Illustrative image. (Photo: VNA)

Hanoi (VNA) – Investors from Hong Kong (China) are increasing their capital in Vietnam to grasp opportunities brought by trade and investment agreements inked between the two sides.

Secretary of the Hong Kong General Chamber of Textiles Pong Su Ling said close to 20 Hong Kong enterprises will attend three garment and textile exhibitions in November in Ho Chi Minh City.

They have sought investment opportunities in ASEAN countries and see Vietnam’s considerable potential, she said, adding advanced technology and equipment will be at the fairs.

The signing of the ASEAN- Hong Kong Free Trade Agreement (AHFTA) and the ASEAN-Hong Kong Investment Agreement (AHKIA) will facilitate market access, create business opportunities and enhance investment flow. Hong Kong firms have said the deals will create jobs and bolster cooperation between small and medium enterprises of both economies.

The agreements are said to increase capital flow to the Southeast Asian country, Pong Su Ling said, stressing the firms will invest heavily in material production for garments and textiles, which is still absent in Vietnam.

As material production for the sector poses high risk of pollution, investments will not be easy. However, Hong Kong firms are confident that with modern technologies, this is not a worrisome problem.

CEO and Vice Chairman at Esquel Group Limited John Cheh said his company had built plants in Vietnam since 2011, considering this a strategic investment that helps the group take advantage from the garment and textile growth in Vietnam.

“Esquel has four plants and is considering to open showrooms to meet domestic consumption demands”, he said.

Along with garments and textiles, Vietnamese infrastructure and fintech have served as fertile ground for Hong Kong capital.

As a long-term investor in Vietnam, President of Sunwah Group Jonathan K.S.Choi said that instead of a cheap labour market, Vietnam has shot to stardom as a strong consumption market spurred by the growth of a young and middle-class population.

Meanwhile, Hong Kong financial chief Paul Chan said Vietnamese finance, infrastructure and trade services will lure Hong Kong capital thanks to the sound bilateral ties, and the AHKFTA and the AHKIA that strengthen economic relations between the two sides.-VNA