Over 50 Taiwanese auto parts producers are taking part in the Saigon Autotech & Accessories 2016 Expo, opened in Ho Chi Minh City on May 26, in search for opportunities in Vietnam’s burgeoning market.
Around 245,000 cars were sold in Vietnam in 2015, signaling that the country’s highly potential auto market is poised to grow further, said Eugene Hsiao, chairman of the Taipei County Auto Parts Association, explaining the reason for Taiwanese firms’ participation.
Several Taiwanese enterprises will take this opportunity to explore the investment climate to set up production bases in Vietnam, Hsiao added. A number of Taiwanese have established auto parts factories in Vietnam, but they mainly do outsourcing.
They are paying attention to Vietnam as well as other ASEAN countries with a combined population of over 600 million.
If produced in Vietnam, which has competitive edges regarding labor cost and investment initiatives, auto parts can be sold in Vietnam and shipped to other regional countries duty-free, he noted.
Taiwan now has some 2,800 factories of auto spare parts and accessories. Taiwan’s sales of auto parts reached $6.8 billion in 2015, according to Saigon Times.
The Saigon Autotech & Accessories 2016 Expo drives the participation of 700 enterprises, rising 30% in number from 201, filling nearly 1,000 booths at that Saigon Exhibition and Convention Center (SECC). The event will run through May 29.
Of the total, 70% are foreign firms, from China, Malaysia, Thailand, Germany, the U.S., Hong Kong, South Korea, India, UAE and Indonesia.