In an interview with Cong Thuong Newspaper, Lawyer Nguyen Hong Chung, General Director of DVL IPT Investment and Trade Promotion Joint Stock Company, Vice President and General Secretary of the Vietnam Industrial Park Finance Association (VIPFA), said that many Taiwanese (Chinese) enterprises have placed their trust in Vietnam when they continuously expand their factories in many fields, especially the high-tech industry.
Lawyer Nguyen Hong Chung, General Director of DVL IPT Investment and Trade Promotion Joint Stock Company, Vice President and General Secretary of Vietnam Industrial Park Finance Association (VIPFA)
PV: In the context of global FDI capital flows slowing down, Taiwan (China) investment in Vietnam has increased in recent years. How do you evaluate this trend?
Lawyer Nguyen Hong Chung: In the context of an uncertain and unpredictable world, fierce strategic competition, and a fragmented world economy that has reduced and reshaped international investment flows; Vietnam is still an attractive market for foreign investors in general and Taiwanese (Chinese) investors in particular, and is the most worthy investment destination in the coming time due to the strengths of our country's economy.
Firstly, a stable political and security situation is an important condition for deciding to lay the foundation for long-term investment activities in Vietnam. The Vietnamese government has actively improved the investment environment in recent years, introducing many attractive policies to attract foreign investment such as: Tax policies, access to land, clean land, and simplification of administrative procedures.
Second, Vietnam has a particularly favorable geographical location, a gateway for international trade of goods by sea. Vietnam is currently considered one of the important links in the trend of shifting production and supply chains globally as well as in the Asian region, especially in the fields of electronics and high technology. Increasingly synchronized infrastructure and technology are also advantages and attractiveness to investors.
Third, cultural similarities. This helps Taiwanese (Chinese) businesses integrate better into local society.
Fourth, abundant labor force. Vietnam is still “enjoying” a young population structure with a high proportion of the labor force in the next decade.
Fifth, the Vietnamese Government's orientation towards digital transformation and green economic development is also one of the positive factors for Taiwanese (Chinese) investors to promote their strengths when investing in Vietnam.
In addition, the legal system and policies on foreign investment are constantly being amended and supplemented, not only creating conditions for investors to feel secure in their long-term operations, but also helping businesses participate in global supply chains and value chains conveniently.
In 2023, investment capital from Taiwan (China) to Vietnam will reach 2.2 billion USD (4 times higher than in 2022).
Cumulatively, Taiwan (China) currently ranks 4th out of 105 countries and territories investing in Vietnam, with nearly 3,200 projects and a total registered capital of more than 39.5 billion USD.
Taiwan (China) is also Vietnam's 5th largest trading partner.
PV: What is your assessment of the investment capital flow from Taiwan (China) into Vietnam up to this point, especially the capital flow into the high-tech sector?
Lawyer Nguyen Hong Chung: Taiwan (China) investment in Vietnam over the past 35 years has undergone a qualitative change, shifting from labor-intensive industries such as textiles, footwear, and wood products to high-tech electronics.
Currently, most of the major electronics corporations from Taiwan (China) such as Foxconn, Wistron, Qisda, Pegatron, Compal, Quanta… have come to Vietnam to establish factories or expand production capacity. In the future, more Taiwanese (China) entrepreneurs and businesses will plan to establish factories in Vietnam.
Taiwan (China) has the world's leading semiconductor industry while Vietnam is also aiming to develop the semiconductor industry and participate in the regional and global technology supply chain. Therefore, the opportunity for cooperation between the two sides in this field is enormous.
Many Taiwanese (Chinese) businesses plan to expand investment in Vietnam.
PV: In your opinion, to continue to "attract" capital from foreign investors in general and Taiwanese (Chinese) investors in particular in the high-tech industry sector, what changes does Vietnam need to make to adapt to the high demands of investors?
Lawyer Nguyen Hong Chung: Vietnam is assessed to have much room to compete for FDI capital in the current global production shift trend. However, to continue to attract and "retain" large technology corporations, in addition to maintaining macroeconomic stability, appropriate tax, fee and land incentives, Vietnam needs to prepare synchronously technical infrastructure for industrial parks, factories, electricity, water and social infrastructure.
In addition, there needs to be synchronous support for promoting foreign investment attraction in a number of potential areas, creating breakthroughs such as high technology, semiconductors, innovation, green hydrogen, etc.; creating maximum conditions and encouraging businesses to implement R&D activities (research and development activities in businesses to increasingly better meet the needs of customers and the market) or cooperate in technology transfer in Vietnam.
In particular, domestic human resources are also an important issue today. In all socio-economic sectors, especially in the high-tech sector, Vietnam is lacking high-quality human resources, especially in new industries that attract foreign investment.
To improve the quality of human resources, there needs to be close coordination between ministries, branches, research institutions, and training institutions. In addition to teaching vocational skills, it is necessary to train to improve labor discipline, soft skills, the ability to cooperate and share experiences so that Vietnamese workers have both high vocational skills and professionalism, meeting the labor needs of businesses in the period of the Industrial Revolution 4.0.
PV: Recently, the Vietnam - Taiwan (China) Business Forum and the Vietnam - Taiwan (China) International Investment and Trade Promotion Exhibition 2024 took place in Hanoi. What do you think about this series of events?
Lawyer Nguyen Hong Chung: The series of events contributes to promoting the continued development of Vietnam - Taiwan (China) trade and investment relations and especially creates opportunities for Taiwanese (China) enterprises to learn about opportunities, environments, and new policies on business investment in Vietnam.
The event also helps Vietnamese localities promote and introduce their potential and strengths to Taiwanese (Chinese) investors.
In particular, with nearly 1,500 delegates from 176 member associations in 72 countries around the world attending the 2-day conference, it was an opportunity to introduce and connect Vietnamese businesses. From there, industrial parks, industrial clusters, factory businesses, banks, financial institutions, suppliers, local production facilities and distributors, export businesses... met, learned about market information; connected supply and demand of goods, promoted investment in industrial parks in Vietnam.
Thank you!
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