TAIWAN
Why Taiwan?
Over the last three decades, Taiwan has averaged around 6% annual GDP growth. In the process it has turned itself into a dynamic capitalist economy. Taiwan's economic success was initially based on the manufacture of low-technology goods. As Taiwan moves up the value chain such labour-intensive industries have increasingly re-located to lower cost bases, primarily in China.
Despite the absence of diplomatic relations the UK and Taiwan enjoy a healthy trade and investment relationship. The UK is Taiwan’s third trading partner in Europe. 70% of Taiwanese investment in Europe is located in the UK. Around 300 UK firms have investments in Taiwan, including HSBC, Standard Chartered Bank and BP.
In 2010, UK’s exports of goods to Taiwan were £1.05bn. Already this year UK exports of goods to Taiwan are up 34%. This is among the highest growth figures for UK trade with major economies in Asia/Oceania (average up 21%). Total UK exports (goods and services) to Taiwan last year (2010) were around £1.7bn, more than UK’s exports to Indonesia, Vietnam and Philippines combined.
Membership of the WTO has increased exports and improved market access to Taiwan for foreign firms which have been drawn by Taiwan’s thriving economy, trade and investment links with China, and generally favourable business environment.
British businesses are highly visible in the Taiwanese domestic market, and trade links with Europe continue to grow. There is a substantial market for low-carbon goods and services, financial and professional services, infrastructure consultancy and products, and supply chain opportunities for high-value manufacturers. This is a sophisticated market for consumer goods, particularly for international designer labels. Taiwan is the world’s fifth largest market for Scotch whisky, with a strong demand for premium single malt brands.
Taiwanese technology companies are developing their own brands (e.g. Acer, HTC) bringing opportunities for UK consultancy services in product design and industrial design, as well as for R&D collaboration.
Taiwan is a major regional investor, particularly in mainland China where around 80,000 Taiwanese companies have operations, accounting for 70% of China’s electronics manufacturing.
KEY SECTORS OF OPPORTUNITY
Major Projects - 'I-Taiwan' is an ambitious £80bn eight year government investment programme running until 2016 bringing opportunities for international investors and suppliers, particularly in the infrastructure sector.
Eco-Cities - The Taiwanese government recently announced a pilot eco-city projects programme with a total estimated investment value of £1.2bn
Rail - Taiwan’s new High Speed Rail line started operating in March 2007 and, at a contract value of £10bn, is one of the most expensive in the world. There are several other major railway projects underway including new Metro lines built in Greater Taipei, Taichung and Kaoshuing plus several other cities.
Renewable Energy - Taiwan will boost its offshore wind power capacity from 530mw to 4200mw by 2030 under an ambitious renewable energy plan. These projects are expected to generate £10.4bn in business for equipment manufacturers, industry supply chain and services.
Terminal Three (T3)and Air City – The development of a new terminal at Taoyuan International Airport, with capacity for handling 43 million passengers per year, and an estimated cost of £1.3bn. The “Air City” development, the next major project around the Airport, is in planning. The total investment value for Air City is up to £5.4bn, and is expected to generate £10.4bn in business for equipment manufacturers, industry supply chain and services.
Education and Skills - Taiwan is committed to strengthening its international competitiveness and developing its human resources is one of the key objectives under the Intelligent Taiwan seven year plan. This programme has a budget of £6.64 billion covering 13 major individual project areas including learning English, IT education, digital learning, Continual Personal Development (CPD), vocational training and teaching quality improvement in higher education.
ICT - Taiwan is a leading economy for ICT (Acer, Asus, BenQ, D-Link, Quanta, HTC, Foxconn, Mediatek and Mitac are all based in Taiwan), with high-tech goods contributing some 35 per cent of Taiwan’s exports. Taiwan has developed one of the most advanced telecommunication networks in Asia and mobile wireless penetration stands at more than 100 per cent.
Testimonials
What was the most useful aspect of the 2010/2011 Business in Asia events?
“Useful to meet in country advisers with whom we can follow up.”
