Hong Kong has no real industrial parks left — but its two power companies (CLP Power, HK Electric) run one of the world’s most reliable urban power systems under a profit-control mechanism (Scheme of Control). Comparing Hong Kong-Vietnam utilities really means comparing utility governance for a service city versus for manufacturing — and drawing governance lessons for Vietnam’s parks.
Hong Kong: CLP/HK Electric, top prices and absolute reliability
Hong Kong splits its grid between CLP Power (Kowloon, New Territories) and HK Electric (Hong Kong Island), operating under Schemes of Control with the government — profits capped in exchange for investment obligations and reliability. Hong Kong tariffs rank among Asia’s highest, but supply reliability hits 99.999% — the financial-centre standard.
Water is run by the Water Supplies Department, telecoms among the world’s most developed. Industrial buildings share urban utility infrastructure — no park substations as in Vietnam, because manufacturing left in the 1990s.
Vietnam: the park model with dedicated utility infrastructure
Under the Electricity Law 61/2024/QH15 (effective 1 February 2025), Vietnamese parks invest in dedicated substations and water systems sized to production demand — a model Hong Kong doesn’t need without manufacturing. Vietnamese industrial power costs one-fourth to one-fifth of Hong Kong’s, a decisive cost edge.
The governance lesson from Hong Kong for Vietnamese parks: profit control in exchange for investment and reliability obligations — a model worth studying as Vietnam unbundles its power sector on the competitive-market roadmap. On telecoms, Vietnam already matches Hong Kong on 5G park coverage.
Two models, two lessons
Hong Kong proves urban utilities can hit 99.999% reliability with the right governance — a lesson for Vietnamese parks targeting international standards. Vietnam proves manufacturing utilities can be delivered at a fraction of the cost — an edge Hong Kong lost when it gave up manufacturing. Investors don’t pick between the two for one factory; they learn how each organises utilities for its proper role.
This article has been quality-reviewed by the FLAW AI Legal Council.
Frequently Asked Questions
How wide is the Hong Kong-Vietnam power price gap?
Hong Kong tariffs (CLP Power, HK Electric) rank among Asia's highest at 4-5 times Vietnamese industrial power. The gap reflects different roles: Hong Kong delivers urban-service power at 99.999% reliability; Vietnam delivers cheap manufacturing power.
What is Hong Kong's Scheme of Control?
Agreements between the Hong Kong government and the two power companies: profits capped against asset ratios in exchange for grid investment obligations and reliability guarantees. The model balances user and investor interests — worth studying as Vietnam develops its competitive power market.
How do Hong Kong's industrial buildings use utilities?
Industrial buildings in Kwun Tong and Tsuen Wan share urban utility infrastructure (power, water, telecoms) — no dedicated substations or water systems as in Vietnamese parks. The model suits warehousing and light R&D, not manufacturing — which left Hong Kong in the 1990s.