Firms from China, Taiwan flocks from Mainland to Vietnam

[VALKRYIE]

HO CHI MINH CITY, Aug. 26 (Xinhua) -- Vietnam's fast-growing market has attracted a large number of Taiwanese companies that plan to invest in the country in the coming years, local newspaper Vietnam News reported Wednesday.

John Tang, director of the Taiwan Trade Center office in Ho Chi Minh City, said Taiwanese companies were among the first foreign investors investing in Vietnam. About 500 to 600 Taiwanese firms operate in the city. Most of them make products for export.

In the future, the companies are expected to make products for both Vietnamese and export markets. Many retailers are also expected to enter Vietnam's retail market, as it has a high growth rate.

In addition, Taiwanese firms plan to invest in a textile production chain in Vietnam to benefit from the upcoming Trans Pacific Partnership (TPP), Tang said.

Under a trade mission held by the Taiwan External Trade Development Council to Vietnam, Thailand and Indonesia from August 24 to September 2, 33 companies from China's Taiwan are visiting Ho Chi Minh City to seek investment and trade opportunities.

The visiting firms operate mainly in production and trade of daily commodities and industrial goods and equipment.

Firms from China's Taiwan flock to Vietnam: media | GlobalPost

 

[IR-TR]

What's wrong with that? Why laugh? This is what integration looks like. Investments get spread around the region. Making all the countries more dependent on each other, and thus making war and conflict less likely. Indeed a good thing. All of Asean needs to develop rapidly.

 

[Rechoice]

Formosa company, this name reminded me to Formosa Republic. Good move by Hokklo people.

 

[Economic superpower]

There has been dozens of companies that have left China over the years and dozens enter China. Low-cost manufacturing is leaving and has left since 2007. Value-added manufacturing is increasing in China and domestic Chinese firms are grabbing market share from foreign companies.

Before companies came solely to use the low labour costs, favourable tax policies, etc. Now they come to be closer to their market.

Vietnam will NEVER replace China. People still take a couple of headlines and generalise. There will not be another China. Chinese labour force including cost and mobility, Chinese infrastructure from transportation, telecommunications, electricity, Chinese government policies in regard to tax, rent, electricity, access to finance, access to talent, Chinese stable political system, environmental standards, etc make China the ideal place for companies to supply China, the region and the world.

Foreign manufacturers had no competition a few years ago but now Chinese manufacturing firms are competing with foreign firms for the same resources and Chinese firms know how to win in its own country.

 

[Economic superpower]

But many Indians here believe that India will be better than China.

Only in pipe dreams will India be better than China. In the real world, India is not even close to China.

 

[VALKRYIE]

There has been dozens of companies that have left China over the years and dozens enter China. Low-cost manufacturing is leaving and has left since 2007. Value-added manufacturing is increasing in China and domestic Chinese firms are grabbing market share from foreign companies.

Before companies came solely to use the low labour costs, favourable tax policies, etc. Now they come to be closer to their market.

Vietnam will NEVER replace China. People still take a couple of headlines and generalise. There will not be another China. Chinese labour force including cost and mobility, Chinese infrastructure from transportation, telecommunications, electricity, Chinese government policies in regard to tax, rent, electricity, access to finance, access to talent, Chinese stable political system, environmental standards, etc make China the ideal place for companies to supply China, the region and the world.

Foreign manufacturers had no competition a few years ago but now Chinese manufacturing firms are competing with foreign firms for the same resources and Chinese firms know how to win in its own country.

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What's wrong with that? Why laugh? This is what integration looks like. Investments get spread around the region. Making all the countries more dependent on each other, and thus making war and conflict less likely. Indeed a good thing. All of Asean needs to develop rapidly.

Oh I agree. But I laugh for a different reason remember the anti China riots. Some members thought that economy was screwed and that no one would invest in, setting the country back another decade or two.

 

[opruh]

So happy to see that the vietnamese peasants will work for the Chinese.

 

[Viet]

So happy to see that the vietnamese peasants will work for the Chinese.

I feel great to see you happy.

 

[EastSea]

So happy to see that the vietnamese peasants will work for the Chinese.

Too many chinese dreamer on this forum, he he

 

[ebony&ivory]

The Chinese firms will abuse their Viet workers. Force them to accept China law in South China Sea or else no wages.

The Taiwanese firms will be even more abusive!

 

[Namin]

bad news, Vietnam people never consider Taiwan or China investment as good news. yes, it's true that Taiwanese and Chinese firms are very famous in abusing workers around the world and also in Vietnam.

 

[Viet]

The Chinese firms will abuse their Viet workers. Force them to accept China law in South China Sea or else no wages.

The Taiwanese firms will be even more abusive!

you are wrong. If you want to abuse other people, pls go to africa or elsewhere. I don't care. as for the taiwanese, I know they love vietnam. I read the majority of taiwanese people rather want to see taiwan to unite with peaceful vietnam than commie china.

 

[Jlaw]

So happy to see that the vietnamese peasants will work for the Chinese.

these peasants will be pay a lot more than working for domestic Vietnamese companies. when China temporarily closed it's Vietnam border during the riots, not even one week and it was hurting the Vietnamese merchants who cross the border to sell their goods every day. They were pissed off at the VCP for causing their iron bowl to collapse.

 

[Viva_Viet]

Lesson for Taiwan Firms After Vietnam’s Anti-Chinese Riots: Go Local

Smoke billowing from a Taiwanese furniture factory in Binh Duong.
Agence France-Presse/Getty Images
For the Taiwanese companies whose factories were destroyed in therecent riots in Vietnam, advice from analysts all carries the same tune: think globally, act locally.

Earlier this month, Taiwanese manufacturers became collateral damage when an anti-China protest sparked by Beijing’s placement of an oil rig in a part of the South China Sea in which Vietnam also claims ownership resulted in the destruction of scores of foreign-owned plants. Taiwanese manufacturers suffered the heaviest blow. According to the island’s government, more than 200 Taiwanese factorieswere damagedand at least 18 were set on fire.

While the underpinning cause of the riots is still under investigation, one theory is that the rioters may have mistaken Taiwanese factories as Chinese ones. Others suspect that Vietnamese workers at the Taiwanese plants may have been angry with their managers, many of whom are Chinese.


For many analysts, the take-home message for the damaged firms isn’t to beef up security or do more to distinguish themselves from the their Chinese counterparts; rather, they should create an atmosphere of collective responsibility by localizing their management team, said Winston Yu, chairman of accounting and consulting firm KPMG Taiwan.

Since around 2000, a number of Taiwanese companies have moved their operations from China to Vietnam as Chinese wages rise. And while the firms brought job opportunities for Vietnamese workers, many also brought their management staff from China.

The Chinese staff at the Taiwanese factories in Vietnam are far fewer in number but have greater authority and much higher pay compared with the Vietnamese workers.

According to James Wang, country manager of Ernst and Young Taiwan, a Vietnamese supervisor or department manager in a Taiwanese-owned factory makes $500 a month on average, while local, low-level staff earn around $150-$200 a month. A Chinese manager at the same plant who assumes a more senior role, makes $1,300-$1,500, compared with around $2,000 for a Taiwanese manager.

“The riots rattled Taiwanese investors’ confidence in Vietnam, but given the country’s affordability, close proximity to the China market, and a burgeoning domestic demand, pulling out is not an option,” said Mr. Wang.

Because the geopolitical tensions areexpected to lingerand leaving isn’t in the cards, to minimize tension inside the company Taiwanese companies should restructure their operation style, starting with becoming more localized, he said.

The benefits of localization goes beyond cost-saving, it also “creates a sense of stewardship and fosters synergy among the local hires,” said Mr. Yu.

Feng Tay Group, a major Taiwanese shoe maker whose clients include Nike, Bauer and Clarks, said it believes its efforts to localize staff helped its plant in Binh Duong—where two other Taiwanese factories were burned down—to escape rioters’ wrath. Feng Tay’s plant has one Vietnamese general manger, several Vietnamese supervisors, and no Chinese staff.

“Localization has been a top priority for us because we believe it’s a way to boost morale among the local workers,” said Amy Chen, the company’s spokeswoman. “Besides, they are usually quite good at their jobs.
Lesson for Taiwan Firms After Vietnam’s Anti-Chinese Riots: Go Local - China Real Time Report - WSJ

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TPP is coming, so investors have no choice but leaving none TPP nations if they still want to export to USA-CAD etc

 

[FairAndUnbiased]

Interesting that in Taiwanese factories mainland Chinese make at least 3x higher wages than Vietnamese who do the same job while Taiwanese make 4x higher wages. Seems to me like Taiwanese have a very strict heirarchy.

Do realize that they also institute military style discipline at their factories. They aren't nice like the mainland state owned companies where you get tea time and lunch break. Lunch will be only a historical term in Vietnamese factories.