To boost trade and investment ties between Vietnam and Taiwan (China) and implement the cooperation agreement on the organisation of Annual Meeting, the Vietnam Chamber of Commerce and Industry (VCCI) and the Taiwan’s Chinese International Economic Cooperation Association (CIECA) recently co-organised the 20th Joint Business Council Meeting VCCI- CIECA. The meeting helps realise reached agreements and also increase Taiwanese investment waves to Vietnam and flows of Vietnamese guest workers to Taiwan, said CIECA Chairman Wang Chung-yu.
VCCI Standing Vice President Hoang Van Dung said, being member economies of the World Trade Organisation (WTO) and the Asian Pacific Economic Cooperation (APEC) Forum, Vietnam and Taiwan have increasingly strengthened and deepened their cooperative ties. In Taiwan’s economic policy with ASEAN, Vietnam is still a top priority partner. For its part, the Government of Vietnam also attaches much importance to Taiwan’s FDI. Trade and investment cooperation potential between Vietnam and Taiwan is still huge. Many Taiwanese companies are not only familiar with the Vietnamese market, but they also reap success in Vietnam investments. This is an important foundation for the two sides to promote comprehensive cooperation, especially in trade and investment.
According to data from the Foreign Investment Agency (FIA) of the Ministry of Planning and Investment, as of July 20, 2013, Taiwan had 2,260 investment projects in Vietnam with a combined registered capital of US$27.4 billion, ranking third amongst countries and territories investing in the Southeast Asian nation. In trade, Vietnam’s exports to Taiwan reached US$2.5 billion in 2012 and over US$1 billion in the first six months of 2013. Vietnam mainly ships seafood, tea, rice, cassava, rubber, woodwork, paper, garment, textile, footwear, ceramics, pottery and telephone to Taiwan, while imports input materials for domestic production such as animal feed and materials, petroleum products, chemicals, plastic materials, garment and textile materials, footwear materials, iron and steel, computer components, electronic products and components from Taiwan. At the present time, Taiwan is a major supplier of input materials, machines and equipment for many industries in Vietnam.
In labour cooperation, around 100,000 Vietnamese are working in Taiwan. In the coming time, Vietnam and Taiwan will further promote cooperation in some potential fields like as agriculture, supporting industries, manufacturing and export processing.
CIECA Chairman Wang Chung-yu said many Taiwanese companies have the intention to invest in Vietnam. However, current investment barriers are Vietnam’s poor infrastructure systems, cumbersome administrative procedures, and weak investment and production support services. Vietnam needs to build trust among foreign investors, including Taiwanese, and make them feel assured in investment and business activities in Vietnam by improving the legal framework and infrastructure. Specially, the two sides need to sign some agreements and create a solid legal framework to promote bilateral investment and trade in the future.
In recent years, FDI flows into Vietnam have contracted on global economic turmoil but Vietnam is still the top investment destination of Taiwanese businesses in Southeast Asia. According to surveys, Taiwan always trusts the investment environment in Vietnam. Huang Chih-peng, Chief Representative of the Taipei Economic and Cultural Office in Vietnam, said, a large number of Taiwanese enterprises will continue to increase investment in Vietnam in the fields of banking, insurance, environment, infrastructure, real estate, engineering, chemicals, automotive parts, food, cosmetics, sports equipment, medical equipment and electrical equipment. Hopefully, Vietnam will have positive actions to catch this wave of investment.
Kien Trung
Vietnamese
