Safe harbor for FDI inflows

At the end of June, Far Eastern Polytex Vietnam Co., Ltd., which operates in the field of manufacturing synthetic fibers, finished textiles and garments, announced that it will continue to pour more than 250 million USD into Binh Duong in the third quarter, bringing the total investment capital after increasing to 1.37 billion USD.

Mr. Yeh Ming Yuh, General Director of Far Eastern Polytex Vietnam, said that the company will invest in expanding the production line of super-strong fiber products (applied in the production of seat belts, airbags, tire liner...), and at the same time build a solar power plant to provide electricity for production.

It is known that Far Eastern Polytex Company is currently the enterprise with the largest investment capital in Binh Duong up to this point.

Meanwhile, JiaWei Group, which specializes in manufacturing high-tech home appliances, has chosen Nam Dinh province as an investment destination with the goal of establishing an 8.5-hectare factory with a total investment of $80 million.

This move further demonstrates Taiwanese investors’ confidence in Vietnam’s business environment and growth potential.

Speaking at the Seminar on Circular Economy, Deputy Chairman of the Taiwan Development Council (NDC), Ms. Shien Quey Kao, said that in the context of the current trade war, it is clear that many Taiwanese enterprises have moved their production bases to Vietnam, which is considered a safe destination for FDI inflows .

Diversified "taste" of Taiwanese investors

According to Ms. Shien Quey Kao, in the future, if Vietnam expands cooperation with Taiwan in the field of semiconductor chip production, the first recommendation is to train high-quality personnel, with channels to exchange talented students. 

Do Nhat Hoang, Director of the Foreign Investment Department (Ministry of Planning and Investment) emphasized the growing interest of Taiwanese investors in Vietnam’s growing industrial and electronics sectors.

“In recent years, many Taiwanese business delegations have moved machinery and electronics production to Vietnam, clearly demonstrating their plan to choose Vietnam as their investment destination. The concerns of these investors are around choosing a specific location to set up the factory,” said Mr. Hoang.

A representative of My Thuan Industrial Park Development Company (Nam Dinh) said that Taiwanese businesses choose Vietnam due to its convenient geographical location, plus cultural similarities. Besides, Vietnam has stable bilateral and multilateral political relations with many countries. This is an extremely important factor affecting investment decisions in the context of complicated political conflicts. Therefore, choosing Vietnam will make many Taiwanese investors feel secure about their long-term and stable plans.

The growing presence of Taiwanese investors in Vietnam extends beyond the industrial sector. Notably, Taiwanese investors have made significant contributions to the real estate sector , with projects such as Phu My Hung Urban Area and Royal Center receiving large investments. These investments represent the diverse "taste" of Taiwanese investors and their commitment to Vietnam’s economic growth.

According to statistics, Taiwan’s investment in Vietnam mainly focuses on the processing and manufacturing industry, accounting for 80% of the total registered investment capital. Next is the construction and real estate sectors, along with many other industries that also attract the attention of Taiwanese investors.

Currently, Taiwan’s investments are spread across 55 provinces and cities across the country. Leading the way is Ha Tinh with a total registered investment capital of more than 11 billion USD, accounting for 30% of total accumulated investment capital. Binh Duong holds the second position with an investment capital exceeding 6 billion USD, accounting for more than 16% of the total capital. Dong Nai follows closely in third place, with investment capital exceeding USD 5 billion, contributing more than 13% of total accumulated investment capital. In addition, Ba Ria - Vung Tau, Long An and Ho Chi Minh City also witnessed significant investment activities of Taiwanese enterprises.

Besides FDI inflows, Vietnam also witnessed an increase in indirect investment from Taiwan, increasing the interest and participation of Taiwanese investors in the Vietnamese market. In the past two months, China Trust Vietnam Opportunity Fund, a stock investment fund of CTBC Investment, has continuously raised investment capital in the Vietnamese stock market in Taiwan dollars.

Mr. Zhang Chenwei, Director of China Trust Vietnam Opportunity Fund commented, Vietnam possesses many advantages, including high GDP growth, low inflation and a stable currency. Vietnam is also one of the countries with the most free trade agreements (FTAs) in the world, typically EVFTA, RCEP…

"Vietnam’s sustainable economic growth is similar to the development trajectory of China and Taiwan, and a favorable investment environment is the foundation for Vietnam’s attractiveness to Taiwanese investors," said Mr. Chenwei.