Oct 01 2007
Why Taiwan?
Here is a few reasons why you should start invest in Taiwan:
1. Deep industrial base and strong vertical integration in IT and electronics sectors.
Taiwan’s economic strength is rooted in its industrial base, which started with a manufacturing boom in basic-level exported goods and progressed to technology-intensive industries, such as electrical goods and chemicals. Today Taiwan is one of the world’s largest producers of computer-related products, and boasts an extensive, well-established network of industrial zones and a growing number of high-technology industry clusters, which are supported by high-quality human resources and fully integrated supply-chain networks.
2. Strial research and development capabilities
Taiwan’s rise to prominence in the IT industry has sparked a growing industrial research and development sector — according to the “Indicators of Science and Technology, Taiwan” published in 2006 by National Science Council (NSC), national expenditure on R&D as a percentage of GDP rose from 2.44% in 2004 to 2.52% in 2005. In the same year, Taiwan published 15,661 scientific dissertations, the 18th highest in the world, and held 5,118 US patents, the fourth largest quantity in the world after the US, Japan and Germany.
3. Entrepreneurial and innovative corporate sector
A strong work ethic and carefully managed economy has produced a nation of aspiring entrepreneurs. As a society that places high value on lifetime careers and employment, many Taiwanese seek to create sustainable and profitable businesses. The majority of businesses in Taiwan are small and medium-sized enterprises, which are known for their novel and innovative approaches to business — particularly in the technology sector, where Taiwan has one of the highest numbers of utility patents in the world.
4. A leading source of venture capital in Asia
Taiwan is home to the largest venture capital industry in Asia. By the end of 2005, there were 231 venture capital firms actually operating in Taiwan, which have raised a total of NT$189.3 billion for 10,295 investment projects, amounting to support for 368 listed and over-the-counter companies. About half of all listed companies in Taiwan are backed by venture capital — although only NT$139 billion has been invested in domestic industries by Taiwan venture capital funds, the industry has generated NT$2 trillion in capital.
5. Advanced harbor infrastructure and central hub for Asian transportation routes
Taiwan has a well-developed harbor infrastructure that accommodates a full range of shipping and transport needs. Two major harbors, Kaohsiung Port and Keelung Port, are in the process of becoming free trade zones, enabling more expedient customs procedures, a faster flow of goods and lower business operating costs. The island’s central location offers the shortest shipping times to the major ports of the Asia-Pacific region, averaging 3 hours by air, and 53 hours by sea from Kaohsiung Port.
6. Mature B2B infrastructure
Taiwan’s highly-integrated industrial base is supported by a mature B2B infrastructure, which has received ample government support. Several programs sponsored by the Ministry of Economic Affairs have allocated over NT$530 million in subsidies to develop E-commerce trade networks for a wide range of industries, including IT services, petrochemicals, textiles, and auto manufacturing. A notable E-business platform has been established by the Taiwan External Trade Development Council, which links more than 20,000 Taiwan exporters globally.
7. Chinese and international market experience
Taiwan serves as an ideal test market for companies interested in Mainland China investment, as close cultural and linguistic ties have given Taiwanese businesses an edge in navigating China’s emerging markets. An export-driven economy has brought Taiwan the vast experience needed to work together with international companies, placing the island in a prime position to play a key role in the future integration of the Asia-Pacific region.
