The investment behavior of the Taiwanese enterprises in Vietnam

• Main Authors: Nguyen-Minh Hoang, 阮明黃
• Other Authors: Rock, Lin
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/2529gy

碩士 === 中原大學 === 企業管理研究所 === 102 === In recent years, the majority of Taiwanese factories have invested into foreign because of increasing labor cost and real estate. To lower costs, the enterprise has to decrease production costs including labor costs, material cost, renting cost etc. Compared to other neighbor Asian companies, Taiwanese companies account for the largest proportion of investment in China. In addition, the Taiwanese investors not only take into consideration about economic risks but also political risks. However, the labor cost has increased in China over the last decade. China loses the advantage of the lower production costs and also faces obstacles in competing with other companies. Therefore, some Taiwanese factories start moving to South Asia. From 1988 to 2012, Taiwanese companies in Vietnam had total investment of U.S 26.431 billion dollars, accounting for 12.37% of the total foreign investment and ranked No. 2 in top FDI inflow into Vietnam. Taiwan was the seventh largest foreign country to invest Vietnam last year and also the second largest investor after Japan for last fifteen years (Investor News Report, 2013). However, foreign companies investing in Vietnam are also facing the cultural, political and economical differences. And among these, the knowledge transfer success is vital to reduce the production cost in Vietnam. This study attempts to analyze whether the knowledge spillover and the absorptive capacity of the local subsidiaries will affect the performance of Taiwanese enterprises in Vietnam or not. Accordingly, the research reveals some difficulties that the Tawainess enterprises have to overcome in the process of knowledge transfer to build their own’s competitive advantage.