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International Journal of Scientific & Engineering Research ISSN 2229-5518 1 Nguyen Thi Phi Nga ================ ROC-Taiwan’s New Southbound Policy, the opportunities and strategiesIJSER for the Vietnamese enterprises NCCU, College of Commerce, 2020 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 2 About the author Full name: Nguyen Thi Phi Nga, Ph.D IJSER - Senior Lecturer of the University of Economics and Business, Vietnam National University, Hanoi (VNU) - Visiting Scholar of the National Chengchi University (NCCU). - Taiwan Fellowship Host Scholar: Robin K. Chou Professor of the College of Commerce, NCCU Taipei, 2020 1 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 3 Content Introduction 3 Chapter 1: Taiwan - Vietnam relation seen from Asian 5 Integration Policy 1.1. Introduction about the Asean Integration Policy 8 1.2. Connecting South Asia and Southeast Asia 37 1.3. Potential of an Asian Economic Community 44 1.4. Taiwan - Vietnam relationship: history and 50 prospect Chapter 2: Vietnam’s position in Taiwan’s New 96 Southbound Policy 2.1. Overview of Taiwan‟s New Southbound Policy 96 2.2. Previous Southbound Policy 101 2.3. Current New Southbound Policy 104 2.4. Policy recommendation 138 2.5. Vietnam‟s position in Taiwan‟s New Southbound 148 IJSER Policy Chapter 3: Strategies for Vietnamese business through 150 Taiwan’s New Southbound Policy 3.1. Similarities and differences between Taiwan and 150 Vietnam 3.2. Strengths and weaknesses of Taiwan and 156 Vietnam 3.3. Strategies for the Vietnamese businesses 201 3.4. Solutions for the success of Taiwan‟s New 203 Southbound Policy in Vietnam 3.5. Special suggestions for some other cases 206 Conclusion 210 Reference 212 2 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 4 ROC-Taiwan's new South policy, the opportunities as well as the strategies for the Vietnamese businesses I. Introduction Since being aware of the importance of the ASEAN and South Asian communities, setting up a "New Southbound Policy" taking Southeast Asia as the focus of the Taipei government to step by step integrate into Asia, to redefine ROC-Taiwan's position and role in the development of Asia, in which Vietnam is considered as an important bridge to help ROC-Taiwan move closer to ASEAN. From the early years of the twenty-first century up to now, the relationship between ROC-Taiwan and Vietnam has developed rapidly based on the awareness and assessment of each country‟s foreign policy in associationIJSER with the regional and international situation. Especially in the context of today's globalization and modernization along with China's economic rise, the East Sea issue, US-China competition in the Asia-Pacific region, already created opportunities and challenges for the cooperation between ROC-Taiwan and Vietnam. Efforts to strengthen the cooperative relations with Vietnam partly help ROC- Taiwan's economy gradually reduce its reliance on mainland China, besides tightening relations with Asian countries. Vietnam may be the right choice for the ROC-Taiwan‟s policy towards the South and integration into Asia. The outstanding achievements in the relationship between ROC-Taiwan and Vietnam will be the driving 3 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 5 force for the future prospects between the two sides, therefore, to investigate Vietnam‟s position in ROC-Taiwan‟s new South policy and opportunities as well as strategies for the Vietnamese businesses is the significant research at the current time. Objectives of the research The current research aims to achieve the systematic report of the relationship between ROC-Taiwan and Vietnam, especially focusing on Asian Integration Policy and the New Southbound Policy of ROC- Taiwan to find the position of Vietnam in these policies, thereby discovering the opportunities and strategies for the Vietnamese businesses, contribute to the development of Vietnam and the relationship between the two sides. Research methodology To achieveIJSER the research objectives, this research will be undertaken via interviews and acquire primary source document materials. A range of methods include library research and field research will be used to gather data, either primary or secondary source. Library research uses relevant data from written sources such as books, journals, published papers, newspapers, magazines, official documents, government reports, research reports, and proceedings of board meetings. Conducted from the first month of the research period, library research will take place in governmental offices, research institutions, universities, and companies, such as Center for Southeast Asian Studies (CSEAS) at the Institute of International Relations (IIR), National Chengchi University, Taiwan's commercial 4 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 6 offices. Its outcomes will be combined with field of research through consultation, discussion, and interviews with the government officers, researchers, and academician as well as CEOs of some big companies. This activity aims to extract data from literature which is planned to be conducted for two months after library research. The result of the discussion will be synthesized and confronted with written sources in order to find synergy and contradiction of ideas. It needs to be conducted to provide further explanation or interpretation of the data gathered from library research. It will be then systematized based on inductive logic. After collecting data, the researcher will comprehensively analyze all data with a focus on comparison between ROC-Taiwan and Vietnam. This comparative analysis will not only examine similarities and differences, but also formulate the strategies for the Vietnamese businesses based on the strengthening areas of each country. The final report is planned to be written during the last 2IJSER months of the research period allowed. To complete the report, an evaluation from some experts will be needed in the previous month. Finally the research will be completely finished after the report will have been revised through the feedbacks from the evaluators. II. Structure of the research To achieve the objectives of the research, the outline is as follows: Chapter 1: ROC-Taiwan and Vietnam relation seen from Asian integration policy. 5 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 7 Chapter 2: Vietnam‟s position in ROC-Taiwan‟s New Southbound Policy. Chapter 3: Strategies for the Vietnamese business through ROC- Taiwan‟s New Southbound Policy. IJSER 6 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 8 Chapter 1: ROC-Taiwan and Vietnam relation seen from Asian Integration Policy The policy go to the South to strengthen relation, exchange and cooperate in ROC-Taiwan's economic, commercial, cultural, educational and human resource fields with ASEAN member states in a global context is happening strongly. ROC-Taiwan considers Vietnam is one of the key markets that need to be exploited and occupied in the "Southern Policy". The transformation of economic models and especially foreign affair has become a very favorable factor for promoting Taiwan's cooperation with Vietnam in many fields starting from the 90s of the twentieth century. Although Vietnam and ROC-Taiwan are far apart geographically, there is a close relationship between the two sides, similar in history and culture. TheIJSER same countries that have been through a long struggle against foreign invaders, have the same starting point when they both came from an outdated agricultural economy, low living standards and at the same time suffered more or less influence of Confucian culture, these factors are the basis and foundation for the development of cooperative relations between the two countries in particular and with other Asian countries in general. In a concerted effort to expand ROC-Taiwan's presence across the Indo-Pacific, President Tsai Ing-wen has introduced the New Southbound Policy (NSP) to strengthen Taipei's relationships with the 10 countries of ASEAN, 6 states in South Asia (India, Pakistan, 7 IJSER © 2020 http://www.ijser.org International Journal of Scientific & Engineering Research ISSN 2229-5518 9 Bangladesh, Nepal, Sri Lanka, and Bhutan), Australia, and Newzealand. NSP target countries: Asean + South Asia + Australia + Newzealand Therefore, to understand more about the context in which ROC- Taiwan‟s New Southbound Policy has been implemented, it is better to investigate the integration policy/situation of the cooperation among the Asean countries and the connection between Asean and South Asia to help you to fully understand the context. 1.1. Introduction about the Asean Integration Policy The forerunner of ASEAN is an organization called the Association of Southeast Asia, commonly referred to as ASA. ASA is an alliance established in 1961 including the Philippines, Malaysia and Thailand. On August 8, 1967, when Foreign Ministers of 5 countries - Indonesia, Malaysia, Philippines, Singapore, and Thailand - met at theIJSER Ministry of Foreign Affairs of Thailand in Bangkok to issue the ASEAN Declaration, commonly known as the Bangkok Declaration to join ASA along with Indonesia and Singapore
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