China Economic News (CENS) continues to update on Taiwanese firms moving to Northern Vietnam. (See Vietnam the new Promised Land) In an article posted Friday (April 18) CENS says:
To ease the impact of skyrocketed production costs in mainland China, Taiwanese firms operating there, including those form the electronics and conventional industries, are rushing to move operations to northern Vietnam.
The relocation move such leading electronics as Hon Hai Precision Industry Co. and Compal Electronics Corp. is expected to encourage more Taiwanese firms to do so in the second half of this year. Taiwan`s top-five electronics firms have all set up production facilities in the northern part of Vietnam.
However, all this movement is pushing up property price in Vietnam, especially in Hanoi. The article says:
...the average land price for some industrial zones in northern Vietnam is set at 200,000 renminbi per acre, quite the same as those located in eastern and southern parts of mainland China.
I am sure we will hear more about this as time goes by. However, one should imagine that rising costs in Vietname will eventually force many companies to return to Taiwan or to expand elsewhere. I personally believe this is good for Vietnam. Much of the success of Guangdong Province in South China can be attributed to the massive investment from Taiwanese firms there. Perhaps Vietnam can reap the same benefits and their people can have an improved quality of life.
Article: Taiwanese Firms Switch Operations to Northern Vietnam From Mainland China
Previous Coverage: Vietnam the new Promised Land
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