Taiwan outsources to Vietnam

THERE IS LITTLE DOUBT that Taiwan is the local IT powerhouse. Mainland China is increasingly the manufacturing hub, but much of the IT activity there is driven by Taiwanese expertise.

Now Taiwan has signed an memorandum of understanding (MOU) with Vietnam to promote cooperation and "high-tech exchange".

The exchange is likely to be largely one way. The expertise comes from Taiwan, the labour, Vietnam will supply. Chairman of the Institute for Information Industry, Ke Chih-sheng in announcing the deal, noted that Vietman has a "hard-working" labour force and has posted average economic growth figures of 7-8 per cent over recent years.

Indeed, Vietnam's recent economic performance is bettered only by that of China.

Ke said the deal with Vietnam would help reduce Taiwan's reliance on China for its manufacturing needs.

Vietnam was admitted into the club of capitalism, the World Trade Organisation only at the beginning of this year. Taiwan is currently the biggest foreign investor in the country, having channeled some $8 billion (US) into the country in 2006.