In January, Taiwan firms contributed US$138.81 million in foreign direct investment (FDI) in Vietnam across 18 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decline of US$109.95 million compared to December, which saw US$248.76 million in registered capital with 14 new projects.
Taiwan investments accounted for 3.20 percent of total FDI in January, down from 3.48 percent in December.
Taiwan has become one of the leading sources of foreign direct investment (FDI) in Vietnam, with strong economic ties and increasing business collaboration between the two regions. Taiwanese companies have been active in Vietnam across various sectors, including manufacturing, electronics, textiles, retail, and logistics. The competitive labour costs, strong infrastructure, and the country’s growing consumer market have made Vietnam an attractive destination for Taiwanese investors seeking to expand in Southeast Asia.
Manufacturing has been a key focus of Taiwanese FDI in Vietnam, particularly in the electronics, machinery, and consumer goods industries. Major Taiwanese companies such as Foxconn, Pegatron, and TSMC have set up significant production facilities in Vietnam, taking advantage of the country’s low-cost labour and proximity to regional supply chains. These companies primarily focus on the production of electronics components, assembly of smartphones, and other consumer electronics, which are then exported to global markets.
In addition to manufacturing, Taiwan has been active in Vietnam’s retail and real estate sectors. Taiwanese businesses have invested in retail chains, shopping malls, and hospitality developments, catering to the expanding middle class and increasing demand for modern retail and entertainment options. The logistics sector has also seen Taiwanese investments, with companies focusing on supply chain management and warehousing services to support the growing trade and e-commerce market in Vietnam.
With trade agreements such as the ASEAN-Taiwan Free Trade Agreement, Taiwan’s FDI in Vietnam is expected to continue growing. The two regions are likely to deepen their collaboration, particularly in emerging industries such as digital technology, green energy, and high-tech manufacturing, further cementing Taiwan’s role as an important investment partner for Vietnam.
See also: List of Vietnam’s Free Trade Agreements