The Guangdong provincial government has reiterated the importance for manufacturers to move up the value-added chain. That is the area where Hong Kong can play a key role. By helping enterprises in the PRD region in marketing and brand-building, Hong Kong can secure a position of strength in the mainland's economic development.
In the past, Hong Kong was a major investor keen on taking advantage of the plentiful supply of labor and land in the PRD region. The massive migration of manufacturing activities to Guangdong from Hong Kong has helped speed up the industrialization of the region.
But Hong Kong's hold on the front end - design and financing - and the back end - packaging and shipment - has largely been chipped away as the industries in the PRD region matures. What is more, the Guangdong government has invested heavily in building infrastructure facilities, notably the container ports, that can rival those in Hong Kong. These developments have given Hong Kong's economic planners and business leaders a growing sense of irrelevance.
The opportunities presented by the rising demand for Hong Kong's marketing and branding expertise by the mainland, particularly Guangdong, enterprises have not been ignored. The Hong Kong government has been keen on promoting Hong Kong's new role in the PRD region.
As part of its efforts, the Hong Kong government, jointly with the Guangdong provincial authorities, has initiated a scheme to provide marketing and branding training to PRD enterprises. So far, 200 such enterprises have dispatched key executives for training under the scheme.
Hong Kong, of course, can offer much more. The marketing acumen of such retail establishments as Esprit in clothing, Watson's in healthcare products and Sasa in cosmetics is well known not only in Hong Kong but also in many mainland cities where they have established a large presence. There are much that these and other Hong Kong companies can contribute to the further development of the PRD's economy and particularly of its corporate sector.
