EFFORTS would be made to develop markets in Vietnam and Russia as part of a contingency plan if China lost its Most Favoured Nation (MFN) status, the Government said. Measures to remedy possible damage caused to Hong Kong would be put in place if MFN status were lost, said the Acting Secretary for Trade and Industry, Regina Ip Lau Suk-yee. They would include improving infrastructure, and adjusting policies on land use and bringing in workers to help entrepreneurs through hard times. The threat that China's MFN might be revoked resurfaced following US Secretary of State Warren Christopher's ''fruitless'' visit to Beijing this month. China, which took a hard line during Mr Christopher's visit, warned that it would be impossible for the two countries to trade if MFN were scrapped. The Director of the Hong Kong General Chamber of Commerce, Ian Christie, agreed the two new markets proposed, particularly Vietnam, had large potential for development because of the growing middle class. ''Vietnam is a bit like China in the '80s: there is some room for consumer products,'' he said. However, he stressed there were other options such as India, South America and Central Europe. He said relaxation of land-use rules would improve GDP, but the quota for the import of labour should not be raised because there was already a large number of advertised vacancies. What should be done depended on needs because other factors might also affect GDP. Manufacturers probably would move their investments should MFN not be renewed, but investors were not likely to relocate their factories to Hong Kong because of its high wages, Mr Christie said. Manufacturers probably would move to such places as the Philippines, Sri Lanka or South America. ''But it takes time to relocate investment and therefore Hong Kong would not feel the impact in the first few years,'' he said. According to official estimates, Hong Kong would suffer a three per cent cut in economic growth and lose 75,000 jobs if MFN were not renewed. But Ms Ip admitted the figures did not take into account any retaliatory measures by China and the blow to investors' confidence.