碩士 / 國立臺灣科技大學 / 財務金融研究所 / 100 / In the late twentieth century, industrialization had a great contribution towards the growing economy in Taiwan. The rapid development of technology raised both the living condition and public's expectation. Growth of both automobile and scooter industries was brought up along with the needs. Output of scooter manufactures in Taiwan had reached its peak in the year of 1995 and started declining after the increasing demand for automobiles and the building of public transportation. Scooter businesses, as a result, were forced launching into foreign market and moving their plants to lower-labor-cost countries such as China and the ones in Southeast Asia.
The foreign expansion; however, was not the solution to everything. In order to prevent the situation of overly depending on the market demand in China and the unbalance trading profit between countries, the President Lee Teng-Hui proposed the Taiwan's Go-South Policy in 1994. The main goal for this plan was to encourage labour-intensive industries to have their plants equally distributed among Southeast Asian countries such as Singapore, Thailand, Indonesia, Malaysia and Vietnam.
Along with the establishment of unions and laws regarding labor protections, the raising minimum wage for labor force is also causing the moving of industrial plants. Businesses manufacturing automobile and motorcycle parts were therefore threaten and had to look for labor-intensive countries to minimize the cost of production. Expectedly, this drew automobile and motorcycle suppliers' attention and they followed up with financial investment and potential customers.
The case study model is an automobile and motorcycle parts manufacturer. During the mid-1990s, the business owner realized the decreasing domestic market demand in Taiwan. The strategy of exporting would not be effective due to the lack of comparative advantages in price. After considering multiple factors, the company decided to take the government's advice about building additional plants in Vietnam. This would help reducing business' cost on labor supply and reflectively, prices of products could be cut down as well.
As the business realized the importance of foreign investment, Vietnam's government was opening up the economy for potential market need of relatively low cost labor in the late 2002. The case study analyzed the strategic plans they applied towards foreign plant building, Vietnam's domestic trade and investment and performances of Taiwan's industries in Vietnam. In addition, it gives opinions on the advantages and drawbacks of the model’s investment motivation and how foreign investment could benefit the firm in the long run.
| Identifer | oai:union.ndltd.org:TW/100NTUS5304005 |
| Date | January 2012 |
| Creators | Shun-Wei Yeh, 葉舜瑋 |
| Contributors | Day-Yang Liu, 劉代洋 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 68 |
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