Viet Nam expects strong growth in two-way trade with Hong Kong based on the potential of bilateral relations, said Prime Minister Nguyen Xuan Phuc.

PM Phuc made the statement while receiving Hong Kong Secretary for Commerce and Economic Development Yau Tang-wah in Ha Noi on Thursday.

Lauding progress in political, economic, trade and investment ties, the PM suggested that Hong Kong support Viet Nam in developing bilateral trade and send experts to assist Viet Nam since Hong Kong is a financial centre in the region and the world.

He said Viet Nam has been focusing on developing transport, health and education infrastructure, and Hong Kong enterprises may take part in projects in these fields.

PM Phuc affirmed that Viet Nam is striving to improve its investment environment and to create optimal conditions for foreign investors, including those from Hong Kong, to successfully do business in the country.

He said relevant agencies of Viet Nam and Hong Kong need to put forth measures and action plans to further boost bilateral cooperative relations, adding that free trade agreements are opening up more cooperation opportunities for both sides.

For his part, Yau said he was impressed at Viet Nam’s economic growth as well as its achievements in international integration and the strong development of Viet Nam-China relations. He said his ongoing visit to Viet Nam is accompanied by a large number of Hong Kong firms who are seeking investment opportunities in the country, thus lifting bilateral trade ties to new heights.

Hong Kong wants to become a reliable partner of Viet Nam, Yau said, adding that Hong Kong can provide Viet Nam with professional services in the fields of finance, law, insurance and accounting.

Hong Kong, Viet Nam step up business collaboration, investments

Officials from Hong Kong and Viet Nam met on Wednesday at a conference in HCM City to discuss investment promotion policies, including lower taxes on profits made by businesses in Hong Kong.

The conference was organised by the Hong Kong Trade Development Council (HKTDC) and HCM City’s Viet Nam Chamber of Commerce and Industry. It was attended by many Hong Kong business delegations from different industries, seeking investment opportunities in Viet Nam.

Margaret Fong, executive director of HKTDC, said: “Hong Kong is very excited about the new opportunities that will arise, especially from the signing of the ASEAN-Hong Kong Free Trade Agreement (FTA) and the Investment Agreement.”

Many Hong Kong firms have been investing in Viet Nam for several decades. Now more Hong Kong businesses plan to invest in the country because the new agreements offer them more protection.

Fong said that Hong Kong firms could help Vietnamese partners expand internationally, offering assistance in marketing, e-commerce and logistics.

In addition to existing investments in Viet Nam’s infrastructure, Hong Kong firms are interested in satisfying the country’s rising demand in the financial, technology and professional service sectors. Hong Kong businesses are especially strong in technologies used in different sectors.

As for investment opportunities, Margaret said that all sectors in Hong Kong were open for Vietnamese investment and there would be no shareholding percentage requirements or other similar requirements.

In addition to no discrimination between local and foreign companies in terms of policies, agencies such as Invest Hong Kong and HKTDC are willing to help Vietnamese businesses set up and expand in Hong Kong, and offer help in market research and relocation.

Foreign companies that have incorporated in Hong Kong can also enjoy preferential treatment when entering mainland China, similar to local Hong Kong businesses, because of the Closer Economic Partnership Agreement between Hong Kong and China that took effect in 2003.

Taxes on profits made in Hong Kong will drop from 16.5 per cent to 8.25 per cent for the first US$250,000 worth of profit. — VNS