Forging stronger ties: Vietnam welcomes Hong Kong investors as bilateral relations flourish
Hoang Chi Trung, Vietnam’s consul general in Hong Kong and Macau, discusses the many advantages of investing and doing business in his home country
Investors from Hong Kong have been playing an important role in economic construction in Vietnam since the country opened up to foreign investment some 30 years ago. The bilateral relationship between Vietnam and Hong Kong is now stronger than ever, according to Hoang Chi Trung, Vietnam’s consul-general in Hong Kong and Macau.
Hoang says foreign investment has helped Vietnam to transition from being a poor country to being the middle-income nation it is today. “Over the past 30 years, Vietnam has attracted about US$200 billion in foreign direct investment. This, together with development assistance from foreign governments and the World Bank, has helped the country’s economy to grow at 7 to 8 per cent a year over the period.”
He adds that foreign investment has also introduced new technologies and management skills, and has stimulated the market economy to Vietnam. This in turn has led to improvements in the country’s infrastructure – such as new highways, airports, seaports and railway systems – and has created a better business environment for foreign investors.
The Vietnamese government has set up a number of industrial parks to attract foreign investment, Hoang says. These provide land, electricity, water supply and sewage systems, so that investors can set up their factories easily. The government also offers tax substitutions for the import of raw materials, and special tax breaks for periods of up to 10 years are available to those who invest in rural and mountainous areas.
Over the past 30 years, Vietnam has attracted about US$200 billion in foreign direct investment. This ... has helped the country’s economy to grow at 7 to 8 per cent a year over the period
Hoang says investors from Hong Kong have been a major source of foreign investment for Vietnam,
pumping in about US$20 billion over the past 30 years in more than 1,000 projects. In 2015, Hongkongers invested about US$2 billion in Vietnam and the amount is expected to increase this year, with several key projects announced recently.
“For example, Chow Tai Fook will invest US$4 billion to build a hotel and casino in Quang Nam province, the TAL Group will build a textile plant and employ about 2,000 workers, and the Texhong Textile will also build a garment factory,” he adds.
