Taiwan firms see Vietnam as crucial link in supply chain shift to Southeast Asia

Taiwanese businesses have recognized Vietnam as a crucial link in their supply chain shift to Southeast Asia, said CY Huang, founder of the Southeast-Asia Impact Alliance (SIA).

Cultural similarities, a young population, significant investor presence, robust economic growth and industrial diversity were key factors driving their decision, Huang said at the Vietnam-Taiwan Business Forum 2024 in Hanoi on Monday.

Huang also identified some fields as appealing to Taiwanese investors, including high-tech manufacturing, traditional manufacturing, and consumer services.

He stressed that Taiwanese capital can assist Vietnam in accelerating its industrialization and modernization process.

Addressing the event, Vietnam's Deputy Minister of Planning and Investment Tran Duy Dong called on Taiwanese firms to raise localization ratio in their production activities in Vietnam.

Dong lauded the flourishing economic, investment, and trade ties between Vietnam and Taiwan (China), noting that Taiwanese investment in Vietnam quadrupled last year to $2.2 billion from 2022. Taiwan currently ranks fourth among 145 countries and territories investing in Vietnam, with nearly 3,200 projects valued at $39.5 billion.

Also commending the quality of their investment, Dong proposed that Taiwanese enterprises enhance technology transfers and high-skilled workforce training support for Vietnam.

Pham Tan Cong, chairman of the Vietnam Chamber of Commerce and Industry, noted that almost all major electronics corporations in Taiwan, including Foxconn, Wistron, Qisda, Pegatron, Compal and Quanta, have invested in Vietnam.

The two sides have significant opportunities to boost win-win cooperation in various scenes, including advanced technology, electronics industry, semiconductors, circular economy, innovation, and renewable energy, he said.