A Chamber delegation led by HKGCC Director Dr Eden Woon recently returned from a five-day study mission to Henan and Anhui.

Now that China is in the WTO and the Central Government is aggressively promoting its central and western development plan, both provinces offer promising investment opportunities for Hong Kong businesses to tap.

During their visit to Anhui Province, Governor Xu Zhonglin warmly received the delegates and briefed them on Anhui's competitive advantages. He said one of the province's main selling points is its strategic location, interfacing the eastern and western regions. Its mineral, agriculture, tourism and technology industries also offer strong potential for investors.

Following their meeting with Mr Xu, who thanked the Chamber for helping to promote the province, delegates attended a dinner reception hosted by Anhui Vice Governor Lu Jiafeng.

On the second day of the mission, members met officials from the Department of Foreign Trade and Economic Cooperation, State Taxation Bureau, Administration of Customs and the Development Planning Commission. Frank discussions during the meetings provided valuable information for members as well as Anhui officials, who were given suggestions from a foreign investor's perspective.

According to the department of Foreign Trade and Economic Cooperation, Hong Kong is the largest foreign investor in the province. Among the 4,937 foreign enterprises operating in Anhui, 2,209 are run by Hong Kong companies, and SAR investments account for 43 per cent of the total US$6.2 billion of foreign contractual investment.

Delegates also met the Mayor of Heifei, Guo Wanqing, who said the city has a rich pool of human resources. As one of the four scientific and educational bases in China, Heifei now has 13 tertiary institutions and over 200 research institutes.

In Henan Province, the delegation met Governor Li Keqiang and Vice Governor Zhang Yixiang, and attended the 2002 Henan Economic & Trade Fair. They also acquired a more in-depth understanding of China's cultural heritage by touring renowned scenery spots -- Longmen Grotto, Shaolin Temple, and Zhengzhou Museum.

During meetings with officials from the Department of Trade and Economic Cooperation and other provincial officials, delegates learned that the province is an important agricultural base in the Mainland.

Henan also plays an important role in fuelling the Mainland's power plants by supplying about 80 million tonnes of coal annually, the third highest in the country.

With easier access and generous investment incentives offered by the Central Government as part of its western development plan, Henan offers attractive opportunities to foreign investors, officials told members.

Hou Guofu, director general, Department of Foreign Trade and Economic Cooperation of Henan, said he believed that Hong Kong's global network, advanced service industries and skilled professionals could benefit Henan by helping the province's strong domestic industries expand into overseas markets. Mr Hou added that he believed the Mainland/Hong Kong Closer Economic Partnership Arrangement would benefit the economic development of Henan.