CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION
CEDB(CIT)042
Question Serial No.
1148
Head :
152 Government Secretariat:
Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)
Subhead (No. & title) :
-
Programme :
(2) Commerce and Industry
Controlling Officer :
Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)
Director of Bureau :
Secretary for Commerce and Economic Development
Question :
The Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch) planned to complete the consultancy study on investment promotion in Hong Kong and oversee the gradual implementation workplan for the recommendations during 2009-10. Please provide the details and a breakdown of the expenditure of such workplans.
Asked by : Hon. LAM Tai-fai
Reply :
The consultancy study on inward investment promotion of Hong Kong was completed in 2009-10. The Bureau has briefed Members of the Panel on Commerce and Industry of the Legislative Council on the results, recommendations and follow-up actions of the study at the Panel’s meeting on 19 January 2010. Details of Invest Hong Kong (InvestHK)’s plan to implement the consultancy’s recommendations are as follows –
(a) To restructure the target sectors for investment promotion into eight (i.e. creative industries; innovation and technology; business and professional services; information and communications technology; transport and industrial; tourism and hospitality; consumer products; and financial services) to foster the development of the new growth industries where Hong Kong has a clear competitive advantage. The investment promotion teams were re-organised according to these restructured target sectors;
(b) To redeploy resources to improve the delivery of aftercare services;
(c) To enhance the research capabilities to cope with the development needs of the Department;
(d) To strengthen the monitoring, management and coordination of overseas offices and consultants; and
(e) To strengthen cooperation with other government departments, Hong Kong Trade Development Council and Hong Kong Tourism Board to achieve synergy in promoting Hong Kong.
InvestHK will implement the above-mentioned works gradually within existing resources.
Permanent Secretary for
Commerce and Economic Development (Commerce, Industry and Tourism)
Date
18.3.2010
Examination of Estimates of Expenditure 2010-11
Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION
CEDB(CIT)043
Question Serial No.
1149
Head :
Head 152 - Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)
Subhead (No. & title) :
Programme :
(2) Commerce and Industry
Controlling Officer :
Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism )
Director of Bureau :
Secretary for Commerce and Economic Development
Question :
The Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch) planned to assist the trade to cope with challenges arising from Mainland’s new policies and policy adjustments on processing trade during 2009-10. Please provide the details and a breakdown of the expenditure so incurred.
Through the following work, the Commerce and Economic Development Bureau gives encouragement to and assists Hong Kong enterprises in upgrading, restructuring and opening up new markets so as to adjust to changes in the Mainland’s policy on processing trade:
maintaining close dialogue with the trade through the Task Force to Support the Processing Trade and other channels, so as to understand their concerns and views;
maintaining close liaison with the Mainland authorities at various levels (including through the Hong Kong/Guangdong Expert Group on the Restructuring and Upgrading of the Processing Trade) to reflect the trade’s views on problems encountered in the process of developing the domestic sales market and in the course of upgrading and restructuring, and discuss proposed supportive measures for the trade. We have also been appealing to the Mainland to consult the trade and fully consider their views before promulgation of new policies and legislation, and to give the trade sufficient time for transition and adjustment;
organising symposiums and seminars through the Trade and Industry Department (TID) and Mainland Offices to enhance the trade’s understanding of new policies, legislation and the business environment;
disseminating information on trade-related policies, legislation and measures to Hong Kong enterprises through TID and Mainland Offices by means of circulars and newsletters. TID’s website includes a dedicated page on business information on Mainland China, with hyperlinks to the economic and trade websites of 170 Mainland authorities. This platform facilitates Hong Kong enterprises in getting access to trade-related information on the Mainland;
organising trade delegations to visit the Mainland with a view to enhancing the trade’s understanding of Mainland policies and market development;
providing Hong Kong enterprises with support services on technological upgrading, improving management, branding and market development, etc., and also Mainland market information through the Hong Kong Productivity Council (HKPC) and the Hong Kong Trade Development Council; and
with regard to financial support, assisting small and medium enterprises (SMEs) through the “SME Funding Schemes” in areas such as market promotion, acquisition of equipment, upgrading of operational and technical skills, restructuring and business relocation.
The above is our ongoing work. Our work priorities for each year may be different in light of the prevailing economic and business environment and concerns expressed by the trade.
Our work priority in the year 2009-10 was to assist the trade in coping with the financial tsunami. On one hand, we maintained close dialogue with the trade to understand their situations and requests, in response to which we have launched supportive measures including extending twice the application period for the “Special Loan Guarantee Scheme”, and increasing the grant ceiling and scope of the “SME Export Marketing Fund”. At the same time, we liaised closely with the Mainland authorities to follow up on how the various concrete facilitation measures launched by the Mainland in the year 2008-09 were implemented in 2009-10. These measures include raising the export tax rebate rates for a number of times, suspending the actual payment of standing book deposit for processing trade enterprises, reducing or waiving administrative fees and charges, implementing "restructuring without stopping production" and "consolidated tax return for multiple domestic sales", etc. We also discussed with the Mainland authorities arrangements to facilitate Hong Kong enterprises in tapping on the Mainland domestic market.
Since there is still uncertainty over the economic situation this year, we have written to the Mainland authorities to convey the trade’s wish for the continued implementation of the supportive measures launched by the Mainland in 2008-09 and 2009-10. We will also follow up on the other proposals from the trade relating to business facilitation and promotion of domestic sales. Furthermore, we are discussing with HKPC collaboration opportunities relating to experience sharing on upgrading and restructuring amongst enterprises.
The above-mentioned work, which falls within the existing duties of this Bureau and relevant Departments and organisations, will be done with existing resources. Funding for the “SME Funding Schemes” has already been approved.
Signature
Name in block letters
MISS YVONNE CHOI
Post Title
Permanent Secretary for Commerce and Economic Development
