Vietnam-Hong Kong Trade Expands Positively
It is no news that Hong Kong and Vietnam have seen some positive exponential growth in their trade relationship as Vietnamese products increased exposure to the Hong Kong market. What is the significance of this relationship?
Thanks to the Bilateral trade agreement, the export market from Vietnam to Hong Kong has grown from $8.28 billion USD in 2015 to $13.63 billion USD in 2021 (source: Vietnamplus.vn) at an 18% growth annually, and it is likely to grow at a much faster rate in coming years. And on top of the bilateral trade agreement, the ASEAN-Hong Kong free trade agreement also brings countless benefits to boost this Vietnam-Hong Kong trade relationship.
According to Vũ Thị Thúy, head of the Vietnamese Trade Office in Hong Kong, "as of December 20, 2021, Hong Kong was the fifth largest investor in Việt Nam with 2,041 projects worth $27.83 billion, focusing on processing-manufacturing, garment and textile, service, real estate, and construction sectors." (source: Vietnam News).
What is the ASEAN Hong Kong free trade agreement?
Started in 2019, this agreement is made between Hong Kong and five ASEAN Member States, namely, Lao PDR, Myanmar, Singapore, Thailand, and Viet Nam. This ultra-beneficial agreement mainly addresses four main issues: more secured investments, traded goods’ tariff reduction, restrictions reduction for service trade, and lengthened business stays.
The agreement states that 'Indonesia and Viet Nam will eliminate customs duties for 75% of their products within ten years, and reduce another 10% of tariff lines within 14 years.' On top of that, all products entering Hong Kong from ASEAN states including Vietnam are tariff-free under the AHKFTA.
And once again according to Thúy, "the Vietnamese Consulate General and the Vietnamese Trade Office in Hong Kong plan to implement many activities to promote Vietnamese products in Hong Kong as well as in the region and the world, while helping attract more Hong Kong investors to Việt Nam." (Source: VN)
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China, Vietnam Trade Growing Rapidly, But Tell A Different Story
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