Amid rising labor costs, the yuan's appreciation and the United States economic slowdown, some Hong Kong companies in the Pearl River Delta region are looking north for opportunities, and Jiangxi province is one of the places appearing on their radar.

Balanced against a national and global economic background, the advantages of operating in Jiangxi seem very apparent: relatively low labor costs, a green and clean environment, and its vicinity to China's two economic growth engines - Guangdong to the south and Zhejiang to the east.

"We are coming here to promote our province and invite our Hong Kong business partners to invest there," said Wu Xinxiong, the governor of Jiangxi, who is leading a strong delegation in Hong Kong to seek greater business cooperation between the two regions.

Wu cited the Hong Kong Industrial Park in Ganzhou, a city in southern Jiangxi, as a recent example of how the two places can come together.

With a total investment of $1.5 billion from Hong Kong Construction (Holding) Limited, the industrial park occupies around 50 sq km and is capable of hosting more than 1,000 enterprises. It is expected to be completed in 10 years.

According to Wu, 158 Hong Kong enterprises have already signed memorandums and will make the park their new home.

"The industrial park will serve as a perfect platform for Hong Kong companies thinking about setting up new firms on the mainland or moving their business operations north from the more-competitive Pearl River Delta region," Wu said.

By the end of last year, 6,297 Hong Kong enterprises had a business presence in Jiangxi, with a total investment of $8.83 billion - more than half of the total investment the province received from overseas companies.

When talking about business opportunities, Wu repeatedly stressed environmental protection.

"To cultivate a healthy economy, we have been working to strike a balance between economic development and environmental protection," he said.

"It is unacceptable for us that some people's pockets get fatter while drinking water becomes polluted and the air becomes smoggy."

Wu also vowed that his province will continue to work hard to keep the Dongjiang River clean.

The river, originating in southern Jiangxi and cutting through Guangdong, provides around 70 percent of the drinking water for Hong Kong residents.

"We will definitely keep it clean because we know how important the river is to the daily life of Hongkongers," Wu said. "And we will keep it clean because we must preserve Jiangxi's environment."

(HK Edition 05/13/2008 page2)