Tyng-Hwa WangDeputy Director General
Industrial Development and Investment CenterMinistry of Economic Affairs
September 2002
Your Ideal Choice For Investment
Chinese Taipei
2
Our Geographic Advantage
Gateway to the Asia-Pacific Region
Hub connecting three Asian
Economic Regions
Chinese Taipei
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$155.3 billion ( July 2002) , ranking 3th worldwide
Change in CPI mostly under 5%
Unemployment rate always under 5%
Our Economic Development ( 1952-2001)
2
4
19.7
30.2
23.6
1.92.13.54.25.8
15.512.7
7.7
32.228.5 36.8
39.930.932.4
36.441.246.3
26.9
45.7
48.144.6 46.2 47.7 47.4
67.265.6
60.1
54.647.946.6
0
10
20
30
40
50
60
70
80
90
100
1952 1960 1965 1970 1975 1980 1985 1990 1995 2000 2001
Agriculture
Industry
Services
Structure of Production
(% of GDP by Sector)
%
Source: Council for Economic Planning and Development
5
British Territories7,468 (15%)
Japan9,896 (20%)
USA11,693 (24%)
Switzerland
430 (1%)
Netherlands
2,154 (4%)
UK
2,024 (4%)
Germany
748 (2%)
Singapore3,831 (8%)
Hong Kong3,697 (7%)
Others
7,510 (15%)
Source: Investment Commission, MOEA,
Unit: US$ million
4,185
7711,183
2,461
2,925
1,6311,213
1,4611,778
2,3023,295
4,267
7,608
703404 559
380395466
5,128
1,419
2,418
-
2,000
4,000
6,000
8,000
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
US$ million
Foreign Direct Investment inflow
Sources of Foreign Investment
(accumulated 1952 to 2001)
6
Unit: US$ million
Our Investment in China and Southeast Asia
Host Economy Statistics
(to year-end 2001) Investment Area
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
7
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.
8
Our Industry Clusters Advantage
Chinese Taipei’s World Ranking as a Product SupplierChinese Taipei’s World Ranking as a Product Supplier
Source: Industrial Technology Department, Ministry of Economic Affairs
Wafer foundry
Mask ROM
IC packaging
Motherboards
Notebook computers
CDR optical disks
CD-RW disks
DVD-Video disks
HUBs
Analog Modems
Network cards
ABS resin
Home sewing machines
Hand tools
PU leathers
IC design
TFT-LCDs
TN/STN LCDs
PC Cameras
Digital Cameras
Cable Modems
Switches
Resistors
LEDs
Scanners
Polyester filaments
Nylon fiber
Fastener
Wood processing machines
Printed circuit boards
Monitors
Polyester staple fiber
Polyvinyl chloride (PVC)
Purified terephthalic acid
(PTA)
Bicycles
No. 1 No. 2 No. 3
9
Our Advantage in R&D Capability
1,897 2,057
3,693
4,667
3,1007 7
5
7
4
0
1000
2000
3000
4000
5000
6000
7000
8000
1996 1997 1998 1999 2000
1
4
7
10
RankCases
Number of U.S. Patents Granted, andChinese Taipei's Ranking
4.795.025.5 5.65
6.07
2.05% 2.05%1.98%1.88%1.80%
0
1
2
3
4
5
6
7
8
9
10
1996 1997 1998 1999 2000
0.00
0.50
1.00
1.50
2.00
2.50
3.00US$ billion % of GDP
R&D Expenditures and percentage ofGDP
10
Source: World Economic Forum, The Global Competitiveness Report 2001-2002
World Economic Forum The Global Competitiveness Report 2001-2002
Criteria
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
a. Innovation 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
Institution1 12 6 24 10 19 44 39 42 50
3. Macroeconomic
Environment10 7 1 15 4 18 8 20 16 6
11
Our Advantage in Communications
Online population of about
7.28 million for a penetration
rate of 35%, with more than 1
million broadband
subscribers.
Cell phone users top 20.97 million for a penetration rate of 94% -- highest in the world.
12
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)
Key factors for a successful VC business (1)
Source: (1)Venture Capital Association, 2001 (2)The Global Competitiveness Report 2001-2002
36
67
72
42
24
926
1,306
2,263
3,293
3,882
0
10
20
30
40
50
60
70
80
1996 1997 1998 1999 2000
%
0
500
1000
1500
2000
2500
3000
3500
4000
4500US$ Million
Annual Growth Rate Paid-in Capital Amount
Chinese Taipei
Japan
Korea
H.K.
Singa-pore
China
Capital ˇ × ˇ ˇ
Technology ˇ ˇ × ˇ
People
Entrepreneurs
Venture Capitalists
ˇ ˇ
× ˇ
× ˇ
ˇ ×
Equity Market ˇ × ˇ ×
13
JFKLHR
TokyoSeoul
Shanghai
HongKong
Manila
TAIPEISingapore
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
Average flying time among 7 majorairports in Asia Pacific
Sydney Singapore Tokyo Seoul Manila Shanghai HK Taipei
6:15
4:554:15 4:00
3:30 3:25 3:052:55
Singapore Tokyo Shanghai Manila HK Kaohsiung
53
124
78
64
Unit: hour
110
68
Average sailing time among 5 major harbors in Asia Pacific
Our Advantage in Transportation
Source: Council for Economic Planning and Development
14
Challenge 2008 Development Plan
Cultivate Talent
for the E-generation
Cultivate Talent
for the E-generation
Increase Value-added
Production
Increase Value-added
Production
Develop a Digital
Economy
Develop a Digital
Economy
Improve the Transportation
Infrastructure
Improve the Transportation
InfrastructureConserve Water Resources
and the Ecology
Conserve Water Resources
and the EcologyConstruct New Hometown
Communities
Construct New Hometown
Communities
Develop as an
Operations Headquarters
Develop as an
Operations Headquarters
Double the Number of
Tourists Visiting Taiwan
Double the Number of
Tourists Visiting Taiwan
Develop an International
Base for R&D
Develop an International
Base for R&DDevelop the Cultural
Creativity Industry
Develop the Cultural
Creativity Industry
Challenge 2008The Six-year National
Development Plan
Cost: US$ 75 billion
Challenge 2008The Six-year National
Development Plan
Cost: US$ 75 billion
Source: Council for Economic Planning and Development
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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
Challenge 2008 Development Plan
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兩兆雙星計畫
資料來源:經濟部工業局
產業範圍 目前產值 未來產值
2000 2001 ( 2006 )
半導體 (設計 ,製造 ,封裝 ,測試 )
714.4 526.9 1,591.2
影像顯示 * 平面顯示 * LCD 顯示
186.086.0
100.0
290.0120.0170.0
1,370.0730.0640.0
數位內容 (software, electronic games, media, published music, animation, network services)
118.7 133.4 370.0
生物科技 95.6 102.8 250.0
☆ 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
單位 : 新台幣十億
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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
18
租稅獎勵 (1)
投資於自動化設備或技術
Research and Development
Manpower Training
Balancing of Urban-Rural
Industrial Development
Overseas Chinese and Foreign Investment
30% tax credit for expenditures
30% tax credit for expenditures
30% tax credit for investment in resource-poor or backward areas
Source: Industrial Development Bureau, MOEA
5--20% tax credit for expenditures
Income tax collected at a uniform rate of 20%
19
Tax Incentives (2)
Five-year tax holiday
Emerging Important Strategic Industries
Establishment of Logistics and Distribution Centers
Establishment of Operations Headquarters
Revenues exempt from tax
Income exempt from tax
Source: Industrial Development Bureau, MOEA
20
Preferential Leasing Terms for Land
in Industrial Estates
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
Industrial Land Rental Discounts Program
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]