Vietnam is one of the top choices of Taiwanese companies investing abroad, said Mr. Robert Y. G. Ho, deputy head of Taiwans Foreign Investment Department, at the "Promoting Investment in Vietnam" workshop offered by the Foreign Investment Promotion Department of the Vietnamese Ministry of Planning and Investment during its recent (August 10-17) visit to Taiwan.
Taiwanese businesses appreciate the investment environment in Vietnam, particularly with its advantages of cheap labor and stable politics. Vietnam is one of the top choices of Taiwanese companies investing abroad, said Mr. Robert Y. G. Ho, deputy head of Taiwan’s Foreign Investment Department, at the "Promoting Investment in Vietnam" workshop offered by the Foreign Investment Promotion Department of the Vietnamese Ministry of Planning and Investment during its recent (August 10-17) visit to Taiwan.
Mr. Phan Huu Thang, head of the Foreign Investment Department, said the visit was very successful, more than meeting his expectations. Following various meetings with Taiwanese investors, small, medium and large, including Chinfon, Formosa, Thien Hung, and Nghia Lien, he realized that Taiwanese businesses have a very good opinion about the investment climate in Vietnam. It is likely that Taiwanese businesses will continue to seek new investment opportunities in Vietnam, and the question now is how to best take advantage of new opportunities.
According to the Foreign Investment Department, Taiwanese investment has now reached US$7.3 billion, more than any other country or territory investing in Vietnam. Many of the Taiwanese projects are models for foreign investors in Vietnam. At the investment promotion workshop held in Taipei, some Taiwanese businesspeople were surprised to hear how well the Ho Chi Minh City-based CT&D Corporation is doing. Apart from its successful Tan Thuan Export Processing Zone, which was a first in Vietnam, CT&D has converted a marshy area south of Ho Chi Minh City into the thriving South Saigon urban area.
Many large Taiwanese companies are planning to increase their investments in Vietnam. After starting-up its two ongoing projects in Dong Nai and Long An with a total capital of about US$500 million, Formosa, one of the largest companies in Taiwan and the biggest foreign investor in Vietnam, is starting phase 2 of its long-term investment plan in Vietnam with around US$300 million in capital. The company intends to build three power plants in the south and to set-up a representative office in Hanoi to oversee projects in the north. The company also expects to be expanding operations to the central economic areas, said Formosas general director Shih Ming Hsie.
Representatives of large Taiwanese corporations investing in Vietnam such as Chinfon, CT&D, and Thien Hung are saying that they would like to increase their investments in Vietnam in the near future. The Thien Hung Steel Company is now trying to obtain a license to build a stainless steel plant in the My Xuan A Industrial Zone, Ba Ria-Vung Tau province, at a total cost of US$700 million.
Thien Hung’s general director Hsien Hsiang Wei said that construction could possibly begin early next year with product coming off the line in 2008. He also said that after this steel plant becomes operational, the company would like to build at least five support plants in Vietnam.
"I believe that Taiwanese investment in Vietnam will grow about 10 percent every year for the next 10 years. Taiwanese policy is to invest southward and Vietnam is a top choice of Taiwanese businesses," said Mr. Au Gia Thuy, director of the Taiwanese Foreign Investment Department. Ms. Luu Thuy Anh, a senior expert of Taiwan’s Ministry of Economics, said that Taiwanese investment in Vietnam is expected to exceed US$11 billion in five years. Ms. Luu Thuy Anh advises Taiwanese businesses go to Vietnam if they want to find the best investment opportunities.
(Source: VEN)
