adb aten kvm

Eugene Y.J. Chen
Chief Secretary
Bureau of Foreign Trade
November 19, 2015
1
4
Taiwan’s Economic Situation
2
Taiwan’s Unique Advantages in Global Markets
3
Trade and Economic Relationships between
Belgium and Taiwan
Potential Business Opportunities for Belgium and
Taiwan
2
1
Taiwan’s Economic
Situation
3
GDP
Unemployment Rate
US$ 529.6 billion (2014)
2.70% (2016 forecast);
1.56% (2015);
3.77% (2014)
3.89% (Sep. 2015); 4.12% (2014)
Consumer Price Index
0.28% (Sep. 2015); 1.20 % (2014)
Economic Growth Rate
FDI
Total Trade Value
Total Export Value
Total Import Value
US$ 3.31 billion (Jan.-Sep. 2015);
US$ 5.77 billion (2014);
US$ 134.4 billion (1952-2015.07)
US$ 428 billion (-13%) (Jan.-Oct. 2015)
US$ 588 billion (2.15%) (2014)
US$ 236 billion (-9.6%) (Jan.-Oct. 2015)
US$ 314 billion (2.70%) (2014)
20th largest in the world
US$ 192 billion (-16.8%) (Jan.- Oct. 2015)
US$ 274 billion (1.53%) (2014)
18th largest in the world
4
Participating in
multilateral trade
talk
Realizing trade
liberalization and
facilitation
Engaging in
regional
economic
integration
Strengthening
trade promotion
5




Top player in the world’s ICT industry as well as a
major supplier of goods across the industrial spectrum.
Excels in the fields of semiconductors, optoelectronics,
information technology, communications, and electronics.
At present, the economy is shifting toward nanotechnology, biotechnology, optoelectronics, green energy,
space science and the tourism service industry.
The service sector as a whole accounts for more than
64% of Taiwan’s GDP.
6
2
Taiwan’s Unique
Advantages in
Global Markets
7
I. International Competitiveness
1. Ranked #11 globally, #3 in Asia
Ranked #3 globally in “percentage of high-tech goods in manufactured exports”
IMD’s World Competitiveness Yearbook 2015
2. Ranked #14 globally, #4 in Asia
Ranked #2 globally in “State of cluster development”
WEF’s The Global Competitiveness Report 2014-2015
II. Ease of Doing Business
1. Ranked #19 globally, #5 in Asia
Ranked #2 globally in “Getting electricity”
World Bank’s Doing Business 2015
2. Ranked #5 globally, #2 in Asia
Business Environment Risk Intelligence’s Business Risk Reports 2015
8
III. Knowledge-Based Economic Performance Higher than OECD Countries
Ranked #1 in Asia
Double the average score in Asia and the Pacific, higher than the OECD average
Asian Development Bank’s Knowledge Economy Index 2014
IV. Economic Freedom Improved for 6 Consecutive Years
Ranked #14 globally, highest ranking in history
The Heritage Foundation and The Wall Street Journal’s 2015 Index of Economic Freedom
V. Top Entrepreneurship in Asia
Ranked #8 globally, #1 in Asia
The Global Entrepreneurship and Development Institute’s
2015 Global Entrepreneurship Index
9
10
Competitiveness of Trade Logistics
4.2
Taiwan ranked
#4 in Asia in
the
Logistics
Performance
Index
4.1
4.0
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2
2007
Overall
Customs
Logistic Competence
2010
2012
International Shipment
Infrastructure
2014
Timeliness
Tracking & Tracing
Source: Connecting to Compete 2014, Trade Logistics in the global Economy, The Logistics Performance Index and Its Indicators, World Bank
11
■ Hsinchu
 IC manufacturing
 Optical
 Bio technology
■ Taichung
 Semiconductor and
Optical
 Bio technology
 Automation
■ Changhua
 Green energy
 Surface treatments
■ Tainan
 Optical
 Automobile parts
 Mechanical automations
■ Kaohsiung
 Petrochemical
 Boat components and assemble
 Metal enhancement
 IC, Optical, Communication and Green energy
■ Nangang
 IC design
 Digital content
 Bio technology
Ranked #1 and #2 in
“State of cluster
development” in 2013
and 2014 (WEF’s Global
Competitiveness Report)
12
USPTO Patent
granted to Taiwan
in 2014
Patent
Type:
All
12,254
Patent per million
population
Patent
Type:
Utility
11,332
Ranked #5
(following US, Japan,
Korea, Germany)
Source: US Patent and Trademark Office
Patent
Type:
All
532
Patent
Type:
Utility
492
Ranked #1
Innovation Scale
Global Rank
Finland
1
Switzerland
2
Israel
3
Japan
4
United States
5
Germany
6
Sweden
7
Netherlands
8
Singapore
9
Taiwan
10
Source: The Global Competitiveness Report 2014-2015 by WEF
13
3
Trade and Economic
Relationships between
Belgium and Taiwan
14

According to the Customs’ statistics of Taiwan,
Belgium was the 7th largest trade partner of Taiwan in
the EU in 2014. Taiwan was the 8th largest trade partner
of Belgium in Asia in 2014, with trade between the two
countries totaling US$ 1.9 billion.
million USD
2,500
Total Trade
2,000
1,500
Export to Belgium
1,000
Import from
Belgium
500
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
15

Import
◦ Jan.-Oct. 2015: US$ 0.59 billion (-7.73%)
◦ 2014: US$ 0.65 billion (-13.33%)
◦ Main items: chemicals, cars and medications

Export
◦ Jan.-Oct. 2015: US$ 0.9 billion (-15%)
◦ 2014: US$ 1.2 billion (10.34%)
◦ Main items: stainless steel, bikes and screws
16

From 1952 till Sep. 2015, the accumulated investments of Belgium
into Taiwan were US$ 102 million.
◦ Main industry: chemical, car parts, power equipment, retail, finance and
insurance

Taiwan into Belgium were US$ 8.6 million.
◦ Main industry: retail, chemical material manufacturing, transportation and
warehousing, other manufacturing

In 2014, Taiwan invested a total of US$ 2.75 million in Belgium,
increasing more than five times the sum of previous two years.
2008
2009
2010
2011
2012
2013
2014
2015 1-9
1952-2015
Belgium to Taiwan
cases
1,000 US$
4
2,219
2
199
3
4,374
3
11,055
3
343
5
609
12
1,953
4
6,015
82
102,422
Taiwan to Belgium
cases
1,000 US$
0
0
0
0
0
0
0
0
1
420
1
1
1
2,747
0
0
11
8,581
17

Belgian companies with subsidiaries or branch offices
in Taiwan
◦ Barco, Dredging International, Heraeus Electro-nite, IMEC,
Option, Solvay, UCB, Umicore, Velleman Components and
Verhaert

Taiwanese companies with operating centres or subsidiaries in Belgium
◦ Evergreen (maritime transport), Yang-Ming (maritime transport), Macronix (memory semiconductor solutions), United
Taiwan Bank , ASE (advanced semiconductor engineering),
ATEN (KVM switches) and R&G equipment (horse equipment)
18


Investment relations between Taiwan and Belgium
received a boost after the bilateral "Agreement for the
Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with Respect to Taxes on Income" entered
into force on 1st January 2006.
Under the agreement individuals, companies or other
bodies of persons residing in Taiwan and/or Belgium will
be able to avoid heavy tax burdens on business profits,
profits from shipping and air transport, dividends,
interests, royalties, income derived from dependent
personal services etc.
19


Belgian or Taiwanese companies to which dividends,
interest and royalties are paid in the other country, will
only be taxed at a maximum rate of 10% in that other
country under the agreement. The normal tax rate under
Taiwanese law for dividends, interest and royalties for
companies is respectively 25% , 20% and 20%.
The double taxation agreement will bring about a
considerable tax reduction for Belgian and Taiwanese
companies and will be conducive to the development of
bilateral investment.
20


Operating in an increasingly
integrated regional supply chain,
EU investors in east Asia would
benefit from a broader network
of investment agreements in the
region.
Building on the investment provisions under negotiation with
China, the EU will explore
launching
negotiations
on
investment with Hong Kong and
Taiwan.
21
4
Potential Business
Opportunities for
Belgium and Taiwan
22
Taiwan joined EEN in May 2015, enabling closer EU-Taiwan SME cooperation
Co-Partner
Business
Cooperation
EEN Taiwan
Coordinator
Technology
Transfer
R&D and
Innovation
Co-Partner
Local-Partner
Local-Partner
23



Taiwan is projected to have the highest capital expenditure for semiconductor manufacturing worldwide in
2015, reaching US$10.5 billion.
Silicon Europe, an alliance consisting of micro and
nano-electronics clusters from Belgium (DSP Valley)
and other European countries, identified Taiwan as the
top choice for international cooperation.
We welcome European semiconductor equipment
suppliers to collaborate with Taiwanese companies.
24

Taiwan is pushing for productivity 4.0, leveraging IOT
to digitize production information and utilizing System
Management, Big Data and Lean Management.
◦ The goal is to achieve a novel business model of Internet-based
Service-Manufacturing.

Technological capability
productivity of SMEs
enhancement
to
boost
◦ Introducing Industry 4.0 and experienced experts to help
Taiwan's SMEs adopt Productivity

Partnership for global market expansion
◦ Taiwanese companies are ready to serve as partners of global
enterprises in the implementation of Industry 4.0.
25
26