Taiwanese investors were among the first foreign investors to arrive in Vietnam after this country carried out the renovation policy. Taiwanese projects are regarded as strong supplements for the economic development of Vietnam. A large majority of Taiwanese investors are successful and are expanding their business scales and scopes in Vietnam, which adds more momentum to Vietnamese economic growth.
Mr Phan Huu Thang, director of Foreign Investment Agency under the Ministry of Planning and Investment, said Taiwanese direct investment into Vietnam soared significantly in recent years. As of August 22, 2007, Taiwan has invested roughly US$9.175 billion in 1,706 projects in Vietnam, ranking third among 79 countries and territories with investment capital in Vietnam. In the first eight months of 2007 alone, Taiwanese investors were licensed to invest US$600.5 million in 134 projects and allowed to increase US$279 million in 59 projects. If the Taiwanese capital invested into Vietnam via third countries was counted, Taiwan’s total investment capital would exceed US$10 billion, ranking first among foreign investors in Vietnam.
Taiwanese investment capital flows are expected to soar in the coming time, as Vietnam is organizing many investment promotion programmes in Taiwan and Taiwanese firms are actively exploring the Vietnamese market. Many business delegations from Taiwan have arrived in Vietnam to survey the investment environment, seek business opportunities, consult Vietnamese management authorities and policymakers, and study successful Taiwanese investors in Vietnam. Notably, these investors are not only focused on the south but have already moved to the central and northern regions. Hoa Lac High-tech Park or Chu Lai Open Economic Zone attracted a lot of investors.
The notable characteristics of Taiwanese investors are that they can invest in any business field from manual to high-tech and from small size to mammoth size. Thus, Taiwanese investors are present in all industrial sectors such as apparel, footwear, motorbike, steel, cement, electricity, golf course, food and consumer goods, seafood, animal feed and high-tech. Recently, HonHai Group (Foxconn) started up its US$5-billion investment programme in Vietnam.
This was also the way Taiwanese investors achieved success in their homeland. The Taiwanese economy grew strongly and successfully from the grasp of industrial production technologies and the attention to sustainable development of industry and agriculture to exploit available resources. The application of advanced technology helped Taiwan make high-quality products from normal materials.
For example, Uni President was the first company to invest in instant noodles and needed a long time to build modern factories and train labour forces for its production lines. After the factory reaches stable production, the company expanded their business to fish feed production and material production for its factories as well as others. Especially, Uni President is always a pioneer in creating new tastes for Vietnamese customers.
Dai Viet, a pig feed manufacturer, has operated in Vietnam for over 12 years and won the customers’ trust for its organic pig feeds. Pochen, the footwear maker for export, has created jobs for thousands of people. SAMYANG, a motorbike manufacturer, introduced high quality and cheap motorcycles to Vietnamese customers. SUN STEEL, a steel project, is now capable of making 250,000 tonnes of cold laminated steel from merely producing finished steel products like steel sheets, pipes and coated steel. Phu My Hung Company’s South Saigon new urban zone is a modern living area with premium conveniences and public utilities and a pleasant environment in Ho Chi Minh City.
According to Taiwanese investors, Vietnam is one of the most attractive investment environments in the region. First of all, Vietnam and Taiwan have many similarities in culture, customs, lifestyles, characters and ambitions. Besides, the stable politics, attractive investment policies, open and respectful attitude to foreign investors, low labour costs and a potential market are strong drives for Taiwanese investors to choose Vietnam. Especially, the Vietnamese Government, ministries and local governments persuaded many investors. The handshakes of central leaders or local leaders as well as associations with Taiwanese investors have been tightened via active investment promotion programmes of Vietnam. Leaders of many provinces like Dong Nai and Binh Duong provinces have arrived in Taiwan to call companies there to survey the Vietnamese market. Vietnam’s accession to the WTO, the successful hosting of APEC Vietnam 2006 and expanding foreign relationships are groundwork for investors to believe in new success in Vietnam.
Following are ideas of Taiwanese officials and business people working in Vietnam:
Mr Huang Nan Huei, chief of Taipei Economic and Culture Office in Hanoi
Taiwan holds more than one investment project in every five foreign-invested projects in Vietnam. Taiwanese projects are locating in all Vietnamese provinces and cities. Taiwanese investors tend to move investment destinations to the north of Vietnam, which is described to have richer labour resources than the south of Vietnam.
Mr Kevin Chin, deputy general director of Fusheng Co.
The Vietnamese Government should introduce more dynamic policies for foreigners. For example, foreigners can buy houses (possibly in 50 years) because the accommodation rentals in Vietnam are higher than other countries in the world.
Mr Yei Fong Jan, general director of Indovina Bank
In my opinion, Taiwanese investors should focus on IT, service and real estate in Vietnam.
Mr Huang Shi Hui, chairman of Taiwan International Economic Cooperation Association (CIECA) and chairman of Chinfon Group
Vietnam is the top priority of Chinfon Group in particular and Taiwanese investors in general. The presence of Taiwanese leading companies like Hon Hai and Huaxin signals that Taiwanese investors tend to invest in high-tech fields and labour-saving fields. Once again, Taiwanese investors showed their dynamics.
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