HSBC welcomes the arrival to Ho Chi Minh City and Hanoi of the British diplomatic delegation, including the British Prime Minister, Mr David Cameron, as part of its regional tour to promote further trade and investment flows between ASEAN and the United Kingdom.
Mr Pham Hong Hai, CEO for HSBC in Vietnam, said: “The arrival of the UK delegation, including its Prime Minister, Mr David Cameron, clearly demonstrates the importance that the UK places in further strengthening the trade, investment and people links between the two regions, and HSBC welcomes the initiative.”
“HSBC has seen strong interest in the UK-ASEAN business corridor among our internationally oriented clients who span a variety of sectors including manufacturing, infrastructure, as well as business and financial services.
“For companies at either end of the ASEAN-UK corridor, success depends greatly on how well they understand the market dynamics and navigate the business and regulatory environment. ASEAN’s growth and increasing internal coherence as an economic unit offers highly attractive opportunities for foreign businesses on multiple fronts.”
“With the ASEAN Economic Community due to come into official existence in 2016, the Prime Minister’s visit is a further vote of confidence in ASEAN integration. The AEC will lead to the freer flow of trade and goods for markets, both within and outside the ASEAN region, and has the potential to become one of the engines of global economic growth.”
As a member of ASEAN, Vietnam is part of a diverse and distinct region that represents a number of opportunities for UK businesses. According to the UK Trade and Investment agency, Vietnam is forecast to become one of the top 10 fastest growing global economies in the next few decades1. With this, both countries have taken important steps to enhance their trade and investment relationship, as outlined in the Strategic Partnership Agreement signed in 2010.
Major exports from Vietnam to the UK include mobile phones, garment and textiles, shoes, wooden goods, computers, ancilleries and aquarium products (source: Vietnam Trade Office in the UK). According to the Vietnam Exports and Imports Department, bilateral trade between Vietnam and the UK is reaching a total value of more than USD2 billion in the first six months of 2015. UK Foreign Direct Investment into Vietnam is currently USD2.7 billion and is expected to meet the target of USD3 billion set under the Strategic Partnership Agreement2.
Vietnam Vice Minister for Foreign Affairs Bui Thanh Son and UK FCO Minister of State Hugo Swire reiterated their commitment to an early conclusion of an ambitious and comprehensive free trade agreement between Vietnam and EU, when they last met in February 2015. This agreement has the potential to unlock substantial new opportunities for businesses in both countries.
Commenting on the bi-lateral links between Vietnam and the UK, Mr Pham Hong Hai said: “We know that Vietnam is a key destination for many of our European clients. What is clear is that they often look to leverage Vietnam as an important place when establishing an ASEAN presence, given the country’s political stability, competitive labour costs and growing domestic market for consumer goods, as well as the government’s ambitious programme for infrastructure development.”
HSBC, in its recently published Global Connections report3, said that the UK economy is set to enjoy a steady rate of growth in the medium term, accompanied by a continued rise in exports and imports. In the decade to 2030, the fastest rates of growth in UK exports and imports will continue to be with emerging economies. At the sector level, industrial machinery and transport equipment are set to play the biggest role in driving UK merchandise export and import growth in terms of value over the next decade and a half.
At its June 2015 Investor Day, HSBC announced ASEAN as a key priority region as part of its ‘Pivot to Asia’ business strategy. The focus will see HSBC accelerate its investment to Asia with a large focus on ASEAN.
Source: HSBC
