Hong Kong’s relationship with the Association of Southeast Asian Nations (ASEAN) is rapidly gaining momentum, propelled by Chief Executive John Lee’s successful mission to Laos, Cambodia and Vietnam from 28 July to 2 August.
It was the HKSAR Government’s third ASEAN outreach initiative after Singapore, Malaysia and Indonesia in 2023 and Thailand in 2022, reflecting the region’s growing status as an economic powerhouse. As Hong Kong’s second-largest trading partner, ASEAN offers enormous potential for collaboration, and the latest mission underlined each country’s economic significance to the city.
The Chief Executive was accompanied by around 30 leaders of international, Mainland and Hong Kong companies across a spectrum of sectors: banking, finance and insurance, I&T, professional services, infrastructure, transport and logistics, energy and hospitality. Organized by the Hong Kong Trade Development Council (HKTDC), the mission spanned 30 events in four cities over six days. The itinerary included meetings with senior leaders and officials, visits to enterprises and Belt and Road projects, exchanges with local business communities, and activities to promote people-to-people connections.
The outreach initiative has been successful on many levels. A total of 55 Memoranda of Understanding (MoUs) were signed in various fields, including finance, aviation, fintech, education and digital technology. The HKSAR Government is contemplating opening economic and trade offices in various ASEAN cities. The three countries and Hong Kong are also considering easing visitor entry requirements in both directions. The trip also reconfirmed support for Hong Kong’s accession to the Regional Comprehensive Economic Partnership (RCEP), the world’s biggest free trade pact.
HKGCC Chairman Agnes Chan signed an MoU with the Cambodia Chamber of Commerce in Phnom Penh on 31 July and another in Hanoi on 1 August with the Vietnam Chamber of Commerce and Industry (VCCI) to reinforce HKGCC’s connections and collaboration with the two countries.
Chan said she was honoured to be among the delegates on the mission and highlighted the impactful encounters with policymakers and industry leaders in the three countries.
“Reflecting Hong Kong’s keen desire for closer bilateral cooperation, the visit served to deepen economic and trade relations, enhance cultural exchange and explore collaboration opportunities while touting the potential of our city’s robust financial and professional services companies in ASEAN markets,” she stated. “Hong Kong enterprises are also eyeing opportunities in countries like Laos and Cambodia, which are pursuing innovation to grow their economies and bolster their infrastructure.”
Several HKGCC General Committee members, including Deputy Chairman Guy Bradley, joined the trip. “We are delighted to see the unwavering support of these countries for Hong Kong’s entry into the Regional Comprehensive Economic Partnership (RCEP), which would bring a raft of advantages for our home city and our trade partners and enhance Hong Kong’s international aviation hub status and benefit sectors like tourism,” he said.
HKTDC Chairman and General Committee Member Peter Lam pointed out that Hong Kong’s advances in greentech, smart manufacturing and supply chain management, reinforced by our world-class R&D and IP infrastructure and robust government support, provided a lot of opportunities to collaborate with ASEAN businesses.
Vientiane, Laos
On the first leg in Laos, the current ASEAN Chair, the Chief Executive actively lobbied for support for Hong Kong’s inclusion in RCEP. In meetings with Prime Minister Sonexay Siphandone and Deputy Prime Minister and Minister of Foreign Affairs Saleumxay Kommasith, he said Hong Kong attached great importance to close collaboration with ASEAN. As the first Chief Executive of Hong Kong to ever visit the country, he also hoped to explore economic partnerships and cooperation under the Belt and Road Initiative (BRI).
Last year, the city’s trade with Laos totalled US$17 million, the lowest figure among Southeast Asian countries. To boost economic cooperation, Hong Kong and Laos have signed 12 MoUs in areas like trade and investment promotion, finance, fintech, transport and logistics, and education.
Former HKGCC Chairman Betty Yuen pointed out that Laos, Cambodia and Vietnam boast rich renewable energy resources contributing to sustainable development and their 2050 net-zero targets. As Chairman of CLP Power Hong Kong Ltd, Yuen said the company was pleased to have signed an MoU with partners in Laos to develop renewable energy projects for export to neighbouring countries.
During meetings with businesspeople and leaders of local chambers, including the Lao National Chamber of Commerce and Industry and the Lao Chinese Chamber of Commerce, the delegation highlighted how Hong Kong could help boost Laos’ SME ecosystem, especially in finance, banking, renewable energy, green finance, agriculture and forestry. Laos is also collaborating with various nations to develop its digital technology and communications sector.
The itinerary included tours of the Vientiane Saysettha Development Zone and Vientiane Railway Station. “These visits helped us learn about investment opportunities for Hong Kong companies,” said Chan. “They also showed the positive impact of the BRI. The China-Laos Railway, a BRI project that opened in 2021, has been instrumental in facilitating trade flow and logistics as Laos focuses on building infrastructure.”
On a visit to Vientiane Secondary School to promote people-to-people exchanges, the Chief Executive highlighted Hong Kong’s Belt and Road Scholarship for outstanding students from BRI countries and regions, which allows them to pursue full-time university education in the city.
Phnom Penh, Cambodia
In Phnom Penh, the Chief Executive met with Prime Minister Hun Manet and Sar Sokha, Deputy Prime Minister and Minister of Interior. The two sides discussed the vast potential offered by Cambodia’s rapidly growing market, a testament to the country’s economic achievements.
Cambodia’s GDP is expected to grow by 5-6% in 2024, with tourism recovery and diversification of exports as the key drivers. In 2023, the country’s trade with Hong Kong amounted to US$894 million. Lee said that as a “super-connector” and “super value-adder” between the Mainland and the world, Hong Kong’s top-notch financial and professional services could contribute significantly to the country’s growth.
At a luncheon attended by over 350 business leaders and key officials, he reiterated that Hong Kong was proactively working to attract enterprises, capital and talent worldwide. Cambodian enterprises would benefit from partnering with the city while leveraging its status in the Greater Bay Area.
A total of 13 MoUs were signed in Phnom Penh in trade, investment promotion, aviation, information & technology and financial services, creating brand-new opportunities and boosting bilateral partnerships.
“HKGCC’s MoU with the Cambodia Chamber of Commerce will further help members explore business and investment opportunities in the country,” said Chan. “The country has much to offer investors and visitors given its young and versatile workforce, tourism sector, historical sights, hospitable people and business environment.”
Wang Wenbin, China’s Ambassador to Cambodia, told the delegation that Hong Kong could focus on three areas: foreign investment, innovation & technology and tourism. Lee said he looked forward to working closely with Ambassador Wang to strengthen and promote economic and trade relations between the Mainland, Hong Kong and Cambodia.
Ho Chi Minh City and Hanoi, Vietnam
Embarking on the last leg of the mission in Vietnam, Lee reiterated Hong Kong’s close ties with the country. In exchanges with Vietnamese President To Lam and Deputy Prime Minister Tran Luu Quang in Ho Chi Minh City, he expressed his hope for the country's support for Hong Kong's early accession to RCEP.
Vietnam, which had a trade volume of US$31.5 billion with Hong Kong last year, is the city’s second-biggest trading partner among all ASEAN nations. Hong Kong and the Mainland are the second- and third-largest sources of foreign investment in Vietnam, with US$3.5 billion and US$3.4 billion of registered capital in 2023, respectively.
A total of 30 MoUs were signed Ho Chi Minh City and Hanoi in trade and investment promotion, finance, fintech, transport and logistics, and education. Chan also inked an MoU with the VCCI in Hanoi, replacing the MoU signed in 2003.
“Hong Kong’s financial, logistics and professional services are invaluable for ASEAN companies accessing Mainland and international markets,” she explained. “Hong Kong companies should also leverage the boom in Vietnam’s IT industry. About 25% of the population is tech-savvy and between the ages of 17-35, driving the boom in the country’s IT industry, coupled with strong government support.”
The HKSAR delegation met executives of conglomerates like Vingroup to explore business opportunities further. They also visited garments manufacturer Tessellation Binh Duong Co Ltd., which is headquartered in Hong Kong, to learn about its business development experiences in Vietnam.
In discussions with representatives of the Hong Kong Business Association Vietnam in Ho Chi Minh City, Lee said the Hong Kong Economic and Trade Office would continue to communicate closely with the country’s business community to build on bilateral relations.
A New Era of Collaboration
The HKSAR delegates unanimously agreed that the mission elevated Hong Kong’s regional presence and global outreach.
“I’m proud of what the delegation achieved. The trip has helped create more favourable conditions for bilateral exchanges in different areas and garnered support for our inclusion in RCEP,” said General Committee member Sun Yu.
Among HKGCC leaders hoping to expand operations into the three countries is General Committee Member Victor Lam, who said companies there could also set up their business in Hong Kong. “Hong Kong enterprises and start-ups can provide employment opportunities and benefit from the young, educated workforce. In the other direction, ASEAN businesses can enjoy the sound legal system, international access and incentives Hong Kong offers, making it a win-win outcome,” he said.
The delegation also highlighted Hong Kong’s diverse roles and status as a strategic gateway in Asia. “Besides offering wealth management services and acting as a conduit for ASEAN businesses to enter the Greater Bay Area and China, we also serve as a hub to attract Chinese and international investments back into ASEAN countries,” said General Committee member Jacob Kam.
Summing up the mission, Chan said she is confident that the outcomes of the visit will elevate the cooperation between Hong Kong and the ASEAN countries to new heights. “We will disseminate the insights gained during this trip among the Hong Kong business community, as both Hong Kong and ASEAN businesses stand to benefit from the information and collaboration.”
12 MoUs Signed in Laos:
- Customs and Excise Department of Hong Kong, China and the Customs Department of the Lao People’s Democratic Republic
- Invest Hong Kong and Lao National Chamber of Commerce and Industry
- Hong Kong Trade Development Council (HKTDC) and the Lao Chinese Chamber of Commerce (LCCC)
- Hong Kong Trade Development Council (HKTDC) and the Lao National Chamber of Commerce and Industry (LNCCI)
- Hong Kong Trade Development Council (HKTDC) and the Lao Ministry of Industry and Commerce
- CCB International (Holdings) Limited and Phongsavanh Group Co., Ltd
- CLP SEA Infrastructure Limited and CGN Energy Technology (Laos) Co., Ltd and Krittaphong Group Co., Ltd
- Federation of Hong Kong Industries (FHKI) and the Vientiane Capital Chamber of Commerce and Industry
- Goldford Group and Lao National Digital Technology Group Co., Ltd (LADT)
- HashKey Capital and Lao National Digital Technology
- Hong Kong Polytechnic University (PolyU) and Vientiane Secondary School (VSS)
- Hong Kong Shippers’ Council (HKSC) and the Lao National Chamber of Commerce and Industry
13 MoUs Signed in Cambodia
- Invest Hong Kong and the Council for the Development of Cambodia (CDC);
- Hong Kong Trade Development Council (HKTDC) and the Council for The Development of Cambodia (CDC)
- The Chinese General Chamber of Commerce, Hong Kong and Ministry of Industry, Science, Technology and Innovation of Cambodia
- The Chinese General Chamber of Commerce, Hong Kong & Ministry of Commerce of Cambodia
- Hong Kong Trade Development Council (HKTDC) and the Cambodia Chamber of Commerce (CCC)
- The Hong Kong General Chamber of Commerce and the Cambodia Chamber of Commerce
- The Federation of Hong Kong Industries (FHKI) and the Hong Kong Business Association of Cambodia (HKBAC)
- Airport Authority Hong Kong and Société Concessionnaire de l’Aéroport;
- FWD Group Holdings Limited and Department of Media and Communication, Royal University of Phnom Penh
- CCB International (Holdings) Limited and ACLEDA Bank Plc
- CCB International (Holdings) Limited and Sihanoukville Special Economic Zone Co., Ltd.
- Cathay Pacific Airways Limited and Société Concessionnaire de l’Aéroport
- Hong Kong Airlines Limited and Cambodia Airways Co., Ltd.
30 MoUs signed in Vietnam
- Financial Services and the Treasury Bureau of Hong Kong, China, and Ministry of Finance of the Socialist Republic of Vietnam
- Invest Hong Kong and the Foreign Investment Agency (FIA), Ministry of Planning and Investment of the Government of the Socialist Republic of Vietnam
- Hong Kong Trade Development Council (HKTDC) and Vietnam Chamber of Commerce and Industry (VCCI)
- Hong Kong Trade Development Council (HKTDC) and Vietnam Trade Promotion Agency (Vietrade)
- Airport Authority Hong Kong and Vietnam Airlines JSC
- Airport Authority and Airport Corporation of Vietnam
- Airport Authority Hong Kong and Sovico Group
- Hong Kong General Chamber of Commerce and Vietnam Chamber of Commerce and Industry (VCCI)
- Invest Hong Kong and Hong Kong Business Association in Vietnam
- Hong Kong Tourism Board and Traveloka
- Bank of China (Hong Kong) Limited and China Business Association Ho Chi Minh City Branch; China Business Association Guangdong Enterprises Association in Vietnam Hong Kong Business Association Vietnam
- CCB International Capital Limited and VinaCapital Holdings Ltd
- Federation of Hong Kong Industries (FHKI) and Vietnam-Singapore Industrial Park J.V. Co., Ltd. (VSIP)
- FWD Group and Junior Achievement Vietnam
- HKU Business School and Ho Chi Minh University of Banking (HUB)
- HKU Business School and University of Economics Ho Chi Minh City (UEH)
- Hong Kong Polytechnic University (PolyU) and Viet Nam National University – Ho Chi Minh City
- Hong Kong Polytechnic University (PolyU) and Vietnam National University – Ho Chi Minh High School for the Gifted
- SF Supply Chain and NTQ
- Standard Chartered Bank (Hong Kong) Limited and Computime Group Limited
- Standard Chartered Bank (Hong Kong) Limited and Kingboard Holdings Limited
- Standard Chartered Bank (Hong Kong) Limited and Stavian Group Joint Stock Company
- Sunwah Group (Hong Kong) and Becamex IDC Corp
- Tekcent Limited and Locamos Technology
- Tekcent Limited and Quickom
- The Hongkong and Shanghai Banking Corporation Limited, Hong Kong Office and 315 Medical Joint Stock Company
- The Vietnam Association HK (VAHK) and Hong Kong Business Association Vietnam (HKBAV)
- The Vietnam Association HK (VAHK) and Viet Nam Young Entrepreneur’s Association (VNYEA)
- VRCN Limited and Hong Kong Business Association Vietnam
- VRCN Limited and Quickom