Seeing is believing! That was certainly the case during the Chamber’s mission to Cambodia and Vietnam at the end of October. During the five-day visit to Phnom Penh and Hanoi, members met with senior officials and local businesses and visited special economic zones and innovation incubation centres.
Commenting on the trip upon returning to Hong Kong, mission leader Dewan Saiful Alam, Chairman of the Asia, Africa & Middle East Committee, said the visit revealed the incredible potential these markets hold.
“It was inspiring to observe how many Hong Kong companies are already thriving there, with Hong Kong standing out as one of the top sources of foreign direct investment for both countries. The warm, welcoming enthusiasm of local leaders and government officials was particularly striking,” he said. “For instance, when a delegate mentioned an interest in the energy sector, the Cambodian Minister of Commerce quickly provided relevant contacts and set up a meeting, showcasing their motivation and determination to build partnerships.”
Cambodia is focusing on developing a top-notch e-government, encompassing everything from fintech to the digitization of all services. It is also aiming to move production up the value chain.
Cham Nimul, Minister of Commerce, explained to members that Cambodia’s goal is to streamline processes and reduce red tape, making it faster and easier for both local and international companies to grow their businesses in the country.
“We want your investment to be successful. We want companies to prosper and achieve continuous success because your success is also our success,” she told members.
The total committed investment in the country between 2018 and 2023 was approximately US$37.4 billion, with China by far the largest investor, followed by Japan and Singapore. The three main categories – tourism, infrastructure and industry – were evenly split, while agriculture accounted for 3.72% of investments.
Given Cambodia’s abundant arable land, the government is eager to attract more investment in agricultural processing and become a hub for agricultural production in the region, including Halal produce for the Gulf.
It wants to process its large harvest surpluses and move up the value chain by offering incentive packages to food processors.
“We are proud to be one of the top rice producers in the world, and our surplus has been growing substantially. We are also striving to become a leading cashew nut producer. Our objective is not to compete on price, but to provide quality products and ensure that all good agricultural practices are followed so that we can maintain high standards,” she said.
Cambodian fragrant rice was awarded “World's Best Rice” at the 2024 International World Rice Conference in Manila on 7 November, marking the sixth time the country has won this prestigious international award.
The Minister of Commerce also pointed out that Cambodia has signed several free trade agreements (FTAs) with its trading partners, each offering various benefits. She urged members to study which agreements would be most effective in reducing tariffs for goods or services exported from Cambodia to overseas markets.
“If you are investing here but your objective is third markets, using Cambodia as a production hub and tapping into resources, there are many competitive advantages that Cambodia can offer,” she said.
Infrastructure 2033 Development Plan
Cambodia is also working hard to enhance its logistics capabilities through the development of new air, sea and river ports as part of its master plan. Minister Cham Nimul noted that Hong Kong has a wealth of expertise that could assist Cambodia in this area.
The government understands the need to develop its infrastructure to increase transportation and logistics capacity. Under its 2023-2033 development plan, it plans to invest around US$37 billion to fund 174 key transport and logistics projects covering air, sea and river ports, as well as rail and road projects.
Nut Unvoanra, Deputy Secretary General of the Cambodia Investment Development Board, explained during a meeting that Cambodia has 49 special economic zones, and various tax incentives are offered to attract target industries. For high-tech and priority industries, investors can enjoy an income tax exemption for three to nine years, followed by a progressive rate for up to six years.
At the Cambodia Chamber of Commerce, President Oknha Kith Meng emphasized that Cambodia is revising its regulations to encourage more investors to establish operations in the country. He also urged members to take full advantage of the various trade agreements Cambodia has signed with countries around the world, including the China-ASEAN Free Trade Agreement, to expand their businesses not just in Cambodia but across the region.
He also recommended that Hong Kong companies looking to enter the Cambodian market diversify their investments into various sectors, such as tourism, green energy and advanced manufacturing, rather than focusing only on property.
To gain firsthand insights into Cambodia’s business environment from a Hong Kong company’s perspective, members met with Peter Beynon, Jardine's Country Chairman for Myanmar and Cambodia, and his team. He highlighted the importance of understanding and adapting to the local market, noting that partnering with local experts enables businesses to better meet customers’ needs and quickly respond to regulatory changes.
To illustrate his point, he showed members around Lucky Supermarket, accompanied by local partner Patty Heng, COO at DFI Lucky Private Ltd, to explain how local businesses operate. Since forming a joint venture with Dairy Farm in 2012, their partnership has grown from 12 stores to 100 last year.
“You can have a very good relationship with the right partners; this is what we do, and we have learned a lot,” he said.
He also spoke of the importance of giving back to the community. In 2017, the ACLEDA-Jardines Education Foundation (AJF) was founded by Jardine Matheson and ACLEDA Bank, aimed at providing equal educational opportunities for all children in Cambodia. The foundation has built 11 schools in impoverished villages, benefiting more than 1,400 pupils. In 2023, three primary schools were built, welcoming over 360 children for the 2023/24 school year.
Bustling Hanoi
For the second leg of the mission, it was interesting to observe the development of Phnom Penh and Hanoi, as well as their strategies for sustaining impressive economic growth.
Nguyen Anh Tuan, Deputy Director General of the Ministry of Planning and Investment, Foreign Investment Agency, shared with members that ESG is becoming a key focus for Vietnam, with sustainable development central to its reforms and investments.
The country’s economy has been growing at an annual rate of 6-7% for over a decade, and it is now shifting towards higher-value production in pursuit of its goal to become a high-income country by 2045. To support this transition, Vietnam is investing in new railways, seaports, airports and expressways, including the north-south expressway, which is expected to be completed by 2025.
“We aim to create a more favourable business environment and address bottlenecks,” he said. “We have set an ambitious target that by 2045 Vietnam will be a developed country, so attracting FDI is crucial for leveraging the capacity of the economy. That is why the government is rolling out new policies for investors and sustainable development.”
During a meeting with Nguyen Quang Vinh, Vice Chairman of the Vietnam Chamber of Commerce and Industry and Chairman of the Vietnam Business Council for Sustainable Development (VBCSD), he also emphasized that Vietnamese businesses are shifting their focus towards more sustainable growth.
“It will be interesting to see how Vietnam, already a manufacturing powerhouse, transforms its economy to realize its ambitions of becoming a developed, high-tech, and sustainable economy,” said mission delegate Charles Chia, General Manager (Special Projects), Sino Group. “ASEAN represents immense opportunities for Hong Kong, right at its doorstep.”
At the Hoa Lac High-Tech Park, part of the Vietnam National Innovation Center, members witnessed firsthand how the government is driving innovation and development. The park’s two campuses focus on nine strategic sectors, ranging from smart factories to semiconductors and medical technology, and are already collaborating with major companies like AWS, Google, and Meta.
“In Vietnam, the focus on developing the IT sector, especially in semiconductors and AI, signals a dynamic shift. The government is actively seeking to nurture startups, and Hong Kong can offer invaluable expertise to support these efforts,” said mission leader Alam. Conversely, Cambodia’s growing ties with Singapore underscore the need for Hong Kong to cultivate more accessible pathways for collaboration and strengthen its connections in the region.
"This trip was incredibly meaningful, providing practical insights into how relationships among the economies can be further developed. As the leader of the delegation, I was immensely satisfied to witness the smooth execution of the itinerary and to hear delegates express their appreciation for the valuable information gleaned from meetings with key authorities. This experience has laid a solid foundation for future collaboration and generated optimism about the opportunities ahead."
Mission Leader Dewan Saiful Alam, Chairman, Asia, Africa & Middle East Committee
“The trip was a good mix of like-minded people and featured a well-planned itinerary, allowing us to meet with relevant government and business leaders in both countries. In Cambodia, we met with the Minister of Commerce, who was full of energy and business ideas. We also had an “inside view” from the head of Jardines for the region. In Vietnam, we visited Hanoi, which has modernized impressively and provided valuable insights into how to do business there.“
Michael Duck, Executive Vice President – Commercial Development, Informa Markets
“Cambodia, with its relatively new and dynamic leadership, could see truly transformative changes in the coming years, and Hong Kong businesses should seek to engage and understand the opportunities and challenges in areas such as agricultural tech, food processing and green and renewable energy production in this fast-growing market. Vietnam is forging ahead in the areas of electronics and technology supply chains, and the country is now placing strong emphasis on AI, semiconductors and innovation-led industries to elevate its development. Hong Kong, as a value-added connector, must leverage its strengths to capitalize on these opportunities in ASEAN.“
Charles Chia, General Manager (Special Projects), Sino Group
“What I experienced during this mission exceeded my expectations. In both countries, we met government officials, business leaders and investors. I felt tremendous energy from them and learned their individual views on the local business environment. I gained insights into the potential for collaboration between these countries and the Hong Kong business community.“
Takanori Okuda, Managing Director, Industrial Research Office, JETRO Hong Kong