Transcript Taiwan – The best choice for your investment

Chinese Taipei
Your Ideal Choice For Investment
Tyng-Hwa Wang
Deputy Director General
Industrial Development and Investment Center
Ministry of Economic Affairs
September 2002
Our Geographic Advantage
Gateway to the
Asia-Pacific Region
Chinese Taipei
Hub connecting
three Asian
Economic Regions
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Our Economic Development （1952-2001）
Per capita GNP from US$196 to US$ 12,941
Foreign trade volume from US$300 million to
230.1 billion
Foreign exchange reserves of US$155.3 billion
（July 2002）, ranking 3th worldwide
Change in CPI mostly under 5%
Unemployment rate always under 5%
2
%
100
90
80
Agriculture
Structure of Production
（% of GDP by Sector）
Industry
Services
65.6
70
67.2
60.1
60
50
54.6
48.1
44.6
46.2
47.7
46.6
45.7
40
28.5
30
47.9
46.3
41.2
36.4
39.9
32.2
26.9
20
47.4
19.7
32.4
30.9
3.5
2.1
1.9
1995
2000
2001
36.8
30.2
23.6
15.5
12.7
7.7
10
5.8
4.2
0
1952
1960
1965
1970
1975
1980
1985
1990
Source: Council for Economic Planning and Development
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8,000
7,608
US$ million
6,000
Foreign Direct Investment inflow
4,267
4,000
2,000
2,925
2,418 2,302
2,461
1,778
1,461
1,631
1,183
1,213
1,419
466 395 380 404 559
-
703
771
5,128
4,185
3,295
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Switzerland
Germany
748 (2%)
430 (1%)
Others
7,510 (15%)
USA
11,693 (24%)
UK
Sources of Foreign
Investment
(accumulated
1952 to 2001)
2,024 (4%)
Netherlands
2,154 (4%)
Hong Kong
3,697 (7%)
Japan
9,896 (20%)
Singapore
3,831 (8%)
British Territories
7,468 (15%)
Unit: US$ million
4
Source: Investment Commission, MOEA,
Our Investment in China and Southeast Asia
Unit: US$ million
Host Economy Statistics
Investment
Area
（to year-end 2001）
No. Cases
Value
% of Total
Investment
Rank
China
51,528
55,470
57.09%
4
Indonesia
905
12,879
13.26%
5
Thailand
1,603
10,510
10.82%
3
Malaysia
1,836
9,186
9.45%
3
Vietnam
840
5,645
5.81%
2
Singapore
380
2,223
2.29%
--
Philippines
856
756
0.78%
5
Cambodia
175
494
0.51%
2
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Core Competitive Advantages of Our Industries
1. Abundant manufacturing competence, engineering capability,
and logistics experience.
2. Major industries have a complete industrial development system
with a full division of labor and a strong flexibility for coping
with environmental change.
3. Domestic enterprises have rich international experience, a
strong ability to grasp market trends, and the capability of
developing new products rapidly in response to new market
opportunities.
4. Chinese Taipei is among the world’s top three producers of a
number of electronic products. Massive outward investment has
built up complete supply systems.
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Our Industry Clusters Advantage
Chinese Taipei’s
World Ranking as a Product Supplier
No. 1
No. 2
Wafer foundry
IC design
Mask ROM
IC packaging
TFT-LCDs
Motherboards
Notebook computers
CDR optical disks
CD-RW disks
DVD-Video disks
HUBs
Analog Modems
Network cards
TN/STN LCDs
No. 3
Wood processing machines
PC Cameras
Printed circuit boards
Digital Cameras
Monitors
Cable Modems
Switches
Polyester staple fiber
Resistors
Polyvinyl chloride (PVC)
LEDs
Purified terephthalic acid
Scanners
ABS resin
Home sewing machines
Polyester filaments
Hand tools
Nylon fiber
PU leathers
Fastener
Source: Industrial Technology Department, Ministry of Economic Affairs
(PTA)
Bicycles
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Our Advantage in R&D Capability
US$ billion
% of GDP
10
3.00 8000
9
8
7
R&D Expenditures and percentage of
1.98%
GDP
1.88%
1.80%
6
5
Rank
Cases
5.02
4.79
5.5
2.50
2.05%
6.07
2.05%
7000
6000
1
Number of U.S. Patents Granted, and
Chinese Taipei's Ranking
4,667
5000
5.65
1.50 4000
4
7
7
7
3,693
7
3,100
3000
1.00
4
5
2.00
3
4
1,897
2,057
2000
10
2
0.50 1000
1
0
0.00
1996
1997
1998
1999
2000
0
1996
1997
1998
1999
2000
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World Economic Forum
The Global Competitiveness Report 2001-2002
Finland
U.S.A.
Singapore
Chinese
Taipei
Hong
Kong
Japan
Korea
Malaysia
Thailand
China
Growth
Competitiveness
1
2
4
7
13
21
23
30
33
39
1. Technology
3
1
10
4
33
23
9
22
39
53
4
2
19
3
24
17
6
50
47
63
b. Information
& Communication
1
5
4
16
10
23
21
33
53
56
2. Public
Institution
1
12
6
24
10
19
44
39
42
50
10
7
1
15
4
18
8
20
16
6
Criteria
a. Innovation
3. Macroeconomic
Environment
Source: World Economic Forum, The Global Competitiveness Report 2001-2002
9
Our Advantage in Communications
Cell phone users top 20.97 million
for a penetration rate of 94% -highest in the world.
Online population of about
7.28 million for a penetration
rate of 35%, with more than 1
million broadband subscribers.
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Our Advantage in Venture Capital
 Growth of venture capital industry 2nd globally only to the US.(1)
 Venture capital availability 1st in Asia (13th in the world).(2)
80 %
US$ Million
72
3,882
67
70
3,293
60
4500
Key factors for a successful VC business (1)
4000
Chinese
Taipei
Japan
H.K.
Korea
Singa
-pore
Capital
ˇ
×
ˇ
ˇ
Technology
ˇ
ˇ
×
ˇ
Venture Capitalists
ˇ
ˇ
×
ˇ
×
ˇ
ˇ
×
Equity Market
ˇ
×
ˇ
×
3500
China
3000
50
2,263
40
42
2500
36
2000
30
1,306
20
24
1500
Entrepreneurs
926
1000
10
500
0
0
1996
People
1997
Annual Growth Rate
1998
1999
2000
Paid-in Capital Amount
Source: (1)Venture Capital Association, 2001
(2)The Global Competitiveness Report 2001-2002
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Our Advantage in Transportation
 Shortest average sailing time to 5 major regional harbors: 53 hours
 Shortest flying time to 7 main cities of the Western Pacific: 2.55 hours
Unit: hour
LHR
Seoul
Average flying time among 7 major
airports in Asia Pacific
HongKong
TAIPEI
Manila
Singapore
JFK
Tokyo
Shanghai
Average sailing time among 5
major harbors in Asia Pacific
6:15
124
4:55
110
4:15
4:00
Sydney Singapore Tokyo Seoul
3:30 3:25 3:05
78
2:55
Manila Shanghai HK Taipei
Source: Council for Economic Planning and Development
68
64
53
Singapore Tokyo Shanghai Manila HK Kaohsiung
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Challenge 2008 Development Plan
Cultivate Talent
for the E-generation
Increase Value-added
Production
Develop a Digital
Economy
Improve the Transportation
Infrastructure
Develop the Cultural
Creativity Industry
Develop an International
Base for R&D
Challenge 2008
Double the Number of
Tourists Visiting Taiwan
The Six-year National
Development Plan
Cost: US$ 75 billion
Conserve Water Resources
and the Ecology
Source: Council for Economic Planning and Development
Develop as an
Operations Headquarters
Construct New Hometown
Communities
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Challenge 2008 Development Plan
 Challenge Goals
1. At least 15 World No. 1 products or technologies
2. At least doubling of visitor arrivals
3. R&D expenditures 3% of GDP
4. Reduction of unemployment rate to under 4%
5. Economic growth rate above 5%
6. More than 6 million broadband Internet users
7. Creation of 700,000 new jobs
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兩兆雙星計畫
☆ 新台幣兩兆元產業: 半導體產業及影像顯示產業
☆ 雙星產業: 數位內容及生物科技
產業範圍
半導體
單位:新台幣十億
未來產值
目前產值
2000
714.4
2001
526.9
（2006）
1,591.2
186.0
86.0
100.0
118.7
290.0
120.0
170.0
133.4
1,370.0
730.0
640.0
370.0
95.6
102.8
250.0
(設計,製造,封裝,測試)
影像顯示
＊ 平面顯示
＊ LCD 顯示
數位內容
(software, electronic games,
media, published music,
animation, network services)
生物科技
資料來源：經濟部工業局
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台灣投資機會
製造業
技術服務業
通訊
光電
資訊數位電子
消費電子
半導體
精密機械與自動化
生化及製藥
航太
特用化學
高級材料
網路軟體或內容
網路服務
高階積體電路設計
自動化或電子化工程服務
電力系統統包工程服務業
產品工程服務
生物技術與製藥業技術服務業
提供屬製造業之溫室氣體排放量減量工程技術服務業
節約能源或利用新及淨潔能源工程技術服務業
環境保護工程技術服務業
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租稅獎勵 (1)
投資於自動化設備或技術
5--20% tax credit for
expenditures
Research and
Development
30% tax credit for
expenditures
Manpower Training
30% tax credit for
expenditures
Balancing of Urban-Rural
Industrial Development
Overseas Chinese and
Foreign Investment
Source: Industrial Development Bureau, MOEA
30% tax credit for investment
in resource-poor or backward
areas
Income tax collected at
a uniform rate of 20%
17
Tax Incentives (2)
Emerging Important
Strategic Industries
Five-year tax
holiday
Establishment of Logistics
and Distribution Centers
Revenues exempt
from tax
Establishment of
Operations Headquarters
Income exempt
from tax
Source: Industrial Development Bureau, MOEA
18
Preferential Leasing Terms for Land
in Industrial Estates
Industrial Land Rental Discounts Program

For manufacturers that lease land in industrial estates, we provide
the first two years rent-free, rental at 60% of the normal rate for the
third and fourth years, and rental at 80% of the normal rate for the
fifth and sixth years. From the seventh year, the rental fee returns to
the normal rate.

Scope of application: Nine industrial estates.

Period of implementation: To Dec. 31, 2004
Source: Industrial Development Bureau, MOEA
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投資考察邀訪
 經濟部投資業務處邀請跨國公司來台投資、技術合作
及採購
 跨國公司管理階層可向經濟部駐外單位經濟組申請投
資考察補助
 一旦投資申請獲准, 投資處將免費提供商務艙來回機票、
國內交通費、五天四夜的食宿
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經濟部投資業務處
地址:台北市中正區館前路71號8
樓
電話: 886-2-23892111
傳真: 886-2-23820497
網址: http://www.idic.gov.tw
電郵: [email protected]
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