Taiwan's manufacturing FDI in Vietnam soars 8.7-fold from 2022

Taiwan ranked 6th in FDI, with most investments in new manufacturing projects.

Taiwanese manufacturers have increased their investments in Vietnam from 2022 to 2023 as they look to diversify their supply chains in Southeast Asia post-pandemic, according to Savills Vietnam.

In 2023, Taiwan's newly registered manufacturing foreign direct investment (FDI) in Vietnam reached a remarkable $1.87b, nearly 8.7 times higher than in 2022.

John Campbell, Associate Director of Industrial Services at Savills Vietnam, noted that in the first half of 2024, Vietnam attracted over $513m in new Taiwanese manufacturing investments, with expectations of further growth by the year-end as more major electronic projects complete their registrations.

Vietnam's ambition to become a semiconductor hub aligns well with Taiwan's expertise in this sector, allowing for valuable collaboration to achieve common objectives.

Taiwanese investors are drawn to Vietnam's young skilled workforce, stable business environment, competitive costs, strategic geographical location, and active participation in various free trade agreements. In 2023, Vietnam attracted a total of $36.6 billion in FDI, with Taiwan ranking as the sixth largest contributor with $2.88 billion, reflecting a strong economic relationship between the two countries.

The surge in Taiwanese manufacturing investments in Vietnam presents opportunities for the country's factory and warehouse developers. Companies like BW Industrial Development JSC host a growing number of Taiwanese tenants, indicating a demand for industrial space.

By province, Ba Ria-Vung Tau received the highest investment thanks to Tripod Technology Corporation. Thanh Hoa and Ha Nam also attracted Taiwanese investments, with electronics, wearing apparel, and electrical equipment industries seeing significant growth.

Overall, the increase in Taiwanese manufacturing FDI in Vietnam highlights the country's attractiveness as a manufacturing destination and the potential for further collaboration between Taiwan and Vietnam in the future.