It is no secret that investment in Vietnam by Taiwan bike and parts makers has been growing lately. At this year's Taipei Cycle Show Vietnam was a popular topic of discussion. Approximately 50 Taiwan bike and parts makers already have operations there, and next to mainland China, Vietnam is set to become the preferred overseas investment spot for local industry.

Currently, Taiwan companies appear to favor Vietnam over China for several reasons. First, before long the European Union will declare anti-dumping duties for Chinese-made bikes, and the threat of future sanctions against frames and forks remains. Second, some reports indicate that Taiwan bike makers are no longer as welcome on the mainland as they once were. Additionally, rising tax rates and labor costs are a deterrent for companies already producing there, as is the fact that the Chinese government does not welcome Taiwan frame producers for fear of driving local prices down even further.

Yet some people are wondering if the fervor over Vietnam is hasty. Vietnam is being primed as an exporting hub to Europe due to looming anti-dumping duties on complete bikes from China. However, some predict that the chances of new European Union anti-dumping allegations against Vietnam will increase proportionately with the number of complete bikes coming from Taiwan assembly lines. (Report based on Bike Europe interviews at the Taipei Cycle Show 2000).