>> Taiwanese find the Vietnamese market attractive
Although Vietnam remains an attractive place to invest, problems like low foreign currency reserves, and heavy dependence on certain imports add to difficulties in investment.
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| Low foreign currency reserves barrier to material, machinery imports |
Huang Chih Peng, Representative of Taipei Economic and Cultural Office in Hanoi, addressed the issue at a workshop with the attendance of representatives from 40 Taiwanese firms in Hanoi on April 18.
Peng pointed out some disadvantages in investing in Vietnam, such as prolonged site clearance, conflicts slowing down the pace projects, underdeveloped supporting industries and heavy dependence on machinery and accessories imports.
Another barrier has been regular power shortages, according to Peng.
He explained, “The Government maintains low power prices in order to protect investors. The artificially low prices lead to insufficient power supply, capital shortage for power generation projects. This all negatively impacts the investment climate of Vietnam.”
Apart from those short-term drawbacks, Peng emphasised that, in the long-term, Vietnam could still potentially be a more attractive place to do business than China.
The Importers and Exporters Association of Taipei, consisting of 40 representatives, has been on a seven-day visit to Vietnam beginning April 17.
Peng said that, in 2010, Vietnam-Taiwan trade reached USD8.419 billion. Vietnam exported USD1.442 billion worth of goods to Taiwan while spending USD6.976 billion on importing Taiwanese products during the year.
Last year, Taiwan was Vietnam’s fifth largest trade partner. It was also Vietnam’s 13th largest export market and fourth biggest import market.
Taiwanese firms mainly invest in Vietnam’s southern region, including Dong Nai, Binh Duong and Ho Chi Minh City, with focuses on manufacturing, transportation, electronics, cement, apparel, foodstuff, agro-forestry-fishery, engineering, rubber, woodwork, footwear and services.
Recently, some investors have started high-tech investment projects in Vietnam.
Some big Taiwanese firms that have projects with capital investment upwards of USD500 million include Chinfon, Vedan, Formosa, CT&D, Compal, and Foxcom.
In early April, more than 100 businesspeople from Taiwan came to Vietnam to study its investment opportunities.
