Hong Kong becomes No. 2 investor in Vietnam
Hong Kong becomes No. 2 investor in Vietnam
Hong Kong surpassed major investors like Japan, Singapore and Taiwan to become the second biggest investor in Vietnam in 2014 when its enterprises registered huge investments in the property and textile-dyeing sectors.
According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, companies of Hong Kong had pledged over US$3 billion for 99 new and 23 operational projects in Vietnam in the year to December 15.
The highlight is that many Hong Kong investors have continuously expanded operations and developed new textile projects.
Huafu plans US$136 million for a project at Long An Province’s Thuan Dao Industrial Park to dye 20,000 tons of cotton and produce 30,000 tons of yarn annually. Nam Phuong Textile Co. has started construction on a US$120-million textile project at Viet Huong 2 Industrial Park in Binh Duong Province.
Hong Kong investors have increased their investments in textile and dyeing projects in Vietnam in anticipation of cashing in on new opportunities when Vietnam joins the Trans-Pacific Partnership (TPP).
Infrastructure development has attracted much investment of Hong Kong enterprises. Dewan International’s US$1.25-billion project to develop a major beach resort in Khanh Hoa Province’s Nha Trang City is a typical example.
Phase one of Texhong Hai Ha Industrial Park in Quang Ninh Province was initiated in November. The project is invested by Texhong Hai Ha Industrial Park Co. Ltd. under the Hong Kong group Texhong with a cost of VND4.52 trillion.
Vietnam has turned attractive to investors when there are more signs of recovery in the property market. The property market in Hong Kong is in decline and this is the reason why big names likes Sun Wah, Warburg Pincus and Texhong are pouring hundreds of millions of U.S. dollar into Vietnam’s property market.
According to FIA, as of December 15, the property sector had attracted US$2.54 billion, accounting for 12.6% of the total FDI pledges in Vietnam. In 2013, foreign investors committed only US$951 million to fresh and operational projects in the sector.
Statistics of FIA showed property was the second most attractive sector to foreign investors in Vietnam last year. Some big-ticket projects include the US$2.5-billion tourism complex of the U.S.-based Rose Rock in Phu Yen Province’s Vung Ro Bay and the US$2-billion hotel and office complex in Thu Thiem New Urban Area in HCMC’s District 2.
Hong Kong investors currently have 869 valid projects in Vietnam with combined registered capital of US$15.46 billion, ranking sixth among 101 countries and territories with investments in Vietnam.
A project of Hong Kong in Vietnam costs US$17.8 million on average while the average investment of a foreign project in Vietnam is US$14.3 million.
Hong Kong has so far invested in 17 out of 21 sectors in Vietnam. Of which, processing and manufacturing make up the largest investments of Hong Kong investors with 409 projects having combined capital of US$7.06 billion (45.7%). Meanwhile, the property sector has 45 projects worth US$2.5 billion (16.1%).
vietnamnet
