Page 30 - 2025 BMU_Spring
P. 30
Top Stories
To enjoy export tariff ben- that Taiwanese in- ▲The impressive new provincial government
efits, companies setting up local vestments in Vietnam building in Bình D??ng’s new town.
factories must be aware of the have reached the 3.0
rules for applying for certificates stage. Businesses since establishing plants in China
of origin. After the EVFTA agree- are adopting the lat- in the late 1980s and early 1990s.
ment came into effect, exports est, most advanced However, the current environ-
from Vietnam to the EU mainly equipment and are ment is more challenging, and
require the EUR.1 certificate of actively transitioning while Vietnam has become the
origin, while exports to the Unit- toward automation and digitaliza- new hotspot for investment, the
ed States generally require the tion. Additionally, there is a strong same long-term advantages may
FORM B certificate. The local push to reduce carbon emissions not last. Many companies are
content ratio varies depending on and implement ESG initiatives to concerned about whether the cur-
the type of certificate applied. address the competitive landscape rent advantages will last even a
in the context of carbon taxes. decade. Furthermore, infrastruc-
19 FTAs ture in Vietnam is still lacking,
Investment Strategy logistics are underdeveloped, and
Taiwanese bicycle manufac- issues such as the culture of “red
turers initially set up operations Vietnam’s GDP grew by envelopes,” language barriers,
in Vietnam due to the country’s 7.4% in Q3 2024, and Richard unstable government policies,
young workforce, low wages, and Tsai, president of the Vietnam traffic congestion, and raw mate-
inexpensive land. Vietnam, with a Taiwanese Business Association, rial shortages are emerging. The
population approaching 100 mil- highlighted that the country has growing influx of electronics
lion (58% under the age of 35), become the world’s 20th larg- companies has also led to labor
has become a focal point due to est economy, with a 2024 GDP shortages, driving up wages.
its FTA advantages. It is the only growth forecast of 7%. Vietnam Many bicycle industry play-
country to have signed free trade is 9.5 times the size of Taiwan ers agree that production costs
agreements with major global and has a population four times in Vietnam are no longer lower
partners like the U.S., Japan, larger. Tsai reflected on how, back than in China, as labor efficiency
China, the EU, South Korea, and in 2000, when he first came to and quality tend to be lower, and
the UK, with a total of 19 FTAs invest, Vietnam’s population was nearly all raw materials are im-
in force or under negotiation. only 70 million, and now it has ported.
The U.S.-China trade war further surpassed 100 million.
pushed companies to relocate
their production to Vietnam, often Concerns
under pressure from clients.
Taiwan’s bicycle industry
Visiting southern Vietnam- has had a prosperous 30 years
ese bicycle companies, it is clear
▲FRITZ JOU’s Vietnam factory is located in the Bao Bang Industrial Zone. ▲TOPKEY’s Vietnam factory is located in the Bao Cui Industrial Zone.
28 Bike & E-Bike Market Update 2025
