A Chinese official says that North Korea is transitioning from a controlled economy to a capitalistic market economy and that now is the right time to invest in the communist country.

The official made the remarks on Saturday during a seminar on 'investment strategies on North Korea' held in Harbin in China's northeastern Heilongjiang Province.

The provincial official said North Korean leader Kim Jong-il is now actively introducing capitalistic measures and reforms after watching the remarkable development of China over the past 20 years.

The official recommended investment in North Korea's service industry, including in travel agencies, hotels and restaurant businesses.

In particular, the official said investors need to be prepared in advance for the North's opening of insurance, securities and banking industry sectors.