The more things change…
As he has expanded business operations, Hsieh has also been building up experience and contacts within the Taiwanese business community. This year is his first as president of the Council of Taiwanese Chambers of Commerce in Vietnam, and he is throwing himself into public service.
“I don’t want anything in return for serving as president,” he says. “I just want to create a good image for Taiwanese businesses in Vietnam.” In Hsieh’s view, Vietnam’s progress owes a lot to four nations: Taiwan (industry), Japan (public infrastructure), Korea (high-rise construction) and Singapore (land development). Yet, “truly the biggest contribution has been from Taiwanese businesses, by providing employment opportunities and raising incomes.”
There are a total of 14 local Taiwanese chambers of commerce in Vietnam, in locations such as Hanoi, Bac Ninh, Ho Chi Minh City and Da Nang. Hsieh’s own branch in Binh Duong is the largest, with nearly 1000 registered members and more than 2000 all told. The Taiwanese businesses there employ at least 700,000‡800,000 people. It has been called the world’s largest branch of a Taiwanese chamber of commerce.
Hsieh notes that there are about 5400 Taiwanese- owned firms in Vietnam, 75% of which are in the south. What’s more, half of those southern companies are in Binhn Duong. Taiwanese have invested in all manner of manufacturing industries. Clothing is king, followed by electronics, footwear, furniture, bicycles and so forth.
Over two decades, the investment environment in Vietnam has changed dramatically in some ways, and in other ways not at all.
The biggest change is that basic wages have soared. Hsieh points out that 20 years ago, when he had just come to invest, the basic monthly wage was only VND480,000. By now it has risen to VND3.5 million (about NT$5000). That’s seven times what it was.
The Vietnamese government hopes that the types of incoming firms will change: “They’re welcoming tech, education and services, and discouraging highly polluting industries,” says Hsieh.
But in some respects, it seems as if 20 years ago was just yesterday: Many transportation infrastructure projects, for instance, are still experiencing long delays.
Long and narrow in shape, Vietnam still lacks a highway running the length of the country. Five years ago, mass rapid transit projects were launched in Hanoi and Ho Chi Minh City, but progress has been slow: “It’s expected to take another two years before they start to operate.”
Vietnam has also long been a “rule of man” society. “Connections are key for getting things done locally,” says Hsieh. “With connections, you can do anything.” Whether operating a Taiwanese-owned business or handling the affairs of the chamber, building good connections is important.
The Council of Taiwanese Chambers of Commerce in Vietnam has been bolstering educational cooperation between the two nations in recent years. For instance, industry and academia have been working together to bring students from one country to the other on study-abroad programs, the ROC Ministry of Education has held educational fairs in Vietnam, and an internship program has been bringing second-generation Vietnamese immigrants in Taiwan to work at Taiwanese-owned factories in Vietnam.