Until now Hong Kong’s goal to strengthen economic ties with Southeast Asia and position itself as a bridge to mainland China faced a self-imposed obstacle when it came to Vietnam. That was an almost insurmountable hurdle to people-to-people exchanges posed by the city’s visa restrictions. Vietnam is one of the fastest growing economies in the region, but the talent and business opportunities it generates have been driven to regional rival Singapore, which offers visa-free travel. Hong Kong failed to take advantage of its proximity to Vietnam and ability to connect Hanoi with China and other East Asian countries, such as Japan.

In his policy address last month, Chief Executive John Lee Ka-chiu finally lowered that barrier, which dates from when the city was overwhelmed with an influx of Vietnamese refugees and explains the limited number of business ventures and tourists here from that country. While times may have changed, however, Lee did not remove all the restrictions that set Vietnam apart – a reminder that it is the biggest source of illegal immigration to Hong Kong.

The relaxation of visa rules extends eligibility for talent admission schemes for jobs, training or study for Vietnamese, Laotians and Nepalese. But a further relaxation for Vietnamese business, employment and tourism travellers comes with significant caveats. To be eligible for a new multiple-entry visa, which will allow visits for a maximum of 14 days each time, Vietnamese must have visited two or more countries at least three times in the past three years or have studied, worked or trained in the city in the past two years. These terms do nothing for Hong Kong’s ambition to expand in the region.

Hong Kong to expand talent schemes to include Vietnam, Laos and Nepal

Nonetheless, the new rules have been warmly welcomed by Vietnamese government and business circles, surely evidence of the scale of missed opportunities in the past. Further evidence is that despite the obstacles, Vietnam is already the city’s seventh-largest trading partner. Consul General Pham Binh Dam said the measures were a “first step” towards further relaxation and Hong Kong would benefit from the inflow of Vietnamese talent. “Companies [will] have access to the huge human resources that Vietnam has,” Pham said. While the rest of the world has already connected to Vietnam, it holds untapped business and tourism potential for the city and is an important growth area. The relaxation of talent admission schemes for Nepalis and Laotians is also welcome.