Taiwan is largest investor in Vietnam
"As the largest foreign investor in Vietnam, Taiwan accounts for nearly 30 percent of new foreign investments in the country," said Huang Nan-hui, representative of Taiwan's economic and cultural affairs office in Vietnam.
During the first eight months, the Vietnamese government has approved 110 Taiwanese investment projects worth US$167 million in total, roughly equivalent to 28.9 percent of all the approved foreign investment projects of the same period in terms of investment value, or 23.8 percent in terms of approved projected investments, Huang cited Vietnam's official figures as saying.
The actual amount of Taiwan's investments may be much higher if it includes those made by the companies such as Vedan and Pao Chen Industrial, which made investments through their overseas-registered holding companies. The rapid growth of Taiwan's investments in Vietnam reflects the improved business environment in Vietnam, observed Huang.
Meanwhile, he stressed, the macroeconomic control policies implemented in the Chinese mainland since late spring this year have more or less motivated Taiwan companies to seek alternative places for their overseas investments. Several big Taiwan companies such as Teco, Tatung, and Chi Mei Chemical all have been considering diversifying their overseas investments into Vietnam.
Currently, Taiwan's investors in Vietnam are mostly manufacturers of motorcycles, bicycles, textiles, garments, shoes, and furniture. "Teco, Tatung and Chi Mei may be the first Taiwan companies of the IT (information technology) sector to make investments there," Huang noted. "Their investments will help boost the IT industry in Vietnam," Huang believes. He predicted that Taiwan's investments in Vietnam might rise to another record high next year.
Roughly since late March this year, authorities on the mainland have announced a series of measures to curb excessive investments, which were blamed for leading to soaring prices of industrial raw materials. Meanwhile, tax officers on the mainland have also become much stricter in checking the financial reports of foreign companies. The worsening power shortages on the mainland are another major concern of Taiwanese companies for their mainland investments. Several big foreign companies suspended operations this summer due to the shortage of power.
Since opening to foreign investors in 1986, Vietnam has seen accelerated growth in foreign investments. As of Sept. 20, the Vietnamese government has approved 4,800 foreign investment project, worth US$43.3 billion in total. Among them, 1,200 projects, worth US$7 billion or so, were filed by Taiwan companies.
The China Post - October 27, 2004
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