The Location Choice of Taiwanese Footwear Industry in Vietnam

• Main Authors: Ming-Ta Lin, 林明達
• Other Authors: Yang Li
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/83021456442685032765

碩士 === 國立暨南國際大學 === 東南亞研究所 === 91 === The changes in Taiwan’s macroeconomic environment have forced Taiwan footwear manufacturers to invest abroad since the end of the 1980s. Many of them invested in Vietnam since Doi Moi (or market liberation) begun in 1986, especially after “The Law of Foreign Investment” effectively implemented in early 1990s. Vietnam has become the second largest country where Taiwan footwear firms have foreign direct investment. This study intends to investigate the factors attracting Taiwan footwear enterprises to invest in Vietnam. The data set, consisting of 76 Taiwan footwear subsidiaries in Vietnam, shows that the most important factor motivating Taiwan footwear firms to conduct FDI in Vietnam is “utilizing cheap labor” and followed by “capitalizing on tax incentives.” We then employ the Logit model to analyze what factors significantly influence firms’ decisions to establish subsidiaries in North or South Vietnam. The empirical results indicate that “firm size,” “R&D activities,” “following major clients,” “local industry network,” and “accessing cheap land” are significant factors to influence Taiwan footwear firms’ location choices between North and South Vietnam.