GUANGZHOU: The increasing emphasis on developing the western Pearl River Delta (PRD) region and Guangdong's heavy industries is creating new opportunities for Hong Kong.

This could sum up the opinion of the speakers at the annual Pearl River Delta Conference in Guangzhou yesterday.

Since development in the eastern PRD region has been hindered by increasing costs and environmental problems after years of rapid growth, the western part has become the "focus of development", Greater Pearl River Delta Business Council Chairman Victor Fung said.

Some industries are being relocated from the eastern to the western part of the region, deputy secretary-general of the Guangdong provincial government Xie Pengfei said.

The benefit from the development of this part of the PRD region would be deeper economic integration of Guangdong, Hong Kong and Macao in the next decade - and it would not stop there, director of the Institute of International Economy of the National Development and Reform Commission Zhang Yansheng said.

It should lead to closer ties with neighbouring Guangxi Zhuang Autonomous Region and Guizhou Province, which, as part of the mainland's western modernization campaign, need a channel towards the sea ports, Zhang said.

Shrinking of business operations in Hong Kong and the demand for better social services as the flow of people increases could be some of the challenges posed by the development of the western PRD region, Fung said. But Hong Kong should benefit from Guangdong's rapid move towards heavy industries as it restructures its economy, he said.

The heavy industries, including chemicals, petrochemicals, iron and steel and automobile would offer fresh opportunities to Hong Kong, which has been engaged largely in labour-intensive projects in the PRD region, he said.

For example, the development of the auto industry would create the demand for auto parts, related transportation, trading and maintenance services and auto insurance.

Xie said Guangdong had reached a stage where the new economic growth would be led by the heavy industries. The province plans to greatly boost its production capacity in ethylene, refined oil, nuclear power, automobiles and other products.

On the consequent environmental challenges, chief engineer of Guangdong's Environmental Protection Bureau Li Zisen said the province would need to plan well for this including on the sites and sizes of those projects.

The goal of such a plan would be to keep the ecology from deteriorating and to set a cap on the total emission volume, Li said.

Deputy Director of the Department of Economic Affairs of the central government's Liaison Office in Hong Kong Wang Hui offered his insight into a better cross-border inter-governmental coordination. There's asymmetry in the mindset, information, methodologies, local interests and policies of the provinces and Hong Kong.

Those asymmetric areas, Wang said, are exactly the starting point for improving coordination.

Editor: Yan