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Hong Kong sees decline in foreign direct investment in Vietnam in December

In December 2024, Hong Kong registered 44 new projects with US$707 million in newly registered capital, according to Vietnam’s Ministry of Planning and Investment. This represents a slight decrease of 4 percent in the number of new projects compared to November, which recorded 46 new projects and US$750 million in newly registered capital.

In 2024, Hong Kong firms invested in 379 new projects in Vietnam with US$4.35 billion in newly registered capital.

Foreign direct investment (FDI) from Hong Kong into Vietnam is significant, reflecting Hong Kong’s status as a global financial hub and its close economic ties with Vietnam. Hong Kong investments are primarily concentrated in sectors such as real estate, manufacturing, finance, logistics, and trade. Major Hong Kong companies, including Sunwah Group, New World Development, and Jardines, have established a strong presence in Vietnam, contributing to urban development, industrial expansion, and the growth of Vietnam’s export-driven economy.

Vietnam’s favourable investment climate, competitive labour costs, and integration into global trade agreements, such as the ASEAN-Hong Kong Free Trade Agreement, have made it an attractive destination for Hong Kong investors. Additionally, Hong Kong serves as a gateway for Chinese businesses investing in Vietnam and a hub for capital and expertise. With Vietnam’s focus on infrastructure development, renewable energy, and high-tech manufacturing, FDI from Hong Kong is expected to continue growing, further strengthening the economic partnership between the two economies.

See also: How to Start a Business in Vietnam

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