Vietnam remains an attractive investment for Taiwanese firms

Nguyen Ngoc Anh, CEO of SSIAM, speaking at the signing ceremony on June 4, said, "This marks the beginning of our entry into the Taiwanese market. With our knowledge and experience, SSIAM can help USITC develop new competitive products in the Taiwanese market."

Since the beginning of May, the Fubon FTSE Vietnam exchange-traded fund (ETF) has increased by ten million fund certificates daily. The total number of fund certificates increased over five sessions, corresponding to a disbursement value of approximately $19.8 million. This profit-taking phenomenon by the Taiwanese Fubon fund occurred as the Vietnamese stock market surged over four consecutive months.

The continuous improvement in capital flows from Taiwan through investment funds reflects the confidence of Taiwanese financial institutions in Vietnam's economic growth prospects and stock market, especially as Vietnam is determined to upgrade its market status.

While foreign capital in general is pulling out of Vietnam, Taiwanese funds via ETFs have been pouring in. In April, the inflow of capital into ETFs primarily came from Taiwan through the Fubon FTSE Vietnam ETF. The holdings of these funds mainly include steel (HPG), IT (FPT), and food and beverages (VNM, MSN).

In 2020, UBOT led a group of 15 foreign banks in signing an $85 million unsecured syndicated loan with SSI. In subsequent years, UBOT has consistently played a major role in SSI's foreign unsecured syndicated loans, to the value of $118 million in 2021 and $145 million in 2022, the largest foreign unsecured loans in Vietnam's securities sector at the time.

This enduring cooperative relationship is a clear testament to the consistency in vision, strategic flexibility, business transparency, and operational efficiency of two of the leading financial institutions in Vietnam and Taiwan.

China was the sixth-largest investor among 146 countries and territories investing in Vietnam in the first quarter, with registered capital of over $27.6 billion, according to the Ministry of Planning and Investment (MPI).

Taiwanese investors are taking a leap of faith in Vietnam through substantial direct and indirect investment across various sectors.

The stock market holds potential for investment this year in the context of the macroeconomic recovery and a rebound in manufacturing and business activities across most sectors.