Introduction to Taiwan

Transcription

1 Introduction to Taiwan Conseillers du Commerce Extérieur de la France Section Taiwan February 2012 Section des CCEF de Taïwan

2 History of Taiwan Four centuries ago, Taiwan was home to mainly Austronesian (Malayo-Polynesian) peoples Mid-15th century, Portuguese navigators passing by the island dubbed it "Ilha Formosa," Mid- 17th century, Dutch East India Company colonized the southwest. Dutch left in Ching Dynasty Rule ( ) Ching Dynasty rule China and Taiwan over the two-plus centuries; and declared Taiwan a province of the empire in Japanese Imperial Rule ( ) Taiwan was ceded to Japan by the 1895 Treaty of Shimonoseki, which concluded the conflict known as the First Sino-Japanese War. At the end of WW2, Taiwan was ceded back and became a province of the Republic Of China (ROC) in ROC on Taiwan (1949- ) The ROC government moved to Taiwan in 1949 and the mainland became the People's Republic of China (PRC). Section des CCEF de Taïwan 2

3 Improvement in Cross-Strait relations 1949~1986 Limited contact, tensions, military conflicts 1987~1994 Thawing of relations 1987 Taiwan allow visits to mainland China 1991 Set non-governmental institution to carry dialogue (Taiwan SEF, China ARATS) 1995~2004 Hostile non-contact 1995 Missile crisis (China attempt to influence Taiwan 1996 election) 2000 ROC President Chen Shui-Bian expresses the goal of Taiwanese independence 2005~Present Resumption of high level contact 2005 Pan-Blue visits to mainland china (KMT chairman- Lien, Chen) 2008 KMT wins the Presidential and Legislative elections, reopens dialogue through semi-official organizations (SEF, ARATS) 2008 Direct flights, Taiwan allows entrance of up to 3000 China visitors per day 2009 Release restrictions on mainland Chinese investment and increased exchanges in cultural, educational, religious and sporting areas 2010 Signature of ECFA (Economic Cooperation Frame Agreement) Section des CCEF de Taïwan 3

4 Country snapshot (2011) Area : 36,000 km2, 400 km (north ~ south),145 km (east ~ west) Population : 23 million GDP Growth Rate : 4.9% in 2011f (-1.9% in 2009; 10.9% in 2010) GDP : 431 bus$ in 2010 Per Capita GDP : 20,629 US$ (France: 43,087 US$) Per Capita PPP : 35,604 US$ (France: 33,910 US$) in 2010 (IMF) Unemployment Rate : 4.4% in Jun 2011 % Inflation Unemployment Growth Source: Taiwan DGTBS, French Economic Bureau Section des CCEF de Taïwan 4

5 Taiwan : #6 Economy in Asia Indonesia 707 (18 th ) Korea 1,014 (14 th ) India 1,729 (9 th ) Japan 5,498 (3 rd ) China GDP : 5,879 billion US$ (2 nd WW) Taïwan 431 (24 th ) Thailand 319 (30 th ) Malaysia 238 (36 th ) Hong Kong 224 (38 th ) Singapore 223 (39 th ) Philippines 200 (43 rd ) Source: BM Section des CCEF de Taïwan 5

6 Economic Structure : A Stable Industrial Base Agriculture / Mining Industries Services % Source: DGBAS/MOEA Section des CCEF de Taïwan 6

7 Industry remains a growth driver 35% Growth driver in Taiwan Q1-11 vs Q1-10 Growth rate (%) 30% 25% 20% 15% 10% 5% 0% -5% Metal Automobile Textile Machinery Chemical Material Petroleum & Coal Computer/Optical Food Electronic component ,000 1,500 2,000 2,500 Industry revenues, 2011 (bnt$) Q1-11 manufacturing industry revenue: 6,309 (BNT) Electronic component (1,283 BNT) :Logic IC, DRAM, TFT-LCD, LED, PCB Computer/Optical (1,865 BNT) :Note book, desk top, cell phone, DTV, digital camera Chemical Material ( 596 BNT) :Ethylene, Propylene,EO, EG, PTA, Metal ( 379 BNT) :Slab, wire, beam, Die cast, bolt & nut Textile ( 108 BNT) :Nylon, Non-weaving textile, cloths Source: Department of Statistics, Ministry of Economic Affairs, Sep.-11 Section des CCEF de Taïwan 7

8 Taiwan Foreign Trade Machinery and Electronics equipment Metals Precision instruments Plastics and rubber Others 2010 exports reached 275 billion USD (+ 35 % vs. 2009) imports 251 billion USD (+ 44 %) Positive balance of 24 billion (- 21 %). Major Export Partners of Taiwan ASEAN-6 16% Other 16% Mainland China & HK 40% Europe 10% Japan 6% USA 12% Exports Imports Balance Source : BOFT Section des CCEF de Taïwan 8

9 Competitiveness : Taiwanese Products ranking world #1 Organization Publication Worldwide ranking Date of issue International Institute for Management Development (IMD) World Economic Forum (WEF) World Competitiveness Yearbook 6 May 2011 Global Competitiveness Report Sep 2011 Product Value (M USD) WW Share (USD %) Volume (M units) WW Share (Units %) Made in Taïwan IC by Foundries , ,8 Blank Optical Disk ,8 n/c n/c Mask Rom 279,5 52,3 n/c n/c Made by Taïwan Notebook , ,7 IC by Foundries , ,4 LCD Monitor , ,8 Motherboard , Portable Navigation Device , ,6 WLAN CPE , Golf Head 687,5 79, ,8 Mobility scooter/powered Wheelchair ,3 33,4 Section des CCEF de Taïwan 9

10 TOP 15 companies in Taiwan (2010) Section des CCEF de Taïwan 10

11 Successful High Tech Clusters Central Taiwan Southern Taiwan Northern Taiwan Hsinchu Science Park TFT-LCD, Semiconductor, PV, LED Central Taiwan Science Park, Taichung TFT-LCD, Semiconductor Southern Taiwan Science Park, Tainan TFT-LCD, Semiconductor, PV, LED As a whole, Taiwan possesses: More than 100 Industrial Zones 9 Export Processing Zones (EPZ) 3 Science Parks (North in Hsinchu, Central in Taichung, Southern in Tainan) 6 Free Trade Zones (FTZ) 5 Agricultural Biotechnology Park (ABP) 4 Environmental Science and Technology Park (ESTP) Science Parks contribution to Taiwan Economy: 16% of manufacturing industry 40% of IT industry 14% of Foreign Trade 15% of Patent 0.1% of total land of Taiwan Total Revenue from Science Parks in 2010: 2,155 BNT IC: 1,110 Photovoltaic: 844 Computer & Peripheral: 79 Communication: 38 Precision Machinery: 67 Biotechnology: 11 Others: 7 Section des CCEF de Taïwan 11

12 Taiwan s complementary role to China Mainland China s Strength: 1. Product assembly 2. Large blue collar labor force 3. Large market 4. 42% of Taiwan Exports Mainland China, a Taiwanese «hinterland» : Taiwanese companies - 23 million employees Md US$ Investment - 25 % of mainland China exports Taiwan s Strength: 1. Home to global-leading tech industries 2. Access to large talent pool: R & D, financial services 3. Business ties with China, Japan and SE Asia 4. Better IP protection than China 5. Testing ground for China in service industries 12 Section des CCEF de Taïwan 12

13 Taiwan Industrial & Intellectual Advantages World Economic Forum Global Competitiveness Report : Taiwan ranked 1 st out of 142 economies in terms of industrial cluster Taiwan ranked 1 st in terms of patents granted by population Research Excellence: Taiwan ranked 15 th for SCI Journal Publication (Science Citation Index) and 9 th for EI Journal Publication (Engineering Index) in 2010 Innovation: Taiwan ranked 6 th of Global Innovation Index (expected innovation performance) by the Economist Intelligence Unit (EIU) Taiwan ranked 9 th by the World Economic Forum Switzerland 4. Japan 7. Germany 2. Sweden 5. USA 8 Singapore 3. Finland 6. Israel 9. Taiwan Section des CCEF de Taïwan 13

14 Research & Development Expenditure Country Category Total R&D Expenditure (MUSD) (PPP) Proportion of R&D Expenditure to GDP (%) R&D Expenditure by Sector of Performance (2007) Government (%) Business Enterprises (%) South Korea, , Japan, , USA, , Germany, , (2006) 69.9 France, , (2006) 63.2 UK, , Taiwan, , Taiwan R&D expenditure is expected to reach 3% of GDP in Ranking Country No. of US Patents Granted Share of all Patents Granted (%) 1 USA 94, Japan 37, Germany 10, South Korea 9, Taiwan 7, Canada 4, England 3, France 3, Mainland China 2, Italy 1, % 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 3.47% South Korea, % Japan, % 2.54% USA, 2007 Germany, % France, 2007 Research & Development Expenditure 1.79% UK, % Taiwan, 2008 Section des CCEF de Taïwan 14

15 News about Taiwan Section des CCEF de Taïwan 15

16 Taiwan strengths and weaknesses Strengths Strong Financials ww #4 producer of electronics components and systems Improvement in cross strait relations giving access to China s huge market Weaknesses Lack of UN recognition limits political and commercial agreements Foreign trade mostly depending on China and USA Trade dependence on China may lead to political dependence Highly educated workforce and strong social unity Risk of increasing delocalization of jobs to China Competitive businesses and good business environment Lack of competitiveness of Services Very responsive companies and efficient government support Internal consumption too low Internal market still presenting significant growth opportunities High Purchasing Power Insufficient global infrastructures Financial system spread among too many actors Lack of Brands (OEM/ODM focus) Section des CCEF de Taïwan 16

17 Conseillers du Commerce Extérieur de la France Section Taiwan Section des CCEF de Taïwan