HCMC has been the number-one destination for investors from Hong Kong. Meanwhile, Hong Kong is the gateway to mainland China for many Vietnamese enterprises. In fact, Hong Kong is a hub helping Vietnamese entrepreneurs make contact with international trading partners.
With respect to trading potentials, Vietnam is the top destination in the Association of the Southeast Asian Nations (ASEAN) for Hong Kong’s exported goods. In 2015, two-way trade between Vietnam and Hong Kong reached US$16.3 billion. Vietnam is also the ninth largest trading partner of Hong Kong in the world market. In addition, the conclusion of negotiations of the free trade agreement between ASEAN and Hong Kong, which is scheduled for late 2016, will help promote bilateral trade between the two sides.
During a meeting with Chairman of HCMC People’s Committee Nguyen Thanh Phong on June 24, Margaret Fong, head of Hong Kong Trade Development Council (HKTDC), said HCMC is now among the top choices in Vietnam of Hong Kong investors.
“There are two reasons that prompt us to eye Vietnam now,” Fong said. “First is the signing of the Trans-Pacific Partnership (TPP) agreement, that will turn Vietnam into an attractive investment destination. Second, Hong Kong is looking forward to the [early] signing of the Hong Kong – ASEAN Free Trade Agreement, which includes clauses on promoting trade and investment and protecting investments.”
Together with the Double-Taxation Avoidance accord, which was signed in 2014 and becomes valid in 2015, the trade agreement between Hong Kong and ASEAN will be a motive for Hong Kong investors to Vietnam. In the coming August, a logistics delegation from Hong Kong will arrive in Vietnam, followed by an investment mission slated for March 2017.
Vietnam’s export potentials are great and HCMC offers favourable opportunities for investments, Fong said.
Speaking about bilateral trade and investments between HCMC and Hong Kong, Chairman Phong said Hong Kong is one of the major partners of Vietnam in general and HCMC in particular.
At present, investors from Hong Kong have committed 332 foreign direct investment (FDI) projects in HCMC, grossing US$2.9 billion in total capital. Hong Kong ranks fifth among countries and territories with investments in this city.
Phong said HCMC has made tremendous efforts to become one of ASEAN’s financial, trading and service hubs by 2020. The city has focussed on the development of urban infrastructure, tourism, hi-tech agriculture, and hi-tech industries.
In reply, Fong said Hong Kong has gained extensive experiences in urban infrastructure development, with many experts in various areas, including architects, contractors, project technicians, investors and legal consultants.
She added Hong Kong may delegate experts to HCMC to help with feasible solutions for the city’s urban infrastructure development, including consultancy services for the development of the city’s subway routes, especially the development of the lines from 3 to 7 which are awaiting investors.
During her visit to HCMC, Fong also joined over 300 Vietnamese and Hong Kong investors at a seminar entitled “Hong Kong – International Trade Partner 2016” which was organized by HKTDC, the Vietnam Trade Promotion Department, HCMC branch (Vietrade), and the HCMC Chapter of Vietnam Chamber of Commerce and Industry (VCCI), on June 24.
Speaking at the seminar, Le Manh Ha, deputy head of the Vietnamese Government Office, affirmed that Hong Kong plays an important role in the international trade with Vietnam. Hong Kong is ranked fourth in the list of countries and territories investing in Vietnam, pledging over 1,000 foreign-invested projects totaling over US$16 billion.
To ensure trading rights and equality in business resource access, the Government will in the near future submit to the National Assembly a resolution on removing difficulties on taxation. That will include lower corporate income tax rates for medium and small enterprises. Regulations on licensing, import/export, market management will be streamlined to create favorable conditions and to reduce costs for businesses in accordance with international commitments, said Ha.
The Government will simplify procedures on land administration, cut time for granting construction permissions, and revise labor regulations, especially regulations on foreign laborers, to make them compatible with the market and enterprises’ interests.
Ha said the Vietnamese Government has warmly welcomed foreign investors and created favorable conditions for them, including Hong Kong investors, to do business and to compete fairly in the country, and to promote trade with Vietnam.
Tran Vinh Tuyen, deputy chairman of HCMC People’s Committee, said Hong Kong has been a major entrance for businesses from ASEAN, as well as Vietnam, to enter the Chinese market, and to reach regional and global markets.
Significant achievements have been attained in economic and commercial cooperation between Vietnam and Hong Kong. Hong Kong is also a major channel where investments into Vietnam can be attracted, said Tuyen.
“The first Hong Kong – International Trade Partner seminar in HCMC indicates the attention of many Hong Kong businesses to the potentials and strengths of HCMC, and opportunities for trade between HCMC and Hong Kong,” said Tuyen. “It will help further enhance the relations and promote cooperation among business communities from HCMC and Hong Kong for mutual benefits.”
Key Vietnamese exports to Hong Kong include household electrical and electronic utensils, cameras, computers, telephones and components, machinery and equipment, textile and garments, footwear, aqua products, rice, wooden products, fibers, electric wires and cables.
Samuel Lau, CEO of the Hong Kong-based Kerry Logistics, said the Chinese Government has issued a list of electronic, fashion and industrial goods eligible for tax exemption when being imported to mainland China via Hong Kong since April 1 this year. He said Vietnamese goods can benefit from this incentive.
Lau added that Hong Kong is well-known for its modern logistics systems which link different parts of the world, including “free-duty ports” which allows zero percent import/export tax for goods handled through the port, with exceptions for wine, cigarettes, oil and alcohol. Hong Kong also has developed aviation facilities which are connected with locations around the world.
Geographically, Hong Kong is in the center of Asia, connecting China with ASEAN countries, and is a hub where multi-national companies, especially firms specializing in electronics and fashion goods, store their goods imported from other ASEAN countries (such as Vietnam and Bangladesh) before forwarding them around the world.
On behalf of the HCMC Association for Textile, Garment and Embroidery, Chairman Pham Xuan Hong said Hong Kong has served as an important gateway to the world for enterprises in Vietnam and HCMC. Via Hong Kong, Vietnamese companies can reach other large markets worldwide.
The association will send a mission to the upcoming textile and garment exhibition in Hong Kong, said Hong.
Source : http://english.thesaigontimes.vn
Keyword : Hong Kong, Vietnam’s potential, trade gateway.
