Taiwan and Vietnam have been strengthening their economic ties for over two decades, with Taiwan’s “Go South” and “New Southbound” policies incentivizing Taiwanese entrepreneurship in the ASEAN region. Traditionally, Taiwanese investment in Vietnam focused on manufacturing sectors such as textiles, footwear, and furniture. However, with the evolution of the investment landscape, Taiwanese entrepreneurs are now also diversifying into Vietnam’s service sector. This trend highlights the increasing diversity of Taiwanese businesses investing in Vietnam.
Under President Tsai Ing-Wen, Vietnam was identified as a key partner in Taiwan’s New Southbound Policy. Taiwan has become the fourth-largest foreign investor in Vietnam, while Vietnam ranks as Taiwan’s third-largest trading partner within the ASEAN region. The recent election of President William Ching-te Lai has sparked curiosity regarding the future trajectory of Taiwan-Vietnam relations. However, given President Lai’s aim to reduce dependence on China and strengthen ties with Southeast Asian nations, it is expected that the momentum in fostering relationships with Southeast Asia will continue.
The economic partnership between Taiwan and Vietnam holds immense significance, particularly in trade and investment. In 2022, bilateral trade reached record levels, and Taiwanese entrepreneurs accounted for around 8% of foreign investment in Vietnam. Both countries are now shifting their focus towards high-growth sectors like semiconductor and renewable energy industries. Vietnam aims to become a semiconductor hub and has upgraded diplomatic relations with countries like the United States and Japan to achieve this goal. Taiwan’s expertise in the semiconductor industry can be leveraged to support Vietnam’s developmental objectives.
To develop the semiconductor industry, Vietnam needs to address the challenge of a shortage of highly skilled workers. Taiwan, with its experience and leadership in chip production, can offer support in terms of workforce training. Collaboration between the two countries would provide a foundation for Vietnam’s initial steps in the semiconductor sector. Taiwan is already supporting the development of semiconductor technology expertise in Vietnamese universities and through programs like the INTENSE Program by the Taiwan Ministry of Education.
With the mutual benefit of addressing labor shortages in both countries, the collaboration between Taiwan and Vietnam in the semiconductor and renewable energy industries holds great potential for advancing economic growth and technological development in the region.
FAQ Section:
Q: What are Taiwan’s “Go South” and “New Southbound” policies?
A: Taiwan’s “Go South” and “New Southbound” policies are economic strategies that incentivize Taiwanese entrepreneurship in the ASEAN region, particularly in Southeast Asian countries.
Q: What sectors did Taiwanese investment in Vietnam traditionally focus on?
A: Traditionally, Taiwanese investment in Vietnam focused on manufacturing sectors such as textiles, footwear, and furniture.
Q: How have Taiwanese entrepreneurs diversified their investments in Vietnam?
A: Taiwanese entrepreneurs are now also diversifying their investments into Vietnam’s service sector, highlighting the increasing diversity of Taiwanese businesses in Vietnam.
Q: Who is President Tsai Ing-Wen and what is the New Southbound Policy?
A: President Tsai Ing-Wen is the president of Taiwan. The New Southbound Policy is a policy initiative by Taiwan to strengthen ties and partnerships with countries in Southeast Asia, including Vietnam.
Q: What is the current status of Taiwan-Vietnam economic relations?
A: Taiwan has become the fourth-largest foreign investor in Vietnam, while Vietnam ranks as Taiwan’s third-largest trading partner within the ASEAN region.
Q: Who is President William Ching-te Lai?
A: President William Ching-te Lai is the recently elected president of Taiwan.
Q: What is President Lai’s aim regarding Taiwan’s relationship with China and Southeast Asian nations?
A: President Lai aims to reduce dependence on China and strengthen ties with Southeast Asian nations, including Vietnam.
Q: What are the high-growth sectors that Taiwan and Vietnam are shifting their focus towards?
A: Taiwan and Vietnam are shifting their focus towards high-growth sectors like the semiconductor and renewable energy industries.
Q: What is Vietnam’s goal in the semiconductor industry?
A: Vietnam aims to become a semiconductor hub and has upgraded diplomatic relations with countries like the United States and Japan to achieve this goal.
Q: How can Taiwan support Vietnam in developing the semiconductor industry?
A: Taiwan, with its expertise in the semiconductor industry, can offer support in terms of workforce training and developing semiconductor technology expertise in Vietnamese universities.
Definitions:
1. ASEAN: The Association of Southeast Asian Nations, a regional intergovernmental organization that promotes economic, political, and socio-cultural cooperation among its member countries.
2. Semiconductor industry: The sector involved in the production of semiconductor devices, including integrated circuits and microchips, which are essential components of electronic devices.
3. Renewable energy: Energy derived from natural sources, such as sunlight, wind, rain, tides, and geothermal heat, which are constantly replenished and considered environmentally friendly.
Suggested Related Links:
– Taiwan Government
– Taiwan Ministry of Foreign Affairs
– Association of Southeast Asian Nations (ASEAN)
– Embassy of Vietnam in Korea
The source of the article is from the blog scimag.news