Exports of some products to mainland China from Hong Kong are exempt from tax, so Vietnamese companies should take advantage of this treatment, heard a seminar in HCMC last Friday.
At the seminar on Hong Kong as an international trade partner, Samuel Lau, executive director of Kerry Logistics (Hong Kong), said mainland China had issued a list of products like electronics, apparels and industrial products that are free from tariffs if shipped from Hong Kong from April 1.
According to Lau, Hong Kong is a free port with a modern logistics system and no tariffs are imposed on export-import goods, except for liquor, tobacco, hydrocarbon oil and methyl alcohol. Hong Kong is also famous for its widespread air network and major ports in Asia.
Margaret Fong, executive director of the Hong Kong Trade Development Council (HKTDC), said Hong Kong can be a gateway for Vietnamese goods producers to enter mainland China. Many Vietnamese enterprises now regard Hong Kong as the main partner to stay connected with international buyers, she added.
Vietnam is one of the leading export markets of Hong Kong in the region. Trade between Vietnam and Hong Kong reached US$16.3 billion last year, and Vietnam is also the ninth biggest partner of Hong Kong.
Talks on the Hong Kong-ASEAN free trade agreement (FTA) will be concluded late this year, which is expected to give a much-needed boost to trade.
Le Manh Ha, deputy head of the Government Office, said Hong Kong has an important role in Vietnam’s international trade. In terms of foreign investment, Hong Kong ranks fourth among the countries and territories that have invested in Vietnam with more than 1,000 projects worth over US$16 billion in total.
The Vietnamese Government, according to Ha, will present to the National Assembly a resolution designed to solve tax problems faced by enterprises and revise regulations on licensing, export-import activities and business operations in line with international commitments.
The Government would also simplify land procedures and construction licensing, and amend rules on labor, Ha told the seminar jointly organized by the HKTDC, the Vietnam Trade Promotion Agency (Vietrade) and the Vietnam Chamber of Commerce and Industry’s (VCCI) HCMC branch.
Ha noted Vietnam creates favorable conditions for foreign-invested enterprises, including those from Hong Kong.
When meeting HCMC chairman Nguyen Thanh Phong on the same day, Margaret Fong of the HKTDC said HCMC is the top Vietnamese destination for Hong Kong investors.
Hong Kong businesses are more interested in Vietnam given the Trans-Pacific Partnership (TPP) trade pact and Hong Kong’s forthcoming signing of an FTA with ASEAN, she told the city chairman.
The FTA between Hong Kong and ASEAN will help attract more Hong Kong investors to Vietnam, Fong said, adding that a delegation specializing in logistics will visit Vietnam this August and another business delegation will come in March 2017 to explore Vietnam’s export potential and investment opportunities in HCMC.
Phong said Hong Kong is a major trade partner of HCMC and Vietnam as a whole. Hong Kong has 332 projects in the city with combined capital of US$2.9 billion, the fifth biggest foreign investor in the southern city.
The city looks to become a financial, trade and service center of Southeast Asia, so it is focusing on developing urban infrastructure, tourism, hi-tech agriculture and hi-tech industries.
Fong said Hong Kong is experienced in urban infrastructure construction and could send expert delegations to HCMC to offer assistance and advice, including on metro line projects.
Source : http://english.thesaigontimes.vn
Keyword : Exports to China, via Hong Kong, to enjoy tax exemptions.
