Illustrative image. (Photo: VNA)Hanoi (VNA) – Investors from HongKong (China) are increasing their capital in Vietnam to grasp opportunitiesbrought by trade and investment agreements inked between the two sides.
Secretary of the Hong Kong General Chamber of Textiles Pong Su Ling said closeto 20 Hong Kong enterprises will attend three garment and textile exhibitionsin November in Ho Chi Minh City.
They have sought investment opportunities in ASEAN countries and see Vietnam’sconsiderable potential, she said, adding advanced technology and equipment willbe at the fairs.
The signing of the ASEAN- Hong Kong Free Trade Agreement (AHFTA) and theASEAN-Hong Kong Investment Agreement (AHKIA) will facilitate market access,create business opportunities and enhance investment flow. Hong Kong firms havesaid the deals will create jobs and bolster cooperation between small andmedium enterprises of both economies.
The agreements are said to increase capital flow to the Southeast Asiancountry, Pong Su Ling said, stressing the firms will invest heavily in materialproduction for garments and textiles, which is still absent in Vietnam.
As material production for the sector poses high risk of pollution, investmentswill not be easy. However, Hong Kong firms are confident that with moderntechnologies, this is not a worrisome problem.
CEO and Vice Chairman at Esquel Group Limited John Cheh said his company hadbuilt plants in Vietnam since 2011, considering this a strategic investmentthat helps the group take advantage from the garment and textile growth inVietnam.
“Esquel has four plants and is considering to open showrooms to meet domesticconsumption demands”, he said.
Along with garments and textiles, Vietnamese infrastructure and fintech haveserved as fertile ground for Hong Kong capital.
As a long-term investor in Vietnam, President of Sunwah Group Jonathan K.S.Choisaid that instead of a cheap labour market, Vietnam has shot to stardom as astrong consumption market spurred by the growth of a young and middle-classpopulation.
Meanwhile, Hong Kong financial chief Paul Chan said Vietnamese finance,infrastructure and trade services will lure Hong Kong capital thanks to thesound bilateral ties, and the AHKFTA and the AHKIA that strengthen economicrelations between the two sides.-VNA
VNA
