|Kristy Tsun-Tzu Hsu (R), Vo Tri Thanh (C) and a delegate talk on the sidelines of the workshop “Investment in Vietnam in the era of integration: Look into potential and legal risks”, held on October 18 in HCMC – PHOTO: LE HOANG
Vietnam has long been an important destination among Taiwanese investors, with annual pledged capital accounting for one-third of the total funding that investors from Taiwan pumped into the ASEAN region, according to Kristy Tsun-Tzu Hsu, director of the Taiwan-ASEAN Studies Center.
During the ongoing global uncertainty, Vietnam will be preferred as an investment destination by Taiwanese firms, she said during a workshop, entitled “Investment in Vietnam in the era of integration: Looking into potentials and legal risks”, held on October 18 in HCMC.
She also shared investment strategies, in response to the on-going trade conflict, and pointed out new opportunities for Vietnam and Taiwan in economic and trade cooperation activities.
The trade tension has prompted many Taiwanese companies based in China to move their production to the ASEAN region, in which Vietnam is highly preferred. Accordingly, she underscored the importance of bolstering cooperation between Taiwanese and Vietnamese businesses in the near future.
Similarly, Vo Tri Thanh, head of the Institute for Brand and Competitiveness Strategy and an arbitrator from the Vietnam International Arbitration Center (VIAC), said Vietnam is attracting many foreign investors, including those from Taiwan, thanks to its investment incentives.
Free trade agreements signed between Vietnam and other countries and regions were expected to draw more foreign manufacturers to invest in the country. Vietnam could be seen as a business and investment hub, Thanh said.
The country also adopted many policies ensuring the stability of foreign investments, and encourages investments from responsible investors who leverage advanced technology in manufacturing and fulfill their commitment towards the local community and the environment, Thanh added.
Aside from opportunities, speakers at the event pointed out legal risks that foreign investors should identify, and make preparations before deciding to invest in the country.
Based upon his experience working with Taiwanese investors, Bui Van Thanh, director of New Sun Law Company and a VIAC arbitrator, said that foreign investors may face legal risks in complying with Vietnamese laws, signing contracts, or those related to lands and assets attached to land.
Thanh advised investors to make careful preparations and work out measures to prevent or minimize such risks, and avoid possible legal disputes that could result in a waste of time, effort and money.
Other lawyers and experts at the workshop shared viewpoints to help investors identify legal risks and resolve commercial disputes outside the courts via trade arbitration, so that they can feel secure investing in and expanding their businesses to Vietnam.