Eugene Hsiao, chairman of the Taipei County Auto Parts Association, said Vietnam’s auto market has been expanding, with sales in 2015 totaling 245,000 vehicles. This is why many Taiwanese companies have put their names down to join the 1,000-booth expo to explore business opportunities.
In addition, a number of Taiwanese companies have come to gauge the investment environment before deciding to set up shop in this market.
According to Hsiao, many Taiwanese companies have invested in production facilities in Vietnam but mainly outsourced products for export. Companies in the field are eyeing the Vietnamese market and other ASEAN countries with a combined population of over 600 million consumers.
If Taiwanese auto parts firms invest in Vietnam, they can turn out products for domestic consumption and export to other regional countries with low tariffs, Hsiao said.
He added that Vietnam has advantages in labor costs and incentives for foreign investments.
The major advantage of Taiwan’s auto industry is the large-scale supply chain that helps minimize production costs, he noted.
Taiwan currently has around 2,800 factories producing auto parts. Statistics of the vehicle manufacturing association of Taiwan showed revenue of auto parts reached US$6.8 billion last year.
