Taiwanese Investment

Taiwanese outward FDI into Vietnam focused mostly on labor-intensive sectors such as manufacturing of metals, chemicals and textiles. Taiwanese FDI contributed 2.2-2.3% of Vietnam’s total social investment; created 1.2 million jobs and helped improve the industrial structure. However, Taiwanese FDI is also characterized by low and medium level technology; sharp increase in “dirty industries” classified by Mani and Wheeler (1997) and social problems related to local labor.

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