Taiwan

TAIWAN Snapshot:

• Taiwan is a vibrant and sophisticated market economy with strong institutional foundation and modern infrastructure. As the 15th largest exporter and 18th largest importer in the word (WTO, 2020) Taiwan plays an important role in the global economy. In 2021 the export to GDP ratio was 54%. The main imports include energy (more than 90% is imported) and agricultural products including food (over 60% is imported), animal feed and fertilizers.
• Taiwan is the 12th most competitive market with world leader mega-corporations, strong SME sector and highly educated workforce (World Competitiveness Index, 2019, World Economic Forum).
• It is an important link in the global supply chains with companies that are in the forefront of the world’s high-tech manufacturing especially in manufacturing semiconductors.
• The national R&Đ spending is one of the highest in the world and it ranks 4th on the Innovation Capability Index (2019, World Economic Forum). As a result of the stable investment policy and research efforts Taiwan became one of the major global technology suppliers, especially in emerging technologies such as semiconductor, 5G telecommunication, Artificial Intelligence, and the Internet of Things (IoT.)
• Taiwan is centrally located offering good connection between the western word and the Asia Pacific region which can be ideal for setting up companies with interest in the regional markets.
• The EU maintains close cooperation with Taiwan especially in trade and economic areas, connectivity, innovation, digital issues, green energy and circular economy. The EU is a major investor in Taiwan with inward stock of €24 billion in 2020.
• By 2020 the biggest slice, 49% of the Taiwanese FDI to the EU went to the Netherlands while Hungary received the second largest share with 18.8%. In the same year Hungary ranked second on the top 5 destinations of registered outward investment with US$1.36 billion.
• Taiwan is strongly committed to circular economy values. In 2022 “Taiwan’s Pathway to Net-Zero Emissions in 2050” was adopted. It promotes R&D and innovation and green transition and green financing under the coordination of the Executive Yuan. The program is supported by the government with a budget of US$31.5 billion by 2030.
• The local environmental movement is active, and in general people strongly support sustainability values and prefer green products.

Why Taiwan?

• Even though Taiwan is a competitive market there are promising opportunities for European companies. Taiwan or officially Chinese Taipei - Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is a signatory to the WTO Government Procurement Act 2012. Therefore, EU companies compete on equal terms with domestic firms in government procurement tenders that fall under the agreement and meet the threshold value requirements.
• Tender notices and prior information on notices are accessible in English on the Government e-Procurement System site.
• In 2017 roughly 30% of the public projects were carried out with the participation of European providers at a value of close to NT$80 billion. The largest contracts included power stations, metro rail, port and medicine projects.
• In 2020, foreign companies secured 885 government procurement contracts with value of US$4.31 billion. The majority of procuring entities were public agencies and state-owned enterprises, hospitals, and universities. In many cases foreign companies doing business in Taiwan team up with local actors that is also encouraged by government.
• In Taiwan there are long traditions of promoting green consumption and green procurement and it has a well-established Green Mark labelling support program.
• Taiwan adopted an ambitious energy transition strategy that aims to achieve nuclear-free, sufficient and secure energy supply and reduce climate change effects. For example, by 2030 they aim to achieve 40GW solar and wind power capacity and construct new public buildings that reach class 1 energy efficiency or near zero emission. By 2050 100% of new and 85% existing buildings should reach near zero emission. The net-zero goals are similarly ambitious in transportation, industry and renewable electricity which can provide good opportunities for European businesses offering green technologies.
• Taiwan has a reputation for strong IP protection. While it is not part of the World Intellectual Property Organization (WIPO), European Patent Convention (EPC) or the Patent Cooperation Treaty (PCT) IPR is covered by bilateral agreements.
• Taiwan is determined to transform into a bilingual English - Mandarin Chinese society by 2030 where all government information and services are equally available in both languages. This will also facilitate business activities in Taiwan for European companies.