Download 20090609 BOFT- Creating a New Era of Exports for SMEs

Creating a New Era of Exports
for SMEs
Jien-Ping Wang
Chief Secretary
Bureau of Foreign Trade
June 9, 2009
1
Outlines
I. Trends in Taiwan’s
Economy and Trade
II. Government’s Efforts
in Export Promotion
III. Conclusions
2
I. Trends in Taiwan’s Economy
and Trade
1. Taiwan Profile
2. The Development of Taiwan
Economy and Trade
3. Changes in the Structure of
Taiwan’s Exports
4. Taiwan’s Trade Performance
since the Global Financial
Tsunami
3
Taiwan Profile
Small Yet Big
2
Area
36,000 km
Population
23,058,550 (Mar. 2009)
GNP
US$ 402.6 billion (2008)
GNP per capita
US$ 17,576 (2008)
GNP growth rate
-2.09% (2008)
Unemployment rate
4.14% (2008)
Inflation rate (CPI)
3.53% (2008)
Exchange rate
1 USD: 33.70 TWD
(Apr. 2009)
Foreign exchange
reserves
US$ 304.7 billion
(Apr. 2009)
Sources: Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C
Taiwan Profile
Trade growth rate
Economic growth rate
Global
3
Export
Taiwan
20
2.2
10
0.06
Import
9.67
3.63
0
0
-10
-3
-20
-2.6
-4.25
-6
2008
2009(f)
-21.81
-30
-28.53
-40
2008
2009(f)
Data source: Global Insight Inc, May 2009; Directorate General of Budget, Accounting and Statistics, May 2009
5
The relationship between International
Trade and Economic Growth
Data source: Global Insight Perspectives, Nov. 2008
6
2008 World Merchandise Trade Rankings for Taiwan
Data source：WTO Press Release (March 23, 2009)
7
Taiwan Foreign Trade Statistics
Unit: US$ billion；%
year
items
Export value
growth
Import value
growth
2000 2001 2002 2003 2004 2005 2006 2007 2008
148.3 126.3 135.3 150.6 182.4 198.4 224.0 246.7 255.6
22.0
-14.8
140.0 108.0
26.5
-22.9
7.1
11.3
21.1
8.8
12.9
10.1
3.6
113.2 128.0 168.8 182.6 202.7 219.2 240.4
4.9
13.0
Data source: Taiwan Directorate General of Customs; Compiled by the BOFT
31.8
8.2
11.0
8.2
9.7
8
Taiwan As No. 1
1971~
1980
Decoration
Ship
dismantling
Footwear
Electric fans
1981~
1990
Gourmet
powder
Umbrella
Hat
Tennis
rackets
Bicycle
ABS resin
Mini
electronics
Sewing
machines
Yachts
Monitors
1991~
1999
Scanners
Mother
boards
Notebook
Computers
IC
packaging
Wafer
foundry
2000~2004
Hub
Record Optical
Disk
Mother Board
Foundry
Notebook PC
SOHO Router
LCD Monitor
WLAN
Cable Modem
DSL Modem
Optical Disk
Driver
IC Packaging
Glass Fiber
Network Interface
Card
ABS Copolymer
Switch
CDT Monitor
Data Source: Industry &Technology Intelligence Service (ITIS) and IDB
2005~2006
PDA
Servers (System &
Pure MB)
Mother Board
IP Phones
Notebook PC
SOHO Router
LCD Monitor
WLAN
WLAN NIC
SOHO Routers
DSL Modem
VoIP Routers
Blank Optical Disks
IC Packaging
LAN Switches
IC Foundry
Mask ROM
ABS Copolymer
Switch
Diving Suits
2007~2008
Netbook
Mother Board
WLAN NIC
Servers (System
& Pure MB)
Notebook PC
DSL CPE
Cable CPE
LCD Monitor
PDA
IP Phones
CDT Monitor
Large Size LCD
Panel
VoIP Routers
VoIP TA
9
International Status of Taiwan’s Leading Industries
An important hub
for the supply of
new, innovative IT
products
Among the world’s
leading semiconductor
industries
☆ Steering the global OEM market
☆Controlling Mainland China production
orders
☆ Controlling global IC OEM plus
packaging and testing operations
☆ 2nd globally in IC design, 4th globally in
manufacturing
World’s leading
LCD industry
☆Close to 50% global market share in
large LCDs
10
The Development of Taiwan Economy and Trade
Export Expansion Policy 1960s
(light industry)
Import Replacement
1950s Policy
(light industry)
1970s
Era of Import
Replacement and
Export Expansion
(heavy industry)
2000 ～ present
Globalized operations
(developing knowledgebased economy)
1980s
Liberalization,
Internationalization, and
Systematization Policies
(strategic industries)
1990s
Era of high-tech industry
(10 major emerging industries)
11
Era of Import Replacement (1953～1960)－The Development of Light Industry
Background
Important
Policies
Taiwan was facing a shortage of funds, high
unemployment, trade deficits, lack of
technology, shortage of foreign exchange, a
small domestic market, and a shortage of
capital.
Main
Industries
Developed
Target
To replace imports with domestic
production to stabilize domestic prices and
save on foreign exchange expenditures.
The implementation of export tax
rebates, low-interest export loans,
foreign exchange and trade reforms;
highly restrictive import policy changed
to one of encouraging imports.
Textiles, cement, glass, fertilizer, food,
plywood, bicycles, motorcycles,
household appliances, plastic products.
Key Economic Indicators
．The average economic growth rate: 7.7%
．CPI growth rate: 18.51% (1960)
．GDP ratio (1960)
．Trade Value (1960)
－Agriculture: 28.5%
－Exports: US$0.164 billion
－Manufacturing: 26.9%
－Imports: US$0.297 billion
－Services: 44.6%
－Trade Balance: -US$0.133 billion 12
Era of Export Promotion (1961～1972)－ The Development of Light Industry
Background
In the 1960s, light industrial goods
substituting imports gradually saturated
the domestic market, so it became
necessary to export these products in
order enable Taiwan's industries to
develop further.
Targets
To change the passive protectionist
policy to a strategy of developing
competitiveness and expanding exports,
and replacing agricultural and fishery
exports with consumer items.
Important
Policies The implementation of “Regulations to
Main
Industries
Developed
Encourage Investment,” a single
exchange rate, export tax rebate,
depreciation of the NT dollar, set up
export processing zones, export lowinterest loans, local content regulation,
elimination of plant set-up restrictions.
Textiles, plastic products, plywood
industry, electronics (assembly).
Key Economic Indicators
． The average economic growth rate: 10.2%
． CPI growth rate: 3.32%
．GDP Ratio (1972)
．Trade Amount (1972)
－Agriculture: 12.2%
－Exports: US$2.988 billion
－Manufacturing: 41.6% －Imports: US$2.514 billion
－Services: 34.3%
－Trade Balance: US$0.475 billion
13
Era of Import Replacement and Export Expansion (1973～1983)
－ The Development of Heavy Industry
Background
The machinery, components and
materials needed to feed the rapid
expansion of light industry exports
still depended on imports, which
restricted the development of Taiwan’s
companies and industries.
Targets
Replace imports a second time, and
develop the production of light
industrial capital goods, raw materials,
and components.
Important
Policies
Main
Industries
Developed
Expand scope of export incentives,
reduce oil import tariffs and taxes on
petroleum products, coordinate
petrochemical production and marketing,
develop industrial zones, and undertake
the Ten Major Construction Projects.
Iron and steel, copper, aluminum and
other basic metal industries; shipbuilding;
automobiles; motorcycles and other
means of transport; plastics;
intermediate raw materials required for
manmade fibers; ethylene, propylene and
other petrochemical industries.
Key Economic Indicators
． The average economic growth rate: 8.2%
． CPI growth rate: 11.42%
．Trade Value (1983)
．GDP Ratio (1983)
－Exports: US$25.123 billion
－Agriculture: 7.3%
－Imports: US$20.287 billion
－Manufacturing: 45.0%
－ Trade Balance: US$4.836 billion
－Services: 47.8%
14
Era of Liberalization, Internationalization, and Systematization (1984～1990)
－The Development of Strategic Industry
Background
Targets
Important
Policies
Long-term foreign trade surplus,
surging foreign exchange reserves,
and sharp appreciation of the NT
dollar in the second half of 1986
weakened export competitiveness.
Meanwhile, a nascent labor movement,
Main
increasing wages, and strength of the
Industries
environmental protection movement
Developed
forced traditional industries to shift
production overseas.
Develop strategic industries and enhance
export competitiveness.
Development of high-tech, high added-value
and low-power strategic industries;
establishment of Science-Based Industrial
Park to develop high-tech industry;
enterprises encouraged to strengthen R&D
and to improve productivity, quality and
international competitiveness.
Industries with market potential; those with
large add-on effects; high value-added,
technology-intensive, low energy, lowpolluting industries: e.g., ITC, precision
instruments, metals, and biotechnology.
Key Economic Indicators
． The average economic growth rate: 8.8%
． CPI growth rate: 1.55%
．Trade Value (1990)
．GDP Ratio (1990)
－Exports: US$67.214 billion
－Agriculture: 4.2%
－Imports: US$54.716 billion
－Manufacturing: 41.2%
－Trade Balance: US$ 12.498 billion15
－Services: 54.6%
Era of High-tech Industries (1991～2000)
－Promotion of Ten Major Emerging Industries
Background
Taiwan’s traditional industries
continued to relocated overseas,
while the competition from newly
developing nations increased.
Targets
Important Statute for upgrading industries to replace
Policies
investment incentives; strengthen guidance on
Main
Industries
Upgrade industry and strengthen Developed
our international competitiveness.
technical R&D; promotion of automation and
personnel training; upgrade quality; develop
more industrial zones.
Communications, IT, consumer electronics,
semiconductors, precision instruments and
automation equipment, aerospace, advanced
materials, chemicals, biotechnology and
pharmaceuticals, healthcare, and pollution
prevention.
Key Economic Indicators
． The average economic growth rate: 6.5%
． CPI growth rate: 2.59%
．GDP Ratio (2000)
．Trade Value (2000)
－Agriculture: 2.0%
－Exports: US$151.950 billion
－Manufacturing: 29.1% －Imports: US$140.732 billion
－Services: 68.9%
－Trade Balance: US$11.218 billion
16
Knowledge-Based Economy (2000 ～ present)
－The Development of Knowledge-Based Industry
Background
International competition becomes
more intense due to globalization,
development of knowledge-based
economy, and the acceleration of
regional economic integration.
Important Implemented
the
knowledge-based
Policies economy development project, global
Main
Industries
Developed
Targets
Promote knowledge-based economic
activities and create an environment
conducive to the development of
knowledge-based industries.
logistics development plan, Challenge 2008:
National Development Plan, New Ten
Major Construction Projects, Guidelines
and Action Plans for Service Industry
Development, etc.
The “two trillion double-star industries”
(semiconductors, visual displays, digital
content, and bio-technology)
Key Economic Indicators
． The average economic growth rate: 2.9% (2001~2007)
． The average CPI growth rate: 0.62% (2001~2005)
． GDP Ratio (2005)
．Trade Value (2005)
－Agriculture: 1.8%
－Exports: US$198.435 billion
－Manufacturing: 24.6% －Imports: US$182.616 billion
－Services: 73.6%
－Trade Balance: US$15.819 billion
17
Changes in the Structure of Taiwan’s Exports
Taiwan’s main export commodities in 1998 were electronic products,
textile products, ITC products, and machinery products. By 2008,
Taiwan’s main export commodities were electronic products, plastics &
rubber and articles thereof, optical instruments, and iron & steel,
accounting for 47.6% of total exports—a tendency toward overconcentration.
Structure of Taiwan's Exports from 1998 ~ 2008
80.00
70.00
60.00
50.00
40.00
Unit:%
30.00
20.00
10.00
0.00
1998
Electronic Products
1999
Iron&Steel
2000
2001
2002
Plastics, Rubber and Articles Thereof
2003
2004
Optical Instruments
2005
Machinery
2006
Chemicals
2007
Textile Products
2008
ITC Products
18
Data source: Taiwan Directorate General of Customs; Compiled by the BOFT
Taiwan’s major export destinations have shifted to China and
emerging markets
1989
US$66.3 billion
1998
US$110.6 billion
US
36.3%
US
26.6%
Japan
8.4%
Europe
17.8%
Japan
13.7%
Others
16.4%
Others
20.3%
Europe
16.5%
Em erging
countries
13.2%
Mainland
China
10.7%
Japan
6.9%
2008
US$255.7 billion
Mainland
China 23.5%
Europe
11.7%
Em erging
countries
30.8%
US
12.0%
Others
18.8%
Data source: Taiwan Directorate General of Customs;
Compiled by the BOFT
Em erging
countries
50.6%
Mainland
China 39.0%
Emerging countries: Mainland China, Russia,
Brazil, India, the Middle East, ASEAN (Vietnam,
Malaysia, Indonesia)
19
Taiwan’s Trade Performance since
the Global Financial tsunami
 Formation and Evolution of Global Financial Tsunami
 Taiwan’s Trade Performance since the Global Financial
tsunami
 Taiwan’s exports severely plunged since September 2008.
 Export alarms have gone off with Taiwan’s main trading
partners.
 Sluggishness in export of electronic products and electrical
machinery products.
 Declines in imports of electronic products, machinery, electrical
machinery products, organic chemicals, optical instruments, and
transport equipment.
 Definite results obtained from efforts to enhance export
promotion to 10 target markets.
20
The Global Financial Tsunami: its formation
After collapse of the dot-com bubble
and the 911 attacks, the US Fed
lowers interest rate from 6% to 2%
in 2001; the market becomes awash in
capital.
1
3
US Fed is forced to impose large
increases in interest rate.
This causes financial turbulence, the
US dollar declines in value, and the
subprime mortgage crisis erupts.
5
Easy money seeking higher returns flows
into global stocks, real estate, and
commodities, causing rapid increases in
prices for real estate, energy, and grain,
as well as high inflationary pressure
worldwide.
Many US homeowners default on
mortgages, go bankrupt, or sharply
reduce consumer spending to avoid
default.
As subprime default rate climbs, the
underwriting banks face serious losses and
pressure from asset devaluation. After
Lehman Bros. collapse in September, credit
risk spreads to other banks and financial
institutions.
Because bonds issued by subprime underwriters, Fannie
Mae and Freddie Mac were sold around the world,
international finance and the global economy were also
seriously affected.
2
4
6
21
The Global Financial Tsunami: its evolution
1 Weakening economy,
2
3 Insufficient
4
5
Crisis of
confidence
in capital
markets
bank capital
leads to the
first line of
bank
collapses
Prices for
REITs and
structured
notes fall
stock and real estate
market drop together
When credit
is tight, cash
is king
6
Banks
tightened
business
credit
7
Low
turnover
causes
businesses
to close or
lay off
employees
Unemployment
rises
8
9
Low
consumer
confidence,
cutbacks on
spending
Insufficient
domestic
10 demand,
economic
decline
22
Severe plunge in Taiwan exports since Sep. 2008
Due to the rapid slowdown in the international economy caused by the global
financial tsunami since Sep. 2008, Taiwan exports have shown eight consecutive
months of decline. April 2009 exports decreased 34.3%, less than the first quarter
average decline rate (36.6%).
30
%
Export value
25
30
20
Growth rate
10
%
20
0
Unit:
US$ billion
15
-10
-20
10
-30
5
0
-40
2008
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Export value
22.1
17.6
24.2
22.6
23.6
24.3
22.9
25.3
21.9
20.8
Growth rate
11.8
18.3
22.7
13.9
20.5
21.2
7.9
18.2
-1.6
-8.3
Data source: Taiwan Directorate General of Customs
-50
Dec.
2009
Jan.
Feb.
Mar.
Apr.
16.8
13.6
12.4
12.6
15.6
14.8
-23.3
-41.9
-44.1
-28.6
-35.7
-34.3
23
Export alarms have gone off with Taiwan’s main
trading partners
For the entire year of 2008, Taiwan exports to Europe and Japan increased 4.6% and
10.2% respectively; however, Taiwan exports to the US decreased 4%, while exports to
Mainland China and ASEAN have shown four consecutive months (Sep.~Dec. 2008) of
decline. Due to the global financial crisis, export alarms have gone off with Taiwan’s
main trading partners.
The third largest
export market (US):
The share of
exports to this
market was 12%;
exports to this
market decreased
4.0%
The fourth largest
export market
(Europe): The share
of exports to this
market was 11.7%;
exports to this
market increased
4.6%
The largest export
market (Mainland
China): The share of
exports to this market
was 39%; exports to
this market decreased
0.8%
The second largest
export market (ASEAN):
The share of exports to
this market was 15%;
exports to this market
increased 7.3%
The fifth largest
export market
(Japan): The share
of exports to this
market was 6.9%;
exports to this
market increased
10.2%
24
Exports of electronic products and electrical machinery products: sluggish
Because of soaring raw material and crude oil prices in the first half of 2008, exports
of chemicals grew 16.0% for the entire year. Because of the global financial crisis in
the second half of 2008, exports of electronics and electrical machinery decreased
3.2% and 8.1% respectively for the entire year.
60
unit：%
50
40
30
16.0
20
13.3
10.2
10
4.9
6.4
3.2
0
-10
-3.2
Electronic
products
Optical
instruments
Chemicals
Data source: Taiwan Directorate General of Customs
Iron &
steel
and
articles
thereof
Machinery
-8.1
Electrical
machinery
products
Information
and
communiction
products
Transport
equipment
25
Declines in imports of electronic products, machinery, electrical machinery
products, organic chemicals, optical instruments, and transport equipment
Because of soaring raw material and crude oil prices in the first half of 2008, imports of
crude oil shot up by 35.1% for the entire year. Because of the global financial crisis in the
second half of 2008, imports of electronic products, machinery, organic chemicals, optical
instruments, and electrical machinery products decreased 3.4%, 0.2%, 1.8%, 8.8% and
4.4% respectively for the entire year. Imports of transport equipment plunged 18.7%
because of drops in demand for rail transportation and aircraft equipment.
60
unit：%
50
40
35.1
29.3
30
20
10
4.9
0
-10
-20
-0.2
-3.4
Electronic
products
Crude
oil
Machinery
Iron &
steel
and
articles
thereof
Data source: Taiwan Directorate General of Customs
-1.8
Organic
chemicals
-8.8
Optical
instruments
-4.4
Electrical
machinery
products
-18.7
Transport
equipment
Information
and
communiction
products
26
Global financial tsunami has impacted Taiwan’s
main exports to Mainland China seriously
The value and growth rate of top 10 imports in Mainland China market from Taiwan
Unit：US$ million; %
Imports in Mainland China market from Taiwan
HS
Value
Description
Growth Rate
2008
2008 Sep.~
2009 Apr.
2008
2008 Sep.~
2009 Apr.
Top 10 imports
8542
IC
29,518.8
16,062.3
1.0
-22.5
9013
Liquid crystal devices
18,503.5
6,571.0
6.6
-55.3
8541
Diodes
3,090.2
1,552.7
11.0
-23.1
8534
Printed circuits
2,710.5
1,412.2
-9.6
-30.0
3903
Polymers of styrene
2,170.9
1,209.6
-2.7
-21.3
2917
Polycarboxylic acids &
halogenated derivatives
1,820.5
943.2
-6.9
-31.1
8473
8469~8472 parts& accessories
1,603.8
824.3
-3.4
-18.6
9001
Optical fibers&
optical fiber bundles
1,350.8
692.1
32.0
-23.2
2902
Cyclic hydrocarbons
1,407.7
675.5
72.8
-28.9
1,207.8
605.4
-7.6
-30.4
Polyacetals
3907
Data source：China Customs House
27
Significant results from export promotion directed at ten targeted markets
For the whole year of 2008, Taiwan’s exports to the ten focus countries showed a
17.5% growth on average, which is 3.8 times that of Taiwan’s overall export growth
rate (3.6%) in the same period.
100
•Red font: The actual growth rate
80
Unit:
%
•Black font: The targeted growth rate
64.4
60
40
20
28.4
17
20 20.4 20 22.5
10
15.8
20
15.2 15
11.7 10 10.2
8
2.3
10
8
0
Brazil
-20
India
Spain
Indonesia
Vietnam
Data source: Taiwan Directorate General of Customs
Russia
South
Korea
Japan
Malaysia
-16.2
Turkey
28
II. Government’s Efforts in
Export Promotion
1. Continuously Implement Region’s Working
Agenda
2. Global Market Expansion Plan
(New Cheng Ho Plan)
3. Branding Taiwan Plan
4. Taiwan MICE Advancement Program & Taiwan
Exhibition Competitiveness Enhancement Project
5. Our Views on ECFA
29
Continuously Implement Region’s
Working Agenda
 5th stage: strengthening the working agenda for trade with North
America
 5th stage: working agenda for trade with Europe
 4th stage: working agenda for trade with Central and South
American countries with whom we have full diplomatic relations
 5th stage: strengthening the working agenda for trade with
Southeast Asia, Australia, and New Zealand
 Action agenda for strengthening economic and trade relations with
India
30
Framework of the New Cheng Ho Plan
Years
New Cheng Ho Plan
2008 9.
~
2012
Shaping the trade
financial environment
Strengthening of export
finance and export insurance
2009-2010
Expansion of
the Mainland China
market
Expanding
Mainland China’s markets
2009-2010
Expansion throughout
the emerging markets
Expanding throughout
the emerging markets
2008.09-2012
Expansion of
marketing strategies
Creation of new
procurement domain
Attracting procurements
from foreign buyers
Pursuing global government
procurement opportunities
2009
2009-2010
31
Strengthening of export finance and export insurance
Initiate a series of plans to strengthen export finance and
export insurance from 2009 to 2010, with a budget of NT$
5.58 billion:

Favorable export financing plan:
Support EXIM bank to provide export insurance
on favorable terms.

Expansion to include all
exporting industries and
exporting districts
Export promotion through re-lending plan
Increase cooperation with global relending banks and extend relending credit
on favorable terms.

Export insurance plan:
Offer favorable terms for credit verification and insurance fees, and provide
comprehensive compensation.
Expected
Benefits
Increase the value of exports to NT$50 billion,
with 70% of exports to emerging markets.
32
Expanding Mainland China’s markets
 Build marketing channels
1.hold Taiwan food festivals
2.Set-up Taiwan food sections
 Invite foreign buyers to purchase in
Taiwan
 Organize trade missions
 Participate in important
international food exhibitions
 Organize Taiwan food Promotion
Plan
Promote exports
of Taiwan food to
Mainland China
 Increase support to industrial
associations to promote exports
 Provide market research and
business intelligence
 Create Marketing Strategies
 Enhance Internet promotion
 Provide consultation on branding
 Increase service points and human
resources
Pursue Mainland
China’s domestic
market
33
Expanding throughout the emerging markets
General strategies
Increase allowances for emerging
markets
Expand exports of 3 niche
industries
－Auto parts and accessories
－Textiles
－Machine tools and accessories
Establish overseas business
pioneer training program
Promote exports with high-level
trade missions to emerging
markets
Russia
Specific strategies for
different markets
Middle
East
India
Including Saudi Arabia, UAE and
other 12 countries
Brazil
ASEAN
Focus on Malaysia, Indonesia34
and Vietnam
Attracting procurements from foreign buyers
Initiate a series of activities to invite foreign buyers to purchase in
Taiwan, focusing on large and emerging market buyers:
Sourcing Taiwan(2009.03.30~04.02)
Signed Letters of Intent, organized product displays, setting up industry
discussion areas
Organize Reverse Shows (2009)
Offer customized procurement services to international buyers.
Invite emerging market buyers to purchase in Taiwan(2009)
Encourage emerging market buyers to organize trade missions to purchase
in Taiwan
Expected Benefits
Invite foreign buyers to participate in 14,500 trade
discussion meetings with 5,200 domestic firms
Facilitate procurements worth up to NT$180 billion
35
Pursuing global government procurement opportunities
Enhance bidding
capabilities for tenders
Screen for competitive industries
Organize government procurement
trainings and professional
consultants
Hold series of seminars
Hold seminars for foreign
government purchases
 Hold seminars for business
opportunities
Assist firms to participate in government
procurement opportunities
Set-up a business
opportunities website
Provide links to WTO member
government procurement websites
Provide potential business opportunities
Create a professional counseling atabase
Develop a business opportunity
handbook
Invite foreign business who won
GP tenders to purchase in Taiwan
Act as intermediary between foreign
businesses and domestic suppliers
Provide air-fare and accomodations
Invite bid-winners to hold business
opportunity meetings
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Branding Taiwan Plan
OEM  ODM  OBM
Innovation + Design = Springboard from OEM to ODM
Biggest challenge: How to shift from OEM to an innovator
Getting rid of traditional thinking/practices; setting new
strategies to become more competitive
1990s
R＆D
ODM
1980s
2000s
OEM
OBM
IDM
Innovative Design &
Manufacturing
IDM
Establish Taiwan’s
Motivate and stimulate the
uniqueness in
drive to create own brands
manufacturing/design
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Branding Taiwan Plan
6 measures
 Branding Investment Fund
 Foster an environment conducive to
branding
 Establish a brand appraisal system
 Cultivate talent and provide training
 Establish a branding information
platform
 Raise the international image of Taiwan
Products and brands
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Branding Taiwan Plan
Future Goals
 Stimulate Taiwan entrepreneurs to enhance
their brand value
 Encourage Taiwan SMEs to move forward
to brand marketing (OBM)
 Focus on “Branding Taiwan Plan” to bring
more renowned brands into the world markets,
and become the pride of Taiwan
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The Framework of Taiwan MICE Advancement Program
Taiwan MICE
Overall Implementation Project
Taiwan
MICE
Advancement
Program
Taiwan MICE
International Marketing
and Promotion Project
Taiwan MICE
International Meetings
Hosting Project
Taiwan MICE
Training and Certification
Project
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Taiwan MICE Advancement Program
 Establish the
Taiwan MICE
Overall Implementation
Project
Taiwan MICE
International Marketing
and Promotion Project
contact window and to
reinforce MICE-related policies.
 Coordinate/integrate resources from
central and local government
organizations.
 Conduct research on MICE industry.
 Provide funding for MICE held in Taiwan
by associations, academic organizations
and companies.
Market and brand Taiwan’s MICE
industry internationally.
 Re-structure and manage the
MeetTaiwan portal.
 Reinforce MICE sources and administer
data pool.
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Taiwan MICE Advancement Program
Taiwan MICE
International Meetings
Hosting Project
Taiwan MICE
Training and Certification
Project
Support associations/organizations
bidding for target conferences.
Provide complete information and
customized assistance.
Develop a training mechanism to
cultivate MICE professionals.
Establish a certification system that
meets international standards.
Establish an evaluation system to
ensure the integration of training and
practices.
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Taiwan Exhibition Competitiveness
Enhancement Project
1. Develop new exhibitions in accordance with industry and
market needs:
 Taiwan Exhibition & Convention Industry Show (EXCO Taiwan)
 7 Exhibitions held in 2008 will be continued. These include:
AutoTronics Taipei, Motorcycle Taiwan, SenCare, Leisure Taiwan,
Taiwan RFID, Broadband Taiwan, and Kaohsiung Food Show.
2. Foreign Visitors Invitation Program
Three types of subsidies to qualified applicants:
 Round-trip economy class airfare or
 Hotel subsidy: up to NT$20,000 or
 Health exam: up to NT$20,000
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Taiwan Exhibition Competitiveness
Enhancement Project
3. Expand exhibitions
 Assist 14 targeted industries to expand the scale of exhibitions:
computers, bicycles, auto parts and accessories, agriculture and food,
food processing equipment, packaging, sporting goods, gifts and
stationery, electronics, plastics and rubber, machine tools, medical
equipment, furniture, and lighting.
4. Establish a Taiwan virtual exhibition website
Taipei Tradeshows website was established to help exhibitors increase
business opportunities and sharpen their competitiveness.
•Online campaigns and promotions
•Online services
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Title of the ECFA
The tentative title is “Cross-Strait Economic
Cooperation Framework Agreement” (or
simply “Cross-Strait Economic Agreement”).
The English title ECFA (Economic
Cooperation Framework Agreement) may be
used temporarily.
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Objectives of the ECFA
1. Normalization of cross-strait economic and trade relations
 While both parties are members of the WTO, there are still many economic
and trade restrictions.
2. Avoidance of being marginalized from regional economic
integration schemes
 Currently, there are over 230 FTAs globally with mutual duty-free
arrangements. If we do not participate, we will face the threat of being
marginalized and losing our competitive edge in the important markets.
3. Internationalization of our economy, trade and investments
 By signing the Framework Agreement, the cross-strait economic and trade
relations will be more predictable and benefit Taiwanese business to make
worldwide arrangements and attract foreign business to Taiwan, thus
enabling Taiwan to become a trading hub in the Asia-Pacific.
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Taiwan’s Positions on the ECFA
We do not adopt the model of Hong Kong and Macao,
and the ECFA is not an ordinary free trade agreement
(FTA); it is an economic cooperation agreement with a
distinctive cross-strait quality and one that does not
violate the spirit of the World Trade Organization
(WTO).
It will cover matters pertaining to economic
cooperation and will not touch on unification,
independence, and political issues.
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Meaning of the Framework Agreement
A comprehensive FTA cannot be achieved in one step. There will be more
flexibility in dealing with it only by pre-determining the framework and
goals and through future consultations on specific content.
The “Early Harvest” provisions will meet the urgent needs of the project
and provide early realization of favorable benefits.
Examples: ASEAN + China
The ASEAN-China Comprehensive Economic Cooperation Agreement was signed in
Nov. 2002 (“Early Harvest”: HS Chapters 1-8 for agriculture and fishery products)
and went into effect in Jan. 2004.
Signed a framework agreement for Agreement on Trade in Goods in Nov. 2004.
Signed a framework agreement for Agreement on Trade in Services in Dec. 2006.
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Immediate Impact of Not Advancing the Agreement
The Process of ASEAN + X
Free Trade Area
Entry into Force
Scheduled Commitments
ASEAN + China (Agreement
July 2005
2010: most products 0%
July 2007
2010: 90% of products
0%
Dec. 2008
2018: 91% of products
0%
Scheduled for
July 2009
2020: 96% of products
0%
on Trade in Goods)
ASEAN + South Korea
(Agreement on Trade in Goods)
ASEAN + Japan EPA
ASEAN + Australia and
New Zealand FTA
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Vision for Cross-Strait Economic and Trade Cooperation
Establish a stable crossstrait economic and trade
cooperation framework;
open a favorable crossstrait interaction
mechanism.
Improve the basis of promoting
Taiwan’s opportunities to enter
into bilateral FTAs with other
countries and participate in
regional economic and trade
cooperation.
Promote Taiwan in becoming a global
center of innovation, an Asia-Pacific hub
of economy and trade, and the headquarters
for Taiwanese businesses
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III. Conclusions
1. Create an environment conducive to
SMEs and start-ups
2. Assist SMEs to expand their exports and
become more globally oriented
3. Encourage SMEs to strengthen innovation
activities effectively
Taiwan
Your Partner in the Global Market!
Thank You!
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