As Taiwanese enterprises are restructuring their investment activities, Vietnam remains an attractive destination, according to Richard Shi, head of the Taipei Economic and Cultural Office in Hanoi.
|Overview of the meeting. Photo: MPI.|
Many Taiwanese investors had reaped successes from investing in Vietnam since the 1990s, mainly in processing of products and goods, and at present, a second wave of investment is already taking place, said Mr. Richard Shi in a meeting with Vice Minister of Planning and Investment Tran Quoc Phuong on August 31.
For this second wave, Mr. Richard Shi expected greater successes for both Taiwanese and Vietnamese firms as the former are investing in large scale projects with modern technologies, with electronics and hi-tech being of priority.
Amid the Covid-19 pandemic, Mr. Richard Shi suggested both sides should review the reopening of flights for experts and investors to return to Vietnam.
At the meeting, Vice Minister Phuong said Taiwanese investors have contributed a big part in Vietnam’s socio-economic development.
Mr. Phuong noted recently, the Taiwanese authorities have announced the “Go South” policy and Vietnam is a part of this plan.
According to Mr. Phuong, the Ministry of Planning and Investment is committed to cooperating with the Taipei Economic and Cultural Office in Hanoi in supporting Taiwanese enterprises in Vietnam.
Vietnam welcomes investors, including those from Taiwan, to do long-term business in the country, while Taiwan’s second wave of investment is in line with the vision of the Vietnamese government in attracting high-quality foreign capital, said Mr. Phuong.
With 2,764 ongoing projects and accumulated investment capital of US$33.2 billion so far, Taiwan is Vietnam's fourth largest investor as of present, only behind South Korea with US$70.15 billion, Japan with US$60.25 billion, and Singapore with US$55. 02 billion.
In the first eight months of 2020, Taiwan remained the sixth largest investors in Vietnam out of 106 countries and territories with combined registered capital of US$1.25 billion, or 6.39% of the total.
In early 2020, Bloomberg reported Taiwan-based Pegatron Corporation had plans to set up production facilities in the north of Vietnam, becoming Apple’s latest assembly partner to establish a presence in the country in a bid to diversify its manufacture beyond China.
Pegatron would join Apple’s two other iPhone assemblers -- Wistron Corp. and Hon Hai Precision Industry Co. -- in developing manufacturing facilities or building extra capacity in Vietnam
Taiwanese companies have been particularly active in their search for options, with companies from Inventec Corp. to Foxconn Technology Group either moving production back home or to more distant regions around Asia, seeking to escape US tariffs.