According to the Ministry of Trade, Vietnamese goods shipped to Hong Kong for re-export to third countries have seen a sharp increase since 2002.
Vietnam could boost exports to China via Hong Kong.
In 2002, Vietnamese goods passing through Hong Kong amounted to just 37% of Vietnam’s total exports to the island province, but the figure rose to 59% in 2003 and now stands at 45%.
Hong Kong acts as a transit market, importing and then re-exporting US$200bil in products each year. The EU, US, Japan and China are Hong Kong’s largest destination markets. The island has become a transit point for the biggest traders in the world and exporters favour Hong Kong for boosting exports.
But Vietnamese enterprises have not taken full advantage of the situation, according to Bui Vu Quy of Vietnam’s Commercial Affairs Section in Hong Kong. Vietnamese enterprises, he said, should not target Hong Kong as a consumer market, but as a transit point.
Quy said that Vietnam could boost exports to China via Hong Kong. Vietnamese exporters can save on transport fees if their exports go this route, while the majority of products to Hong Kong are also exempt from taxes.
Hong Kong dealers are keen on the Chinese market and that’s exactly what Vietnamese exporters need. In addition, China and Hong Kong have signed the Closer Economic Partnership Arrangement (CEPA), which will speed exports.