An increasing interest in the Vietnamese market has been noticed among Taiwanese investors, Director General Berton B.C. Chiu of the Department of Investment Services under the Ministry of Economic Affairs, Taiwan (China) said to Dau Tu (Investment Review).

Those businessmen are paying particularly high attention to the local industries of agriculture, garment & textiles, IT and vehicular spare part, he noted.

Foreign apparel-making enterprises are eager to erect plants in Vietnam supplying high-quality products for domestic consumption and exporting them to Southeast Asian countries, China, Japan, the Republic of Korea and European nations.

The vehicular spare part sector is also ripe with potential as there is high demand in Vietnam and lowered taxes have been applied since the country joined the World Trade Organisation in 2007.

Meanwhile, following the Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area (CEPT/AFTA) taking effect in January 2014, Vietnam has cut tariffs on imported motorbikes and automobiles by 50 percent. The tax will be cut to zero percent in 2018.

Jack Lin, a representative of I-Mei Foods Co., Ltd, which owns several Taiwanese rice cake trademarks in Hanoi, stated that the robust Vietnamese economy and reduced taxes - a result of several free trade agreements – have created favourable conditions for his company to expand its operations in Vietnam.

The US and Taiwan-based Franz Collection Inc., a pottery producer, is seeking distribution partners in Vietnam to take advantage of the significantly lower tariffs imposed on imports, its representative Sara Huang revealed.

Considering this trend, Chiu suggested a Vietnam-Taiwan joint venture should be established for the mutual benefit of both nations.

Taiwan is the fourth largest investor in Vietnam, with 2,306 projects worth 27.43 billion USD employing 1.4 million workers. More than 80 percent of Taiwan’s total investment is concentrated in the production and agricultural sectors.-VNA