Việt Nam-Taiwan business relations remain short of potential: experts

Vũ Tiến Lộc, chairman of the Việt Nam Chamber of Commerce and Industry, said at a forum in HCM City on Tuesday that Taiwanese businesses will invest in Việt Nam’s supporting sector and help its firms join the global value chain.

Speaking at a forum in HCM City on July 2, Vũ Tiến Lộc, chairman of the Việt Nam Chamber of Commerce and Industry (VCCI), said total investment by Taiwanese firms in Việt Nam exceeds US$31 billion and is mainly in manufacturing, significantly contributing to the country’s annual exports, especially of garment-textile and footwear.

Việt Nam has become attractive to foreign investors, including those from Taiwan, and the country hopes Taiwanese businesses would further invest in part-supply industries and help local firms join the global value chain, he said.

Việt Nam has signed free trade agreements (FTAs) with various countries and blocs, and this has resulted in tax incentives that Việt Nam could benefit from when exporting to them, and Taiwanese enterprises could develop products in co-operation with Vietnamese partners to ship to these markets, he said.

Wang Wen-yuan, chairman of Taiwan’s Chinese National Federation of Industries, said Việt Nam is an investment destination Taiwan has targeted in its development strategy, adding that it wants to invest more in garment-textile, footwear and supporting industries.

Vũ Đức Giang, chairmain of the Việt Nam Textile and Apparel Association (VITAS), highlighted Taiwanese enterprises’ contributions to Việt Nam’s garment-textile export revenues in recent years. VITAS hopes to soon set up an information exchange channel with Taiwanese garment-textile firms in Việt Nam to link the local garment-textile sector with raw material sources, he said. He called on Taiwanese businesses to increase investments in yarn, weaving and dyeing in Việt Nam to ease the country’s shortage of these materials. Zhan Zhengtian, president of the Taiwan Textile Federation, described Việt Nam as an attractive destination for Taiwanese garment-textile investors. It is also Taiwan’s biggest garment-textile partner who buy products worth of more than $2 billion a year, he said. Việt Nam’s increasing demand for feedstock is an opportunity for Taiwanese firms to step up links with local partners and develop a supply chain, he said. Besides, Taiwan can help Việt Nam with dyeing and weaving technologies, and high-quality personnel training in fashion design and product development, helping raise added value to Vietnamese garments-textiles, he said. — LV