XN000022-1993-06-01 — Page 9

TUESDAY, JUNE 1, 1993

"THEY HAVE LED TO THE INTRODUCTION OF INTERNATIONALLY ACCEPTED PROCEDURES, PRIVATISATION OF FOREIGN TRADE ACTIVITIES, STREAMLINED PROCEDURES FOR IMPORT AND EXPORT LICENSING, AS WELL AS THE REVISION OF THE IMPORT TARIFF SCHEDULE AND THE REPLACEMENT OF IMPORT QUOTAS BY IMPORT TARIFFS.

HE POINTED OUT THAT SERVICE LINKS BETWEEN HONG KONG AND VIETNAM HAD ALSO INCREASED.

"TWO MAJOR BANKS IN HONG KONG HAVE ESTABLISHED REPRESENTATIVE OFFICES IN HO CHI MINH CITY AND ARE EXPECTED TO OPEN BRANCH OFFICES IN VIETNAM IN THE NEAR FUTURE.

"MULTINATIONAL COMPANIES HAVE ALSO SET UP OFFICES IN VIETNAM TO EXPLORE BUSINESS OPPORTUNITIES THERE. VERY OFTEN, THESE OFFICES WORK CLOSELY AND ARE SUPPORTED BY THEIR REGIONAL HEADQUARTERS LOCATED IN HONG KONG, HE SAID.

TURNING TO THE INVESTMENT FRONT, MR CHAU NOTED THAT THE SINGLE MOST IMPORTANT MOVE MADE BY THE VIETNAMESE GOVERNMENT IN ENCOURAGING FOREIGN INVESTMENTS WAS THE ENACTMENT OF A LIBERALISED FOREIGN INVESTMENT LAW IN 1987 WHICH PROVIDED FOREIGN INVESTORS WITH A RANGE OF INCENTIVES AND A HIGH DEGREE OF FREEDOM IN THEIR OPERATIONS.

AS A RESULT, FOREIGN INVESTMENT IN VIETNAM HAS GROWN DRAMATICALLY IN THE PAST FEW YEARS AND REACHED THE LEVEL OF US$4.5 BILLION.

HONG KONG LEADS THE FOREIGN INVESTORS TABLE IN VIETNAM IN TERMS OF THE NUMBER OF PROJECTS, AND IS SECOND IN TERMS OF VALUE BEHIND TAIWAN, MR CHAU SAID.

"BY THE END OF 1992, OUR BUSINESSMEN HAVE INVESTED MORE THAN US$600 MILLION IN SOME 120 PROJECTS IN VIETNAM. THIS AMOUNTS TO ABOUT 13% OF VIETNAM'S TOTAL FOREIGN INVESTMENTS," HE SAID.

"HONG KONG COMPANIES ARE ALSO INTERESTED IN INFRASTRUCTURAL PROJECTS SUCH AS PORT AND AIRPORT DEVELOPMENTS IN VIETNAM, AS WELL AS THE LAYING OF SUBMARINE CABLE TO ENHANCE TELECOMMUNICATION LINKS BETWEEN VIETNAM, HONG KONG AND THAILAND, MR CHAU SAID.

KONG

DEVELOPMENT IN TOURISM AND AIR SERVICES HAD ALSO MADE IMPORTANT CONTRIBUTIONS TO THE ENHANCEMENT OF ECONOMIC LINKS BETWEEN HONG AND VIETNAM, MR CHAU NOTED.

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