Bright prospects draw in Taiwanese investors

The visiting Taiwanese companies operate in two major segments, daily commodities and industrial goods and equipment. Photo cafef.vn

John Tang, director of the Taiwan Trade Centre’s (TAITRA) office in Ho Chi Minh City, said that the Taiwanese business community was very optimistic about the investment climate in Vietnam. According to Tang, the government is on the right track with many supportive policies to boost the economic growth.

According to the statistics of the Foreign Investment Agency under the Ministry of Planning and Investment, there are 2,429 valid Taiwanese projects in Vietnam with the total investment capital of $28.74 billion. By these figures, Taiwan ranks as the fourth out of 103 countries and territories investing in Vietnam. Currently, Taiwan’s investment projects are mainly focused on the manufacturing and agricultural sectors, especially steel, textile and garments.

According to Tang, a bigger wave of Taiwanese investors might flock to Vietnam, as the market will open up more opportunities with the wide range of new free trade agreements (FTAs) coming into force.  Many Taiwan-based textile firms intend to reel out new investments in Vietnam ahead of the Trans Pacific Partnership (TPP) to enjoy preferential tariffs. There will be a shift in the investment trend of the sector in the coming time with more companies establishing yarn manufacturing facilities to form a complete supply chain in the country.

In addition, the Taiwanese government sees an enormous potential in Vietnam’s retail market with the synchronous development of traditional outlets and supermarkets. The trend of growing Japanese and Korean investments in the services, retail and Fast Moving Consumer Goods (FMGC) sectors is also driving the government to bring Taiwanese retailers to Vietnam.

Referring to the supporting industries, Tang underlined that Samsung has injected billions of US dollars into smartphone production plants in the country and considers Vietnam its new manufacturing base. Therefore, Taiwanese investors expressed increasing interest in setting up factories in Vietnam to produce raw materials and component parts for the electronics giant.

Ho Chi Minh City currently houses about 600 Taiwanese companies that mainly produce for export. In the future, these companies are expected to expand their production capabilities to meet the local demand and export at the same time.

(Tan Binh Industrial Park)

Source: VIR

Taiwanese firms flock to Viet Nam

The visiting Taiwanese companies operate in two major segments, daily commodities and industrial goods and equipment. Photo cafef.vn

John Tang, director of the Taiwan Trade Centre (TAITRA) office in HCM City, said Taiwanese companies were among the first foreign investors investing in Viet Nam.

Tang spoke to the press on the sidelines of a meeting of 33 Taiwanese companies and their Vietnamese counterparts in HCM City yesterday.

About 500-600 Taiwanese firms operate in the city. Most of them make products for export.

In the future the companies are expected to make products for both Vietnamese and export markets.

Many retailers are also expected to enter Viet Nam's retail market, as it has a high growth rate.

In addition, Taiwanese firms plan to invest in a textile production chain in Viet Nam in the coming time to benefit from the upcoming Trans Pacific Partnership (TPP), Tang said.

The visiting Taiwanese companies operate in two major segments, daily commodities and industrial goods and equipment. They hope that co-operation opportunities between Taiwanese and Vietnamese counterparts will materialise soon, Tang said.

The business meeting was part of a trade mission held by the Taiwan External Trade Development Council to Viet Nam, Thailand and Indonesia from August 24 to September 2.

(Tan Binh Industrial Park)

Source: VIR