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Can trade and investments between the countries be further boosted?

Currently the seventh-largest trade partner of Vietnam, Hong Kong remains one of Vietnam’s major trading partners and investment sources. Despite the ongoing pandemic, investments, trading, and business connections are not shrinking between the two countries. In fact, investment from Hong Kong to Vietnam has increased by 7 per cent in the first 8 months of 2021.

To put it into monetary terms, bilateral trade between Hong Kong and Vietnam in 2020 amounted to 11.5 billion US dollars, and has continued to grow strongly in the past 8 months of 2021. Investment wise, the total registered investment capital from Hong Kong into Vietnam has reached over 27 billion US Dollars at the end of August 2021, and is continuing to rise steadily.

Since the signing of the ASEAN-Hong Kong Free Trade Agreement (AHKFTA), trade within the region has been evidently on the rise, with Hong Kong achieving a record high trade volume within 8 months of 2021. The AHKFTA has helped reduce barriers for trade, increasing market access in architectural, engineering, education and environment services.

During a webinar titled “Revival under the ‘New Normalcy’: Hong Kong-Viet Nam Partnership” held by The Commerce and Economic Development Bureau of Hong Kong and the Ministry of Industry and Trade of Vietnam, Mr Edward Yau, Secretary for Commerce and Economic Development of HKSAR Government, mentions that trade between Hong Kong and Vietnam should no longer be confined to commodity trade, but rather new areas that are investment-driven for infrastructure and economic development. While trade-driven economic growth will still be the major engine, tech-related or smart city-related development could be a new potential area to look out for.

Also speaking at the event, Mr Tran Quoc Khanh, Deputy Minister of Industry and Trade of Vietnam, lists out a number of measures for Hong Kong to consider to further improve business relations between the two countries. This includes removing visa restrictions for Vietnamese business visitors visiting Hong Kong, providing more information and corporation opportunities for Vietnamese businesses on the Greater Bay Area (GBA) initiative, as well as potentially discussing and signing a memorandum of understanding between the Ministry of Industry and Trade of Vietnam and the Commerce and Economic Development Bureau of Hong Kong to establish a closer collaboration.

For Hong Kong and Vietnam to join hands for economic recovery post-COVID-19, the webinar focuses on four key areas including Hong Kong’s role as a hub to reach the mainland and ASEAN market, Hong Kong as a functional platform for Belt and Road, Hong Kong as a major platform of capital fundraising and financing for projects and investments in the Vietnam side, the use of innovative and technology applications in combating COVID-19 and addressing livelihood needs under the new normalcy.

With Hong Kong’s unique positioning as a conduit between the mainland of China and the rest of the world and Vietnam’s geographical and social advantage for HK investors, Hong Kong is said to be the best partner for Vietnam enterprises to explore the huge potential in the GBA.

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