In early August, a delegation led by the chief executive of the Hong Kong Special Administrative Region, John Lee, paid a working visit to Vietnam. The delegation included around 30 leaders from international, mainland Chinese, and Hong Kong enterprises across sectors such as finance and insurance, innovation and technology, professional services, infrastructure, transport and logistics, energy, and hospitality.

Enterprises from Hong Kong often boast some of the most advanced facilities in Vietnam, Photo: Le Toan

The visit yielded fruitful outcomes, with 30 MoUs exchanged between Hong Kong and Vietnamese entities. These agreements span various cooperative areas, including trade, economic partnership, investment, aviation, education, and tourism promotion.

“Vietnam is our seventh-largest merchandise trading partner globally, and second-largest among ASEAN countries,” Lee said. “Beyond trade, we are also keen on investing in Vietnam. Today, many Hong Kong companies and conglomerates have expanded their operations across ASEAN, with Vietnam being a key focus.”

“I am confident that Vietnam’s sustainable economic growth, driven by key industries such as manufacturing, construction, services, exports, high-tech and advanced manufacturing, and renewable energy, will continue to present ample market opportunities for Hong Kong companies to thrive.”

Several well-established brands have led the way here in this regard. For example, Sun Wah Group has been operating in Vietnam for over 30 years, investing well over $1 billion in diverse sectors, from seafood and coffee to real estate and technology.

Similarly, Cathay Pacific and Swire Group were among the first to collaborate with Vietnam Airlines in its early days. Jardine Matheson, based in Hong Kong, has invested more than $4 billion in Vietnam, engaging in multiple industries and joint ventures. Since 2007, Lee & Man Paper Manufacturing has operated one of the most advanced facilities in Vietnam, producing over 550,000 tonnes of packaging paper annually.

Winnie Lam, general secretary of the Hong Kong Business Association Vietnam and COO of Avison Young Vietnam, said, “Hong Kong has consistently been a top foreign investor in Vietnam. Many multinational corporations use Hong Kong as their regional hub and a gateway to Vietnam. Additionally, numerous Hong Kong investments are channelled through offshore entities such as the BVI.”

In recent years, Hong Kong has also become a gateway for Chinese companies entering Vietnam. Many of these companies, originally from China and listed in Hong Kong, are expanding globally through Hong Kong, further enhancing the island’s status as an international connector and gateway to Vietnam, Lam added.

“While real estate, hospitality, and garment manufacturing remain attractive sectors for Hong Kong investors, there is a growing interest in technology, green energy, and environment-related services and products. Vietnam’s expanding middle-class and rising spending power are also drawing more tertiary service providers to the market,” Lam said.

In early August, two Hong Kong-based corporations, Kingboard and Computime, signed MoUs with Standard Chartered Bank.

Kingboard, one of the world’s largest laminate manufacturers, and Computime, a technology and manufacturing company focused on smart and sustainable living, will leverage Standard Chartered’s comprehensive financial solutions, including financing, treasury services, and sustainable finance advisory, to expand their business and production lines in Vietnam.

Peter Lam, chairman of the Hong Kong Trade Development Council, expressed optimism about the business potential between Hong Kong, Vietnam, and the broader ASEAN region.

“In recent years, Hong Kong has made significant strides in new sectors such as innovation and sustainability. Our advancements in green tech, smart manufacturing, and supply chain management, supported by world-class research and development, industrial park infrastructure, and robust government backing, offer substantial opportunities for collaboration with ASEAN businesses,” he said.

“In addition, Hong Kong is now the largest source of government green bonds in Asia. ASEAN businesses seeking green financing opportunities can rely on Hong Kong’s professional services for support,” he explained.