An assessment report by auditing firm PwC indicates that Taiwanese enterprises’ investment into Vietnam increased from 18% in 2018 to 24% by the end of 2020, ranking fourth after the United States, Japan, and China.
Most notably, although Vietnam has temporarily suspended the entry of foreign nationals since the COVID-19 outbreak hit early last year, Taiwanese foreign direct investment (FDI) into its territory has increased by 53%, with a number of large electronics projects to be deployed in the north of the country.
Most notably, Pegatron invested US$485 million in the northern city of Hai Phong, while Wistron also poured roughly US$300 million into the northern province of Ha Nam.
To seize upon investment opportunities and transform risks into opportunities, Taiwanese enterprises have always considered Vietnam to be the most important link in Southeast Asia, specifically in the trend of shifting the global supply chain with a primary focus on the electronics and telecommunications sectors.
In addition, the Vietnamese Government is actively promoting digital transformation, which is widely regarded as a crucial policy in attracting foreign enterprises, including Taiwanese investors.
A representative from the Ministry of Economic Affairs of Taiwan (China) also reveals that major Taiwanese electronics giants, such as Foxconn, Weistron, and Foxlink, have all injected capital into the Vietnamese market, with plans ahead to expand their investment in the country.
According to the Taiwan-Vietnam Economic Cultural & Educational Development Association, the Vietnamese Government has also focused on training a high-quality workforce by recently launching a talent training co-operation programme.
Moreover, the signing of a series of new generation free trade agreements (FTAs) is anticipated to accelerate the digital transformation locally, which has become a driving force for hi-tech firms as they pour more investment capital into Vietnam.
Latest data released by Taiwan's Ministry of Economic Affairs show Vietnam is one of the five countries and territories globally where Taiwanese businesses have invested the most, behind Hungary, British Virgin Islands, Hong Kong (China), and the US.