Taiwanese Brands Gain High Trust and Inquiry at Vietnam Industrial Fair for 'Non-Red Supply Chain' Quality

Central News Agency

(Central News Agency reporter Tseng Ting-hsuan, Haiphong, 17th) The Vietnam Industrial and Manufacturing Fair (VIMF) was held in Haiphong, the largest port city in northern Vietnam, from the 15th to the 17th. Many Taiwanese companies participated, including many hidden champions supporting global industries. Exhibiting Taiwanese companies stated that many customers are looking for a "non-red supply chain," and coupled with a trustworthy reputation, these are the advantages of Taiwanese brands.

The Vietnam Industrial and Manufacturing Fair (VIMF) Haiphong session was held from the 15th to the 17th, marking the first time the industrial exhibition came to Haiphong, Vietnam's third-largest city and an emerging industrial cluster. As a major global manufacturing hub, the exhibition gathered hundreds of booths from Japan, Korea, Taiwan, and other Southeast Asian countries.

Hiwin is one of the top three brands globally for precision ball screws and linear motion components, with a global market share of up to 20%. Its products are essential for semiconductor, automation, robotics, infrastructure, and AI industries, with customers from major global companies.

As supply chain factories for Apple, Samsung, NVIDIA, and others move to Vietnam, electronic products like mobile phones and servers require high precision and rapid deployment of automated production lines, necessitating modular precision transmission systems.

Sales representative Chen Ming-hui pointed out to the Central News Agency that many factories moved from China to build a non-red supply chain. "After moving to Vietnam, they also do not want to use key components produced in China, to avoid potential supply disruptions due to geopolitical relations."

Hiwin's products are 100% produced in Taiwan. Through distributors, it has been operating in Vietnam for over 20 years, witnessing Vietnam's industrial transformation from early traditional manufacturing to current precision manufacturing for mobile phones and servers.

Today, electronics customers demand greater precision and stability, and many European and American end-customers have high standards (US and European specifications), leading Vietnamese customers to turn to Taiwanese products. Coupled with Vietnam's increasingly severe labor shortage, Hiwin's sales prospects look promising.

Regarding Taiwan's advantages in supply chain relocation, Chen Ming-hui said that first, Taiwanese companies are flexible, with fast deployment and high efficiency; second, Taiwanese capital has deep roots in Vietnam and can immediately supply companies moving to Vietnam; third, the design of high-precision components absolutely relies on Taiwan's technological talent.

"Vietnamese customers still have higher trust in Taiwanese brands. China has similar products, priced at one-third, but customers still choose Taiwanese brands because we symbolize precision and longevity, which affects their final output. Customers tell him that cheap products don't last long and carry the risk of downtime, which is not cost-effective."

Many Taiwanese companies were visible at the industrial exhibition, with booths attracting a continuous stream of inquiries, demonstrating the important role of Taiwan's "non-red supply chain" in Vietnam's industrial transformation, acting as hidden champions behind the industrial chain.

Kenmec Terminal, a subsidiary, produces various terminals and cable ties, including cold-pressed, copper-aluminum, conductive, and waterproof types. Its products are needed wherever electricity and current are involved, with wide applications.

Kenmec Terminal has been operating in Vietnam for nearly 10 years, with customers in 150 countries and nearly 1000 customers in Vietnam, including many large engineering clients such as offshore wind power, international airports, and Vietnam's largest automaker VinFast.

Vice General Manager Chen Chang-yue told the Central News Agency that Southeast Asia has a sufficient population base, and electricity demand is positively correlated with population, growing rapidly.

Discussing Vietnam's market potential, Chen Chang-yue said: "Vietnam's policy is focused; it doesn't try to do every industry but targets high-tech industrial development. High-tech equipment requires many terminals for transmission, plus peripheral power matching and grid design, all directly related to Kenmec Terminal."

For example, a natural gas power plant is being built in Vung Tau, Vietnam, and a nuclear power plant is planned for Central Vietnam, both of which are target clients for Kenmec Terminal. Especially in the past one or two years, Vietnam has vigorously promoted public works, and its products are also used in the Hanoi Metro.

Facing China's low-price strategy, Chen Chang-yue pointed out that the target customer groups are different. Chinese manufacturers mainly focus on low-priced products for small projects and household items, where quality requirements are not as high.

He said: "However, customers like airports cannot tolerate accidents and demand high quality. Our products perform better than Chinese products in all aspects, meet the highest standards, and are more durable. Therefore, major construction projects, airports, and automobiles mostly prefer to cooperate with us; this is our advantage."

Taiwanese product quality is assured. Many Vietnamese customers frankly told Kenmec Terminal that their top two brand sources are Japan and Taiwan. "Many customers tend to choose Japan or Taiwan as suppliers for electricity-related components."

Li Yu-yu, manager of Gongde Company, shared the same view. The company has a factory in northern Vietnam, producing thermal insulation cloth bags and electric heating cloth bags, serving as a manufacturing base for Taiwan, with products sold to Taiwan, Japan, Singapore, etc., and closely cooperating with Taiwanese wafer fabs.

Now, foreign investment is increasing in Vietnam, and the industry is transforming towards electronics. Vietnam's domestic demand is growing, and Gongde's products focus on energy saving, carbon reduction, and corporate social responsibility, which aligns with the needs of Vietnamese enterprises.

Li Yu-yu said: "Taiwan's industrial chain is very complete, and the wafer industry leads globally. As a part of the industrial chain, suppliers naturally develop well, ensuring quality." (Editor: Tang Sheng-yang) 1150417

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