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ASEAN supply chain 2 min read

Taiwanese enterprises and the wave of supply chain relocation to Vietnam

Taiwan is the fourth-largest investor in Vietnam with $42.37 billion in registered capital. Capital is shifting from low-cost assembly to semiconductors, AI servers, and high-tech electronic components, concentrated in the North.

Taiwanese enterprises and the wave of supply chain relocation to Vietnam

As of April 2026, Taiwan has 3,457 active projects in Vietnam with a total registered capital of $42.37 billion, ranking fourth among countries and territories investing in Vietnam, after South Korea, Singapore, and Japan (according to the Foreign Investment Agency, Ministry of Finance).

From assembly to high tech

The difference in the current phase is the industry structure. Taiwanese capital is shifting strongly from low-cost assembly to higher-value sectors: semiconductors and electronic components, AI servers and networking equipment, power semiconductors, printed circuit boards (PCBs), industrial robots, and telecommunication components. Many major corporations such as Foxconn, Pegatron, Quanta, Wistron, Lite-On, and Accton have opened new factories or increased their capital in Vietnam over the past two years.

Northern "electronic belt"

These projects are concentrated into an electronic production belt in the North, spanning Bac Ninh, Hai Phong, Quang Ninh, Phu Tho, and Ninh Binh. When anchor manufacturers set foot, the demand for component suppliers, materials, molds, logistics, and technical services around the area also increases accordingly.

Vietnam's manufacturing base is large enough to "catch the wave"

  • In 2025, Vietnam's GDP grew by 8.02%, in which the processing and manufacturing industry grew by 9.97%.
  • Exports of the processing and manufacturing industry reached $421.47 billion, accounting for 88.7% of total merchandise export turnover.
  • Vietnam ranked third in the Asia Manufacturing Index 2026.

The Vietnam Association of Foreign Invested Enterprises (VAFIE) noted that Vietnam is entering a phase of attracting FDI more deeply and selectively – prioritizing technology projects and high added value instead of just chasing quantity.

Notes for Taiwanese enterprises and suppliers

  • Choose locations by chain, not just by rental price: distance to anchor customers, seaports, and a technical labor source greatly affects long-term operating costs.
  • Prepare for higher standards: anchor customers increasingly demand strictness regarding quality, traceability, and green standards.
  • Leverage the new legal framework: The 2026 Investment Law allows business establishment before project registration and applies streamlined procedures for projects in industrial parks.

With offices in Hanoi and Taichung, SUNINCON organizes industrial park surveys, factory matching, and works with regulatory authorities in Vietnam for Taiwanese enterprises – from the market research step until the factory goes into operation.

References

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