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Investors from Hong Kong explore exciting options, Photo: hsbc.com.hk |
In August, HSBC, through its Hong Kong office, signed an MoU in Ho Chi Minh City with Vietnam’s 315 Medical. The collaboration aims to leverage 315 Medicals’ healthcare capabilities in Vietnam alongside HSBC’s expertise in Hong Kong’s economic connectivity and robust capital markets.
Luanne Lim, CEO of HSBC Hong Kong, said, “Hong Kong businesses have long been interested in the opportunities that Vietnam offers. In the first seven months of 2024, Vietnam’s total registered foreign direct investment exceeded $18 billion, marking a 10.9 per cent increase compared to the same period in 2023.”
Hong Kong serves as a crucial gateway for mainland Chinese businesses looking to seize opportunities in Vietnam.
“Both Hong Kong and Vietnam present multiple growth opportunities across sectors such as manufacturing, energy and renewables, financial services, healthcare, and tourism. In recent years, Vietnam’s digital sector has shown remarkable growth as the economy diversifies. The country has emerged as a significant player in IT outsourcing, driven by lower labour costs and a young, tech-savvy workforce,” Lim added.
In addition to inbound opportunities, during a delegation led by Hong Kong SAR chief executive John Lee in August, HSBC also encouraged Vietnamese companies to explore collaborative ventures with Hong Kong. The delegation featured leaders of 30 international, mainland Chinese and Hong Kong enterprises and conglomerates.
“Hong Kong boasts a stock market capitalisation of $4 trillion with over 2,000 listed companies. It is an ideal hub for listing and fundraising activities, offering high-quality financial, legal, and professional services, making it a premier business partner for Vietnam seeking to access foreign markets,” Lee said.
According to the Hong Kong General Chamber of Commerce (HKGCC), many Hong Kong companies across a wide range of sectors are thriving in Vietnam. Companies like Lai Sun Group, Chevalier International Holdings, and Esquel Enterprises have been successfully investing and doing business in Vietnam for many years.
Agnes Chan, chairwoman of the HKGCC, said, “During our conversations at the business luncheon in Vietnam in early August, some HKGCC members said they are successfully collaborating with local enterprises as well as the authorities in various fields. I also met with representatives of a Hong Kong firm at a business luncheon in Ho Chi Minh City, which is assisting the Vietnamese government on initiatives such as greening traditional industrial parks to make them environmentally friendly and conserve precious resources.”
“Hong Kong companies have been well known for exploring new opportunities and markets,” Chan said. “Mainland China has traditionally been our key focus due to its many advantages. At the end of 2022, cumulative utilised capital inflow from Hong Kong amounted to $1.57 trillion. To diversify production, and to benefit from Vietnam’s young, talented workforce, as well as the many preferential trade agreements the government has signed with markets around the world, Vietnam is very attractive to businesses.”
For example, Hong Kong is currently Vietnam’s fifth-largest foreign investor. There are over 2,100 projects, registered at almost $30 billion. These are mostly in the real estate, processing and manufacturing sectors, but professional business services are also expanding to serve their clients in Vietnam. Hong Kong legal and finance consulting firms that have local collaborations in Ho Chi Minh City are also strong examples.
Chan also pointed out emerging sectors in Vietnam that hold promise for Hong Kong firms include tourism and hospitality, renewable energy and, of course, technology and the digital economy. It has set ambitious targets to increase the share of renewable energy. This includes a goal of 32 per cent renewable energy by 2030.
Meanwhile, the Vietnamese population is driving growth in e-commerce, fintech, and other digital services. Investments are pouring into startups, software development, and IT infrastructure. These sectors offer plenty of potential for Hong Kong companies looking to enter the market.
“Hong Kong has always been an international trading and business hub, and although Vietnam is not a new market for many companies, in an increasingly geopolitical world, they are seeking to diversify their business and reduce risks as supply chains can become disrupted and tariffs imposed on certain goods,” Chan noted.
Education is also an important sector in which Hong Kong institutions are collaborating with Vietnam. In August, Hong Kong Polytechnic University signed MoUs with Vietnam National University, while HKU Business School has inked agreements with University of Economics Ho Chi Minh City and Ho Chi Minh University of Banking.
At the same time, in aviation, Airport Authority Hong Kong inked agreements with Vietnam Airlines, Airports Corporation of Vietnam, and Sovico Group. In Hong Kong, HK Express will also seek to launch flights between Hong Kong and Vietnam’s offshore island of Phu Quoc by the end of 2024.
![]() | Hong Kong to facilitate listings for Vietnamese companies Hong Kong is exploring opportunities to strengthen bilateral ties across various industries, particularly focusing on the financial market. Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing (HKEX), talked to VIR's Luu Huong about how Hong Kong can share its expertise in developing financial centres and facilitate overseas listings of Vietnamese and other Southeast Asian companies. |
![]() | Hong Kong investors build on growing Vietnam interest After decades of strong presence in Vietnam, Hong Kong companies continue to cement their status as major foreign investors by diversifying activities across multiple sectors. |
![]() | Hong Kong seeks to build on ASEAN relationship The upcoming Belt and Road Summit in Hong Kong will highlight the territory's role in fostering economic cooperation with ASEAN by leveraging its strengths in finance, innovation, and green development. |
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