Vietnam invites investment from HK

PUBLISHED : Saturday, 02 June, 2007, 12:00am
UPDATED : Saturday, 02 June, 2007, 12:00am

The rapid economic development of Vietnam offers ideal investment opportunities for Hong Kong, especially in the luxury hotel and real estate sectors, the country's consulate says.

Consul for economic and commercial matters Dao Quoc Khanh said Hong Kong should look at capitalising on its rich history of hotel development and management and tap into the country's growing tourist industry.

Mr Khanh said one of Vietnam's biggest headaches was the lack of luxury hotels, particularly evident last year when heads of state and trade ministers descended on Ho Chi Minh City for the summit of the Asia-Pacific Economic Co-operation forum.

'We didn't have enough luxury hotels and none of the dignitaries wanted to stay at any of the lesser hotels,' Mr Khanh said.

Five-star hotels in Ho Chi Minh City include the Park Hyatt and Sheraton. Authorities recently approved two US$500 million deals with Japanese and South Korean firms to develop luxury hotels.

Peter Woo Kwong-ching, chairman of Hong Kong's Trade Development Council, is leading a delegation to Vietnam this month to explore investment opportunities. It includes representatives from the financial services, logistics, property and manufacturing sectors.

Vietnam's prominence on Hong Kong's investment radar is not surprising as companies facing escalating costs on the mainland increasingly look elsewhere for business.