Taiwanese firms are keen about investing in Vietnam to avoid US-China trade tensions and other risks, although the COVID-19 pandemic is disrupting the pace, PricewaterhouseCoopers (PwC) Taiwan said in a report on Monday.
Some firms have put on hold their investment plans in Vietnam amid the pandemic, resulting in a 20.9 percent decline in foreign direct investment to US$8.6 billion during the January-to-March period, PwC Taiwan said.
That is because firms in Vietnam have been hit by supply chain disruptions and order cancelations after major export markets shut down all nonessential businesses to combat the virus, it said.
Vietnam has instituted strict isolation measures, which have slowed down commercial property transactions and lengthened negotiation periods, PwC said.
However, buying interest remains strong while property prices hold stable, it said.
Buyers from Taiwan, South Korea, Japan and Singapore have shored up demand for industrial properties in Vietnam, it said.
Land costs in northern Vietnam averaged US$99 per square meter last quarter, an increase of 6.5 percent from a year earlier, while rates for similar sizes of land in Ho Chi Minh City require up to US$200, PwC Taiwan said, citing official data from Vietnam.
Occupancy rates at Vietnamese industrial parks hover at about 75 percent, the consultancy said.
The pandemic underscores the importance and necessity of having diversified manufacturing sites, PwC said.
Some European and US companies have asked contract manufacturers to set up plants outside of China to rein in overconcentration risks, it said, adding that Vietnam is benefiting from the supply chain realignment.
Vietnamese authorities have voiced plans to offer tax credits and other measures to mitigate the effects of the pandemic on foreign firms, PwC said.
The country might recover its full manufacturing capacity next quarter if the outbreak comes to a quick end, it said.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
RSS