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Investment in Taiwan

 

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Taiwan: Country and Foreign Investment-

A quick overview of Taiwan - its history, geography, and business advantages

1.     Taiwan Executive Summary

Taiwan, the Republic of China (hereinafter ¡§Taiwan¡¨), is an investment-friendly country for foreign investors. Taiwan not only offers attractive taxation and incentives for new investment, but also has high-quality human resources, a transparent and well-developed regulatory system, as well as a robust industrial foundation. These factors combine to make Taiwan an excellent and competitive location for investors to establish operation centers, R&D centers, logistics centers or manufacturing plants. Furthermore, Taiwan has a liberalized commercial system with substantial purchasing power. It is an attractive market for foreign investors that wish to set up distribution channels, tourism/recreation facilities or retail stores selling a variety of products and providing customer services.

 

This Taiwan Knowledge Base is designed to provide investors with important information needed for the investment in Taiwan. This Knowledge Base looks at current investment laws and procedures, the tax system, investment incentives, the labor force, investment locations, and related basic infrastructure costs. We hope it will help investors gain a better understanding of Taiwan's investment environment and encourage them to invest in Taiwan.

 

2.     Taiwan Economy and Currency

Taiwan is located in the southeastern area of Asia, with China across the Taiwan Strait to the West, Japan and the Ryuku Islands to the North, and the Philippine Islands to the South. Taiwan is connected with Tokyo and Seoul to the North, Shanghai to the West, and Hong Kong, Singapore, and all the Association of Southeast Asian Nations (ASEAN) capitals to the South. Taiwan is an important logistics hub in Asia; it is an important bridge between Europe, the US, Japan, and the emerging markets in the Asia Pacific region, and a top destination for multinational corporations wishing to establish Asia Pacific headquarters.

 

The focus of the global economy is shifting from the West to the East, with a particular market focus on China, India, and other Asia Pacific countries. Taiwan has the distinct advantage of geographical proximity and the absence of cultural and language barriers in the Chinese market. Through Taiwan¡¦s direct cross-strait transportation to Mainland China, cross-strait economic cooperation agreements, service sector trade agreements, and other economic and trade ties, Taiwan can be considered an important gateway to the Mainland China¡¦s market for multinational corporations.

 

To accelerate Taiwan¡¦s industrial transformation and restructuring, and to develop key technological advantages, the Executive Yuan informed the MOEA that the ¡§Plan for Four Optimizations of Three Industries¡¨ and the ¡§Industrial Development Policy through 2020¡¨ will be to ¡§Innovate the Economy, Activate and Energize Taiwan¡¨ with a view to achieving three goals: ¡§Full Scale Upgrade and Specialization of Traditional Industries¡¨, ¡§Promotion of Accelerated Growth in New Industries¡¨, and the ¡§Development of Manufacturing Services and International and Technological Services¡¨. This will ultimately enhance the global competitiveness of Taiwan.