a preferred destination for FDI.
"In the short term, there will be both push and pull factors resulting from the euro crisis. But in the longer term the global economic spotlight will continue to shine on Asia. Hong Kong's increasing integration with the Mainland economy, plus the city's enduring advantages mean that we will continue to provide an ideal two-way platform for companies from overseas to enter the Mainland and for Mainland enterprises to go global," she said.
She added that Hong Kong's predictable business environment, rule of law, stable tax regime, free flow of information and capital, and a workforce with international and Mainland perspectives, continue to make it a desirable platform for investors.
Co-hosting today's press conference with Miss Tang was the Dean of the Faculty of Business Administration at the Chinese University of Hong Kong, Professor T J Wong, who provided an analysis of the report's findings.
About Invest Hong Kong
Invest Hong Kong (InvestHK) is the department of the Hong Kong Special Administrative Region (HKSAR) Government established in July 2000 to take responsibility for Foreign Direct Investment (FDI) 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 at June 2012, InvestHK has completed over 2,600 investment projects creating more than 30,000 new jobs in the first year of operation or expansion and over HK$67 billion of investment. For more information, please visit www.investhk.gov.hk.
About the United Nations Conference on Trade and Development (UNCTAD)
Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy. For more information, please visit www.unctad.org.
For event photo, please visit www.flickr.com/photos/investhk/sets/72157630433930750/ .
For UNCTAD WIR 2012 full report, please visit unctad.org/en/Pages/DIAE/World%20Investment%20Report/WIR2012_WebFlyer.aspx
(* All FDI data and estimates in WIR are continuously revised. Because of these revisions, FDI data reported in the WIR may differ from those reported in earlier reports or other publications of UNCTAD or any other international or regional organisations).
Ends/Friday, July 6, 2012
Issued at HKT 15:25
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