Ventures Dialogue

  Wild Roses seen on Lantau Island HK

Some of the latest news from China/Hong Kong:

China-ASEAN FTA to accelerate RMB regionalization

Canadian exporters shift focus to Asia

Strong start for China’s ‘Nasdaq’

China’s Water Needs Create Opportunities  

PM to visit China, India   

A wary respect
     America and China need each other, but they are a long way from trusting each other

Photo by Andreas

Moving towards developing Hong Kong into a high value-added knowledge-based economy,Chief Executive Donald Tsang(pictured on the left) encourages the public sector and industry to collaborate with one another.  This is especially the case considering the government has just added another six areas of priority to their four pillar industries.  Tsang is quoted in an article from The Standard that if the government, private sector and the public can work together “wholeheartedly, the six industries stand a better chance of success.” 

Part of his 90 minute annual policy address, Tsang reaffirmed dedication to support the four original pillars: financial services, tourism, trading and logistics and professional services.  He also outlined the six new innovation and knowledge based areas: education services, medical series, testing and certification services, environmental industries, innovation and technology, and cultural and creative industries.  Together, these industries represent 67 to 68 per cent of Hong Kong’s GDP.  The newest six represent seven to eight per cent and the original four captures 60 per cent. 

Some of the new initiatives outlined by Tsang include redeveloping more than 1,000 industrial buildings, expanding green procurement, developing a strategy for developing Hong Kong Island’s Central District, and public consultation on health-care financing.

The US is number 1, China number 3, Hong Kong number 7, and Canada number 11. No, this isn’t the latest ranking in a sports contest, but rather a ranking on CNBC.com as to which countries received the most foreign direct investment (FDI) in 2008.

Tracked by the United Nations Conference of Trade and Development (UNCTAD), global FDI inflows reached its peak in 2007 with $1.98 trillion and shrank to $1.70 trillion in 2008. A net positive FDI (inbound vs outbound) is preferable as investors view the country as a good place to invest, but it also signifies that there is room for possible job creation and business expansion, a plus for any country.

Hong Kong’s FDI inflows captured 3.7 per cent of world inflows in 2008 ($63 billion), up by one per cent from the previous year. FDI Outflows as well increased, but by a larger margin, five per cent ($59.92 billion). As for China, percentage of world FDI inflows ($108.31 billion) increased by 2.2 per cent and outflows ($52.15 billion) increased by 1.8 per cent.

You can browse the full list of 15 countries by viewing cnbc.com’s slideshow.

Photo by Chris Gin.

For some, it may not be easy being green, but for others, green is the only way to be.  Take the Hong Kong government for instance.  They recently confirmed that electric vehicles would be coming to Hong Kong as early as next year. In an announcement by Edward Yau, Secretary for the Environment, he said incentives, along with strong policy and government backing will bring electric vehicles to the market.   The variety of vehicles will include vans, minibuses and trucks.

Consumers can expect tax waivers for personal as well as commercial use.  This will be done with the hopes of making Hong Kong desirable not only for additional sales, but also for the manufacturing and development of new technology. 

Infrastructure to support this initiative is needed as well, as the government outlined a plan for two power companies to open charging facilities.   This will further lead to a charging network, which was included in the government’s budget to promote electric vehicles.

Photo by uzvards.