WHY TAIWAN AND VIETNAM? 

Taiwan and Vietnam present ideal market opportunities for Canadian businesses, particularly in the sectors of technology and innovation. Both countries have strategically prioritized these industries in their economic strategies and offer attractive incentives to foster growth and collaboration.   

While Taiwan has an established high-tech manufacturing ecosystem, Vietnam is an emerging economy aiming to move up the manufacturing value chain. By capitalizing on these complementary markets, Canadian companies can establish a strong foothold and tap into the potential for long-term success and mutually beneficial partnerships in the Indo-Pacific.  

Taiwan is an attractive market for Canadian companies due to its C$1 trillion economy. With an export-dependent economy of 23.5 million people and a highly skilled workforce, Taiwan is at the center of global and regional high-technology supply chains due to its robust semiconductors, 5G telecommunications, AI, and the Internet of Things (IoT) manufacturing industries. On December 22, 2023, Taipei and Ottawa inked a foreign investment promotion and protection arrangement (FIPA) to help protect and promote bilateral investments between the two economies.   

In 2023, the bilateral trade between Canada and Taiwan amounted to C$10.1 billion, while the bilateral services trade reached C$1.9 billion. Taiwan’s top exports to Canada in 2022 were electronic equipment, semiconductors and other electronic components and mechanical equipment; its main imports from Canada were petroleum products, automobile parts, and mineral ores. Top sectors for service exports include transport, travel, research and development services, financial services, and intellectual property. In 2022, Canada-Taiwan bilateral investment stood at C$602 million.  

Information communication technology, precision health, and green and renewable energy are among Taiwan’s six core strategic sectors identified by the Taiwan National Development Council’s (NDC) 2030 strategy. Rigorous intellectual protection laws, world-class digital infrastructure, and government-led initiatives like Taiwan Tech Arena and Startup Island propel Taiwan’s innovation-driven startup ecosystem. Simultaneously, skilled immigration programs like the employment gold card and entrepreneur visa, complemented by the presence of global tech manufacturing giants like Foxconn, Asus and TSMC, are ensuring a steady supply of global talent into the economy. Improving pharmaceutical efficacy, facilitating early diagnosis, and providing personalized care leveraging big data analysis of genetic and clinical information are critical aspects of Taiwan’s dynamic digital healthcare ecosystem. Taiwan aims to build a renewable energy industrial zone and forge R&D collaborations to develop efficient energy systems and decarbonization pathways. In January 2023, Taiwan passed its Climate Change Response Act, codifying its commitment to reach net-zero emissions by 2050. Followed by the NDC’s C$38 billion investment announcement, the island has made significant strides in renewable energy generation and carbon capture technology development. Recently published legislation, including the mandate for renewable energy usage in newly built, expanded, or altered buildings and structures, is expected to facilitate Taiwan’s cleantech industry’s growth. 

Vietnam’s strong domestic consumption base and thriving export-oriented manufacturing sector offer significant opportunities for Canadian companies. The C$571 billion economy, home to 95 million people, has become integral to important global supply chains due to its skilled workforce and strategic geopolitical position.   

In 2023, the bilateral trade between Canada and Vietnam amounted to C$14.1 billion. Vietnam’s key exports to Canada included electronics and apparel, while Canada primarily exported agricultural and agri-food products to Vietnam. Furthermore, bilateral investment between Canada and Vietnam amounted to C$1.8 billion in 2022. As a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam already has a free trade agreement with Canada. Anticipated growth in Canada’s merchandise and services trade with Vietnam is expected upon completing the ASEAN-Canada FTA negotiations, encompassing Vietnam.   

Due to Vietnam’s rapidly growing middle class and aging population, coupled with the decline in birth rate, demand for high-quality healthcare services and products is rising. Recognizing, healthcare as a priority sector, the Vietnamese government has initiated measures to facilitate the import of medical equipment and pharmaceuticals. Vietnam’s high-tech manufacturing industry is an emerging regional hub, fueled by the recent investments in semiconductors and smartphone production and R&D from Samsung, Microsoft, Intel, and LG. The government’s National Digital Transformation Program, targeting to boost ICT adoption in key sectors including banking, energy, and healthcare by 2030, is expected to promote the growth of the ICT market. Vietnam, being one of the worst sufferers of climate change-induced environmental conditions, including water, air and soil pollution. Therefore, the country is actively seeking environmental technology solutions, while ensuring it meets the 2025 net zero emissions target. 

Vietnamese startup ecosystem is growing driven by various government support programs, including SpeedUP, Startupcity platform, Vietnam-Finland Innovation Partnership Program, Saigon Silicon City Center, and the National Technology Innovation Fund. Vietnam also offers tax incentives to attract foreign investors and companies to further promote the growth of its thriving startup ecosystem.