A new wave of investment is taking shape in Hong Kong as speculators seek opportunities to invest in projects on transport infrastructure and wastewater treatment.
Tina Phan, Director of Indochina at Hong Kong Trade Development Council, said at a recent conference on trade promotion in Ho Chi Minh City that she hoped when the ASEAN-Hong Kong Free Trade Agreement takes effect, it will open up huge opportunities for Hong Kong businesses to increase trade and investment in Vietnam.
Apart from traditional fields such as clothing, real estate, agro-forestry and fisheries, investors are looking to fund infrastructure and waste treatment in the form of the Public-Private Partnership (PPP) model.
Hong Kong investors are currently seeking investment opportunities in HCM City’s Metro Line No. 2 project, road construction and wastewater projects in cities.
Tina Phan expressed hope that the HKTDC will dispatch more delegations of Hong Kong businesspeople to learn about investment opportunities in Vietnam after the ASEAN-Hong Kong FTA comes into effect.
Vietnam is the sixth largest exporter to Hong Kong and a major trading partner. Hong Kong is consistently listed among the top 10 countries and territories having the biggest sources of FDI poured into Vietnam. At present, FDI capital flowing from Hong Kong into Vietnam ranks sixth with a total registered capital of US$17.6 billion across 1,239 projects.
In the first nine months of the year, Vietnam’s export turnover to Hong Kong surged 23.4% to US$5.5 billion, while Vietnam’s imports from Hong Kong increased 25% to US$1.3 billion against the same period last year. In 2016, Vietnam earned US$6 billion from exporting goods to Hong Kong while its imports from Hong Kong reached US$1.5 billion.
Hong Kong importers are showing their keen interest in Vietnam’s consumer market for products such as phones, computers, and electronics.