Polytex Far Eastern (Vietnam), a subsidiary of Taiwan’s Far Eastern Group, in mid-June announced its intention to expand its investment in the southern province of Binh Duong.
|Taiwanese investors spread their wings in Vietnam (source: cafef.vn) |
With an additional registered investment of $610 million, the firm aims to bolster its presence in Vietnam’s high-value manufacturing sector by expanding its synthetic fibre production project.
The funds will be allocated towards enhancing production lines for durable fibres used in various applications, including safety ropes, airbags, and tyre reinforcements, while also constructing a solar power plant to support sustainable energy requirements.
Meanwhile, JiaWei Group has chosen My Thuan Industrial Park in the northern province of Nam Dinh as its investment destination. The conglomerate, known for its high-tech household appliance manufacturing, aims to establish a production plant spanning 8.5 hectares with a total investment of $80 million.
In early June, Nam Dinh granted an investment certificate for Apple supplier Quanta Computer to build a $120 million factory, the giant’s first in Vietnam and its ninth worldwide. The plant, located in the same park, is set to manufacture 1.3 million laptops and desktop computers in 2024, 2.6 million in 2025, 3.6 million in 2026, four million in 2027, and 4.5 million in 2028.
Do Nhat Hoang, director general of Vietnam’s Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, highlighted the burgeoning interest of investors from Taiwan in Vietnam’s thriving industrial and electronic sectors.
“In recent years, numerous delegations of Taiwanese businesses specialising in machinery and electronics have conducted extensive surveys within Vietnam, consistently opting for the country as their investment destination of choice. The only remaining question for these investors pertains to the specific location within Vietnam, underscoring the nation’s growing allure as an investment hotspot,” Hoang stated.
The growing Taiwanese presence in Vietnam extends beyond the industrial sector. Investors have made significant contributions to Vietnam’s real estate sector, with projects such as Phu My Hung Urban Area and the Royal Centre receiving substantial investments.
According to the FIA, Taiwanese investments in Vietnam predominantly concentrate on the processing and manufacturing industries, constituting a substantial 80 per cent of the overall registered capital. Following closely behind are the construction and real estate sectors, with various other industries also attracting interest.
A representative of Dai Phong JSC, the developer of My Thuan Industrial Park, told VIR that his company prefers Vietnam due to the convenient geographical position.
“Besides that, Vietnam has a stable multinational and bilateral political relationship with other countries, which is an extremely important factor. Thus, selecting Vietnam will make companies feel secure in their long-term plans,” he said.
Presently, Taiwanese investments are dispersed across more than 55 cities and provinces throughout Vietnam. Leading the pack is the central province of Ha Tinh, with an impressive registered investment capital exceeding $11 billion, comprising a significant 30 per cent of the cumulative total investment. Binh Duong secures the second position, boasting an investment capital surpassing $6 billion, representing over 16 per cent of the cumulative total.
The southern province of Dong Nai follows closely in third place, with an investment capital surpassing $5 billion, contributing to over 13 per cent of the cumulative total investment. Additionally, Ba Ria-Vung Tau, Long An, and Ho Chi Minh City also witness substantial Taiwanese investment activity.
Alongside significant foreign funding inflows, Vietnam is also observing a surge in indirect investment. The China Trust Vietnam Opportunity Fund, an investment vehicle focusing on Vietnamese stocks, is reinforcing its commitment to the country. The fund, which has successfully mobilised investment capital in Taiwanese dollars in previous rounds, recently announced a fifth round of capital raising, with an estimated value of approximately $163 million.
Zhang Chenwei, fund manager of the fund, believed that despite short-term market fluctuations, Vietnam possesses several advantages, including strong GDP growth, low inflation, and stable currency.
“The country’s resilient economic growth, similarity to the development trajectories of China and Taiwan, and a conducive investment environment underpin its attractiveness to such investors,” Chenwei stated.
| ||Binh Duong attracts Taiwanese investors |
The People’s Committee of Binh Duong southern province held a teleconference on August 24 to attract Taiwanese investors.
| ||Taiwanese investors ready to invest in Vietnam |
A delegation of nine Taiwanese investors made a business trip to Vietnam to survey investment opportunities in many cities and provinces and intensify bilateral cooperation.
| ||Taiwanese firms eye investment in Hai Phong |
The Hai Phong Economic Zone Authority (HEZA) on September 12 hosted a meeting with a business delegation from Taiwan (China) to introduce cooperation and investment opportunities in the northern city.