Positive impact of the Hong Kong delegation’s visit to Vietnam on bilateral trade and investment

The recent visit by a high-level Hong Kong delegation led by Chief Executive John Lee to Vietnam has significantly strengthened the economic ties between the two countries. The visit aimed to deepen cooperation in trade, investment, innovation, technology, and other sectors. Multiple MoUs were signed to promote these areas. The visit left a positive impact on Hong Kong investment in Vietnam and facilitated business partnerships, especially in the manufacturing sector.

General information of the visit

From July 31 to August 2, the Hong Kong delegation, organized by the Hong Kong Trade Development Council (HKTDC) and led by Mr. John Lee, Chief Executive of the Hong Kong Special Administrative Region (HKSAR), concluded a successful visit to Vietnam. This delegation comprises a diverse group, including principal officials from the HKSAR Government and 30 representatives of enterprises in the fields of innovation, technology, trade, industry, finance, logistics services and tourism.

The relationship between Vietnam and Hong Kong regarding trade and economy is strong, and Hong Kong aims to reinforce this bond through this visit. In 2023, Vietnam stood Hong Kong’s fifth-largest export market and the largest within ASEAN. Additionally, Vietnam ranked Hong Kong’s seventh-largest trading partner and the second-largest within ASEAN while serving as Hong Kong’s eighth-largest import market and the third-largest within ASEAN.

In the welcome meeting, Vietnam President To Lam expressed his utmost admiration for the inaugural official visit to Vietnam by the leader of Hong Kong (China) since the inception of its particular administrative region in 1997. He was confident that this visit would enhance tangible collaboration and yield mutual advantages in various sectors between Vietnam and Hong Kong, thereby making significant contributions to their comprehensive and enhanced strategic cooperation partnership.

Bilateral trade and innovation promotion

During the visit, productive conversations will be held about the harmonious relationship between Hong Kong and Vietnam and ways to empower Vietnamese enterprises to take advantage of Hong Kong’s thriving startup environment and venture into emerging industries like innovation, technology, sustainability, and green finance. These discussions will also delve into strategies for entering new markets and explore potential investment opportunities for Hong Kong businesses, showcasing a bright and promising future.

While visiting Hanoi and Ho Chi Minh City, the delegates had the opportunity to engage with executives and influential members of local chambers of commerce, such as the Vietnam Chamber of Commerce and Industry (VCCI), as well as prominent corporations like VinGroup and Tessellation Binh Duong Co Ltd., to explore potential business prospects actively.

Some 30 MoUs were signed by members of the delegation, Vietnamese government bodies and local enterprises in trade and investment promotion, finance, fintech, transport and logistics and education.

More FDI from Hong Kong to Vietnam expected

The Hong Kong Business Delegation’s visit to Vietnam has also significantly impacted Vietnam’s economic investment and development environment. The visit has created positive information about the investment environment in Vietnam, thereby attracting the attention of Hong Kong businesses. This has contributed to promoting foreign investment flows into Vietnam, especially from Hong Kong.

• Open up new cooperation opportunities: Many Hong Kong enterprises have strengths in production and processing, especially in light industries. The visit has facilitated these businesses’ seeking cooperation with Vietnamese companies in this field, thereby contributing to improving the production capacity and product quality of Vietnamese companies.
• Technology transfer: Hong Kong enterprises can bring advanced production technologies, help Vietnamese businesses improve productivity and product quality, and meet the increasing market requirements.
• Supply chain development: Cooperation between businesses on both sides can help build effective supply chains, reduce production costs, and increase the competitiveness of Vietnamese products in the international market.

Dr. Lam said after the trip “In recent years, Hong Kong has been making tremendous advances in new sectors, such as innovation and sustainability. Our advances in green-tech, smart manufacturing and supply chain management, reinforced by our world-class R&D and IP infrastructure and robust government support, provide a lot of opportunities for us to collaborate with ASEAN businesses.”

The Belt and Road Summit, which will be hosted on 11-12 September in Hong Kong by the HKSAR Government and HKTDC, also offers collaboration opportunities to companies from Cambodia, Laos and Vietnam.

Sources: VIR, SGGP, HKTDC.