Plentiful Opportunities to Enhance Trade, Investment Ties with Hong Kong (China)

3:30:27 PM | 10/14/2023

Mr. Lam Sai-Hung, Hong Kong Secretary for Transport and Logistics and Chairman of the Hong Kong Logistics Development Council (LOGSCOUNCIL), stated that there is a significant potential to enhance the Vietnam-Hong Kong (China) cooperation, which is boosted by the Belt and Road Initiative and the development of the Guangdong - Hong Kong - Macao Greater Bay Area (GBA). He made this statement at the trade exchange and connection event themed “Hong Kong as an international logistics hub - The best link for your global supply chain”.

 Vietnam and Hong Kong (China) have strengthened their economic, trade and investment cooperation ties in recent years. Hong Kong serves as a vital gateway for mainland Chinese companies to invest in Vietnam, while Vietnam offers a robust platform for Hong Kong (Chinese) businesses to access and tap into the promising ASEAN market. One example is that exporting goods from Vietnam to key partner markets through Hong Kong reduces logistics costs and enhances bilateral and multilateral cross-border trade connections.

 Statistics show that the trade ties with Hong Kong increased by an average of 14.5% annually from 2018 to 2022. Currently, Hong Kong is among Vietnam’s top 10 trading partners and the 5th largest export market of Vietnam. Conversely, Vietnam is also Hong Kong’s 2nd largest trading partner in ASEAN and its 7th largest trading partner worldwide. Their bilateral trade relations are further consolidated by the ASEAN-Hong Kong Free Trade Agreement and a related Investment Agreement, which came into full force in 2021.

As an international trade and logistics hub, Hong Kong remains an optimal gateway between mainland China and the world, including Vietnam. In 2022, about US$23 billion of trade value between mainland China and Vietnam was conducted through Hong Kong, accounting for about 9% of their total trade value. Also in that year, container throughput between Vietnam and Hong Kong reached about 800,000 TEUs, of which about 26% were transshipped to Vietnam and mainland China.

At the exchange event, Secretary Lam Sai-Hung highlighted that Vietnam is not only a developing economy with remarkable logistics, manufacturing and trade growth but also one of the closest trading partners of Hong Kong and mainland China. This relationship is even stronger as Hong Kong and Vietnam continue to benefit from robust and growing bilateral trade due to their geographical proximity and the economic development of the two regions.

Secretary Lam Sai-Hung also affirmed that Vietnamese businesses have many opportunities to strengthen cooperation and expand the Hong Kong market, especially when the government of the Special Administrative Region is actively boosting cooperation with Belt and Road partners in many fields, including trade and logistics. Hong Kong logistics service suppliers can provide Vietnamese companies and manufacturers with customized logistics solutions, targeting high-value products for better access to growing consumer markets in the GBA region and beyond. “We have just welcomed 30 well-known strategic companies to establish or expand their future businesses in Hong Kong. We look forward to fostering closer cooperation with Vietnamese businesses and always open the door to welcome them to Hong Kong to experience the vibrant business life and the meeting of East and West cultures. LOGSCOUNCIL members are also ready to share with Vietnamese businesses their deep insights and experiences in doing business with mainland China, including advantages of transporting goods through Hong Kong,” he shared.

Responding to the invitation of the Hong Kong Secretary of Transport and Logistics, VCCI Vice President Vo Tan Thanh stated that Hong Kong is a strategic gateway for trade and logistics between China and the region and the world through the Belt and Road Initiative and the GBA Greater Bay Area. Vietnam’s export shipments to key partner markets through the Hong Kong gateway enjoy advantages in logistics costs. This will be a crucial factor to enhance cross-border trade and economic connections between the two sides as well as between ASEAN countries and East Asian economies and the world. “During the working visit to Vietnam by Secretary Lam Sai-Hung, VCCI-HCM is privileged to be the coordinating partner to organize the meeting and exchange event between the Hong Kong delegation and the Vietnamese business community in logistics, transportation, warehousing, industrial parks, maritime, aviation, import and export. Besides providing updated information on the potential cooperation in transportation and logistics, today’s trade exchange event is also a bridge to connect businesses with government agencies on both sides, thus helping Vietnamese and Hong Kong business communities understand and utilize investment and business opportunities effectively,” he emphasized.

The Vietnam Chamber of Commerce and Industry - HCM City Branch (VCCI-HCM), in collaboration with the Hong Kong Economic and Trade Office and the Hong Kong Investment Promotion Agency, organized the trade exchange and connection event titled “Hong Kong as an international logistics hub - The best link for your global supply chain”. The event attracted 25 politicians and businesses from the Hong Kong Special Administrative Region and over 80 Vietnamese businesses and associations involved in logistics, transportation, warehousing, industrial parks, maritime, aviation, import and export, and other sectors

My Chau (Vietnam Business Forum)