First of all, let us consider Hong Kong's comparative advantages. The rapid development of our nation is transforming the global economic landscape. After 30 years of reform and liberalisation, the increasing integration of the Mainland with the global economy and the urbanisation and industrialisation in the Mainland have progressively changed the mode of economic development, boosting domestic consumption in terms of both quality and quantity, driving manufacturing industries up the value chain and speeding up the development of the service industries. These developments have helped our economy shift towards higher value-added services, thereby supporting our economic growth.
Hong Kong has the unique advantage of having the Mainland as our hinterland while maintaining an international outlook. We have been fostering cooperation and integration with the Mainland through the Closer Economic Partnership Arrangement and the Pan-Pearl River Delta (Pan-PRD) Regional Co-operation Framework Agreement. With the gradual implementation of the Action Agenda put forward in the Economic Summit of
"China's 11th Five-Year Plan and the Development of Hong
Kong", we can enhance our role in the development of our nation. In addition, by expanding the scope for functional division and cooperation between Hong Kong and Mainland cities, mutual benefit can be achieved. With these advantages, we can also attract investors from both the Mainland and overseas to use Hong Kong as a platform for developing regional and international business.
Hong Kong has a sound legal system, a free flow of information, a well-established, strong and effective global network, and entrenched intellectual property rights protection. Hong Kong also boasts an open and highly cost-effective business environment, and has a huge Mainland market as our hinterland. These are the key elements for Hong Kong to attract local and overseas investors. We must co-operate with the Mainland, in particular the Pan-PRD region, in promoting to these investors the overall package in order to enhance our attractiveness.
We must also further enhance our status as Asia's world city and as a place for regional operating headquarters, and increase our cooperation with other cities in the region, so we can play our hub role more effectively, promoting the development of our nation and the entire region.
24. The Government is making untiring efforts to help our enterprises develop economic relations with emerging markets. In the past few months, we have led delegations of different sectors to Russia, Vietnam, India and the Middle East. We will continue to extend and strengthen these international ties. Later this year I will visit some major cities in Eastern Europe and South America to help our enterprises tap further opportunities.