- Simone Preuss |
Hong Kong has overtaken traditional big investors like Japan, Singapore and Taiwan and secured second place after South Korea when it comes to investments in Vietnam in 2014 according to the Vietnamese Foreign Investment Agency (FIA). Most of these investments have gone into the textile and apparel sector and the property market.
Currently, Hong Kong investors are operating 869 projects in Vietnam, with a total registered capital of 15.46 billion US dollars, which puts Hong Kong in sixth place among 101 countries and territories with investments in the country. On average, Hong Kong investors spend more per project with 17.8 million US dollars compared to 14.3 million of overall foreign investments.
Until December 15th, Hong Kong companies had invested a total of 3 billion US dollars in 99 new projects and 23 existing projects in Vietnam in 2014. The investments in the textile and apparel sector where divided into setting up new projects or expanding existing facilities.
Among the new projects, Huafu plans to invest 136 million US dollars in a project in the Thuan Dao Industrial Park in Long An Province to produce 30,000 tons of yarn annually. The Nam Phuong Textile Company has started the construction of a 120 million US dollar textile project at Viet Huong 2's Industrial Park in the Binh Duong Province.
Of Vietnam's close to 2,000 companies producing ready-made garments – divided into state-owned, private and foreign-owned enterprises – about half are located in and around Ho Chi Minh City, around one third in Hanoi, 15 percent in Da Nang and the rest in other cities and regions.