284 companies invested in Hong Kong in 2010

Invest Hong Kong beat its annual target for the number of completed projects for the 10th year in a row.

According to Hong Kong Information Services Department, the 284 companies created 3,056 jobs in their first year of operation or expansion.

“Last year’s result was very encouraging. It demonstrated a strong vote of confidence in Hong Kong as a business location,” Director-General of Investment Promotion Simon Galpin said at a press briefing this morning.

The Mainland continued to be the largest single source of investment into Hong Kong, with 52 projects, followed by the US with 51, the UK with 36, Japan with 19, and Australia with 16.

The top three industry sectors were transport and industrial, tourism and hospitality, and innovation and technology.

Mr Galpin noted Invest Hong Kong included the wine sector under tourism and hospitality. Since the wine duty was set at zero in 2008, there has been a sharp increase in wine importers setting up here, and companies that service the industry such as wine training and wine storage businesses.

He sees no let-up in the growth of wine-related companies setting up operations in the city, citing the great interest and number of deals Hong Kong has signed around the world.

Last year also marked greater emphasis on green foreign direct investment, in particular on companies that provide renewable energy and environmental protection solutions.

Invest Hong Kong and the Shenzhen Municipal Government won the United Nations Conference on Trade & Development’s Green FDI award for their collaboration in helping Dupont Apollo open the first global thin film photovoltaic research and development centre in Hong Kong Science & Technology Parks, and a new manufacturing facility in Shenzhen.

Last year the completed projects came from 39 countries, up from 33 in 2009. Companies of all sizes - from multinationals such as tax-consulting giant Deloitte, to small, high-growth companies such as the UK’s integrated branding agency Start Creative - chose to set up or expand their presence in Hong Kong.

Way forward
Mr Galpin expressed optimism for the coming year as there is a strong pipeline of projects and potential investors with concrete plans to set up or expand in Hong Kong.

This year Invest Hong Kong will strengthen its promotion efforts in the mature markets of the US and UK, and the emerging markets of Mainland China and Russia. It plans to focus on industry sectors where Hong Kong has clear advantages, he said, including financial services, creative industries, and innovation and technology.