Capital from China’s ‘Ring Road and Route’ Is Coming to Vietnam
In response to the China Government’s initiative to build the 21stCentury Silk Road running across the Eurasian, the Chinese’s construction enterprises are actively coming to Vietnam.
Chairman of the Hong Kong Trade Development Council (HKTDC) Vincent HS Lo has just led a delegation of 40 investors and experts to visit Hanoi and Ho Chi Minh City. The delegation includes large domestic firms (including Hong Kong) in the fields of finance, consulting, architecture, energy, water and waste treatment, engineering and construction, law and accounting, transportation…
According to Mr Vincent HS Lo, the delegations have goal to invest in areas that specially focusing on the implementation of the “Ring Road and Route”, which is implemented by the Chinese government to develop the infrastructure of the area. Vietnam is determined locating in a critical position to invest in infrastructure, so that is the key to promote trade and commerce among nations.
The delegation also has meeting with Prime Minister Nguyen Xuan Phuc, Minister of Planning and Investment Nguyen Chi Dung, Deputy Minister of Transport Nguyen Hong Truong and leaders of Hanoi and Ho Chi Minh City. Along with that, they also have meetings with many Vietnamese businesses, including big names such as Van Thinh Phat Investment Group or Sunny World Real Estate Development Company.
According to Mr Johnson Choi – CEO of Sunwah Group, with a very flexible policy of the Government of Vietnam, he believes that investment in infrastructure in Vietnam is quite feasible in comparison with other countries in Asia. Together with many businesses introduced by the HKTDC, Sunwah will work with other partners to express special interest in the 1,000 km North-South Expressway project.
Also according to Mr Choi, the Vietnamese Government is showing their support to businesses as committed. Compared with other countries in the region, the liquidity of the Vietnamese currency is at a better level. Over the past twenty years, Chinese investors have moved overseas remittances to Hong Kong quite easily.
Chairman of HKTDC Mr Vincent HS Lo believes that businesses in Hong Kong and China will have strength on infrastructure investment and set-up company in Vietnam thanks to the abundant capital and good experience. Hong Kong is the financial center of the world, so it’s easy for them to raise funds from everywhere to invest. At the same time, they have experience in most services, from consulting to construction and operation.
According to Mr Vincent HS Lo, businesses in Hong Kong and China are open to the investment and cooperation models with Vietnamese enterprises. However, the Chinese are particularly interested in the form of PPP. At the same time, the joint venture model is also considered more than the 100% capital investment to take advantage of local market knowledge of Vietnamese enterprises.
On May 14th, Chinese President Xi Jinping hosted the “Ring Road and Route” forum, with nearly 30 leaders in the world. This is an action to promote the “Ring Road and Route” initiative, in order to revive the “Silk Road” connecting Asia and Europe. Accordingly, Credit Suisse Group forecasts that China could pour more than 500 billion USD into 62 countries over the next five years to implement plans to promote its soft power.