A case study of Taiwan business’ strategy to invest in Vietnam

• Main Authors: KIM HUE DINH, 丁金惠
• Other Authors: Hui - Chung Yeh
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/g82bg7

碩士 === 國立高雄科技大學 === 企業管理系 === 107 === ABSTRACT Initiating politics reform and establishing “ Foreign Company Investment Law” at 1986 became a main turning point of Vietnam’s economy development. As the investment environment of China began to worsen since 2007, many international and Taiwanese companies began to move to ASEAN searching for best investment environment countries. China was solitarily once the Factories of the World. But the situation suddenly turned into that much of the business transfer to Vietnam and made this country’s investment environment dramatically changed and jump-up growth. Why Vietnam becomes the country in the ASEAN with the most of the Taiwanese companies to invest in ? What are the motives that Taiwanese companies to choose Vietnam among ASEAN to invest in ? By the analysis tools such as the “OLI advantage theory ”in international investment and the “ Parents-Subsidiary Corporations theory”, this study will do case study about the investment strategies of the Taiwanese companies which invest in Vietnam on three issues: 1、 the motives of Taiwanese companies invested in Vietnam. 2、 the location decision by the Taiwanese companies to invest in Vietnam. 3、the roles of the Parents-Subsidiary companies. The research methodology of this study is case-study. Besides the interviewing with the experts of the investment in Vietnam, we also searched for the materials and information from both sides Vietnam and Taiwan governments and companies’ official website to be the secondary supportive data. This research found that the motives of Taiwanese companies to invest in Vietnam is to take the advantage of the geographic location especially on 「market potentiality」、「cheap and adequate labor force」、「geographic location advantage」、「adequate natural resources」、「mutual cultural compatible」、「government favorable policies」and so on. The findings are mostly compatible to the theory. Still, this research also found that the “ pull power ”by the excellent investment environment of Vietnam as well as the “ push power” by the China’s investment environment worsening since 2007 and the ever fierce Trade War between since 2018 together makes Vietnam’s investment environment a jump-up growth. 。Taiwanese companies have technology advantage, sustainable development, and keeping growth as the goals of the company. Facing this very emerging Vietnam, Taiwanese companies won’t be ignorable. Entering Vietnam means to connect ten some countries and even all of the world. The research also found that Taiwanese companies’ subsidiaries in Vietnam always use professional managers systems as their strategy in order to create win-win profit and stabilize the companies’ competitiveness in Vietnam. KeyWords: invest Vietnam, OLI advantage theory, Parents-Subsidiary Corporations theory