Taiwanese Apple supplier, Wistron, is set to invest US$24.5 million in a new factory in Vietnam’s Ha Nam province. This will raise the firm’s total investment in Ha Nam, since 2020, to US$363.9 million, according to The Investor.
Driven by the US-China trade war and political tensions, Taiwanese tech companies like Wistron have been diversifying out of China and increasing their investments in Southeast Asia, particularly Vietnam. Taiwanese Apple suppliers like Foxconn and Pegatron, for example, have also increased their investments.
There are a number of reasons for this.
Firstly, Vietnam boasts free trade agreements with key players in Apple’s supply chain, including East Asian countries like China and Japan.
Furthermore, Vietnam’s large and lower-cost labor force has been a significant draw. In 2023, the average monthly salary in Vietnam was VND 7,300,000, approximately US$286, while the labour force reached 52.4 million people, according to Vietnam’s General Statistics Office.
On top of that, Vietnam and Taiwan have a strong two-decades-long foundation of investment and trade. Of note, Taiwanese investment in Vietnam surged to US$2.2 billion in 2023, a fourfold increase from 2022. This made Taiwan the fourth-largest FDI investor in Vietnam that year.
With all of this in mind, Vietnam is well-positioned to continue attracting Taiwanese tech companies and solidifying its place as a key player in the global electronics manufacturing landscape.
See also: Made in Vietnam: Brands and Goods 2024