Visa limits that harm HK's 'hub' prospects

If you want to get an earful, mention the phrase 'regional hub' to a Hong Kong businessman in Vietnam or a Vietnamese investor in our city.

The notion of 'hub' may be one of the most overused concepts in Hong Kong, but the plight of Vietnamese businesspeople and students trying to enter highlights the gap between rhetoric and reality.

Hong Kong officials are rightly proud of a liberal immigration regime that allows visa-free access for visitors from 170 countries and territories. The exceptions in the region are Vietnam - the second most populated country in Southeast Asia and one of the fastest growing economies - and Cambodia, Laos and Myanmar.

Visitors from these countries must apply for visas through Chinese embassies, whose staff refer applications to Hong Kong. At best it can take days. At worst, weeks. And if they want a longer stay, intending to study or work, then the situation becomes nearly impossible.

Nationals from Nigeria, Venezuela and Colombia can visit visa-free. Not Vietnamese - despite growing investment, trade and tourism links. Hong Kong lawyers are trying to offer arbitration in their standard Vietnamese contracts; large Vietnamese firms are eyeing possible listings in Hong Kong. Both know the issue of visas remains a potential headache, however.

In the days of the boatpeople and cold war era, such a move would carry little cost. In 2009, however, the region is vastly different. Southeast Asia is rapidly integrating - and signs are emerging that Hong Kong is losing to Singapore when it comes to Vietnam. With visa-free access and other schemes, the Lion City is courting top students and young business talent.