In January, Hong Kong firms contributed US$161.05 million in foreign direct investment (FDI) in Vietnam across 32 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decline of US$546.28 million compared to December, which saw US$707.33 million in registered capital with 44 new projects.
Hong Kong investments accounted for 3.72 percent of total FDI in January, down from 9.88 percent in December.
Hong Kong has been a significant source of foreign direct investment (FDI) in Vietnam, with strong economic ties between the two regions. Hong Kong’s investments in Vietnam span a variety of sectors, including real estate, manufacturing, retail, finance, logistics, and services. The region’s status as a global financial hub and its proximity to Vietnam have made it an attractive partner for Vietnamese businesses seeking capital, expertise, and access to international markets.
Real estate is one of the primary sectors for Hong Kong’s FDI in Vietnam, with prominent developers from Hong Kong involved in large-scale residential and commercial projects, particularly in major cities like Ho Chi Minh City and Hanoi. In addition, Hong Kong investors have made substantial investments in manufacturing and retail, with a focus on consumer goods, electronics, and apparel. The growing consumer market in Vietnam, coupled with competitive labour costs and a favourable investment climate, has made it a key destination for Hong Kong-based companies seeking to expand their operations in Southeast Asia.
The financial sector is another area where Hong Kong has made significant inroads, with several Hong Kong banks, insurance companies, and investment firms establishing a presence in Vietnam. Hong Kong’s financial institutions bring expertise in banking, asset management, and insurance, supporting Vietnam’s growing middle class and increasing demand for financial services.
With ongoing bilateral trade agreements, including the ASEAN-Hong Kong Free Trade Agreement, Hong Kong’s FDI in Vietnam is expected to continue to grow, particularly in emerging sectors such as digital technology, e-commerce, and renewable energy. Hong Kong’s role as a key financial and investment partner is likely to remain central to Vietnam’s continued economic development.
See also: List of Vietnam’s Free Trade Agreements