Hong Kong investors becoming increasingly attracted to Vietnam.
As at December 15, 60 countries and territories were investing in Vietnam. Investors from Hong Kong ranked second, with 99 new projects and 23 projects with additional capital, with newly-registered capital standing at over $3 billion, according to the Foreign Investment Agency (FIA) on December 29.
Hong Kong investors now have 869 valid FDI projects in Vietnam with total registered capital of $15.46 billion, ranking it sixth overall. Average capital is $17.8 million, or $3.5 million higher than the overall average.
The FIA also classified the Hong Kong investments, as follows.
By sector: Hong Kong has invested in 17/21 sectors, with those in secondary industries ranking first, with 409 projects and total registered capital at $7.06 billion (45.7 per cent of total investment capital), followed by the manufacturing sector, electricity, gas, water and air conditioning, with four projects and total registered capital of $2.65 billion (17.2 per cent of total investment capital). Real estate received 45 projects from Hong Kong, with registered capital of approximately $2.5 billion (16.1 per cent of the total).
By type: Investment from Hong Kong is primarily in the form of 100 per cent foreign owned, which accounts for more than 64 per cent of its investment capital of $9.91 billion in 623 projects. BOT, BTO and BT had only three projects, with total registered capital of nearly $2.38 billion (15.4 per cent of total investment capital). Joint venture ranked third, with registered capital of $2.23 billion in 201 projects (14.4 per cent of total investment capital).
By region: Forty-three out of Vietnam’s 63 cities and provinces have projects belonging to Hong Kong investors. Ho Chi Minh is the leader, with 319 projects and $3.37 billion (21.8 per cent of total investment capital), followed by Hai Duong with 30 projects and $2.88 billion (18.6 per cent of total investment capital).
Vietnam has strong appeal among investors from Hong Kong, many of which are expanding by investing in various types of new projects, especially textiles. The Nam Phuong Textile Joint Venture was licensed on September 9, 2014, with total investment of $120 million, at the VietHuong 2 Industrial Park in southern Binh Duong province.