Southeast Asia has surpassed China to become the top investment hot spot for Taiwanese businesses. Vietnam is leading this race.
According to Taiwan News, from October 22 to November 28, Standard Chartered Bank and China Credit Information Service jointly conducted a survey of senior leaders (CEO, CFO). , general directors and other leaders) from companies of different sizes and sectors. Questions include long-term prospects, business confidence, as well as a plan to transition and expand abroad.
The results show that Foxconn has absolutely a reason to move its supply chain from China to Vietnam. China is no longer the top investment hot spot. Meanwhile, Southeast Asian countries, most notably Vietnam, have become new potential areas.
In the survey, 70.6% of respondents said they had invested in China and 58.4% had landed in Southeast Asian countries, of which Vietnam was the top destination with a ratio of 50 , 5%, followed closely by Thailand with 48.3%, Malaysia (42.3%) ranked third, Indonesia (33.3%) ranked fourth and the Philippines was 26.9%.
When asked if there is a plan to expand abroad in the near future, more than 60% of respondents said yes. They chose Southeast Asia as the top destination (33.2%), followed by China (23.4%) - the country received annual investments for a long time from Taiwan.
The reason is that the US-China trade tension and the increasing uncertainties make investment in the Chinese market contain too many risks for them. Deputy General Director of China Credit Information Service Center Nickolas Hsu explained: "This change is reflecting every growing concern among Taiwanese businesses about instabilities and tariff barriers from both. China and the United States are caused by commercial warfare, the top executives consider other options instead of China. "
According to The Economist, China is no longer a cheap labor paradise. International investors are considering Vietnam as the world's factory. Wages and the average age of Chinese workers are much higher than Vietnamese workers. The openness and enthusiasm for the government's free trade agreements have helped Vietnam become a particularly attractive hot spot for foreign investors.
Especially in the field of electronics, Vietnam has had long-term experience with Samsung - with three factories over 30 years. And it is impossible to take into account the Vietnamese consumers' preference for Apple products more than ever before, making the people and the government of Vietnam very supportive if there really is "iPhone made in Vietnam" .
