Hong Kong is a major global economic center with abundant development opportunities across various industries. With its favorable geographical location near Vietnam, it is considered a suitable choice for Vietnamese investors looking to expand their business activities internationally.
In a world full of constant change and continuous development, Hong Kong is striving to establish a significant presence in the global digital currency and virtual asset market. By legalizing virtual currencies and digital assets, it presents a promising market for Vietnamese enterprises to explore and expand in Hong Kong.
Why Hong Kong is an ideal destination for Vietnamese investors?
1/ Establisaed and refined market
Hong Kong has always been an established market, which is why legal frameworks and infrastructure have evolved and improved. This creates significant opportunities for foreign investors to operate efficiently in this dynamic city.
Ms. Iris V, Director of Iris International, a consultancy specializing in providing services to foreign enterprises, stated: “In the near future, Hong Kong will continue to be an attractive destination for Vietnamese investors looking to expand their operations and enter new markets. Particularly, Hong Kong serves as a stepping stone to access the Chinese market, with clear regulations, advanced infrastructure, and a high level of judicial security remaining as strengths of Hong Kong.”
2/ Numerous advantages in legal policies
Almost all attractive business sectors (exchange, trade, business consulting, information technology, etc.) in Hong Kong allow 100% foreign investment. This gives investors full authority to make decisions regarding their businesses. Additionally, the Hong Kong government has established InvestHK, a dedicated department providing free investment promotion services and support for foreign companies, further enhancing a business-friendly environment for international entrepreneurs.
3/ Investment opportunities in the Crypto market
Hong Kong has implemented new policies regarding the trading of digital currencies and virtual assets since 2023. Virtual currency exchanges will be closely regulated with a range of operating licenses. This ensures that trading digital currencies and assets on these exchanges will be strictly monitored and controlled by the government.
Parties involved in virtual currency transactions like Bitcoin, Ethereum, Dogecoin will be protected by the government, ensuring the rights and transparency of this emerging market.
In fact, after the Covid-19 pandemic, the cryptocurrency market has emerged as a new investment channel with many development opportunities in the future. Hong Kong recognizes this trend and aims to become one of the most attractive markets, attracting significant investment flows globally.
According to the Global Cryptocurrency Approval Report – which demonstrates the global cryptocurrency approval capabilities for 2023 – Hong Kong tops the list with a score of 8.6 out of 10. Hong Kong ranks first among the three measured categories, including the number of blockchain-related startups, cryptocurrencies per 100 people, and the ratio of cryptocurrency ATMs to the population. Due to its small land area, Hong Kong has the highest proportion of ATMs per capita for cryptocurrency. Hong Kong also does not tax capital gains on cryptocurrencies, making it attractive for investors.
Hong Kong – Where trading and investing in virtual currencies are equivalent to other investment activities such as stocks and bonds
1/ What are cryptocurrencies and digital assets?
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate independently of a central authority and are powered by blockchain technology, a decentralized ledger of all transactions on a peer-to-peer network. Cryptocurrencies like Bitcoin, Ethereum, and many others have empowered individuals globally with financial freedom and investment opportunities, making them an integral part of the future financial landscape.
Digital assets are digital representations of value that can be traded, transferred, and used for payment or investment purposes. Digital assets are reshaping our financial landscape, providing a breakthrough way to conduct financial transactions, speeding up processes, achieving global territorial reach, and expanding transparency.
2/ Prioritizing the development of Hong Kong’s digital currency and virtual asset market
In 2023, Hong Kong introduced strict regulations allowing retail investors to trade virtual currencies on exchanges licensed by the city’s Securities and Futures Commission. These new rules set a standard and protect consumer rights, establishing strict criteria to determine which virtual assets can be traded.
Accepting cryptocurrencies in Hong Kong is part of a long-term effort to enhance the city’s reputation as a leading financial center for virtual currencies. This change has not faced many difficulties. Ambiguities in regulations, especially regarding the future, derivatives, collateral, NFTs, and cryptocurrencies, could be potential barriers to driving Hong Kong’s adaptation and growth. Another challenge is access to banking, due to stringent anti-money laundering rules and customer data management. Recruiting talent also poses a significant challenge, with a shortage of responsible individuals and cryptocurrency traders and developers at the grassroots level.
Key considerations when starting investments in Hong Kong
Prioritize core business activities. In fact, digital currency and virtual assets are still new and very unclear fields for “outsiders”. Therefore, you should not consider investments in the sector as a quick way to make a profit.
You should still focus the majority of resources on the core business activities of the enterprise that you have committed to.
It’s important to thoroughly understand the non-traditional market. While Hong Kong has regulations on the cryptocurrency market, these are just initial steps that need improvement in the future. Particularly, complex concepts and in-depth knowledge may be challenging for beginners. Therefore, before investing in this market, it’s advisable to research and consider carefully to minimize risks for both individuals and businesses in Hong Kong.
Although trading activities and virtual assets are not extensively regulated in Vietnam, transferring profits from a company in Hong Kong is completely legal. This is considered profits from foreign investment activities of the company abroad. Hence, you can confidently transfer profits from these activities, which are legal according to Vietnamese law.
Starting a business in Hong Kong with Iris International
Iris International offers free consulting services for all Vietnamese investors seeking investment opportunities abroad in general and in Hong Kong in particular. We help you understand the prominent features of the market, the process, and the considerations for establishing and operating a business abroad.
We make investment and business expansion easier with our experienced advisors, aiming to provide top-quality services with clear and professional processes to all customers domestically and internationally.
Let Iris International save you time in setting up a company in Hong Kong. For Vietnamese investors, we help you navigate the complexities of company registration, taxes, legal requirements, and efficient business operation. Benefit from our comprehensive support. Schedule an appointment with Iris International’s professional advisors today!
EN 
VI