Last updated: Thursday, April 27, 2017
Hong Kong: Gateway for Vietnam Businesses to Global MarketPosted: Friday, February 24, 2017
Hong Kong is a free trade market, an ideal gateway to help all ASEAN businesses to penetrate the Chinese and worldwide markets. It is affirmed by Ms Truong Thi Kim Anh, Deputy Director of Vietnam Chamber of Commerce and Industry Danang Branch (VCCI Danang), at the seminar "Hong Kong - International Trade Partner" which was held recently in Danang City.
According to VCCI Danang representative, at present, the negotiations of the Free Trade Agreement (FTA) between the ASEAN and Hong Kong officially started in July 2014 and once the FTA is concluded, Hong Kong will become a "super bridge" between China and the ASEAN Economic Community (AEC). "The FTA will help boost trade and economic cooperation between Hong Kong and ASEAN, including Vietnam, facilitating trade goods, services and investment. Free trade will create opportunities for business cooperation, promote deeper integration and the economic growth in the region," Ms Anh stressed.
Along with this FTA, according to Ms Anh, Hong Kong is regarded as a potential market for Vietnam's exports. Economic experts said the lack of arable land makes Hong Kong import more food. It is the favourable term to all Vietnam’s agricultural commodities to boost exports to this market.
In particular, according to the representative of VCCI Danang, Hong Kong is a free market with lower levels of import tax, and the government does not intervene much in the operation of businesses. The wholesale and retail sectors of Hong Kong are developed. It is regarded as the financial and commercial centre of Asia and the world.
Mentioning the approaches of Vietnamese enterprises to this market, she said that every year, Hong Kong holds many trade fairs, specialised exhibitions attracting millions of international clients looking for sales and investment opportunities. And through that, Vietnamese businesses will find export opportunities for their handicrafts items, agricultural products, seafood, vegetables, textiles, etc. Many enterprises have found good opportunities to export their goods such as computers, cameras, camcorders and accessories of all kinds; machinery, appliances, textiles; seafood and footwear.
"Many businesses have found good chances to export goods. However, some experts said that Vietnam now still faces some limits such as their enterprises do not meet the requirements of big purchase orders. According to C/O department of VCCI Danang, in central provinces such as Quang Ngai, Quang Nam, Danang and Thua Thien Hue, there are only 20 enterprises exporting to Hong Kong with the main goods being garments, footwear, fisheries and medical oil," said Ms Anh, referring to the limit of Vietnamese enterprises in the access to Hong Kong market.
At the conference, Ms Tina Phan, Director of Indochina – Hong Kong Trade Development Council (HKTDC), said Vietnam is currently the 12th largest trading partner of Hong Kong. The total two-way trade turnover of Vietnam and Hong Kong has continuously increased from 2013 to present with items including telecommunications equipment, semiconductors, electronic tubes valves, shoes, and so on.
"We expected more enterprises of Danang engage in two-way trade of Hong Kong and Vietnam. In the near future, the HKTDC calls for all Danang enterprises to actively participate in the fairs in Hong Kong, strengthening trade connections. Vietnam has strengths in household goods and food, and many businesses in the sector have participated in fairs for fashion, electronics, foodstuff in Hong Kong. They sell goods not only to Hong Kong partners, but also to many partners from countries around the world. Vietnamese businesses need to maintain their participation in export promotion events in foreign countries, because these fairs not only bring orders but also the chances to get information and market their own products,” Ms Tina Phan said.