According to the “World Investment Report 2013" published by the UNCTAD, Hong Kong was the 3rd largest recipient of FDI in the world in 2012, and it has kept its second place in Asia after China. It is also the the third supplier of FDI outflows from Asia.
The flows of FDI, which had slowed down due to the global recession, began to increase again since 2010. In 2012, FDI influx to Hong Kong more than doubled compared to 2011, reaching USD 6.12 billion. Therefore, Hong Kong surpassed Singapore in the ranking of FDI recipients. This trend will continue due to the key role which the Asian region will play in global growth. According to the classification Doing Business 2014 issued by the World Bank, Hong Kong ranks second for its business climate.
Hong Kong's attraction is due to its several assets: its strategic position which makes the island the access gate to the Chinese market, its status as a free port, its simple and very incentive tax regime, its efficient infrastructures and its legal security.
|Hong Kong||East Asia & Pacific||United States||Germany|
|Index of Transaction Transparency*||10.0||5.0||7.0||5.0|
|Index of Manager’s Responsibility**||8.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||9.0||5.4||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||96,125||74,888||76,633|
|FDI Stock (million USD)||1,184,511||1,355,914||1,443,947|
|Performance Index*, Ranking on 181 Economies||1||-||-|
|Potential Index**, Ranking on 177 Economies||40||-||-|
|Number of Greenfield Investments***||237||241||194|
|FDI Inwards (in % of GFCF****)||164.4||107.8||110.3|
|FDI Stock (in % of GDP)||476.2||515.0||548.5|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Any Comments About This Content? Report It to Us.
© Export Entreprises SA, All Rights Reserved.
Last Updates: October 2014