Hong Kong's expertise to help develop Ho Chi Minh City

In addition to financial centre development, Lee aims to enhance cooperation with Vietnam in trade, investment, finance, banking, tourism, aviation, and emerging sectors such as innovation and technology, sustainable development, and green finance.

Recognising Vietnam as a rapidly rising economic star in Asia, Lee believed its booming economy will provide ample opportunities for Hong Kong companies to expand.

"Also, as Vietnamese companies seek international expansion, Hong Kong serves as an ideal listing destination and a gateway to investors in mainland China, and globally," Lee said.

Bonnie Y Chan, CEO of the Hong Kong Stock Exchange (HKEX), said, "Hong Kong boasts a stock market capitalisation of $4 trillion with over 2,000 listed companies. This robust financial market presents significant collaboration opportunities with Ho Chi Minh City."

Chan also emphasised the potential for sharing expertise, noting that HKEX has a longer operational history and a more diverse product portfolio than Ho Chi Minh City's stock exchange.

She stressed that while regional exchanges might compete for investors, collaboration can attract more global investors to Asia, leading to increased investment inflows and mutual benefits.

Chan noted that investors from Hong Kong, mainland China, and the international community are eager to invest in Vietnam.

"Mainland companies looking to establish bases outside China find Vietnam attractive and popular within the 'China+1' strategy," she said.

Chan also highlighted the importance of signing MOUs with regional exchanges to promote talent and knowledge exchange, further enhancing collaboration and market growth.

"You might wonder why we would share our knowledge if we are competitors. While we do compete for investors, we believe that if all regional exchanges collaborate, we can entice more global attention to Southeast Asia, and the broader region. Increased interest in Asia will lead to more investment inflows, benefiting everyone. Inter-regional capital flows can enhance overall market growth," she added.

In a meeting with Lee and Hong Kong businesses, Chairman of Ho Chi Minh City People's Committee Phan Van Mai reiterated the city's plan to become a regional financial centre, drawing on Hong Kong's experience as a global financial hub.

"We hope to strengthen cooperation. Hong Kong businesses can share practical solutions and experiences to help us develop an effective regional and global financial centre," Mai said.

Hong Kong currently ranks fourth among 133 cities in the Global Financial Centres Index (GFCI) by Z/Yen Partners and the China Development Institute, while Ho Chi Minh City ranks 108th, having climbed 12 spots since 2023.

Since the early 2000s, Ho Chi Minh City has prioritised financial market development as a key economic restructuring initiative. The vision to create an international financial centre is part of a national strategy, with a steering committee established in 2023.

Bonnie Y Chan, CEO of the Hong Kong Stock Exchange

Hong Kong is currently Vietnam’s seventh-largest trading partner and fifth-largest foreign direct investor, while Vietnam is Hong Kong’s second-largest trading partner in ASEAN and seventh-largest globally. According to the General Department of Customs, bilateral trade reached $6.6 billion in the first half of 2024, with Hong Kong investors contributing $1.73 billion to Vietnam during the same period.

During the visit to Hanoi and Ho Chi Minh City, the Hong Kong delegation led by Lee signed 30 MoUs with Vietnamese government agencies, organisations, universities, and businesses in trade and investment promotion, finance, fintech, transportation, logistics, and education.

By Celine Luu

Source: VIR