Hong Kong becomes an ideal destination for Vietnamese companies to expand their operations overseas for quite a few reasons, Vietnam sees Hong Kong as a free, developed economy with a strategic location, modern infrastructure, and large capital inflows.
During the round-table conference in Ho Chi Minh City on August 13, it was revealed that Vietnamese businesses eye on their local business expansion in Hong Kong. The director of Vietnam Chamber of Commerce and Industry (VCCI) Ho Chi Minh City Branch, Vo Tan Thanh, said Vietnam and Hong Kong are the key trade partners with bilateral trade over $9.2 billion in 2017 which was up by 22 percent from the previous year 2016.
In June 2018, Hong Kong stood the 6th largest foreign investor in Vietnam which invested total capital of $19 billion in Vietnam, he added. With the free trade agreement ASEAN with Hong Kong, both countries are expected to boost their production and trade in the near future, Vietnam is encouraging companies to expand overseas and market their products across the world, he added.
According to Thanh Hong Kong is a free politically sound developed economy which has strategic locations on the globe, the country hold on to modern infrastructure with large capital inflows, the Hong Kong Stock Exchange is one of top 10 stock exchanges in the world standing at number 6, he said, if Vietnamese firms tap onto this market they can have access to massive capital resources, and one of the world’s busiest seaport, the companies can expand their products beyond expectations from there.
Stephen Phillips, General Director of Investment Promotion at Invest Hong Kong (IK) is calling upon Vietnamese companies to invest in the fields of financial services, transportation, consumer goods, hospitality, innovative industries and technological innovation.
He applauded Hon Kong for its strong and active international business environment, easy business registration processes, strong infrastructure and low tariffs, the country has now a mechanism to support new businesses and mature firms, from planning, opportunity evaluation to visa application and marketing.
Despite good opportunities, there are some issues that also need to be considered including high office rent, intense competition with other multinationals, high employee costs he added. The IK representative proposed that opening financial, sales and marketing offices in Hong Kong would be more beneficial for Vietnamese companies; tapping into existing supply chain, and logistics management would yield favorable results.