Where Business Goes to Grow

Transcription

1 Where Business Goes to Grow All Companies Great and Small Simon Galpin Director-General of Investment Promotion

2 Heart of Asia 2

3 3 4hours Most of Asia s key markets within four hours flight time 5hours From half the world s population Proximity to China

4 Greater Pearl River Delta 4 Population 64 mn Exports US$527 bn GDP US$962 bn Land Area 56,000 km 2 > UK, Italy, South Africa > UK, Italy > Indonesia, Netherlands, Turkey < Ireland, Latvia, Panama, West Virginia (US)

5 One Country Two Systems 5

6 Low and Simple Tax System 6 Shanghai* Singapore Hong Kong Percentage Corporate Income Personal Income Employer Social Security Employee Social Security VAT * There is no standard rate across the Mainland China. Shanghai is used as an example NO VAT/GST/Sales tax Capital Gains Tax Withholding tax on investments Estate duty Global taxation Wine duty

7 World Class ICT Connecting 7 8th in the Global Innovation Index Report (INSEAD 2012) 2nd in Asia Cloud Readiness Index (Asia Cloud Computing Association, Sept 2011) Mobile phone penetration rate >229% 6th most advanced ICT Economy (ITU Sept 2011) The safest place in Asia for setting up data centres (Data Centre Risk Index, Cushman & Wakefield, 2012)

8 Human Capital - Quality Education 8 x 2 Two universities in the world s top 100 (Times Higher Education World University Rankings 2012/13) HKUST MBA 1st in Asia and 10th in the world (Financial Times Global MBA Ranking 2012) World s Top EMBA in 2011: Kellogg HKUST EMBA Programme (Financial Times 2012) x International schools 3rd in the Global Index of Cognitive Skills and Educational Attainment (Economic Intelligence Unit 2012) Hong Kong students ranked first in reading literacy globally (Progress on International Reading Literacy Study 2011)

9 One of the Safest Cities in the World Source: Hong Kong Police 2011 Note: Rate per population 9 Overall crime Homicide HK Tokyo New York Toronto London Paris 0 HK Tokyo London Toronto New York Paris Robbery Burglary HK Toronto New York London Paris 0 HK Tokyo New York Toronto Paris London

10 Business-to-Consumer 10 Gateway to 3.7 million HNWIs in Asia-Pacific with wealth totalling US$12 tn Wealth growth the strongest in Asia-Pacific at 12% Hong Kong HNWIs up 36% Asia-Pacific expected to lead robust global HNWI wealth growth. HNWI wealth expected to reach US$16 tn by 2015 Source: Capgemini World Wealth Report 2013 Asia-Pacific accounted for 50% of the growth in global wealth since 2010 By 2020, est. no. of millionaires in Mainland China & Hong Kong will reach 3.7 million, an accumulated wealth of US$14 trillion Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2011

11 +16% +17% +5% million visitors Spending US$39.4 billion US$1,005 per capita Source: Hong Kong Tourism Board Million 50 Number of visitor arrivals Mainland China Rest of the World

12 12 Total Retail Sales US$57 Billion +10% 84% 41% of the world s leading luxury and fashion retailers are in Hong Kong of all international retail brands are in Hong Kong No. of Shops 18 in Hong Kong 12 in London 13 in Hong Kong 5 in Milan 10 in Hong Kong 4 in Milan

13 Springboard for Mainland Companies 57% 13 47% 27% 18% % of mainland companies % of mainland capitalisation 747 listed Mainland enterprises on the HKEx; total market cap US$1.54 tn (as of July 2013) 1,938 new investment projects approved; investment amount US$46.5 bn (MOFCOM, 2012) RMB deposits in Hong Kong of RMB698 bn (~US$114 bn) (as of Jun 2013)

14 Prime Location for FDI 14 7,250 companies of which 3,883 are RHQs and ROs in 2012 (Source: 2012 Annual survey, HKSAR Government s Census & Statistics Department) Rank FDI Inflows (2012) US$ bn FDI Outflows (2012) US$ bn 1 USA 168 USA China 121 Japan Hong Kong 75 China 84 4 Brazil 65 Hong Kong 84 5 British Virgin Islands 65 UK 71 6 UK 62 Germany 67 7 Australia 57 Canada 54 8 Singapore 57 Russia 51 9 Russia 51 Switzerland Canada 45 British Virgin Islands 42 Source: World Investment Report 2013, UNCTAD

15 Global Operations in Hong Kong 15 John Rice Vice Chairman (Global operations) Jean-Pascal Tricoire Global CEO Wiebo Vaartjes EVP & GM (Global headquarters of Philips Consumer LifeStyle) Johan de Nysschen President (Global headquarters) Michael Andrew Global Chairman Jeff Urwin Global Head of Investment Banking Christophe Roussel Int l Sourcing Director Markus Kramer President, Dispersions and Pigments Division (Global headquarters)

16 What We Do? 16

17 Investment Promotion Reaching Out to Companies to Attract FDI 17 Overseas/ Mainland Meetings Prospects Live Projects Projects Completed ,988 (with 4,166 individual companies) 1,

18 Result Since Establishment 18 As at 4 Sep ,000 projects completed 33,950 jobs created

19 How InvestHK helps investors 19 Networking events, introduction to service providers Facilitation of visa applications, schooling PR and marketing support for launch/expansion Information to aid planning and evaluation

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22 Get in Touch For more information, please contact Dr Kelly Jones Tel: kelly_jones@hketony.gov.hk