Speaking at the conference, Jerry Yang, general director of the Taipei Economic and Cultural Office in HCMC said Vietnam is the first choice of Taiwanese investors since the compensation costs in the Chinese market have increased.

Shi Huang, a member of the Chinese International Economic Cooperation Association Trade (CIECA) and chairman of Chin-fon Corporation, took a group of 30 representatives of Taiwanese firms to Vietnam in a bid to seek business opportunities in this new environment.

Previously, a delegation of businesses from Taiwan joined in a conference on investment promotion held in Hanoi. They surveyed the investment environment in northern provinces.

After this visit, some 30 Taiwanese firms want to setup shop in the north, Yang said.

To avoid competition for material and labor, Taiwanese investors must shift their focus to the north, instead of the south, he added.

Taiwan companies pledged total investment capital of aroundUS$23.3 billion in Vietnam from 1988 to September 2011, making Taiwan Vietnam’s second largest foreign investor. And each Taiwan-invested project is capitalized at over US$10 million, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

In terms of investment capital, the northern province of Ha Tinh has gained most investment commitments from Taiwan, 14projects with total capital of US$8 billion.

In terms of investment projects, southern provinces such as Dong Nai, Binh Duong and HCMC attracted the most projects from Taiwanese investors.