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Taiwanese investments expand horizons in Vietnam

Taiwanese investments expand horizons in Vietnam
Investment cooperation between Vietnam and Taiwan continues to grow.

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Taiwanese Investments in Vietnam Quadruple in 2023, Solidifying Its Position as a Leading Foreign Investor

Taiwanese investments in Vietnam have seen a remarkable fourfold increase in capital from 2022 to 2023, reaching $2.2 billion. This surge in investment aligns with Taiwan's New Southbound Policy (NSP) and reflects Vietnam's emergence as a competitive manufacturing hub in Southeast Asia. Vietnam offers a stable political administration, skilled workforce, and competitive labor costs, making it an attractive investment environment for Taiwanese businesses.

Vietnam's multiple free trade agreements (FTAs) with major economies have also provided Taiwanese businesses with unparalleled business access to global markets. The country's commitment to education, technology, and skills development has cultivated a high-quality talent pool, driving innovation and fostering businesses. Additionally, Vietnam's strong position in the new global manufacturing landscape makes it a top pick for supply chain diversification.

Vietnam is actively inviting Taiwanese investments in technology, electronics, semiconductors, science, and innovation sectors. The government offers a suite of preferential policies to draw in more foreign investment, especially in skill/knowledge-intensive sectors. As a result, Bloomberg forecasts a bullish economic outlook for Vietnam, with substantial investment growth from Electronics Manufacturing Service and ICT, in addition to traditional manufacturing sectors.

Gene King, chief investment officer of BW Industrial Development JSC, emphasized the critical importance of understanding local business practices, legal frameworks, and investment processes. He also highlighted the significance of site selection for establishing manufacturing, emphasizing proximity to major transportation gateways and convergence of mature infrastructure and reasonable costs.

BW Industrial Development JSC, Vietnam's leading for-rent logistics and industrial platform, has announced a strategic financial partnership with KBank, one of Thailand's leading banks, aimed at propelling the country's industrial and logistics sectors to new heights. Foreign developers also dominate the modern warehouse market in Vietnam, accounting for over 75 per cent of the market share by net leasable area (NLA) in 2023.

Overall, the promising prospects of Vietnam's economy are unlocking numerous compelling opportunities for investors, with Taiwanese businesses recognizing the potential and actively expanding their horizons in the Vietnamese market.