Foxconn, a Taiwanese electronics giant, plans to manufacture Nintendo Switch gaming consoles in the northern province of Quang Ninh as part of a US$263.7 million investment. The facility is expected to start official production in January 2027, with an annual output of 4.18 million units.
This investment aligns with a broader trend of Taiwanese manufacturers diversifying their supply chains by expanding operations in ASEAN, especially into Vietnam. In addition to Foxconn, other Taiwanese electronics giants such as Pegatron, Compal, and Wistron have also established manufacturing facilities in the country.
According to the Ministry of Planning and Investment, in the first half of 2024, Vietnam saw an additional US$529 million in new investments from Taiwan. The electronics industry accounts for half of this through four projects totaling US$255 million.
Notably, most of Taiwan’s electronics investments are concentrated in the northern provinces of Vietnam. This is partly because of the region’s proximity to China’s southern economic corridor, including major cities like Shanghai, Hong Kong, and Shenzhen. These cities are home to major industrial giants in manufacturing and electronics and therefore northern Vietnam can slide easily into existing supply chains.
Furthermore, industrial park land rental prices in the North are lower than in the South. According to a report by CBRE, in the first quarter of 2024, industrial land rental rates in Tier 1 markets in the north were US$133 per square metre, lower than those in the south which run at about US$189 per square metre.
Vietnam has experienced a surge in FDI from Taiwan in recent years. In 2023, new registered investment from Taiwan for production purposes reached US$1.87 billion, a nearly 8.7-fold increase compared to 2022.