(10 May 2017)

VnExpress – Supporting the Chinese Government’s “Silk Road” Initiative in 21^st century connecting Asia – Europe, Chinese enterprises from Infrastructure sector are seeking opportunities to enter Vietnam’s markets.

Prime Minister Nguyen Xuan Phuc hosted the meeting with delegations from Hong Kong and Shang Hai led by HKTDC on 10 May

Mr Vincent HS Lo, Chairman of Hong Kong Trade Development Council (HKTDC), led a delegation of 40 investors and experts to Hanoi and Ho Chi Minh City. The delegation was comprised of representatives from top Chinese enterprises (including those from Hong Kong) in finance, consultancy, architecture, energy, wastewater treatment, engineering, and construction, law and accounting, transportation, etc..

“Our aim is to invest in different sectors with the significant focus on supporting the “Belt and Road” Initiative established by the Chinese Government in order to develop regional infrastructure. We believe that Vietnam has an important location for infrastructure investment which is the key element in boosting commerce and trade among nations”, Mr Vincent HS Lo stated.

The delegation had a meeting with Prime Minister H.E. Nguyen Xuan Phuc; Minister of Planning and Investment Mr Nguyen Chi Dung; Deputy Minister of Transport Mr Nguyen Hong Truong; and governmental leaders of Hanoi and Ho Chi Minh City. Besides, they also had a series of meetings with several top Vietnamese enterprises, including Van Thinh Phat Investment Group and Sunny World Property Development Corporation.

“Since Vietnamese government has implemented many flexible investment policies, we believe that the infrastructure investment in Vietnam would be quite feasible in comparison with other Asian countries. Together with enterprises recommended by HKTDC, we will work with other partners to express our special interest in the 1,000 km North-South Expressway investment project”, Mr Johnson Choi, General Director of Sunwah Vietnam revealed.

According to Mr Johnson Choi, the Vietnamese government is showing their support to entrepreneurs just as they pledged before. Compared to other countries in the region, the liquidity of Vietnamese Dong is now higher. “For the past twenty years, the remittance from Vietnam to Hong Kong has been quite easy”, Mr Choi commented.

Mr Vincent HS Lo, Chairman of HKTDC, believed that Hong Kong and Chinese enterprises have advantages in infrastructure investment in Vietnam thanks to their abundant capital and strong professional expertise. “Hong Kong is the financial center of the world so it is very easy for us to raise funds for investment. At the same time, we are experienced in most professional services, from consultation to construction and operation”, he said.

Mr Johnson Choi (second row at the back, fourth  from right), General Director of Sunwah Vietnam, attended the meeting with Prime Minister Nguyen Xuan Phuc (first row, fourth from right). Photo: Nam Phuong@VIR

Furthermore, according to Mr Vincent HS Lo, Hong Kong and Chinese enterprises are open to investment and cooperation models with Vietnamese businesses. However, the Chinese enterprises are particularly interested in the form of Public–Private Partnership (PPP). Besides, at this stage, the joint-venture is preferred than the 100% capital investment to ultilise local market knowledge of Vietnamese enterprises.

“Enterprises may be unfamiliar with the business environment in Vietnam so they are likely have some concerns about the legal requirements, implementation and operation of projects in accordance with Vietnamese conventions, and how the country’s foreign exchange market operates. It is not hard to raise funds but it is certainly difficult to manage the cashflow efficiently”, said the Chairman of HKTDC. He believed that setting up joint-venture with Vietnamese enterprises would partly overcome these problems.

On 14 May, H.E Xi Jinping, President of the People’s Republic of China, hosted the “Belt and Road” Forum with the participation of nearly 30 leaders from nations in the world. This was an event organized to promote the “Belt and Road” Initiative which aims to revive China’s ancient maritime “Silk Road” connecting Asia and Europe. Credit Suisse Group forecasted that China could pour more than US$ 500 billion into 62 countries within the next 5 years to implement plans to promote its soft power.

Translated from: VnExpress