WTO membership opening doors to Vietnam: ministry

Vietnam's accession to the WTO will create a more favorable investment environment for Taiwanese manufacturers, an official with the Ministry of Economic Affairs (MOEA) said yesterday.

After its accession to the WTO as its 150th member in January, Vietnam agreed to lower import tariffs and open its market to foreign businesses, thus opening the door to numerous trade opportunities for Taiwanese manufacturers, said Chiu Po-ching (邱柏青), director-general of the ministry's Industrial Development and Investment Center.

At the same time, the Vietnamese government brought an end to export subsidies on farm products.

The textile export quota for Vietnam has also been eliminated, Chiu said.

SERVICE INDUSTRIES

Vietnam has also agreed to open up its service industries, such as computing and telecommunications, as well as banking, insurance and the securities industry, Chiu said.

Chiu also said that several domestic financial institutions, including Cathay Financial Holding Co (國泰金控), Hua Nan Commercial Bank (華南銀行) and Chinatrust Commercial Bank (中國信託銀行), are bidding to open branches in Vietnam.

A number of Taiwanese insurance companies are also waiting for the Vietnamese government's final approval before they set up operations in the country.

PROMISING SECTORS

As for Taiwanese manufacturers' future investments in Vietnam, Chiu said that domestic entrepreneurs are well-suited to invest in sectors such as electronics, information technology, textile, car-making and the related parts and components.

Chiu suggested that domestic manufacturers intending to invest in Vietnam should conduct risk assessments before carrying out their projects, as there is a lack of infrastructure, skilled labor and an incomplete industrial supply chain in certain areas.

TOTAL INVESTMENT

Official statistics indicate that the accumulated amount of funds Taiwanese manufacturers have invested in Vietnam had reached approximately US$8.26 billion as of the end of last year, making Taiwan the Southeast Asian country's largest foreign investor.

However, investors from elsewhere are also taking advantage of new opportunities.

Last year, new Taiwanese investment in Vietnam amounted to US$226 million, which ranked only ninth among foreign investors -- far behind the total new investment from South Korea (US$2.83 billion), Hong Kong (US$1.23 billion) and other countries.