HONG KONG 2005

The Hong Kong Trade Development Council (TDC), a statutory body established in 1966, is responsible for promoting and expanding Hong Kong's external trade in goods and services. With its global network of 41 offices, TDC helps its customers, mainly local SMEs, develop marketing opportunities, trade contacts, market knowledge and competitive skills. It also seeks to project and uphold Hong Kong as the international trade platform in Asia. To this end, it organised more than 450 promotional events in and outside Hong Kong in 2005.

The TDC organised 24 exhibitions during the year, seven of them the biggest international trade fairs in the region. These events attracted more than 21 000 exhibitors and over 1.6 million visitors, including some 250 000 from overseas. The TDC also organised participation by Hong Kong companies in major trade events around the world.

It continued to place particular emphasis on the Mainland and sought opportunities, particularly for SMEs, in priority overseas emerging markets. On the Mainland, the focus was on promoting Hong Kong as a professional and design service centre, a partner for Mainland businesses seeking global opportunities and a prime supplier of fashionable, yet affordable, lifestyle products.

The TDC sought to enhance and promote the competitive advantages of Hong Kong's SMEs through a wide range of business-matching and information support services, and more than 100 business training programmes, workshops and seminars in 2005. In November, the TDC signed a memorandum with the Guangzhou Bureau of Foreign Trade and Economic Cooperation on the Guangzhou — Hong Kong CEPA Market Entry Facilitation Mechanism to assist Hong Kong companies to set up businesses in Guangzhou. Its official website, tdctrade.com provided a global online platform for Hong Kong SMEs to facilitate business opportunities. The website offered online sourcing services, insightful market information, multi-media broadcast content and business tools.

The TDC maintains a global databank of about 620 000 business contacts, from which users worldwide can source and find business partners. It also publishes 14 trade magazines, numerous supplements, a wide range of research reports and practical guidebooks to help Hong Kong companies exporting to international markets.

During the year, the TDC sought to expand its global network and strengthen its advocacy of Hong Kong through outreach programmes, speaking engagements, receiving incoming missions, global advertising campaigns and its online business newspaper Hong Kong Trader (and CEO Express for Mainland), read by over 350 000 senior corporate executives and decision-makers. The TDC services six high-level bilateral business committees to help foster stronger economic ties between Hong Kong, US, the European Union, Japan, the United Kingdom, France and Korea. To facilitate partnerships between Hong Kong and overseas SMEs, the TDC also maintains close liaison with nearly 30 Hong Kong business associations around the world and their global federation, the Federation of Hong Kong Business Associations Worldwide, which connects over 10 000 SMEs that have close links with Hong Kong.

The Hong Kong Export Credit Insurance Corporation (ECIC) was created by statute in 1966 to provide export credit insurance facilities for Hong Kong exporters of goods and services against non-payment risks arising from commercial and political events. The ECIC is wholly owned by the Government, which also guarantees its maximum contingent liability, currently standing at $12.5 billion.

The ECIC encourages and supports export trade through the provision of professional and customer-oriented services. It provides a wide range of insurance facilities to Hong Kong exporters of goods and services for payments on credit terms. The Comprehensive Cover Policy, which covers exports, re-exports and external trade business for credit terms up to 180 days, is the most commonly used insurance policy. Tailor-made policies and endorsements are also available to cater to the specific needs of exporters in different sectors.

The ECIC's total insured business in 2005 amounted to $35.2 billion, an 11.4 per cent increase over 2004. Gross premium income grew by 5.7 per cent to $155.7 million. Cash claims payments increased by 2.7 per cent to $34.4 million.

During the year, the ECIC continued to strengthen its support to the exporting community, especially SMEs. It worked closely with various trade associations and institutions in organising workshops and seminars to enhance exporters' understanding of credit management. Banks have generally accepted the insurance policy as useful collateral in granting export financing to exporters, especially SMEs.

In addition, it devoted extra resources to help exporters capture the opportunities arising from CEPA and the 'Pan-Pearl River Delta Regional Cooperation' to encourage Hong Kong's export trade. It also maintained close cooperation with members of the International Union of Credit and Investment Insurers (Berne Union) through visits, meetings and workshops.

The Hong Kong Science and Technology Parks Corporation was established in 2001 to offer one-stop infrastructural support services to technology-based companies and activities in a synergistic manner, ranging from nurturing technology start-ups through an incubation programme and providing premises and services in the Science Park for applied research and development activities, to the provision of land and premises in industrial estates for production purposes.

The Science Park will provide a total area of 22 hectares through three phases of development. Phase 1 was officially opened in June 2002. Construction of Phase 2 is underway and is expected to be completed in stages starting from 2007. It provides an effective research and development environment and support services to facilitate collaboration and synergy among its tenants under four clusters — electronics, information technology and telecommunications, biotechnology and precision engineering.

The corporation operates three industrial estates in Tai Po, Yuen Long and Tseung Kwan O, with 217 hectares of land in total. Developed land is provided at cost to companies with new or improved technology and processes that cannot operate in multistorey buildings. The industrial estates have helped broaden the industry base and upgrade the technology level of Hong Kong.

The corporation nurtures technology-based start-up companies through its business incubation programme by providing low-cost accommodation and management, marketing, financial and professional business services in their critical first years.

The Hong Kong Productivity Council promotes productivity excellence among Hong Kong companies.

The council provides integrated support to innovative and growth-oriented Hong Kong firms across the value chain, with the principal sectoral focus on manufacturing, particularly in Hong Kong's foundation industries and related service activities in Hong Kong and the Pearl River Delta. Leveraging its expertise in manufacturing technologies, information technologies, environmental technologies, and management systems, the council adopts a three-pronged strategy. It aims to enhance manufacturing technology and process upgrading, tap new manufacturing opportunities arising from CEPA and provide regionalisation and globalisation support to improve the cost-effectiveness of manufacturing activities.

The Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Hong Kong General Chamber of Commerce and the Chinese General Chamber of Commerce are among the oldest and the most influential trade and industrial associations in Hong Kong. They are cross sectoral and represent a broad spectrum of business interests. They have the general aim of promoting the interests of and fostering relationship among their members. They issue certificates of origin, organise trade promotion activities, and offer views to the government on general economic issues and government policies which may have an impact on their members. There are numerous other associations representing specific sectors or interests and overseas chambers of commerce.

Established in 1960 by statute, the Federation of Hong Kong Industries has around 3 000 members, which are categorised into 27 groups. It operates a Q-Mark Product Scheme and a Q-Mark Service Scheme to enhance product and service standards. It also organises the annual Young Industrialist Awards of Hong Kong and the Industrialist of the Year Award.

Established in 1934, the Chinese Manufacturers' Association of Hong Kong has a membership of about 3 700. It organises the annual Hong Kong Brands and Products Expo and helped establish the Hong Kong Brand Development Council which promotes brand building.

The Hong Kong General Chamber of Commerce is the oldest business association in Hong Kong. Established in 1861, it has around 4 000 corporate members. It founded both GS1 Hong Kong and the Hong Kong Coalition of Service Industries. It is also the secretariat for the Pacific Basin Economic Council which is based in Hong Kong.

Established in 1900, the Chinese General Chamber of Commerce has around 6 000 members. It maintains close contacts with trade organisations on the Mainland and worldwide.