HONG KONG's manufacturing sector is not about to vanish - it is being restructured, Federation of Hong Kong Industries chairman Henry Tang says. Mr Tang said in the August issue of the Hong Kong Industrialist it would be wrong to predict the demise of the manufacturing industry in Hong Kong simply because many factories had relocated to China. 'It was the manufacturing industry which laid the foundation for Hong Kong's economic growth and prosperity,' he said. What Hong Kong had seen these days was the restructuring of the manufacturing industry. This included broadening the definition of the industry to include the service sector. Mr Tang said the Government should support the industry by introducing tax incentives and pouring more funds into the research and development of new products. He said the Government should encourage investment in more risky projects. Better co-operation between the Government and the industrialists should be encouraged. Retraining of workers was vital to allow employers to utilise the territory workforce. The newly elected chairman of the federation pledged to examine ways to assist members in their investments and trade with China. He said many federation members had businesses in the mainland and faced problems which were 'more esoteric and less transparent than those experienced locally'. The federation would seek to build solid contacts with Chinese officials at both the regional and local level in the interests of the industry. Mr Tang said he hoped the federation could organise 'study missions' to Beijing with the aim of building a better and closer relationship with Chinese policy-makers.