Exploring Investment and Business Opportunities between Vietnam And Hong Kong (China)

2:06:44 PM | 3/27/2024

The cooperation between Vietnam and Hong Kong (China) has continuously been strengthened and developed in the past time. This partnership boasts significant potential for further enhancement, particularly as the trade and investment promotion entities of both sides continually organize investment forums, business symposiums, and networking initiatives. Notably, the recent convening of the workshop “Hong Kong and Vietnam develop together - Exploring investment and business opportunities” stands as a testament to this collaborative endeavor, jointly organized by the Hong Kong Economic and Trade Office (HKETO) in collaboration with Invest Hong Kong (InvestHK).

Delivering the opening keynote to the workshop, Mr. Vo Tan Thanh, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), said that Vietnam - Hong Kong trade and investment cooperation has grown fruitfully for years. Hong Kong is currently one of Vietnam's 10 largest trading partners and ranks 6th in export market. In 2023, the bilateral trade was estimated at US$11.24 billion. In the year, Hong Kong's foreign direct investment (FDI) into Vietnam amounted at US$4.68 billion, ranking third among foreign investors in Vietnam. For its part, Vietnam is also Hong Kong’s second largest trading partner in ASEAN and Hong Khong’s 7th largest global trade partner. Hong Kong is well-known for its strength as a gateway for investment, trade, finance, and logistics between China and the region and the world through the “Belt and Road” Initiative and “Hong Kong - Guangzhou - Macao Greater Bay Area”. This important factor will boost economic relations between Vietnam and Hong Kong as well as between ASEAN countries with East Asian economies and the world.

Sharing the same opinion with Mr. Thanh, Mr. Owin Fung - Director of HKETO, affirmed that Hong Kong is always a potential and trustworthy partner of companies, especially Vietnamese firms seeking to expand their business abroad. Hong Kong not only provides a stable business environment but also helps Vietnamese companies expand and connect with other potential markets, including nine cities in the Hong Kong - Guangzhou - Macao Greater Bay Area.

Last year, Hong Kong loosened its visa policy for recruiting Vietnamese personnel and easing criteria for Vietnamese people to apply for multiple-entry visas for business and tourism, he said. “This is a golden opportunity for Vietnamese companies to explore market potential and take advantage of Hong Kong's position and advantages as an international hub. Vietnam and Hong Kong can absolutely work together to make the impossible possible and create a launching pad to raise bilateral cooperation to a new high,” Owin Fung affirmed.

To help Vietnamese companies clearly understand major strengths and appeals of the Hong Kong market, Ms. Alpha Lau, Director General of Investment Promotion (InvestHK), provided the most overview picture of the Hong Kong business market with unique advantages such as an international center of finance, transportation and trade; Anglo-American legal system (common law); and close connection with world markets and strong support from China; low and minimalist tax system; and Asian centrality. “One of our highlighted investment support policies is free consultation and provision of customized services for companies in foreign countries and in Mainland China to establish and develop businesses in Hong Kong. Another advantage is that Hong Kong provides many incentives and support for startups, especially in research, development and fundraising. Hong Kong also has many venture funds, private investment funds or estate management investment funds that can also be sources for startups to raise capital,” she said.

To assist Vietnamese companies to better understand the Hong Kong market, Mr. Abhishek Bakshi, Head of the ASEAN Regional Issuer Services Department of the Hong Kong Stock Exchange, shared a lot of useful information with businesses about “IPO listing in Hong Kong”. Hong Kong plays a key role in connecting Vietnamese financial institutions and businesses to meet funding and investment needs of projects under the Belt and Road Initiative. On the contrary, Vietnamese companies and financial institutions can fully take advantage of Hong Kong’s stock/bond markets to mobilize capital, share cooperation opportunities and work together for their development goals.

By My Chau, Vietnam Business Forum